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New England fishermen by the Associated Fisheries of Haine (ATM) . 

 Among other defects, the suit alleges that sba was nor allowed 

 proper oversight of the amendment due to tftt^s failure to produoe a 

 Final Regulatory Flexibility Analysis (FKFA) as required by the 

 Regulatory Flexibility Act. By proceeding in expedited fashion and 

 without SHA consultation in this matter, the Department of 

 Commerce, NKFS and the NEFMC have caused a sudden and unpredictable 

 crisis for many small businesses in the Northeast. 



Evidencing this is AFM's claim, supported by the socio- 

 Economlc impact statement (SEIS) which accompanies Amendment 7, 

 that e substantial portion of New England's off-shore fleet will 

 not be able to break even within two years under Amendment 7. This 

 sudden and Imminent prospect of financial collapse clearly warrants 

 the intervention and assistance of the SBA at this time. 



Further, this weakening of the U.S. fishing industry has 

 precipitated a second sudden and threatening situation beyond the 

 control of our fishing industry. Enclosed as Appendix A herein is 

 a press release from the New Bedford Standard Times which documents 

 Canada's intended exploitation of the newly imposed U.S. regulatory 

 scheme. Based on present scientific analysis, the Canadian 

 Fisheries Resource conservation council (in concert with industry 

 representatives) le moving to increase quotas for Canadian fishing 

 vessels on George's Bank. 



The devastating results of these policies are evidenced by 

 recent landing slips of Gloucester vessels. Due to the influx into 

 the U.S. of lover-cost Canadian groundfish, our vessels are being 

 paid an ex-vessel market price of as littls as s.30 per pound for 

 cod. These prices further exacerbate the financial hardship caused 

 by the 80* reduction in fishing effort contained in Amendment 7. 



Absent assistance to overcome these sudden economic and 

 regulatory threats, the extinction of many small businesses in 

 Gloucester and New England is not unforeseeable. Amendment 7's 

 SEZS alone documents that probability. 



There is, however, an opportunity to sustain our fishing 

 industry and it's associated small businesses through recovery and 

 beyond through appropriate state and federal participation. 

 Presently, electronic fish display auctions are being planned for 

 Gloucester and New Bedford. Gloucester's auction is being 

 developed by star Fisheries, a traditional fish processing 

 operation owned ond operated by the Ciulla Family for many years. 

 They know they can't survive without ahange, and they Know they 

 can't ahange without our assistance. 



similarly, several fishing vessels and shoreside businesses 

 have banded together to form the Gloucester Herring Corporation. 

 By harvesting an abundant and underutilised herring resouroe, these 

 small businesses will be able to survive while increasing exports 

 and enhancing our country's balance of trade. 



