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To: Congressman Peter G. Torkildsen, Chairman 



Small Business Subcommittee on Government Programs 



From: R. Scott Memhard, President & General Manager 



Date: April 10, 1995 



RE: SBA Assistance to the Fishing Industry 



Field Hearing, Gloucester City Hall 



Thank you for the opportunity to speak. I believe our 

 individual experience in the ice business is typical of other 

 shoreside support to the commercial fishing industry, including 

 wharves, processors, fuel docks and repair yards. 



Cape Pond Ice is a 150 year old business that grew around 

 the fishing in Gloucester. A year ago we went to the Small 

 Business Administration for help. Because of tight conditions in 

 the industry with the Amendment V fishing regulations, we needed 

 a loan guarantee to cover the risk of a proposed bank loan. We 

 were turned down. This dismayed us - We thought the SBA was 

 there to help in situations like ours, where a whole industry is 

 struggling, looking for a strategy to survive. 



Some background. With fresh fish, ice is critical - the 

 industry needs a reliable, ample supply of ice. Our harbor front 

 plant can produce 350 tons of ice a day. We employ six 

 year-round, and 25-30 during the peak summer season. Cape Pond 

 Ice is an important back-up resource even for those with their 

 own ice machines. Boats and processors have always purchased the 

 majority of our ice. 



Because of groundfish declines, our fish ice sales to this 

 market have been way down, less than 40% of total revenue in '94. 

 This loss has been partly offset by increased ice sales to boats 

 fishing for herring (ice is a key requirement for underutilized 

 species like herring, dogfish and mackerel). We have also been 

 somewhat successful in finding other markets - like retail 

 bagged ice, produce growers, redi-mix concrete companies and even 

 buyers of ice sculptures - to help cover overhead costs, but 

 these don't come close to replacing our fishing industry base. 



