Contact: Scott Smullen FOR IMMEDIATE RELEASE
Teri Frady 3/13/96
Gloucester fisherman Donald H. Lowe will be first of 11 grant awardees of a pilot Commerce Department vessel buyout program to scrap his vessel and relinquish his federal groundfish fishing permit to the Department's National Oceanic and Atmospheric Administration. In exchange, he will receive $190,000 through the program, which addresses the collapse of New England groundfish stocks by reducing fishing capacity.
Lowe's 24-year-old, 77-foot trawler will be scrapped as part of the $2 million Fishing Capacity Reduction Demonstration Program initiated by Commerce Secretary Ronald H. Brown in March 1995.
"This closing represents the first of 11 transactions in which effective fishing capacity will be permanently reduced in the troubled groundfish fishery off the coast of New England, said Douglas K. Hall, Commerceþs assistant secretary for oceans and atmosphere. "When combined with the upcoming $25 million long-term buyout, it is clear we are adopting a truly innovative approach in addressing the collapse of traditional groundfish stocks that has had widespread economic effects upon fishing communities, fishermen and their families."
The pilot buyout program -- designed with the help of the fishing industry -- was established in June 1995 as a test program to demonstrate that a vessel removal program could be used as an effective tool in the conservation and management of U.S. marine fisheries. The program was funded for only $2 million, but 114 vessel owners applied.
In August 1995, Commerce Secretary Brown committed $25 million for a more comprehensive vessel buyout program for New England groundfish fishermen. This program will be based on the results of the pilot program and implemented once long-term management measures for the fishery are in place. The Department is seeking legislative changes to the Interjurisdictional Fisheries Act, which will allow the implementation of the expanded buyout program.
Permanent removal of Lowe's vessel represents a critical component of a comprehensive program of economic assistance and fishery resource management -- a program aimed at sustainable development of the ailing fishing industry and the local economies, fishermen and families dependent on that industry.
"It is in a real way a sad day for this worthy vessel. However, this program provides an opportunity for individuals to salvage a fair price for vessels that will permanently be retired from fishing," said John Bullard, director of NOAA's Office of Sustainable Development.
Lowe's bid was one of eleven that scored lowest in the pilot project. Scores were determined by the ratio of bid offer divided by average annual gross groundfish revenues.
The pilot buyout grant recipients were chosen by a scoring formula developed with input from the fishing industry. This formula was used to select the voluntary offers from vessel owners. Before awarding the grants, NOAA verified the information contained in each fishermanþs application and approved the ownerþs proposed vessel scrapping plan. Fishermen have agreed to immediately surrender all their federal fishing permits and promptly scrap their vessels.