A RECOMMENDED PROGRAM FOR GEAR REDUCTION 119 



A voluntary buy-back plan has a number of distinct ad- 

 vantages. By offering an opportunity for some vessel owners 

 to disinvest on a voluntary basis, it would provide some tan- 

 gible evidence of the effect of gear reduction without imposing 

 hardship on any individual vessel owner. There would un- 

 doubtedly be a persistent tendency to retire less efficient units. 

 It must be pointed out, that as vessels and licenses are retired, 

 the value of the remaining licenses will increase since the 

 earning power of individual vessels remaining in the fleet will 

 increase. This could be offset, however, by an increase in 

 license fees as returns to the fishery improve. 



4. It is suggested that these licenses be made renewable in order 

 to permit the licensee to invest in the necessary boat and gear 

 with reasonable assurance of continued operation. It would 

 also be essential, to insure flexibility and to provide some 

 pressure to keep the most efficient fishermen in the industry, 

 that licenses be transferable. The prices bid and asked for 

 licenses would also provide a continuing check on the eco- 

 nomic condition of the fishery. For purposes of statistical 

 control, and perhaps to exercise some control over flagrant 

 violators of regulations, all license transfers should be handled 

 through the Department of Fisheries. 



5. It is suggested that initially the licenses be issued for specified 

 types of gear — purse seine, gill net, reef net, etc. It would not 

 be wise, however, to freeze the situation permanently. The 

 gear reduction program itself and technological developments 

 may make it desirable to shift the proportions of the various 

 types of gear. One effective way to accomplish this would be 

 to permit substitution of one type of gear for another on a 

 basis of productivity — i.e., a purse seine license could be 

 acquired by relinquishing a specified number of gill net and/or 

 reef net licenses. It is also possible that the same technique 

 could be used to achieve a gradual shift to improved types 

 of gear without increasing the over-all fishing capacity of 

 the industry. Use of a much more efficient type of gear would 

 be permitted only with a reduction of a sufficient number of 

 licenses for standard gear to leave fishing capacity unchanged. 

 If the licenses are freely bought and sold, this would permit 

 the introduction of improved types of gear whenever it was 



