no RATI<WAll/IN(i niF SALMON AND ROI Ml RRINC MSHIRII.S 



reduction. I cannot eniphasi/.c tix) strongly that, m pres- 

 ent economic circumstances, this is not a IcaMble combi- 

 nation. While I have emphasi/.ed the desiiabihty ol pro- 

 ceeding with royalties without further delay, I cannot 

 support the government in imposing additional levies on 

 the (ishing industry until and unless the excess tket is 

 reduced to improve the returns to fishing or until other 

 events improve the financial circumstances of the indus- 

 try so it can afibrd to pay them. Ilius, the tailure of the 

 government to meet its commitment to introduce royal- 

 ties this year is fortuitous in view of its hesitation in tak- 

 ing steps to reduce the excessive number of fishing 

 licences it has issued. 



Adjusting to a Reduced Fleet 



As I have explained, the most urgent task is to reduce 

 the excessive number of licences authoiizing fishing in 

 these two major fisheries. Moreover, to minimize uncer- 

 tainties faced by fisheimen and vesselowners, and to give 

 clear direction to the process, explicit targets should be 

 set for a defined period. I therefore propose a program to 

 reduce the two fleets by half of their present licensed 

 capacity over the next decade. 



13. A target fleet should be defined as the objective for 

 fleet adjustment by the end of a 10-year transitional 

 period ending December 1992. The target should be 

 50 percent of the present capacity licensed to fish in 

 each of the two fisheries, and the same proportion of 

 each major gear sector. For the herring fishery, and 

 after 1986 for the salmon fishery, the target should 

 apply separately to each licensing zone. 



That is, by the end of the transitional period, the 

 capacity of each of the five gear sectors (salmon troll, 

 gillnet and seine; and roe-herring gillnet and seine) 

 should be half its present licensed capacity. For this pur- 

 pose, capacity should be defined in terms of vessel ton- 

 nage, using the established length-to-tonnage conversion 

 table where necessary, except in the roe-herring gillnet 

 sector, which should be dealt with simply in terms of 

 licence numbers. 



14. In 1983 and in each of the following 9 years, the 

 Department should allocate by competitive bids new 

 10-year licences amounting to one-tenth of the target 

 fleet in each of the 5 categories and, where area licens- 

 ing applies, by zones. The term of each licence would 

 begin in the year following the bidding for it. 



Bidding one year in advance of the licences' effective 

 date will allow more orderly forward planning on the part 

 of fishermen and vesselowners competing for licences. 

 Bidding procedures to be used are described in detail in 

 Chapter 8. Through these means, by 1993 the target fleet 

 will be fully licensed under 10-year licences, with expiry 

 dates evenly distributed over 10 years. The licences of 



those who have not replaced them with new licences by 

 that lime should expire at the end of their term. 



During the transitional period, I propose that only 

 holders of valid initial licences be permitted to compete 

 for new licences. Thus — 



15. Only h<»lders of valid licences should be eligible to bid 

 for new licences issue<l during the transitional period, 

 and tliey should Ik- |)ermitted to bid only for licences 

 issued for the zone and category of their current 

 licence (eg. herring seine in the north zone) and for a 

 number of tons of capacity not exceeding the number 

 authorizcHi under their current licence. 



16. During the transitional period, successful bidders for 

 new 10-year licences should be requirwl to surrender 

 their existing licences. Unsuccessful bidders should be 

 free to retain their current licences, and to compete 

 for licences issued in subsequent years, until the term 

 of their licences end. 



This implies that until 1993, the existing licence holders 

 will be protected from competition from outsiders, and 

 they will be in a privileged position to extend their posi- 

 tion in the fisheries for up to another decade. While I 

 think this protection can be justified during the period of 

 fleet reduction, it cannot thereafter; after 1993 any Cana- 

 dian should be free to compete for new fishing privileges. 



After 1993, one-tenth of the licences in each category 

 will expire each year. If that sector of the fleet is consid- 

 ered to be optimal in size at that time, new licences for 

 equal capacity can be issued; if not, the appropriate 

 greater or lesser capacity can be licensed. Accordingly — 



17. In the years following 1993, new 10-year licences 

 should be issued by competitive bids according to the 

 need for greater or lesser fishing capacity in each zone 

 and sector of the fleet. 



This program provides for a substantial rationalization 

 of the fleet, according to a prescribed pattern over a dec- 

 ade. During this period, each initial licensee will have the 

 following opportunities: 



i) To continue to fish for 10 years, when his initial 

 licence would expire. 



ii) To compete for a new licence in any or all of the 10 

 annual competitions, with bidding restricted to 

 licence holders. 



iii) To surrender his licence before it expires, in return 

 for compensation (proposed below). 



At any time during the transitional period the licensee 

 will also be free to transfer his licence to someone else. 

 And after the transitional period, he will be able to com- 

 pete for new licences allocated thereafter. A licensee who 

 chooses not to acquire a new licence — the first alterna- 



