LICENSING THE SMALLER COMMERCIAL FISHERIES 131 



23. The total allowable catch should be determined for 

 each zone in which fishing for rockfish is to be author- 

 ized, and a small reserve should be set aside for 

 appeals. 



24. The intial licensees should be required to select the 

 zone or zones in which their licences will apply and 

 the allowable catch should be allocated among them 

 accordingly. 



25. The fishing season should be expanded to the maxi- 

 mum period that biological constraints permit. 



PHcific hake Hake, regarded for many years as a trash 

 fish, now supports an expanding trawl fishery. Biologists 

 believe that a single large stock of hake extends along the 

 open coast from California to British Columbia, and a 

 separate smaller stock occupies the Strait of Georgia. 

 These stocks support distinct fisheries, all regulated under 

 groundfish trawl licences. 



The domestic fishery in the Strait of Georgia takes 

 place in the late winter. The largest share of the catch is 

 caught and processed on board by a single processor- 

 vessel, but other vessels deliver to a land-based plant and 

 in recent years some have sold small catches fresh to 

 consumers. Canadian land-based processors have been 

 unable to compete in the large international market for 

 hake. So far, landings have never approached the total 

 allowable catch of 10 thousand tonnes, but catches have 

 increased four-fold during the last two years, to 2,400 

 tonnes in 1981, and further growth is expected. 



The prolific offshore stocks have a current allowable 

 catch of 35 thousand tonnes, but they suffer more seri- 

 ously from a parasite that causes the flesh to deteriorate 

 unless it is processed quickly, a problem that has hind- 

 ered development of a domestic fishery. Domestic land- 

 ings from these stocks have nevertheless been increasing 

 rapidly during the last couple of years and at 3,800 

 tonnes in 1981 exceeded the catch in the Strait of 

 Georgia. These offshore stocks were fished heavily by 

 fleets of foreign nations, especially the Soviet Union, 

 before they were enclosed within Canada's extended 

 fisheries jurisdiction. Under the new regime, Canada is 

 obligated to make available to foreign nations any allow- 

 able catch that is surplus to domestic needs; hake is the 

 only remaining species fished by foreigners under these 

 arrangments. In 1981, Poland, the Soviet Union and 

 Japan fished hake under agreements with Canada and 

 took 3,500 tonnes, the bulk of it by Polish vessels. 



Finally, offshore stocks are harvested through a unique 

 arrangement referred to as the hake consortium. This is a 

 nonprofit organization of domestic groundfish processors 

 that organizes hake fishing for over-the-side .sales to for- 

 eign factory ships, mainly from the Soviet Union, Poland 

 and Greece. This activity began in 1978 with two vessels. 



By 1981 it had expanded to 14 vessels landing 18 thou- 

 sand tonnes valued at $2.5 million. It is an increasingly 

 attractive fishery, and there is a waiting list of vessels 

 wanting to participate. However, participation is limited 

 by the capacity of foreign factory ships. 



The consortium negotiates prices with the foreign 

 buyers and organizes fishing and orderly deliseries on a 

 day-to-day basis. The participating Canadian fishing ves- 

 sels must have a groundfish trawl licence. 



The hake fishen,-, generally, is promising and can be 

 expected to continue to expand rapidly. I am advised that 

 arrangements with Japan may give a significant boost to 

 this fishery. It clearly warrants special attention in the 

 licensing system to ensure orderly growth. Since the 

 stocks are fished and managed independently, a separate 

 licence is warranted. The growing domestic fishery, espe- 

 cially, should be encouraged. 



Accordingly, I recommend the following policy: 



26. Separate 10-year quota licences should be introduced 

 for hake in 1983. 



27. The total allowable catch should be determined for 

 each zone in which hake fishing is to be authorized. 



28. Until the total allowable catch of hake has been fully 

 allocated in an\ zone, 10->ear quota licences should 

 be is.sued without restriction to anyone who applies for 

 them and pays the annual validation fees and royal- 

 tics. 



29. Once the total allowable catch has been allocated, 

 replacement quota licences should be issued according 

 to competitive bidding proctxlures. 



The hake consortium has been a subject of conflicting 

 views at the Commission's hearings, and it raises several 

 separate questions. TTie basic issue is whether over-the- 

 side sales to foreign buyers are in the public interest. The 

 answer must be that they are. but only under certain con- 

 ditions. If the fish would not otherwise be used, or if they 

 would be used in a way that generates less net value to 

 Canadians, over-the-side sales to foreigners are advanta- 

 geous. This market provides a much-needed and promis- 

 ing opportunity for Canadian trawlers and their crews, 

 and offers a means of developing Canadian knowledge 

 about the occurrence of hake and techniques of fishing 

 this species. These arrangements should not, however, be 

 allowed to become so firmly entrenched that they preju- 

 dice the development of domestic processing. 



A second issue is whether the hake consortium is 

 appropriate for organizing such activities. Again, the 

 answer should be a qualified yes. The present organiza- 

 tion appears to have the expertise to negotiate suitable 

 contracts with foreigners and to orchestrate the orderly 

 fishing that furnishes steady deliveries to the buyers. 



