groups of specialized fisheries, each 

 heavily dependent on the abvindance of a 

 particular species. 



(3) The Canadian subsidy program di- 

 rectly benefits only the small trawler 

 operators and not the large integrated 

 firms which are the chief competitors 

 of the New iingland industry. These 

 firms benefit from the subsidy only to 

 the extent that it enables them to buy 

 the catch of the subsidized vessels and 

 thus avoid incurring the overhead costs 

 of large trawlers which they might add 

 to their own fleets. 



(It) Foreign competition is an impor- 

 tant source of the problems of the New 

 England groundfish industry. Neverthe- 

 less, the industry's lack of ability to 

 adjust to diminished but relatively 

 stable resources is also important. 



(5) To the extent practicable, the New 

 England fleet should seek to diversify 

 its catch and lessen trhe dangers of de- 

 pendence on one species. Whether and 

 how this diversification could be ac- 

 cODq)lished will depend on a number of 



biological and economic factors. Its 

 worth, however, has been demonstrated 

 by the ocean perch and whiting fisher- 

 ies in helping the port of Gloucester. 



(6) The Boston trawler fleet includes a 

 number of marginal boats engaged in un- 

 economic overfishing. Because of the 

 limited resources which the Boston fleet 

 can now effectively harvest, these ves- 

 sels will be eliminated by the process 

 of attrition which has been taking place 

 since 19W. Thus, contraction rather 

 than expansion is postulated for the 

 Boston trawler fleet. 



(7) Not only contraction, but also con - 

 centration is postulated for the Boston 

 industry; i.e., the Boston fleet may 

 eventvially be characterized by a small 

 number of operators, each owning many 

 boats. In any event, only in this way 

 can the economies of scale necessary to 

 efficient operation in this high-cost 

 industry be accon^jlished. 



(8) The ocean perch fleet in Gloucester 

 and Maine also faces contraction be- 

 cause of the decline in productivity on 

 the more distant ocean perch grounds. 



92 



