NOAA BEGINS $25 MILLION BUYOUT PROGRAM FOR NORTHEAST FISHERMEN

NOAA 96-R706


Contact:  Matt Stout              FOR IMMEDIATE RELEASE
                                  8/26/96

NOAA BEGINS $25 MILLION BUYOUT PROGRAM FOR NORTHEAST FISHERMEN

Northeast fishermen adversely affected by the collapse of traditional groundfish stocks off the coast of New England can now apply for federal financial assistance through a $25 million vessel buyout program, the Commerce Department's National Oceanic and Atmospheric Administration announced today.

"We are committed to rebuilding New England groundfish stocks to ensure opportunities remain for both a sustainable resource and a sustainable economy," Commerce Secretary Mickey Kantor said. "This administration is resolute on the economic recovery of this vital region, and this program is an integral part of that effort."

In June 1995, a pilot buyout program was established to test the effectiveness of vessel removal as a tool in the conservation and management of U.S. marine fisheries. The program was funded for $2 million; 114 vessel owners applied (with a total value of bids of $52 million). Out of those applications, 11 grants were awarded.

In August 1995, the Commerce Department launched the Fishing Capacity Reduction Initiative (FCRI), which committed $25 million for a more comprehensive vessel buyout program for New England groundfish fishermen. This expanded program is based on the results of the pilot program and recent Congressional actions that removed a $100,000 limit on financial assistance to fishermen.

"The buyout program has been successful in part because fishermen helped design it," said John Bullard, director of NOAA's Office of Sustainable Development. "The expanded program maintains the fundamental features of the pilot. It is voluntary, and bids are set by the owner and evaluated in the competition of the marketplace."

The Fishing Capacity Reduction Initiative is similar to the pilot program with several modifications based on input from the pilot program. The chief difference is that the pilot program required mandatory scrapping or sinking of participating vessels, while the FCRI offers six potential functions for reuse that include research, training, education, humanitarian, safety or law enforcement. The boats can be transferred to either a U.S. public entity, a U.S. nonprofit organization, or a foreign national government. Before transfer, the vessel's Coast Guard document must have a permanent restriction prohibiting that vessel from ever holding a fishery endorsement. After the vessel is transferred, it must be scrapped when it no longer serves the purpose for which it was transferred.

The FCRI also differs from the pilot program in the following respects:

Vessels with permit sanctions that restrict their ability to fish, or those with a notice of pending sanctions are not eligible to participate in the program;
vessel owners must resolve all state and federal fishery enforcement charges and penalties before grant funds will be disbursed;
any fishing corporation or fisherman who receives more than $2 million in net annual revenues from commercial fishing is not eligible to participate, nor are members of the New England Fishery Management Council;
all permit categories are eligible to participate in the program.

"Permanent removal of these groundfish fishing vessels represents a crucial component of a comprehensive program of economic assistance to the fishermen and conservation of this critical fishery resource," said Rolland Schmitten, director of NOAA's National Marine Fisheries Service. "This program is aimed at aiding, on a sustainable basis, an ailing fishing industry and the local economies, fishermen and families dependent on that industry."

To further assist interested buyers or sellers, the Office of Sustainable Development will be establishing a World Wide Web site to help interested parties communicate with one another on potential reuse strategies.