20 



We could be looking at a rippling effect that would obviously dev- 

 astate the area. 



Mr. Tarr. Congressman, if I may add a little bit to the discus- 

 sion, not only are we talking about, as we said, direct jobs in the 

 industry, we are talking about an industry that has a multiplier ef- 

 fect of between 4 and 7 to 1. 



Unlike many other communities that are relying on manufactur- 

 ing to support their service industry, we rely in part on fishing, be- 

 cause it, in effect, is a form of manufacturing that requires input 

 services. Input services, I would point out, are very skilled people, 

 whether they be welders, net menders, or engineers that work on 

 these types of vessels. 



In addition to that, you asked the question, what are the sizes 

 of the loans? I think there is a very illustrative example to be had 

 in that question, and that is, in order to convert the average large 

 trawler to go after herring or mackerel, a species we know are in 

 overabundance in New England and in fact are causing part of the 

 natural disaster by consuming the spawn and the juveniles of the 

 groundfish, in order to make that transition requires somewhere 

 between $100,000 and $200,000. I would point out, that is a transi- 

 tion from one segment of the industry into the other. 



Now, interestingly enough, Representative, just recently in 

 Gloucester we had a fishing vessel purchased by the BuyBack Pro- 

 gram for $190,000. That vessel was cut up with cutting torches and 

 rendered useless. That individual is out of business. That piece of 

 fishing infrastructure is gone forever. 



So for those same $200,000, which could flow through, we hope, 

 the Small Business Administration, we could keep that vessel 

 working, we can employ more individuals, because the pursuit of 

 those underutilized species is more labor intensive, and we could 

 have a more satisfactory result than merely handing a check to 

 somebody merely to preserve their dignity, which is important, but 

 we could have a better result, which is to preserve their working 

 career in this industry. 



When we talk about businesses shore-side, we are talking about 

 numerous businesses that I have already outlined for you. But just 

 to give you an example, the fish auction that is being discussed 

 today is going to require somewhere in the vicinity of $1 million 

 in capital to get started. So, it depends in terms of magnitude 

 about what we are talking about, a vessel or shore-side business. 



The fact remains, we can spend our dollars in one of two ways: 

 We can help people exit their working lives and seek other forms 

 perhaps of public assistance or uncertain career futures, or we can 

 help them to stay in a business that this country needs to create 

 a reliable export of protein and create a strong family that is inter- 

 connected, as we have already pointed out, because many of these 

 businesses are cross-collateralized, business to boat, boat to home, 

 home to home. 



Chairman Torkildsen. If you would like to comment, Mayor 

 Tobey, and then I will ask Mr. Poshard. 



Mr. Tobey. Very briefly. As I stated earlier in my testimony, my 

 background includes a stint as a public sector lawyer. There is al- 

 ways a way to say no. There is another trick to the trade too, which 



