91 



Testimony before the Small Business Subcomisittee 



June 4, 1993 

 Pages 



Expected 1993 Oregon Fiscal Impacts Under Management Allocation Strategies 



Landing Fees 



Corporate Taxes 



Personal Income 

 Taxes 



School Property 

 Taxes 



Local Government 

 Property Taxes 



Dr. Radtke states that only about 10% of the economic impact from the at-sea fleet flow to 

 coastal communities whose shores the factoty harvesters operate off of Washington State's revenues 

 will come £rom the home-ported at-sea fleet in the Seattle metropolitan area. 



Also not to be ignored is the in^pact of Commerce's decision to foster an early, qpen-acccss 

 fishery. The eariy Olympic system harvests smaller, emaciated, soft-fleshed fish just off their 

 spawning grounds. According to Oregon State University economist Dr. Gilbert Sylvia, an early- 

 season processing of whiting can result in an annual loss of about 15% of revenues. This is doe to 

 lower yields and lower prices. This, in mm, may also lead to a lower faxme whiting biomass and 

 lower annual harvests since more fish must be harvested — since the fish are smaller — ^in order to 

 teach the annual allowed quota. Fewer fish may be available in subsequent years to reproduce. 

 And, since diminished tonnage of whiting to the onshore processors will lesnlt in less byprodnct to 

 be utilized by the onshore secondary processors of fish meal, fertilizer, and other products — and not 

 utilized by the factory nawlers — this results in further loss of income generated in the regioiL For 

 example, die loss of the expected 45,000 mt means the fish meal plant in Newport will have a 

 reduction of about $1,500,000 in fish meal sales out of a total of about $3,500,000. 



Enally, about $15 millian has been invested in Oregon's existing processing plants to 

 process whiting into products such as sunmi and fish meal (fiom resulting waste). Nearly an equal 

 amount has been committed by harvester in upgrading dieir quality handling of this resource. The 

 existing plants buili for Pacific whiting will only be able to operate at about 30% of their edacity. 

 And, han'esters who have invested fOT upgrading to improve resource utilizaticm and quality, axe 

 placed in greater risk. 



^ "Risk" implies greater potential for bosiness dislocation and bilure fiom redaction in aOocaiion to on^Kxe 

 pcoccsson. 



