much lower wage payments. The annual net 

 earnings of Canadian trawler fishermen are 

 substantially below those in the New Eng- 

 land area. Newfoundland trawler fishermen 

 earned approximately $2,300 in 1956 and 

 $2,100 in 1957. Many trawler fishermen 

 earned less. Annual net earnings on New- 

 foundland trawlers ranged from a low of 

 ;31,900 to a high of $3,000 in 1956, and 

 from a, 600 to $2,600 in 1957. Nova Sco- 

 tian trawler fishermen earned approximately 

 $3,500 in 1956, and $2,500 in 1957; fisher- 

 men earnings of individual travders ranged 

 from $2,200 to $la,300 in both 1956 and 1957, 

 (tables n-S and VI-6). 



In sharp contrast, Boston trawler 

 fishermen earned .^,100 in 1956 and $5,200 

 in 1957 on trawlers larger than 200 gross- 

 tons. On 150-199 gross-tons trawlers, fish- 

 ermen earned approximately $li,000 in 1956 

 and 1957. The range in Boston trawler 

 fishermen earnings for both 1956 and 1957 

 was $2,000 to more than $9,000, The aver- 

 age earnings of large-trawler crewmen in 

 Gloucester and Maine ports were also above 

 crewmen earnings of Canadian large trawlers. 

 Large- trawler average earnings in Glouces- 

 ter were $1^,900 per man in 1956 and $li,300 

 in 1957j in Maine they were .1!:3,lO0 in 1956 

 and $ii,000 in 1957, (tables VI-5 and VI-6). 



3. Vessel Expenditures 



a. Gear, Repair and Maintenance 



Although unit costs of geai-, repair, 

 maintenance, insurance, and other vessel 

 expenditiu-es of the Canadian trawler are 

 significantly lower than that of the New 

 England trawler due to superior produc- 

 tivity, the actual dollar outlay of the 

 Canadian trawler for these items is not 

 necessarily lower than that of New England 

 trawlers, (tables VI-7, VI-7a, and VI-7b). 

 In fact, total vessel expenditures of the 

 Canadian trawler are generally on a par 

 with total vessel expenditures of the New 

 England travrler, which again indicates that 

 the major advantages of the Canadian trawl- 

 er operator lie in the area of appreciably 

 higher landings and much lower trip ex- 

 penditures, including wage payments. 



It is difficult to conclude that the 

 Canadian trawlers benefit from cost savings 

 resulting from lower dollar outlays for 

 gear, repair, and maintenance in view of 

 the lack of any large differential in the 

 expenditures for these items between the 

 Canadian vessel and similar sized New 

 England trawlers. Gear, repair, and 

 maintenance expenditures of Canadian 

 trawlers of 150-199 gross tons were, in 

 fact, higher than similar sized New Eng- 

 land vessels in both 1956 and 1957, (ta- 

 bles VI-7a and VI-7b) . 



The activity and landings of the 

 Canadian trawlers perhaps indicate that 

 Canadian vessels are much more suscepti- 

 ble to wear and tear. Canadian vessels 

 are subject to rather rigid annual in- 

 spections by the Canadian Steamship In- 

 spectors. There are, then, upward influ- 

 ences on gear, repair, ajid maiintenance 

 expenditTH*e8 of Canadian trawlers which 

 are not present on New England trawlers 

 due to their relative inactivity, lower 

 landings, and the absence of any rigid 

 inspection. 



New England trawlers may actually be 

 underspending, particularly on repair and 

 maintenance, due to the lack of any rigid 

 inspection system. This conclusion has 

 been reached by many Canadian buyers of 

 New England trawlers who contend that 

 extensive repairs are necessary on these 

 vessels before they conform to the accept- 

 ance standards of the C.S.I. Many local 

 insurers of New England vessels also feel 

 that New England trawlers are undermain- 

 tained and lack proper safety equipment. 



The economies of scale available to 

 the large integrated operation throxjgh 

 concentrated buying power, ability to 

 carry large inventories and maintain its 

 own repair crews, perhaps counteracts the 

 upward influence of activity and inspec- 

 tion on maintenance expenditures. I^ey 

 also partially e?q)lain vtiy repair and 

 maintenance expenditures of the Canadian 

 vessel are not substantially higher than 

 those expenditures on New Bigland trawlers 

 which are relatively inactive and which 



78 



