condemns report
Sinclair calls for landings royalties, big fee increase
A minimum two percent royalty on every pound of fish landed in B.C., to be collected for a fee by processing companies, is the keystone recommendation in the long-awaited Sinclair report on licence limitation.
Despite opposition to the proposal from virtually every industry organization, economist Dr. Sol Sinclair recommends adoption of the royalty to eliminate over-capitalization and to extract a resource rental from the industry.
The report, com missioned by federal fisheries minister Romeo LeBlanc, was two years in the making. It was released Feb. 12.
The two-volume, 500-page study has come under fire from every prominent industry organization, with the UFAWU condemning it as "double taxation" that "loads the burden of cost on the backs of those least able to pay."
(The text of Sinclair's conclusions, the union's reply and initial reaction from other industry groups appear on page 12.)
Sinclair's proposals in brief include:
• licensing the fishing vessel for a fee ranging from $200 to $2,000, depending on vessel length, hold capacity and horsepower;
• implementation of a catch royalty paid at the landing point to the processor, who would collect such royalties •or a fee; implementation of a catch quota in certian fisheries ;
• re-establishment of a buy-oacK prograin imanced by royalties to reduce fleet size;
• consideration of area licensing after catch royalties have had their effect;
• maintenance of company-owned fleets at the current 11 percent of the total fleet;
• imposition of a $10 licence on sport fishermen along with daily and seasonal catch limits, area closures for sport fishing and commercial fees for charter vessels;
• continuation of current A-1 licences for Indians;
• creation of a fishermen's board of review to monitor the licensing system; and improvement of current statistical research.
The UFAWU, which received a mailed copy of the report in the dying hours of its annual convention, struck a special committee to analyse the report and draft a reply.
The statement, approved by the convention Feb. 10 condemned Sinclair's major proposals as an attempt to 'revamp' his earlier 1960 proposals on the same subject.
See SINCLAIR—page 2
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Vol. 44, No. 3 Vancouver, B.C. 25 cents February 19, 1979
• Acclaimed Feb. 8 for another one-year term at the head of the United Fishermen and Allied Workers Union, secretary-treasurer George Hewison, president Jack Nichol and business agent Bill Procopatlon
Geoft Meggs photo
demonstrate the key to their success. Full report on union convention elections Is on page 5. Nichol said the union faces tough challenges, especially from Combines investigators, in 1979.
Trawler permit sparks protest
The UFAWU has urged federal fisheries minister Romeo LeBlanc to cancel a permit allowing the 1,000-ton freezer-trawler Callistratus to fish hake in Strait of Georgia.
In a telegram to the minister Feb. 15, union sec ret a ry-treasurer George Hewison said the permit had been issued in violation of an understanding that the Japanese-built vessel, operated by members of Prince Rupert Fishermen's Co-operative Association, would be used solely for experimental hake fishing in outside waters of the 200-mile zone where it would not be in competition with units of the existing trawl fleet.
On Feb. 16, the department's Vancouver office issued a statement which contended that although the Callistratus "was originally licensed to fish outside the 12-mile zone for hake, the original authorization also allowed the licence to be amended to allow the vessel 'to engage in a dir-
NOTICE
This issue of The Fisherman has been delayed and increased in size to provide comprehensive coverage of the Sinclair report and salmon expectations for 1979. The next issue will appear as scheduled March 2.
ected fishery on species not currently utilized by Canadian fishing vessels in areas not specified in this licence'."
Dick Beamish, head of ground-fish research at Nanaimo Biological Station, said if the venture proved successful "it might be possible for commercial fishermen to develop local fisheries for this species.
"Hake must be processed within four hours," Beamish said, "and that is why only a freezer-trawler is practical for this work."
Even before the new foreign-built freezer-trawler appeared in Georgia Strait, UFAWU members had expressed concern that
her entry into the industry might usher in a new wave of overcapitalization and further jeopardize job prospects in shore processing plants.
"We believe our existing trawl vessels, many of which are under-employed as it is, are fully capable of doing this work," Hewison said.
Plans for a hake fishery using local ' vessels and shore processing facilities already are going ahead in Oregon, he noted, and there is "absolutely no reason" why a vessel like the Callistratus should be permitted to function in the inshore fishery
See TRAWL — page 2
Proposal termed 'insult
UFA WU rejects first roe price offers
The Fisheries' Association first offer for roe herring minimum prices is nothing but "an insulting slap in the face," say union negotiators.
UFAWU business agent Bill Procopatlon told a herring membership meeting Feb. 16 that company offers of $440 a ton for seiners and $860 a ton gillnet were far below what actually was paid in 1978.
The packed hall applauded his announcement that the union had rejected the offer pointblank, with the warning to the association that "some of our members think our demands are too low — you'll have to do better."
The union is seeking $1,200 a ton seine and $2,000 a ton gillnet.
A third meeting was scheduled to begin as The Fisherman went to press.
Procopatlon said settlement had been reached on the single issue of packing fees, which both sides agree should remain at the 1978 level of $60 a ton.
The association had admitted "bluntly and straightly that the markets are healthy," Procopa-tion said, and conceded that Canadian currency exchange rates assure even greater profits.
But despite their proclaimed desire to settle quickly, he said, they are threatening to post
prices in spite of an agreement.
With a captive market, declining supply, lack of competition and strong sales, "the companies are in one very healthy profit picture indeed."
Procopation said the union "raised very sharply" the question of contracting-out, serving
UFAWU meeting notices on! page 2
notice on the association that the union intends to see union-caught fish transported on union packers and processed in union plants.
"We'll be pushing this point very hard," he said, "and we'll be looking to our own membership as well to make every effort to ensure this policy is carried out."
Procopation said company negotiators conceded that the union's economic analysis of the state of the industry is basically correct.
Roe has jumped at least 76 percent in value since last year, he said, and prices paid for roe herring in the San Francisco Bay
fishery this year have already hit the levels sought by the union in B.C.
The union also is seeking an increase in welfare fund payments to $4 a ton from $2.50, cration of a safety department paid for by the companies with a full-time safety director, medical plan coverage for gillnetters identical to current coverage for seine crewmen and maintenance in union agreements of clauses governing weekend closures, with provision for flexibility in emergency situations.
The meeting elected new members to the negotiating committee.