6 



Thirty-ninth Annual Report 



the chaotic political and economic conditions which have prevailed 

 in the countries of central and eastern Europe, which normally 

 constitute the chief markets for cured herrings, and on which the 

 herring fishing industry is dependent for its existence. This industry 

 is peculiar in that it is a seasonal one, and that during its progress 

 herrings are landed in quantities beyond any possibility of immediate 

 consumption. It is therefore necessary to preserve the catch, and 

 it is this which has led to the development of the vast trade in 

 pickled herrings with Europe. The conditions referred to above 

 have, however, greatly restricted private trading, and the industry has 

 so far been saved from disaster only by the financial assistance 

 afforded to it by the Government. 



The difficulties in the white-fish fishing branch of the industry 

 are attributable to different, but equally potent causes. The pro- 

 ductive power of the fishing fleet is greater than ever before, the 

 means of transport and distribution which were dislocated by the 

 war have not yet been fully restored, while the markets for dried 

 cod and other white fish have been flooded with Norwegian and 

 Newfoundland fish cured during and since the war. Difficulty is 

 consequently found in disposing of the increased catches which the 

 growth of the fleet and the replenishment of the grounds has brought 

 about, the supply is often in excess of the demand, and prices are 

 at times very little above their pre-war level. Working expenses, 

 on the other hand, have been abnormally high, and the inevitable 

 result is seen in adverse balance-sheets, the laying-up of fishing 

 vessels, and the depreciation in the value of fishing craft of all kinds. 



To other disturbing factors has to be added the labour unrest, 

 which in the fishing, as in other industries, has followed upon 

 endeavours to adjust wages to changing conditions, and which has 

 led to recurring strikes and disputes. 



The unremunerative results from white-fish fishing must also in 

 a large measure be attributed to the fact that the industry is 

 temporarily over-capitalised. A great number of vessels were 

 purchased at the inflated prices which ruled during and for a 

 considerable time after the war, and it is certain that sooner or later 

 these values will require to be substantially written down. 



The Board are, of course, powerless to influence the economic 

 • factors which have combined to bring about the situation described, 

 but every assistance which it lies within their power to give has 

 been afforded. Both in 1919 and 1920 they took an active and 

 intimate part in the negotiations which led up to the granting of 

 the herring fishing guarantees, and the claims of the industry to 

 sympathetic consideration have had their warm support. Steps were 

 also taken to ascertain the possibilities of developing new markets 

 for cured herrings and white fish, while in other matters, such as the 

 removal of restrictions on the import of salt and the provision of 



