LICENSING POLICY DEBATE
!■.......
• DFO LICENSING POLICY in the herring fishery has caused more problems than it has solved.
ADDRESSING the REAL PROBLEMS
overcapitalization over capacity increased effort over crowding job loss
urbanization enforcement allocation limited entry-consultation
By John Sutcliffe
• The following is a report of the initial discussions of the UFAWU's Licence Review Committee.
FOR several years DFO stragey has been to press ahead with major licensing changes, while setting up an extraordinary process of "consultation" with selected groups of "interested" parties who stand to benefit directly from changes in fishing privileges.
Last year an internal DFO discussion paper, called Vision 2000, was leaked to the public. It proposed sweeping changes to existing fishing privileges by introducing property rights to fish resources, the main effect of which would be major fleet reductions.
In response to industry concerns about seemingly ad hoc licence changes and the leaking of the Vision 2000 agenda, DFO issued a Commercial Licensing Policy Discussion Paper (after rejecting a unanimous demand from the Commercial Fishing Industry Council for a moratorium on all licence changes).
The paper summarized existing licensing policy and identified some key licensing issues. Soon after the publication of this document, a hastily organized series of meetings was initiated by DFO in an effort to deflect mounting criticism over the irregular nature of the consultative process as well as charges of hidden agendas.
In these meetings, opposition to DFO licensing proposals was overwhelming. Concern was expressed over loss of jobs and livelihoods, increased costs of fishing, foreign ownership of quotas and the damage that
could be done to the resource itself.
In addition, many existing problems in the fishing industry were raised that were not being addressed by DFO's licensing proposals. An observer at these meetings could not escape the impression that more problems are being created than solved by DFO licensing policy.
The terms of reference for the discussion of licensing policy has been limited by DFO because the main issue the department seeks to resolve is the common property "problem." This problem is identified in a simplistic theory that has been popular among some resource economists and planners for about three decades.
It holds that in the absence of property rights to fisheries resources, fishing effort will always increase until all earnings are eliminated by the spiralling costs of a greed-driven race for fish — until there are no fish left.
Public ownership and management of the resource is ideologically distasteful to these economists and is seen as too costly.
Since the introduction of the Davis Plan in 1968, these theorists have pursued the solution to their problem through licensing policy. The consequences for fishermen have been disastrous. Fleet capacity, the costs of fishing and the intensification of fishing effort have increased dramatically. Both Vision 2000 and the federal government's environmental Green Plan now offer the final solution — private fishing rights through transferable quotas.
People in the fishing industry and many others are justifiably concerned. Similar proposals have been introduced in
other parts of the world. The effects have been quickly apparent. In New Zealand, for example, both the harvesting and processing sectors have been decimated, while the resource itself has suffered extensive damage.
The alternative to the current crisis in licensing policy in B.C. is a clear commitment to public ownership and management of the fisheries. Protection of jobs, livelihoods, coastal communities and the resource itself must be top priority.
In meeting these objectives, licensing policy must begin to directly address existing problems in the fishery. In general, B.C's fish resources are in good shape. The salmon resource in particular has recently produced harvests greater than at any period since the devastation to the Fraser stocks caused by the Hell's Gate slide.
The problem is not "too many boats chasing too few fish." Today fewer boats harvest more fish that at any time since the early years of this century.
The problems in the fishery today lie elsewhere. A first step in developing licensing policy should be to clearly identify these problems and then to begin to develop solutions.
The following are some important problems which any proposed licensing policy must address. The list is not exhaustive. There are some overlaps and some issues do not apply to all fisheries.
OVERCAPITALIZATION
The value of the fleet is estimated at about $1 billion — at least a ten-fold increase since the introduction of the Davis Plan. Almost half this amount is the cost of fishing licences. Clearly, transferable quotas
would add substantially more to the capital cost of fishing. Licence value, however, cannot simply be eliminated. It is part of every fisherman's investment in the industry and the only retirement fund for many.
The fleet has largely been rebuilt over the last twenty years. Some of this investment has been a benefit in terms of safety and creature comfort, for historically dangerous and difficult work.
However, there has also been a significant investment in redundant fishing capacity.
OVERCAPACITY AND FLEET REDUCTION
Past licensing policy has not only failed to control fishing capacity, it has produced the vastly increased fishing capacity that exists today. Most of the damage was done in the first decade of licence limitation when pyramiding of salmon licences was permitted. The most efficient section of the fleet almost doubled in size.
Licence rules also forced inactive vessels into the fishery and some large vessels which had not previously fished salmon were granted licences. The main problem of overcapacity was created in the early phases of the Davis Plan. Vessel replacement rules may be able to keep new vessel capacity within acceptable limits.
New technology is also affecting fishing capacity. Restriction on fishing gear may be able to control this problem. Anticipated changes in licensing policy have, ironically, produced the most recent surge in fishing capacity.
The issue of fleet reduction is a more complicated aspect of the problem of overcapacity. In some fisheries, such as herring, fleet reduction proposals should perhaps be considered. In the salmon fishery, however, the fleet size is probably acceptable. Recent licensing changes have produced too much capacity in certain fisheries such as prawns, where the active vessels and gear have doubled.
INTENSIFICATION OF FISHING EFFORT
In all fisheries, fishing effort has intensified dramatically. Both fisheries management and licensing policy have contributed directly to this situation. With the possible exception of the herring fishery, these are no compelling biological or economic reasons why this should be so.
The result, as fishermen attempt to deal with increased levels of risk and uncertainty in shorter and highly competitive fisheries is increased investment in new, efficient gear. Anticipation of quota fisheries has, in many fisheries, been the single greatest cause of intensification of fishing effort.
OVERCROWDING
Overcrowding in the salmon fishery is unnecessary and is the result of bad management. Fishing effort can be dispersed. Area licensing is not an acceptable solution to overcrowding.
Area licensing is more likely to increase fishing risk and reduce opportunity than solve the problem. In other fisheries such as herring, area licensing may be necessary and could increase fishing opportunities while reducing overcrowding.
JOB LOSS
Licensing policy can have major impact on jobs both ashore and afloat. These impacts meed to be carefully considered. The introduction of ITQs in the halibut fishery will result in the loss of many jobs in that fishery. A great potential loss of jobs from ITQs may come from the concentration of quotas and the possibility of foreign ownership.
URBANIZATION
Access to fishing privileges for isolated coastal communities must be maintained. Distribution of licences should not become increasingly centred in the more urban areas of the coast.
ENFORCEMENT
Enforcement is a major problem in today's fisheries. The enforcement requirements of some current licensing proposals, transferable quotas in particular, are far beyond existing capabilities.
ALLOCATION
Allocation in the salmon fishery has contributed to some stability in the three gear sections. Single gear licensing could be considered with security of access to acceptable shares of the resource.
Licensing changes can have serious allocation impacts especially with respect to by-catches of species that are the target catch in other fisheries.
NEW LIMITED ENTRY FISHERIES
Limited entry in B.C. fisheries has always produced increased fishing effort. The doubling of active prawn licences is the most recent case. At the same time, new limited entry fisheries have eroded existing fishing privileges, with the effect potentially that increased effort will result in the fishery for which the reduced privilege remains.
The impacts of limiting entry have been poorly understood or not considered at all.
CONSULTATIVE PROCESS
The consultative process has itself been a major problem and has lacked credibility. The process must be representative and accountable^ Representation must be broad enough to encompass not only those who stand to gain fishing rights but all those who will be affected by licensing decisions.
Accountability is crucial. Small committees of self-interested parties are not acceptable forms for consultation. Formal records of proceedings must be kept and be available to the public.
• John Sutcliffe is the UFAWU small boat organizer and secretary of the union's licensing review committee.
THE CRUICKSHANK INQUIRY into commercial fishing licensing, sponsored by major fishing groups on the West Coast, will begin a series of public hearings in mid-April. The inquiry will examine all aspects of licensing including: transferable quotas, Vision 2000, area licensing, single gear licensing, enforcement, fees, royalties and alternative licensing proposals.
The first hearings will focus
on the north of Vancouver Island on the following tentative dates: Port Hardy—April 22; Sointula —April 23; Alert Bay —April 24; Campbell River —April 29; Courtenay/ Comox —April 30.
Other areas will be covered in May and June. Confirmed dates and locations will appear in your local newspaper and in the next edition of the Fisherman. For more information, call the UFAWU at 255-1336.
THE FISHERMAN / MARCH 18, 1991 • 7