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Groundfish Report by Mike Crowe
On the heels of the resounding defeat of LD 170 by the Marine Resources Committee on March 14, a subcommittee was established to study the issues and challenges facing Maine’s groundfish industry. LD170 (An Act to Permit the Landing of Lobsters Harvested by Methods Other Than Conventional Traps) had been initiated in an effort to bring needed revenue to the ground fishermen and the Portland Fish Exchange, the last municipally operated fish exchange on the East Coast.
The sub-committee members are Co-chairs, Dana Dow (R-Lincoln) and Representative Herb Adams (D) of Portland, along with Representative Ed Mazurck, Portland; Representative Bruce McDonald of Boothbay Harbor and Representative Ken Fletcher of Winslow. The subcommittee was given two weeks to come up with long and short term plans that would provide a “bridge” of support for the industry, in order to get it through these particularly difficult times. The demands were high and the time short. LD170 had caused a rift in the fishing community. However, there were fishermen from many fisheries who came forward in the two weeks who testified about the importance of saving Maine’s groundfish industry. Upon looking into the issue, the sub-committee found that Massachusetts has long provided financial support through incentives to its groundfishing industry. Representative Adams said the committee found the Maine groundfish industry “in the teeth of the vise.” It has been facing increased federal regulations, higher costs and more competition, while, at the same time, the stocks have been declining. The program of short term recommendations that came out of the two week study include the following: 1. The state will fund half the cost of maintaining a groundfish ecologist at the Gulf of Maine Research Center. 2. Make diesel fuel for Maine based groundfish boats sales tax exempt. There are already fuel tax exemptions in place for the forestry and agriculture industries. 3. The Finance Authority of Maine (FAME) has a low cost loan insurance program, which the groundfish industry could use. It covers up to 90% of the lending institution’s loan for new loans. 3a. With in FAME the committee took a $5 million grant for a new program earmarked for the groundfish industry. It could be used to finance gear, etc. 4. Rebate for shipping Maine landed groundfish to Portland haulers at .05 cents per pound. Handling fee rebate. (Gloucester, MA trucks come to Maine to buy fish and Massachusetts pays them a transportation rebate.) 5. Maine based groundfish vessel rebates on ice from a Maine based vendor at .62 cents per ton. This package represents a total of $8.6 million dollars in appropriations the first year. The first year includes the FAME grant of $5 million dollars. Subsequent years the amount will be $4.6 million. There is a three-year sunset clause when there will be a review that will take into consideration the condition of the groundfish stocks. Regardless of the results of that review, the ecologist position will continue. Funding will be from a General Fund appropriation or bond. Long-term recommendations include: A. The committee should support the Maine delegation’s initiatives for Area Management to be presented to the National Fisheries Council in June 2007. B. More time should be spent with all stakeholders examining days-at-sea to determine the viability of this concept in Maine. C. Health Insurance. Two models were considered to provide relief for the groundfish industry. Massachusetts Fishing Partnership Health Plan and Maine’s Dirigo Health Plan. Massachusetts heavily subsidizes its state Fishing Partnership Health Plan. Fishermen pay about 60% of their own coverage. |
