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Tesdmony before die Small Business Suboommittoe 



June 4, 1993 

 Page 2 



A Local, State and Regional Approacb 



A study by this Association in 1989 estimated tliat about 36% of all penonal income received 

 by residents in Oregon's coastal communities was generated by resource-based industries. Another 

 43% comes &om transfer payments and investment income (corq)ared to 36% statewide) raudi of 

 which is ivlated to retiremenL Among resource-dependent industries, commeicial fishing plays an 

 integral role in maintaining the Hveability of coastal communines and in the diversity of their 

 economic base. In areas of the Oregon coast like Newport, rougJJly 17% of the total pereonal 

 income is generated by the commercial fishin g industry and approximately 26% of earned income. 

 As you are aware, the coastal communities of diis state and those of northern California and 

 coastal Washington have been experiracing declines in many of their major commercial fisheries. 

 The declines have been drivm by either small allowed harvests or dlfHcult market condidons and 

 lower prices, or both. For scwae seaors of the commeicial fishing industry, the decline has been 

 pronounced. For example, in the past five years there has been a drop of 86% in coasod personal 

 income from the salmon industry. This is due, in large part, to low salmon stocks and restricted 

 harvests. This decline has been particulariy difficult fior coastal conummities that are more dependent 

 on sport and cwnmercial salmon fishing. Addidonally, for the past several years, ex-vessel prices 

 have been moving downward for salmon, shrimp, crab and some groondflsh. 



In preparing our 1989 report, it was obvious that unless other developments intervened, Ac 

 coastal areas of this state and of California and Oregon would experience a continuing decline in the 

 contribution of fisheries to their respective industries and communities. This trend would be 

 exacerbated by the loss of cme of its most in^ortant and profitable fineries when ±e joint venture 

 delivery of Pacific whiting to foreign processing ships ended. Individual fisheries do not exist in a 

 social or ixonomic vacuum and the demise of the joint venture fishery would likely increase pressure 

 on other, already fiilly utilized fisheries as unemployed vessels attempted to recoup the loss dnough 

 other tiawl and shrimp fisheries. 



It was against this background that OCZMA, fishermen, processors, and the State of Oregon 

 began in 1989 a concerted effort to maintain the healdiy role of commercial fishing. Andall 

 recognized diat ensuring the utilizadon of the Pacific whiting resource in an efficient, added-value 

 method fur on-shore processing throughout coastal communities fiom Eureka, California to Neah 

 Bay, WajJiingion was a major cconponent of retaining a viable commercial fishery. 



Tins collective effort produced a major report to the 1991 Oregon legislature on the Pacific 

 whiting n:souTce, on market uses, and on the economic development potential from this fishery for 

 coastal cc-mmxinities. The report, funded by the Oregon Department of Agriculture, Oregon 

 Economic Development Department, and Newpcat fisherman Captain R. Barry Fisher, included: 

 market cNTiluations of woridwide whiting resource availability; Alaskan pollock markets; Pacific 

 whiting rtsource availability; research on Pacific whiting; community impacts; marlcet opportunities; 

 infrastructure requirements; and, land use permitting requirements. 



