71 



• Number Four. Probably the one and only economic aid program in which I am 

 holding some hope for to aid the short term, needs of this industry is the EDA re- 

 volving loan program that is being administered by the New Bedford Corporation. 

 Applications have recently been sent out to help those with working capital needs 

 as well as the purchase of equipment. I do beheve however that the $2.6 million 

 available here in New Bedford will be loaned out quickly and we will need much 

 more. I WOULD ENCOURAGE YOU TO MAKE MORE FUNDS AVAILABLE 

 WHEN THE TIME COMES AND IT COULD BE SOONER THAN WE THINK. 



New Bedford fishermen who need some form of financial assistance will tell you, 

 all they want to do is fish and pay their bills. Others simply need money to live 

 and get new jobs. K you give them loans or grants without the difficulties attached 

 to them, they will pay you back the loans and make good use of the grants. I am 

 sure you will see that when they begin paying back the EDA loans. And if you give 

 them support and social services and the necessary financing to get them throu^ 

 this crisis and transition in their lives, they will be very productive and contributing 

 citizens once again. There are many serious needs in this industry and we need the 

 money directly to ease the burdens * * * not government red tape filled with exten- 

 sive, mind boggling requirements. 



Thank you for your considerations and for all of your help, Senator Kerry. 



Prepared Statement of Robert K. Griffith, Jr., Ph.D., Chief, Office of 

 Strategic Planning, Rhode Island Department of Administration 



profile of RHODE ISLAND COMMERCIAL FISHERIES 



Rhode Island's commercial fishing industry plays a significant role in both the 

 state and the region's economy. In 1991, landings exceeded 139 million pounds and 

 were valued at over $85 million. This represents 21.6 percent of the New England 

 catch although the value of these landings is only 14.3 percent of the region's total 

 value. This difference is partially explained by the fact that much of Rhode Island's 

 catch is in the so-called "underutilized species" and, as such 4oes not demand as 

 high a price as traditional species. 



The impact of commercial fishing on Rhode Island's economy cannot be over- 

 stated. The Economic Development Section of the Division of Planning has esti- 

 mated that commercial fishing activity in the state generates one of the highest 

 multipliers of any industry — 4.24. Applied to the value of the 1991 Rhode Island 

 catch this yields a total value of over $360 million. This translates into jobs not only 

 in the wholesaling and processing sectors but throughout the economy. 



In 1990 the Rhode Island Department of Economic Development recorded 223 "off- 

 shore vessels" which employed 982 fishermen. An additional 691 workers employed 

 in the processing and distribution of fish were recorded in 1991. It is estimated that 

 another 4,000 are engaged either full or part time in the inshore fisheries. 



Both the value and volume of landings were consistent or about the same in 1992 

 (see attached charts and graphs, Attachment A). The value of landings has in- 

 creased modestly over the last five years while the volume has increased. This re- 

 flects the continued diversification to the nontraditional underutilized or "export" 

 species. 



POTENTIAL ECONOMIC DISLOCATION 



The new federal restrictions on the harvesting of cod, flounder and haddock wUl 

 have both a direct and an indirect impact on Rhode Island's commercial finfishing 

 fleet. While many of the state's approximate 1,000 fishermen harvest these species, 

 the strength of our fishing industry has become its ability to diversify its effort to- 

 wards nontraditional species. This diversification has required substantial invest- 

 ment in gear and technology. Moreover, the processing of these species also has re- 

 quired investment in new techniques and equipment. Much of the state's processing 

 capacity is threatened by its current inability to meet wastewater pretreatment re- 

 quirements. The processing sector of the industry employs nearly 700 more individ- 

 uals and supports activity in wholesaling and trucking. 



Every indication is that the new restrictions on ground fish wiD foster increased 

 competition for the so-called "underutilized species" by fleets from neighboring 

 states. The result will be an industry comprised of both small and large businesses 

 competing for a shrinking resource. Rather than a solution to the problem, the issue 

 simply will be shifted geographically to the fisheries currently harvested by Rhode 

 Island vessels. 



