Contact: Matt Stout FOR IMMEDIATE RELEASE
4/18/97
The federal government will begin issuing three grants today under a Northeast vessel buyout program, the Commerce Department's National Oceanic and Atmospheric Administration announced today. The program is designed to provide economic assistance to fishermen adversely affected by the collapse of the groundfish fishery, while helping fish stocks recover to a sustainable level.
"These three vessels represent the beginning of phase two of this important program that is designed to rebuild New England groundfish stocks and ensure opportunities remain for both a sustainable resource and a sustainable economy," said John K. Bullard, director of NOAA's Office of Sustainable Development. "The Administration is resolute on the economic recovery of this vital region, and the program is an integral part of that effort."
The first two closings will take place in New Bedford, Mass., at the Wharfinger Building at 10:30 a.m. on April 18, 1997. John Bullard will present the grant proceeds to:
Lady Laura Fishing Corp.
owner of the F/V Lady Laura
Home port New Bedford, Mass.
67.3' steel trawler built in 1967 and;
Chris-Stam, Inc.
owner of the F/V Mantoudi
Home port Boston
77' steel trawler built in 1979
A second closing event will be held in Portland, Maine, on April 21, 1997, at 10:00 a.m. in the Marine Trade Center (second floor conference room). Mr. Bullard will present the grant proceeds to:
Fairtry, Inc.
owner of the Fairtry
Home port Portland, Maine
76.8' steel trawler built in 1985
The successful grantees were selected from a total of 164 applicants. A total of 75 grants will be awarded as part of the $23 million program.
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 1996, the Commerce Department launched the Fishing Capacity Reduction Initiative (FCRI), which committed $23 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 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.
"Removing these vessels permanently is a very important part of the government's program to assist fishermen in getting out of the industry, and it will also help conserve this critical fishery resource," said Rolland Schmitten, director of NOAA's National Marine Fisheries Service. "The program is aimed at aiding, on a sustainable basis, an ailing fishing industry and the local economies, fishermen and families dependent on that industry."
Note to Editors: Information on the Fishing Capacity Reduction Program can be found on the Internet at: url www.noaa.gov/public-affairs/opca3.html