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ficulties and requirements associated with a number of the aid programs continue 

 to leave a wake of frustration, confusion and anger along this waterfront. 



People everywhere got a clear impression from Commerce Secretary Ron Brown 

 in March that they will get $30 million dollars to help them get out of the financial 

 difficulties and Many people are finding that the programs have become outright 

 difficult to land. Many have found that the federal agencies administering the pro- 

 grams have transformed what was to be simple programs to help those in need 

 * * * into bureaucratic, complicated nightmares, all administered by their own set 

 of beliefs and policies. 



Back in January when Mr. BuUard came to town to ask us about our problems 

 and how can they be solved, we provided plenty of testimony. 



• It included testimony on the need to refinance vessels because banks are look- 

 ing for loan repayments or in some cases repossession and many shoreside owners 

 need to get paid off. 



• We provided testimony for the tremendous need to get some form of unemploy- 

 ment compensation and health coverage for those who have already been hurt by 

 the fishing crisis and believe me, there are many. 



• Testimony was given on the need to create a government sponsored vessel buy 

 back program. 



• We provided testimony on the need to retrain those who want to get out of the 

 fishing trades and the associated needs to provide financial support while they go 

 through their training. 



• We provided testimony on the need to get government help in marketing other 

 so called 'less used" species of seafood to the domestic markets. 



Lastly we provided testimony on the need to look at the vessel and P & I insur- 

 ance issues that continue to rise while revenues shrink. 



Sadly, I have to report to you that many people are finding that most of the aid 

 programs as part of the $30 million economic aid package are not easy to under- 

 stand, not easy to land and some do not answer some pressing needs. Allow me to 

 point out some issues and suggest ways in which you can help. 



• Number One. There has been no offer of unemployment assistance or social 

 support financing for those who have either run out of benefits or have never been 

 entitled to them. We continue to be told that Washington will never pass such a 

 measure. For those fishermen with health benefits, they are finding it harder to 

 keep up with contributions to their health plans Many are dropping out of plans, 

 making the contribution amounts higher and harder for others to maintain. I 

 WOULD ENCOURAGE YOU TO DEVELOP FUNDING PROGRAMS TO EXTEND 

 UNEMPLOYMENT ASSISTANCE TO THOSE E^ NEED AND TO OFFSET ThE 

 RISING COSTS OF HEALTH PROGRAMS. They simply need to get by this transi- 

 tion in their lives. 



• Number Two. The grant programs are well intentioned. I am speaking about 

 the Northwes. Atlantic Reinvestment Program as administered by the Wildlife Fed- 

 eration * * * the newly developed Industry Grants program and the Kennedy/ 

 Saltonstall Grant piog-^am by NMFS. As much as it would be beneficial to get every- 

 one to think about fishing for other species * * * think about new products * * * 

 new machines * * * think about raising your own fish ♦ * * most of this waterfront 

 at this present time is looking to simply survive and get out the financial hole that 

 they are in. And for the small percentage who are looking at these grants seriously, 

 the research and documenting requirements are forcing them to consider going back 

 to school for their doctorate degrees or hire academic assistance. It is a policy that 

 is discouraging many from applying. I WOULD ENCOURAGE YOU TO DEVELOP 

 REAL AND MEANINGFUL GRAOT PROGRAMS WITHOUT REQUIREMENTS 

 FOR EXTENSIVE DOCUMENTATION. What everyone doesn't need is more paper- 

 work, just simple and true financial aid if you want them to look at new frontiers. 



• Number Three. As well intentioned as the FOG program is (Fishing Vessel Ob- 

 ligation Guarantee program), this program appears to not be helping those in need. 

 In fact it is having an opposite affect for what it is intended to do. People dealing 

 with FOG are saying that FOG is attracting and approving loans for the vessel own- 

 ers * * * whom you can say are the cream of the crop and probably will survive 

 this crisis no matter what. They have the good credit FOG requires to land the 

 loans and like anyone else they wouldn't hesitate on getting a better financial deal. 

 Unfortunately this is leaving local bank portfolios empty with many better industry 

 loans going to FOG. Those involved in applying for tnese loans say FOG is simply 

 mind boggling with extensive paperwork and credit requirements * * * that the pa- 

 perwork is very much overkill. I WOULD SUGGEST THAT YOU TAKE SOME AC- 

 TION TO LESSEN THE REQUIREMENTS OF FOG AND CONVINCE NMFS TO 

 TAKE MUCH MORE RISKS AND CHANCES. 



