Northeast Fisheries
The groundfishing industry in the Northeast was in desperate shape by early
1990s. After years of overcapitalization and overfishing, groundfish stocks
(fish that dwell near the bottom of the ocean floor) had plummeted to historic
lows. To halt the decline, the Department of Commerce implemented
Amendment V to the Northeast Fishery Management Plan, in January 1994,
which was intended to reduce fishing effort by 50% over five years.
While it was hoped that Amendment V would relieve pressure on the
groundfishing resource, it was not designed to address the very serious socio-
economic problems being faced by fisherman in the Northeast who found it
increasingly difficult to make a living because of the groundfishing crisis. In
order to fill that void, the administration instituted an ambitious fisheries
emergency assistance program in the spring of 1994, which has continued to
expand up through the present. The office of Sustainable Development and
Intergovernmental Affairs (SDIA), in conjunction with NMFS, is responsible
for designing and implementing that program.
FIG - Fishing Industry Grants
Fishing Industry Grants (FIG) to assist the industry ($9 million). The
FIGs were split into two parts. The first $4.5 million went towards
providing financial assistance to meet the most pressing needs of
fisherman who required assistance in developing alternative
employment, aquaculture, underutilized species, and new business
opportunities. The second $4.5 million round of FIGs funded projects
that sought to expand the harvesting, processing, and marketing of
underexploited species, increase the value of species currently
harvested, address by-catch reduction, and create new business and
employment opportunities through aquaculture.
Funded projects include the following: development of new, more
sustainable means of harvesting sea urchins, skate, and dogfish;
creation and demonstration of low-bycatch, low-bottom impact
methods of bottom trawling; and aquaculture development.
FFAC - Fishing Family Assistance Centers
Fishing Family Assistance Centers (FFAC) in the northeast to serve as
clearinghouses for all possible assistance available from Federal and
State sources ($1 million). [The remaining $1 million of the $12
million, NOAA assistance package covered administrative costs]
The FFAC were established in six ports throughout the Northeast,
including New Bedford, Provincetown, and Gloucester, MA, Portland
and Rockland, ME, and Narragansett, RI. They served as "one-stop
shops" for fishermen in search of information on federal and state
services and assistance available to them. The initial $1 million the
DOC put up to get these centers off the ground was subsequently
augmented by support from the Federal Department of Labor as well as
various state agencies. While some of the centers have closed, a few
are still open, continuing to help local fisherman assess what help the
government can offer.
FOG - Fishing Vessel Obligation Guarantee Program
Loan guarantees under the Fisheries Obligation Guarantee (FOG)
Program to help restructure existing debt ($1 million). The $1 million
that NOAA applied to the FOG program effectively leveraged $20
million in loan guarantees for the purposes of refinancing and
restructuring mortgage debt, as well as for the retrofitting and re-
equipping of fishing vessels and shoreside facilities.
FCRDP - Fishing Capacity Reduction Demonstration Program
In the year following the announcement of the $30 million package, the
groundfish crisis in the Northeast deepened. It became clear that
Amendment V was not enough to halt the decline of the fishery, and
certainly not capable of restoring dwindling groundfish stocks. In light
of this, the question facing fisheries managers was what else should be
done to improve the situation?
Part of the answer involved the development of more restrictive
management measures. Amendment 7 was in the process of being
approved by the New England Fisheries Management Council. Another
part of the answer was provided by NOAA and, in particular, the staff
of SDIA, who believed that one of the best ways to reduce overfishing
is to reduce fishing capacity by retiring fishing vessels and permits in
the northeast. To test this concept, NOAA announced a $2 million pilot
buyout program in March 1995.
During 1995 and early 1996, SDIA along with NMFS, created and
implemented the Fishing Capacity Reduction Demonstration Project
(FCRDP). The goal of FCRDP was to demonstrate that a vessel
removal program could be successfully designed and implemented and
that such a program could be an effective tool in the conservation and
management of U.S. fisheries as well as provide economic assistance to
impacted fishermen.
The FCRDP was a voluntary program intended to target full-time
groundfish vessels. Applicants were required to submit a bid package
containing a variety of financial information which, in turn, was
plugged into a formula by NOAA grants personnel for the purposes of
scoring and ranking the bids in a systematic fashion. Successful
applicants were required to scrap and in accord with applicable
regulations, sink their vessel and turn over all associated federal fishing
permits.The FCRDP was extremely successful. The response greatly exceeded
expectations, with 114 applicants submitting bids, offering vessels
valued at over $52 million and representing 31% of the active
groundfish capacity. Of those 114 applicants, 11 vessels were
purchased with $1.89 million, and were scrapped. One of the eleven
was donated to the New England Aquarium for the purpose of
providing an interactive exhibit of 20th century fishing vessels.
