Contact: Scott Smullen FOR IMMEDIATE RELEASE
Matt Stout 2/16/96
Eleven New England fishermen were awarded grants today by the Commerce Department's National Oceanic and Atmospheric Administration in return for scrapping their vessels and surrendering their fishing permits, the Commerce Department agency announced today. These grants, aimed at reducing fishing capacity in the groundfish fishery, are part of NOAAžs $2 million pilot buyout program for New England.
"This is a first step towards making the New England groundfish fishery sustainable. When combined with the upcoming $25 million long-term buyout program and the management actions currently under review, the Clinton Administration is adopting a truly innovative approach in addressing the collapse of traditional groundfish stocks that have widespread economic effects upon fishing communities, fishermen and their families," said Douglas K. Hall, Commerce's assistant secretary for oceans and atmosphere.
The pilot buyout program -- designed with the help of the fishing industry -- was established in June 1995 as a test program to demonstrate that a vessel removal program could be used as an effective tool in the conservation and management of U.S. marine fisheries.
The program was funded for only $2 million, but 114 vessel owners applied. For about $52 million, these 114 applicants offered to scrap vessels and surrender permits that would have eliminated over 31 percent of all groundfish capacity.
The 11 grant recipients, award amounts, their homeport and state, and vessel names are: (1) Leveille Enterprises, Inc., $50,000, Gloucester, Mass., Vicki L; (2) East End Fisheries, Inc., $90,000, Boston, Mystic Light; (3) Max G. Gunn, $83,000, Portsmouth, N.H., Portsmouth Trust (4) Stuart Wayne Tolley, $80,000, Chatham, Mass., Lone Wolf; (5) Kavanagh Fisheries, Inc., $305,000, New Bedford, Mass., Susie K; (6) Naomi Bruce, Inc., $52,000, Gloucester, Mass., Naomi Bruce III; (7) Donald H. Lowe, Jr., $190,000, Gloucester, Mass., Anne Rowe; (8) SPR Fishing Corp., $175,000, New Bedford, Mass., S Pedro; (9) Leiland Stevens, $180,000, Portsmouth, N.H., My Three Sons; (10) S.S.N. Corporation/Sebastian Noto, $400,000, Gloucester, Mass., Teresa Marie; (11) Manuel J. Marquinhos, $285,000, New Bedford, Mass., Pria Da Torreira.
The 11 grant awards will require $1.89 million of the demonstration funds. The remaining $110,000 will be held under the program for future use in buyout operations.
"This demonstration buyout sets the stage for the larger buyout program. It exemplifies the agency's commitment to rebuild depleted stocks of groundfish while complementing the New England Fishery Management Council's groundfish rebuilding plan known as Amendment 7," said Rollie Schmitten, director of NOAA's National Marine Fisheries Service.
"Overall, we're pleased with the success of this demonstration buyout program. In the next few months, we will develop and implement a larger, $25 million program. During the past several months, we've worked closely with the fishing industry, the New England Fishery Management Council and Congressional staffs. Together we have identified some minor eligibility changes that we will incorporate into the larger program," said John Bullard, director of NOAA's Office of Sustainable Development.
"It is important that Congress act quickly to give us the flexibility to operate the larger buyout program. We were allowed to award these grants under a special provision for the pilot program, but the larger buyout will require lifting the current $100,000 cap on buyout awards," Bullard said.
The pilot buyout grant recipients were chosen by a scoring formula developed with input from the fishing industry that selected offers from vessel owners with the least scrapping cost-per-dollar of previous groundfish production. Before awarding the grants, NOAA verified the information contained in each fisherman's application and approved the owner's proposed vessel scrapping plan. Fishermen have agreed to immediately surrender their fishing permits and promptly scrap their vessels.
In August 1995, Commerce Secretary Ronald H. Brown committed $25 million for a comprehensive vessel buyout program for New England groundfish fishermen. This program will be based on the results of the pilot program and implemented once long-term management measures for the fishery are in place. The Department is seeking minor legislative changes to the Interjurisdictional Fisheries Act to ensure timely and effective implementation of the buyout program.