A FRAMEWORK FOR COMMERCIAL LICENSING 95 



Table 8-1 Proposed fees and royalties for vessel 

 licences and quotas 



annual commercial fishing vessel licence 



(all fisheries) $50 



salmon royalties 



Chinook, coho and sockeye lOC per pound 



pink and chum salmon and steelhead trout 5C per pound 



roe-hemng royalties $50 per ton 



royalties for quota fisheries 



halibut IOC per pound 



sablefish $250 per ton' 



food and bail herring $ 50 per ton 



rockfish $ 30 per ton 



hake, pollock and dogfi.sh $ 10 per ton 



other groundfish $ 1 5 per ton 



shrimp IOC per pound 



prawns 20c per pound 



crabs IOC per pound 



herring spawn-on-kelp 80C per pound 



abalone 25c per pound 



geoducks 5C per pound 



tuna 5C per pound 



other species variable'' 



" Based on dressed weight. 



'' Royalties should be approximately 10 percent of the landed value. 



The rates have been expressed in dollars rather than as 

 a percentage of the landed value as recommended by 

 some. The reasons for this include simplicity, consistency 

 and enforceability. (The price of fish varies during the 

 season and is .sometimes embodied in post-season bonus 

 payments and other considerations that do not provide a 

 consistent basis for a percentage levy. Specific rates elimi- 

 nate opportunities to evade the charges through such 

 arrangements.) But most importantly, it ensures that the 

 minimum charge for a particular category of fish is the 

 same for everyone. A fisherman who dresses his fish and 

 handles them well often receives a considerably higher 

 price than others landing the same kind of fish. A royalty 

 in the form of a percentage of the landed value would 

 discriminate against the former, who generates the high- 

 est value from the resources he uses. 



The indicated rates are the same as those I proposed in 

 my Preliminary Report for salmon, steelhead, halibut 

 and abalone. They are meant to apply in the first year 

 only; the long-term policy should be to adjust them as 

 conditions change. However, those who compete for 

 long-term licences must be reasonably assured about how 

 much the royalties will be. I therefore propose: 



31. The long-term policy should be to maintain royalt> 

 rates between 5 and 10 percent of the gross value of 

 the landed fish, and at least one year's notice should 

 be given for any changes. 



The year's notice is the minimum reasonable forewarn- 

 ing of changes in these levies. 



Royalties will add to the administrative burden of the 

 Department but they will also produce significant reve- 



nue. The main new requirement will be more accurate 

 statistical information on landings than is now available 

 from fish sales slips. These data are required for manage- 

 ment purposes as well, as I describe in Chapter 4. Certain 

 changes to the Fisheries Act will be required to supple- 

 ment the existing provisions for reporting landings; I 

 understand that these have been formulated for delibera- 

 tion by Parliament for some time. 



The Government of British Columbia has taken steps 

 to strengthen its regulatory control and information on 

 related matters. A recent policy statement pledges the 

 Minister of Environment to undertake these responsibili- 

 ties: 



Development of an improved Licensing, 

 Administration, Ins]5ection Enforcement 

 capability, coupled with a new fx)licy analysis 

 and development role for the Marine 

 Resources Branch, will provide for an 

 effective monitoring role and the ability to 

 influence federal policy direction.'' 



Statistical reporting systems for purposes of royalty 

 administration should therefore be developed in close 

 liaison with the provincial authorities. 



In normal circumstances the opportunities for evasion 

 will be minimized by the fact that royalties will be based 

 on landings receipts, a copy of which is provided to each 

 fisherman and forms the basis of payment for his catch. 

 In some cases, however, commercial fishermen sell fish 

 directly to consumers or restaurants, and this should be 

 provided for. The legislative amendments should make 

 the fisherman responsible for remitting the royalties in 

 such cases. This is consistent with the Province of British 

 Columbia's intent that "fishermen who sell directly to the 

 consumer will be required to have a buyer's licence and 

 to accurately record and report all sales."^ 



Under quota licences, royalties will be payable inde- 

 pendently of actual catches, so the administrative burden 

 of assessing them will be much lighter than under 

 restricted-entry licences. In these fisheries, accurate 

 reporting of landings will be required to ensure that quo- 

 tas are not exceeded. 



Licence Fees 



At present, fees payable range from no charge for a 

 food-herring permit to $2,000 for a roe-herring seine 

 licence. In the salmon fishery, fees range from $20 for an 

 Indian licence to $800 for an ordinars' licence for a large 

 seiner (see Table 7-1). In addition to these individual spe- 

 cies fees, all vessels are required to validate commercial 

 fishing vessel (CFV) plates at a cost of $10 annually. 



I have concluded that the commercial licence fees 

 should be restructured, with uniform annual fees for all 



