Legislature(2003 - 2004)
02/24/2003 03:30 PM Senate RES
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
SCR 3-EXTEND JT LEG SALMON INDUSTRY TASK FORCE
CSHCR 6(FSH)-EXTEND JT LEG SALMON INDUSTRY TASK FORCE
CHAIR OGAN explained to members that although SCR 3 was
scheduled, HCR 6 passed out of the House on Friday and was
referred to the Senate Resources Committee earlier in the day.
According to Tam Cook, Director of the Legal and Research
Services Division, HCR 6 can be heard in place of SCR 3 since
the two resolutions contain the same subject matter and the
committee has satisfied the notice requirements. He then asked
the sponsor to address the legislation.
SENATOR GARY STEVENS, sponsor of HCR 6, told members he is
looking forward to co-sponsoring SCR 3. He then described the
measure as follows.
HCR 6 extends the life of the joint legislative salmon task
force until the end of the second session of the 23rd
Legislature. This task force was created by the 22nd Legislature
out of concern for Alaska's lost market share of the salmon
industry and expansion into new markets. The salmon industry is
an enormous economic engine that drives Alaska's coastal
economies.
The Joint Salmon Industry Task Force made enormous progress
during the course of its meetings. Its first meeting was held on
July 22, 2002, at which time five subcommittees were appointed.
Those subcommittees met over 43 times in many communities of the
state and Seattle. The task force received 279 proposals,
produced 13 pieces of draft legislation, and generated a huge
amount of discussion and material that will have to be
considered in the future. He hopes, for those reasons, the
committee will favorably consider extending the life of the task
force. He added that the bill has a zero fiscal note. He
pointed out that because Chair Ben Stevens spent the funds
appropriated to the task force last year wisely, it will be able
to function for at least one more year on the remainder of those
funds.
CHAIR OGAN asked if those funds will have to be reappropriated
and carried forward to the next fiscal year.
SENATOR GARY STEVENS said he does not believe so.
CHAIR OGAN said he has watched a lot of task forces come and go
over the last nine years and expressed concern that extending
this task force will deluge the Legislature with more
legislation and requests for more funding. He asked Senator Gary
Stevens what will come out of this extension.
SENATOR GARY STEVENS said he cannot address whether the task
force will ask for more funding, but he can say that an enormous
amount of effort and time went into the process, made up of
fishermen, processors, community leaders and legislators. He
felt very good about the process. The resultant legislation
provides simple and effective measures to help the industry and
give it more choice. However, the task force was unable to deal
with more far reaching issues in that time frame.
CHAIR OGAN said he would play the role of devil's advocate and
asked:
The bottom line is farmed fish is kicking our rears up
here. We can have all of the task forces in the world
that we can feel good about but, at the end of the
day, we're not going to change that. Is that something
that you think is going to - if we invest more money
and more time and energy of Alaskans that's going to
come out of this that could put the salmon industry
back on its feet, short of some kind of a retaliatory
strike against the fish farmers...?
SENATOR GARY STEVENS said that is a fair question. He believes
Alaska lost market share because the state wasn't paying close
attention to what the farmed fish industry was doing to the
market. However, one positive outcome is that the consumption of
salmon has increased. He doesn't believe Alaska salmon can
compete on the same price level as farmed fish, but the handling
practices of Alaska salmon can be improved to increase quality.
In response to Chair Ogan's question about whether Alaska is
likely to lose its fishing industry after spending a lot of time
and money, he does not believe so. He said that regional
marketing plans are developing to publicize area-specific fish,
which he believes is all for the good. He told members that he
was able to see some fish processing operations in Europe and
felt the strongest advice he received was that Alaska has to
stress the fact that its salmon is a wild, natural product and
its harvest does no damage to the species.
CHAIR OGAN concurred that Alaska needs to carve out a niche
market.
3:45 p.m.
SENATOR WAGONER pointed out that he is a member of the salmon
co-op in Cook Inlet that increased the value of the co-op fish
three times this year and that was on a small market of 10,000
pounds. The co-op has committed to 30,000 pounds next year. He
agreed that niche markets do exist but they have to be
developed, and that his co-op is focusing on the Lower 48 rather
than foreign marketing.
SENATOR SEEKINS noted that HCR 6 provides that the Legislative
Council may, upon request, fund contracts for research. He asked
if that would provide the task force with a mechanism to use if
it needs to contract for additional research.
SENATOR GARY STEVENS said that is correct but the task force did
not take advantage of that provision this past year.
SENATOR BEN STEVENS, the Chair of the Joint Salmon Industry Task
Force, explained that under the Legislative Council procurement
rules, the task force itself cannot expend over $25,000 without
full council approval. When the task force was assembled last
July, Senate President Halford and Speaker Porter asked him if
that amount would be adequate. He did not know but thought the
task force may want to enter into some contracts for in-depth
economic analyses of the proposals on the table. The task force
never did but this provision will allow the task force to do
what the presiding officers proposed. During the interim, the
task force will make requests for funding to the Legislative
Council. The Senate President, Speaker and Chair of the
Legislative Council can approve the request.
SENATOR SEEKINS said he wanted to point out that a funding
mechanism exists that contains a check and balance system. He
then said the commercial fishing industry is in deep crisis.
It's the sole support of many Alaskan families. He said he has
talked to many of those families in Interior Alaska who are
concerned that the industry will try to make up in volume what
it is losing in price and that is a short-term solution that
will have a devastating effect on the wild fish stocks. He said
Senator Ben Stevens understands the complexity of this issue.
The challenges will remain unsolved without a concerted effort
by the state and he believes the task force is a good mechanism
to use.
SENATOR GARY STEVENS said if the Legislature does nothing to
help out, the state will be facing enormous bankruptcies by
small businesses. The state has already faced the closure of
processing plants. Many coastal communities will also suffer as
the fishing industry is an important tax base in those
communities. He said volume is not the solution; quality and
price are.
CHAIR OGAN agreed that volume is not the answer because the
argument in the past is if fishermen cannot make enough money
fishing, more fish need to be allocated to that fishery, which
pits the commercial and sport fisheries against each other. He
said allocation is part of the problem but not the entire
problem.
SENATOR ELTON commented that he believes everyone on the task
force understands that the job of task force members is not to
allocate; that is the job of the Board of Fish. None of the task
force members are interested in political solutions to
allocation issues. He agreed that part of the problem is price
related so the task force focused on issues that take some of
the costs out of the industry - on the harvesting and processing
side. He agreed that the marketplace has changed and Alaska now
has advocates for wild fish. He said he appreciates that Senator
Seekins pointed out there is a counterbalance on spending and
said, "I'll be stunned if we ever need it as I think we have one
of the most tight-fisted Chairman that we've ever seen." He
maintained that he does not mean that in a pejorative manner and
that Chairman Stevens has given members a high level of comfort
in the way he has dealt with issues. He then pointed out the
genesis of this occurred last year at the salmon summit, which
was co-hosted by former Governor Knowles and U.S. Senator Ted
Stevens. He thinks the Legislature has done a good job kick
starting the process, however the task force has only been able
to pick off the low-hanging fruit right now. Alaska has lost
over $600 million in the salmon segment of the industry alone.
The challenges are great. He said he is comfortable with
continuation of the task force.
SENATOR LINCOLN said she supports the continuation of the task
force but pointed out that Senator Gary Stevens mentioned the
financial impact to the coastal communities and she is concerned
that the task force is looking at the impact on all of Alaska,
not just the coastal areas.
SENATOR GARY STEVENS said it is and that it is not the intention
of the task force to concentrate on coastal communities.
CHAIR OGAN said he believes commercial fishermen are some of the
best free market capitalists around and the Legislature needs to
do what it can to help them.
SENATOR DYSON moved CSHCR 6(FSH) from committee with individual
recommendations and its zero fiscal note.
CHAIR OGAN announced that without objection, the motion carried.
He then announced the committee would take up SB 74.
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