2. Fleet Background 



3. Modernization Programs 



In 1992, the Canadian fishing fleet included 550 

 vessels registering over 100-GRT with a gross 

 tonnage of 186,333-GRT.Most of these, 375 vessels, 

 were in the "medium" range (e.g, 100-GRT to 499- 

 GRT) and 175 vessels were classified as over 500 

 tons.' None of these vessels operated beyond 

 Canada's 200-mile EEZ. The vast majority of 

 Canadian fishing vessels are skipper-owned inshore 

 day vessels less than 35 meters in length and under 

 25-GRT. These commercial vessels typically restrict 

 their fishing to coastal areas off Greenland and 

 Labrador, as well as in the North Atlantic. These 

 inshore vessels provide fish to processing plants 

 located throughout the four Atlantic provinces of 

 New Brunswick, Nova Scotia, Prince Edward Island, 

 and Newfoundland. Vessels based in British 

 Columbia, on the Canadian Pacific coast, rarely 

 venture beyond Canadian waters in the Gulf of 

 Alaska. 



Canada introduced several factory freezer 

 trawlers into its fleet during the late 1980's. This 

 introduction caused a great deal of acrimonious 

 debate between the federal and Newfoundland 

 governments. Newfoundland Premier Brian 

 Peckford warned that use of factory freezer trawlers 

 would increase the northern cod harvest, hastening 

 depletion of the stock and destroying jobs in 

 onshore processing plants.^ Provincial Fisheries 

 Minister Tom Rideout also argued that fish frozen 

 at sea was of an inferior quality to that purchased 

 on land.' Fishing companies retorted that only 

 factory freezer trawlers could produce large catches 

 in quantities that would make exporting feasible. 

 National Sea Products purchased the 75-meter Cape 

 North from West Germany in 1986 for $6.5 million, 

 which became its first freezer trawler. The Cape 

 North makes two-month tours in the North Atlantic 

 with crews of 60." 



In 1986, the "Pearse Report" on the Canadian 

 fleet concluded that too many vessels remained in 

 Canadian waters given the stocks available. The 

 report led primarily to a reduction in the Pacific 

 fleet (based in British Columbia) from 6,000vessels 

 in 1984 to 4,400 in 1986.' Since 1983, the 

 Department of Fisheries and Oceans has attempted 

 'o reduce the Atlantic purse seine fleet.' 



The Government of Canada bases its vessel 

 replacement rules upon the overall measurement of 

 vessel capacity in order to allow vessel owners 

 greater replacement flexibility. Where fishing 

 capacity exceeds available groundfish resources 

 (largely anywhere in Canadian waters) vessel 

 replacement rules are aimed at maintaining vessel 

 and fleet capacity at existing levels, preventing 

 further build-up of excess harvesting capacity. 

 Vessels may be replaced with new ones of equal or 

 smaller capacity.' While the Department of 

 Fisheries and Oceans (DFO) regulates the entry of 

 new vessels into the Canadian fishing fleet, it does 

 not offer subsidies for vessel construction. The 

 most significant fleet subsidy is the Fishing Vessel 

 Insurance Program (FVIP), which provides below- 

 market cost insurance coverage and benefits for all 

 eligible Canadian fishing vessels, while maintaining 

 full cost recovery on operations. During 1991-92, 

 the Plan provided about $200 million in coverage to 

 over 6,200vessels.* 



4. Decommissioning Programs 



The Government introduced the Northern Cod 

 Income Replacement Program in February, 1993. 

 The program attempted to move away from transfer 

 payments to unemployed fishery workers toward 

 voluntary retirement and retraining. The Northern 

 Cod Early Retirement Program encouraged cod 

 fishermen and plant workers aged 55 to 64 to accept 

 early retirement, which included the 

 decommissioning of skipper-owned vessels. A 

 special federal pension would apply to workers until 

 they turned 65, when they could collect from the 

 Canada Pension Plan. Fishermen under 55 had the 

 option of surrendering their groundfish licenses to 

 DFO for a lump-sum payment averaging $39,000. 

 Younger fishermen and plant workers could enroll 

 in federally sponsored retraining programs for non- 

 fishing industries, or more intensive skills training 

 for those intending to remain in fishing. 



5. Shipyards 



Canadian shipyards produce mainly inshore 

 vessels for individual fishermen. Few high-seas 

 vessels are built in Canada. Much of the business 

 that Canadian shipyards receive comes from DFO 

 contracts to build patrol vessels. 



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