Legislature(2003 - 2004)

01/31/2003 08:32 AM House FSH

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                    ALASKA STATE LEGISLATURE                                                                                  
              HOUSE SPECIAL COMMITTEE ON FISHERIES                                                                            
                        January 31, 2003                                                                                        
                           8:32 a.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Paul Seaton, Chair                                                                                               
Representative Peggy Wilson, Vice Chair                                                                                         
Representative Cheryll Heinze                                                                                                   
Representative Ralph Samuels                                                                                                    
Representative Ethan Berkowitz                                                                                                  
Representative David Guttenberg                                                                                                 
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Pete Kott                                                                                                        
                                                                                                                                
OTHER LEGISLATORS PRESENT                                                                                                     
                                                                                                                                
Representative Carl Moses                                                                                                       
Representative Gary Stevens                                                                                                     
Senator Alan Austerman                                                                                                          
Senator Scott Ogan                                                                                                              
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                              
OVERVIEW: CHIGNIK COOPERATIVE  STRUCTURE, PROCESSING, QUALITY AND                                                               
MARKETING                                                                                                                       
                                                                                                                                
TAPES                                                                                                                         
                                                                                                                                
03-2, SIDE(S) A & B                                                                                                             
                                                                                                                                
CHAIR  PAUL SEATON  convened  the meeting  of  the House  Special                                                             
Committee  on Fisheries  at 8:32  a.m.   Present at  the call  to                                                               
order were  Representatives Seaton, Wilson, Heinze,  Samuels, and                                                               
Guttenberg.  Representative Berkowitz  arrived as the meeting was                                                               
in  progress.    Also  present  were  Representatives  Moses  and                                                               
Stevens, and Senators Austerman and Ogan.                                                                                       
                                                                                                                                
SUMMARY OF INFORMATION                                                                                                        
                                                                                                                              
DOUG MECUM,  Director, Division  of Commercial  Fisheries, Alaska                                                               
Department of  Fish and Game  (ADF&G), gave a  slide presentation                                                               
on  salmon  management changes  related  to  the Chignik  Seafood                                                               
Producers Alliance (CSPA), also  known as the Chignik Cooperative                                                               
("Co-op").  Mr. Mecum stated that  fishing is the mainstay of the                                                               
community and  that the  salmon river systems  in the  local area                                                               
have  been  managed appropriately  for  many  years.   Mr.  Mecum                                                               
conveyed a short economic history  of the Chignik salmon fishery,                                                               
and  said that  although  there was  a record  run  in 1999,  the                                                               
harvest has  had a low total  value because of low  prices caused                                                               
by the global farmed-salmon market glut.                                                                                        
                                                                                                                                
MR.  MECUM described  the decision  made by  the Alaska  Board of                                                               
Fisheries to allow  the Co-op an allocation of 70  percent of the                                                               
salmon run  to the 77 fishermen  who joined CSPA, and  30 percent                                                               
to  the  22   fishermen  who  did  not,  also   noting  that  the                                                               
competitive non-members of  the Co-op were only able  to fish for                                                               
17  days.    Mr.  Mecum  said  that  management  of  the  Chignik                                                               
commercial  salmon  fishery   was  straightforward  and  required                                                               
little adaptation  from past practices,  and that the  Co-op made                                                               
the management of the fishery easier.                                                                                           
                                                                                                                                
JAMIE  ROSS,  Chignik  Seafood   Producers  Alliance,  began  his                                                               
presentation by  explaining that Chignik  was the first  place in                                                               
Alaskan history to  have a salmon cooperative,  pointing out that                                                               
Chignik is a  relatively small and isolated  salmon district with                                                               
only  100 salmon  permits and  boats, with  seine being  the only                                                               
gear type.   He described  the low  prices that have  plagued the                                                               
local industry and community for  the past several years, and the                                                               
contentious strike in  2001 that resulted in  price increases and                                                               
a significant loss in fishing time.   For those reasons, Mr. Ross                                                               
said that many locals of  the Chignik community formed the Co-op,                                                               
a purely voluntary decision of each individual permit holder.                                                                   
                                                                                                                                
MR. ROSS said  the two major benefits of the  Co-op are decreased                                                               
harvesting costs  and a higher  quality product.  He  stated that                                                               
harvesting costs  decrease because it  now takes fewer  boats and                                                               
less crew,  fuel, and general  operating expenditures  to harvest                                                               
the same  amount of fish.   Fishermen are able to  make less sets                                                               
for  more  fish   because  they  do  not  have   to  worry  about                                                               
competition  from other  fishermen.   Mr.  Ross  stated that  the                                                               
quality  of the  product  has increased  because  fish are  being                                                               
handled   carefully,  pumped   into  live   storage  pens   until                                                               
processing  capacity is  available,  and  run through  processing                                                               
machines  that produce  flash-frozen boneless,  skinless fillets.                                                               
Mr.  Ross concluded  his  presentation with  a  videotape of  the                                                               
Chignik  2002  Co-op  process, highlighting  both  the  decreased                                                               
harvesting costs and increased quality benefits.                                                                                
                                                                                                                                
ROGER  ROWLAND and  GEORGE ANDERSON,  both Chignik  salmon permit                                                               
holders, testified in favor of  the Co-op, for reasons similar to                                                               
those stated by Mr. Ross.                                                                                                       
                                                                                                                                
HEATHER   McArty  (ph)   testified  via   teleconference,  as   a                                                               
representative   of  the   independent,  traditional   fisherman,                                                               
against  CSPA.   Ms. McArty  pointed out  many of  the unexpected                                                               
negative effects  of the  Co-op on  the local  Chignik community.                                                               
She said that  local participation in the  fishery has decreased,                                                               
and there  are fewer deckhands and  tenders hired in total.   She                                                               
stated  that many  derivative industries  such  as the  airlines,                                                               
local  services, and  boat and  net  maintenance industries  also                                                               
suffer from  decreased economic activity.   Ms. McArty  said that                                                               
next year,  with decreased competition  among fish  buyers, there                                                               
might not  be any other salmon  buyers in Chignik because  of the                                                               
Co-op.                                                                                                                          
                                                                                                                                
LAURA  STEPANOFF testified  via teleconference  against CSPA  for                                                               
similar reasons to those stated by Ms. McArty.                                                                                  
                                                                                                                                
ALEX  KOPUN testified  via teleconference  in favor  of the  2002                                                               
Chignik Cooperative.                                                                                                            
                                                                                                                                
ANNOUNCEMENTS                                                                                                                 
                                                                                                                              
There were no announcements.                                                                                                    
                                                                                                                                
COMMITTEE ACTION                                                                                                              
                                                                                                                              
The committee took no action.                                                                                                   
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                              
There being no  further business before the  committee, the House                                                               
Special  Committee on  Fisheries  meeting was  adjourned at  9:54                                                               
a.m.                                                                                                                            
                                                                                                                                
NOTE:   The meeting was  recorded and handwritten log  notes were                                                               
taken.  A  copy of the tape(s)  and log notes may  be obtained by                                                               
contacting the  House Records  Office at  State Capitol,  Room 3,                                                               
Juneau,  Alaska  99801  (mailing address),  (907)  465-2214,  and                                                               
after  adjournment  of the  second  session  of the  Twenty-Third                                                               
Alaska  State Legislature  this  information may  be obtained  by                                                               
contacting the Legislative Reference Library at (907) 465-3808.                                                                 

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