114 



George Island, extension of water and sewer services to the new False Pass City 

 Dock, construction of a gear storage warehouse in False Pass, and completion of en- 

 gineering designs for new dock facilities in Atka and Nelson Lagoon. In each case, 

 APICDA receives a quid pro quo from the local government in exchange for its con- 

 tribution. 



The purpose of the quid pro quo is to provide APICDA with the opportunity to 

 economically benefit from the infrastructure activity and generate profit-making 

 business relationships. For example, the City of False Pass will provide APICDA 

 with a 20 year lease (no fees for the first ten years) for four acres of land imme- 

 diately adjacent to the dock. APICDA will develop the property, thereby generating 

 local economic activity and providing APICDA with an opportunity to achieve a re- 

 turn from its investment. 



For the long-term, APICDA has formed a joint investment committee with its 



fiartners and is actively seeking equity acquisition opportunities throughout the sea- 

 ood industry. As acquisitions are made, APICDA's investment portfolio will diver- 

 sify and its future as a participant in the seafood industry should be secure. 



CENTRAL BERING SEA FISHERMEN'S ASSOCIATION 



The Central Bering Sea Fishermen's Association of St. Paul Island also asked me 

 to provide the committee with information about its program. 



The CBSFA is already showing the benefits of the CDQ program to its region. For 

 every dollar CBSFA has spent on fisheries-related infrastructure development on St. 

 Paul Island, the community is seeing an unbelievable $16.50 in improvements that 

 will be completed by the end of 1992-93 CDQ allocation period. 



The infrastructure improvements include a major dredge project in St. Paul Har- 

 bor, city water system improvements, three major processing plant construction 

 projects occurring simultaneously, sewer/ outfall construction, and a temporary 

 small vessel floating dock. 



Through the CDQ program, CBSFA is giving a much needed jump start to local 

 participation in an industry that was once foreign to the people of the region be- 

 cause the economy was restricted by law to the now-defunct sealing industry. 



CBSFA is passing on the benefits of the CDQ program to the local fishing fleet 

 by providing loans for vessel improvements. This also included the purchase of at 

 least one 26-foot fishing vessel. The program, just started, has involved about 

 $100,000 so far. The successful sector of the fleet will likely invest this coming year 

 in bigger boats, which might not have happened for quite a while if not for the CDQ 

 program. 



CBSFA is currently considering an offer from its fishing partner, American Sea- 

 foods Company, to buy into one of its factory trawlers, either the F/T Pacific Scout 

 or the F/T Pacific Explorer. The CBSFA board of directors and management are re- 

 viewing how this offer fits into the organization's long-range plans. 



THE CDQ PROGRAM AND THE MAGNUSON ACT 



As you can see, the program has been phenomenally successful and has produced 

 an impressive record in a short amount of time. Congress can play a key role in 

 ensuring that this success continues. 



The CDQ program operates under the authority granted to the fishery manage- 

 ment councils by the Magnuson Act. The program has become so important that its 

 provisions should now be spelled out in statute. 



WAFDA would like to request this committee to give favorable consideration to 

 an amendment that would make CDQs a permanent part of the Magnuson Act. 

 When you have a tool that has proved its usefulness, you want to keep it on the 

 nation's workbench. 



Fisheries stocks are subject to natural fluctuations. The CDQ program cannot sur- 

 vive on pollock alone. In order to be sustained, the program will need access to a 

 wide variety of Bering Sea commercial fisheries. 



Congress can guarantee that the program will continue to provide benefits for 

 generations to come. 



NPFMC MEMBERSHIP 



We have heard suggestions that Congress consider changing the voting member- 

 ship of the North Pacific Fishery Management Council by adding or mandating spe- 

 cific seats. WAFDA strongly endorses the present makeup of the North Pacific 

 Council. Changing the membership will solve no problems and will only end up cre- 

 ating more. 



The record indicates that out of hundreds of recorded votes, there have been fewer 

 than a handful where the Alaskan members voted unanimously on one side of an 



