Fishery

The Province's fishing industry continues to deal with the challenges marked by five years of groundfish closures. Some participants have focussed their efforts on mainstays like crab and other shellfish while others have pursued species not previously thought to be marketable or present in commercially viable numbers. This approach of seeking out alternative sources of raw material has allowed some processors to continue operating.

Many fishery workers impacted by groundfish closures continue to qualify for and receive income support through The Atlantic Groundfish Strategy (TAGS), however, a significant number of industry participants also continue to find employment both inside and outside the fishery. Measures have also been taken by government, and more are being contemplated, to address overcapacity in the industry and to create an environment suitable for long-term sustainable growth.

Industry Performance

Several fisheries were responsible for the overall growth in landings last year. The return of capelin for the first time since 1993 led to landings of over 32,000 tonnes. Higher turbot and redfish catches provided a boost to groundfish landings and production. Shellfish continued to lead the industry as crab landings totalled 37,500 tonnes, the highest ever, and strong showings were recorded for the shrimp, clam and scallop fisheries. A drop in crab prices to fishers last year, however, led to the decline in the total value of landings. Improved market conditions for turbot, redfish, capelin, shrimp and scallop products, offset declines in crab, and resulted in the overall export value of seafood products reaching $532 million last year, up slightly more than five percent over 1995 levels. A successful seal harvest last year also contributed to this increase with an estimated production value of $20 million.

Aquaculture

The Provincial aquaculture industry continued to exhibit growth last year as the number of aquaculture licences issued increased to 210 from 158 in 1995. Production grew by about 17 percent to 1,500 tonnes, with an associated value of $8-9 million, comprised mainly of steelhead trout, salmon and mussels. Considerable growth potential exists in the Province's aquaculture industry. The Canada/Newfoundland Agreement on Economic Renewal will provide substantial resources ($20 million) and support for the continued development of the industry. To date, 24 projects have been approved valued at close to $3 million.

TAGS Update

Program parameters for TAGS were changed during 1996 to allow the program to stay within the $1.9 billion budget. Larger than anticipated numbers of fishery workers accepted into the program initially generated a budget shortfall. Originally targeted to end May 1999, TAGS has now been revised with the probability of the program terminating in the second half of 1998. The licence and early retirement programs under TAGS are near completion. The Department of Fisheries and Oceans (DFO) retired 385 licences in the Province at a cost of $45.3 million. The early retirement program accepted 812 fishers and plant workers with an expected cost of $19 million.

Outlook

The Province's fishery is well positioned to reap the rewards of ongoing industry diversification efforts. Volume and value of fish landings are set to exceed last year's levels given the strong resource base for shrimp, crab, capelin, and seals. It is expected that 1997 will mark the commencement of a limited commercial test cod fishery on the south and west coasts of the Island, areas in which many people still rely on TAGS for a major source of their income. Other groundfish fisheries such as redfish and turbot are also expected to increase. Continued developmental efforts into such species as sea urchin, shrimp and other species of crab will foster further expansion of the industry. Restructuring measures within the processing sector, combined with improved resource management practices, will provide a framework for a more efficient and stable industry in the future.

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