In the Wednesday Globe, Derek Butler, executive director of the Association of Seafood Producers of Newfoundland and Labrador, offers some frank insights into the state of the province's fishery and on the way ahead.
The fishery remains of great value. Newfoundland & Labrador‘s industry represents 25 per cent of landed value of seafood in Canada. The country's seafood exports totaled $4.1-billion, of which Newfoundland & Labrador's share was $798.2-million. Heady figures indeed. So where's the problem?
After the collapse of the ground fish and pelagics fisheries, programs were implemented to reduce the number of participants in the industry, to make it more viable for those remaining. Yet we have not done that. For too many years now we have struggled to qualify workers (those in the know will heave a collective sigh) and dissipate the wealth in the industry. Our intentions were good. Keep people working and share the wealth, but to such a degree, that few people could truly make a go of it.
The reason we are having a crisis is because we are expecting the fishery to carry 30-plus crab plants, and a dozen or more shrimp plants, and tens of dozens of ground fish and pelagics plants. We must break the cycle of false hope by adopting a rationalization program and putting in place funding to help those affected. At some point, government and the people in affected communities must be protected from the delusion that 10 weeks' work is enough.
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Industry – harvesters and processors – both know that we must adapt to face the new realities of a more competitive China, higher fuel prices and the stronger dollar. Instead, we have gone about things as of old, and expected a different result. That's, as the saying goes, the definition of insanity. That challenge includes requiring a fresh look at the price setting mechanisms in the industry, unique in the world (Joey Smallwood's last piece of legislation in 1972). We have a collective bargaining structure for what is essentially a business to business relationship. We negotiate minimum prices around a table, and then go out on wharves around the province to conduct a second set of ‘free-market' negotiations and auctioneering precisely because the prices negotiated formally are minimums, and the overcapacity leads to irrational economics. This renders the collective bargaining process obviously redundant.
Are there bright spots out there? Yes, if one takes hope from the government-led renewal initiative last year (though of merit, it was not all industry had hoped for). The resource remains strong, and the industry is tackling new challenges like eco-labeling with the pending Marine Stewardship Council certification for northern shrimp, showing our coldwater shrimp comes from a sustainable, well-managed fishery.
But the same can't be said for the economic viability of the industry itself, in either harvesting or processing. It may be that the challenges of industry renewal are truly intractable political problems. Fair enough, but if it's confession time, no one is on their knees - except in terms of the economics.
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