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not race to harvest their individual share, instead market prices, 

 weather conditions and other variables can be determining factors. 



ZTQs allow for more efficient use of capital. Once individual 

 quotas are assigned, the economic incentive to utilize excess 

 capacity, which exists under open access, disappears. XTQs also 

 contribute to improved vessel safety. Currently, under open 

 access, fishermen who remain In port during foul weather risk 

 losing out to those who go fishing. When a share quota program is 

 in place, fishermen need not operate in dangerous weather 

 conditions, their percentage of the overall quota is guaranteed. 



Business planning is en oxymoron within the current regulatory 

 environment. The Pacific whiting fishery provides a good example. 

 Each of the past three years has seen a significant change in 

 allocation formulas. Most recently, in November, 1992, the Pacific 

 Fishery Management Council proposed allocating 75 percent of the 

 1993 whiting harvest to shoreside processors, a significant 

 increase from the 25 percent processed onshore in 1992. On April 

 16, 1993, hours after the fishery opened, the Department of 

 Commerce partially disapproved the Counoil's recommendation, which 

 more than halved the amount of whiting required to be brought 

 ashore for processing. 



Arctic Alaska operates four vessels that process fish into 

 surimi, the principal product form of whiting. As I mentioned 

 earlier, Arctic Alaska also has a significant Investment in an 

 onshore whiting processing facility. Basing our business planning 

 on the Council's recommendation, we did not plan to utilize any of 



