03/11/1998 05:04 PM House FSH
| Audio | Topic |
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+ teleconferenced
= bill was previously heard/scheduled
HOUSE SPECIAL COMMITTEE ON FISHERIES
March 11, 1998
5:04 p.m.
MEMBERS PRESENT
Representative Alan Austerman, Chairman
Representative Scott Ogan
Representative Mark Hodgins
Representative Gene Kubina
MEMBERS ABSENT
Representative Ivan Ivan
COMMITTEE CALENDAR
HOUSE BILL NO. 318
"An Act relating to waste of salmon."
-SCHEDULED BUT NOT HEARD
*HOUSE BILL NO. 423
"An Act relating to the Alaska access fishery trust, purchase of
commercial fisheries permits, vessels, gear, equipment, and leases
by the Department of Fish and Game, sport fishing license
surcharge, and the entry permit surcharge; and providing for an
effective date."
-HEARD AND HELD
HOUSE JOINT RESOLUTION NO. 55
Relating to the allocation of pollock and Pacific cod.
-HEARD AND HELD
(* First public hearing)
PREVIOUS ACTION
BILL: HB 423
SHORT TITLE: ACCESS FISHERY TRUST/LIC. PERMIT SURCHARGE
SPONSOR(S): REPRESENTATIVES(S) MULDER
Jrn-Date Jrn-Page Action
02/16/98 2333 (H) READ THE FIRST TIME - REFERRAL(S)
02/16/98 2334 (H) FSH, RESOURCES
03/09/98 (H) FSH AT 5:00 PM CAPITOL 124
03/09/98 (H) MINUTE(FSH)
03/11/98 (H) FSH AT 5:00 PM CAPITOL 124
BILL: HJR 55
SHORT TITLE: ALLOCATION OF POLLOCK AND PACIFIC COD
SPONSOR(S): REPRESENTATIVES(S) AUSTERMAN, Moses, Elton
Jrn-Date Jrn-Page Action
01/30/98 2180 (H) READ THE FIRST TIME - REFERRAL(S)
01/30/98 2181 (H) FISHERIES
02/11/98 2293 (H) COSPONSOR(S): ELTON
02/16/98 Text (H) FSH AT 5:00 PM CAPITOL 124
02/16/98 Text (H) MINUTE(FSH)
03/11/98 Text (H) FSH AT 5:00 PM CAPITOL 124
WITNESS REGISTER
REPRESENTATIVE ELDON MULDER
Alaska State Legislature
Capitol Building, Room 501
Juneau, Alaska 99801
Telephone: (907) 465-2647
POSITION STATEMENT: Sponsor of HB 423.
DAN COFFEY, Vice-Chairman
Board of Fisheries
207 Northern Lights
Anchorage, Alaska 99503
Telephone: (907) 274-3385
POSITION STATEMENT: Testified on HB 423.
JEROME SELBY, Mayor of Kodiak
710 Mill Bay Road
Kodiak, Alaska 99615
Telephone: (907) 486-9301
POSITION STATEMENT: Testified in support of HJR 55.
AL BURCH
P.O. Box 884
Kodiak, Alaska 99615
Telephone: (907) 486-3910
POSITION STATEMENT: Testified in support of HJR 55.
DAN JAMES
511 Mozart Circle
Kodiak, Alaska 99615
Telephone: (907) 486-3910
POSITION STATEMENT: Testified in support of HJR 55.
MITCH KILBORN
1724 Simeonoff
Kodiak, Alaska 99615
Telephone: (907) 486-4112
POSITION STATEMENT: Testified in support of HJR 55.
OLIVER HOLMS, Commercial Fisherman
P.O. Box 3856
Kodiak, Alaska 99615
Telephone: (907) 486-6957
POSITION STATEMENT: Testified in support of HJR 55.
CHRIS BLACKBURN
Alaska Groundfish Databank
P.O. Box 2298
Kodiak, Alaska 99615-0948
Telephone: (907) 486-3033
POSITION STATEMENT: Testified in support of HJR 55.
JIM INGRAM, Commercial Fisherman
P.O. Box 851
Dillingham, Alaska 99576
Telephone: Not Provided
POSITION STATEMENT: Testified against HJR 55.
STAN SMALL, Commercial Fishermen
P.O. Box 1670
Dillingham, Alaska 99576
Telephone: (907) 842-5460
POSITION STATEMENT: Testified against HJR 55.
KENNY WILSON, Commercial Fisherman
P.O. Box 766
Dillingham, Alaska 99576
Telephone: (907) 842-2219
POSITION STATEMENT: Testified against HJR 55.
CHRIS ARNIM, Manager
Trident Seafoods
P.O. Box 9
Akutan, Alaska 99685
Telephone: (907) 383-4848
POSITION STATEMENT: Testified in support of HJR 55.
DAVE AVBASIAN, Assistant Akutan Plant Manager
Trident Seafoods
P.O. Box 9
Akutan, Alaska 99685
Telephone: (907) 698-2211
POSITION STATEMENT: Testified in support of HJR 55.
JOE BERESKIN, Mayor of Akutan
P.O. Box 52
Unalaska, Alaska 99685
Telephone: (907) 698-2228
POSITION STATEMENT: Testified in support of HJR 55.
JUDE HENZLER, Executive Director
Bering Sea Fishermen's Association
725 Christensen Drive
Anchorage, Alaska 99501
Telephone: (907) 279-6519
POSITION STATEMENT: Testified against HJR 55.
BOB JUETTNER, Representative
Aleutians East Borough
1600 A Street
Anchorage, Alaska 99501
Telephone: (907) 274-7555
POSITION STATEMENT: Testified in support of HJR 55.
GRANT YUTRZENKA, Employee
Unisea
P.O. Box 920008
Dutch Harbor, Alaska 99629
Telephone: (907) 581-7303
POSITION STATEMENT: Testified in support of HJR 55.
SHIRLEY MARQUARDT
At-sea Processors Association
P.O. Box 920021
Unalaska, Alaska 99685
Telephone: (907) 581-1696
POSITION STATEMENT: Testified against HJR 55.
FRANK KELTY, Plant Manager
Alyeska Seafoods
P.O. Box 530
Unalaska, Alaska 99685
POSITION STATEMENT: Testified in support of HJR 55.
DON GRAVES, Employee
Unisea
P.O. Box 9210021
Unalaska, Alaska 99692
Telephone: (907) 581-2378
POSITION STATEMENT: Testified in support of HJR 55.
EMIL BERIKOFF, Commercial Fisherman
P.O. BOX 81
Unalaska, Alaska 99692
Telephone: (907) 581-2378
POSITION STATEMENT: Testified against HJR 55.
SINCLAIR WILT, Surimi Plant Manager
Alyeska Seafoods
P.O. Box 530
Unalaska, Alaska 99685
Telephone: (907) 581-1211
POSITION STATEMENT: Testified in support of HJR 55.
DON STILES, Chairman
Board of Directors
Norton Sound Economic Development Corporation
Telephone: (907) 443-4383
POSITION STATEMENT: Testified against HJR 55.
CHRIS BERNS
P.O. Box 26
Kodiak, Alaska 99615
Telephone: (907) 486-5091
POSITION STATEMENT: Testified in support of HJR 55.
JOHN IANI, Employee
Unisea
15400 Northeast
Redmond, Washington 98073
Telephone: (425) 861-5308
POSITION STATEMENT: Testified in support of HJR 55.
DAVID STANCHFIELD, Owner
Catcher Boat
F/V Morning Star
127 3rd Avenue
Kirkland, Washington 98030
Telephone: (425) 739-6999
POSITION STATEMENT: Testified on HJR 55.
TERRY SHAFF, President
Unisea
15400 North East 90th Street
Redmond, Washington 98073
Telephone: (425) 861-5311
POSITION STATEMENT: Testified in support of HJR 55.
DAVE GALLOWAY, Representative
F/V Ocean Phoenix
4421 Forest Avenue
Mercer Island, Washington 98040
Telephone: (206) 286-8584
POSITION STATEMENT: Testified in support of HJR 55.
DOUG FORSYTH, Representative
F/V Ocean Phoenix
333 1st Avenue West
Seattle, Washington 98119
Telephone: (206)286-8584
POSITION STATEMENT: Testified in support of HJR 55.
HEATHER McCARTY, Lobbyist
At-Sea Processors Association
319 Seward Street, Suite 2
Juneau, Alaska 99801
Telephone: (907) 586-4260
POSITION STATEMENT: Testified against HJR 55.
ACTION NARRATIVE
TAPE 98-10, SIDE A
Number 0001
CHAIRMAN ALAN AUSTERMAN called the House Special Committee on
Fisheries meeting to order at 5:04 p.m. Members present at the
call to order were Representatives Austerman, Ogan and Hodgins.
Representative Kubina arrived at 5:30 p.m. He stated that because
Representative Ivan, sponsor of 318, was absent the committee would
not hear that bill.
HB 423 - ACCESS FISHERY TRUST/LIC. PERMIT SURCHARGE
Number 0038
CHAIRMAN AUSTERMAN stated that due to the sponsors's time
constraints he will hear an introduction to HB 423 and then table
it and hear the other items on the agenda. He stated that HB 423
is "An Act relating to the Alaska access fishery trust, purchase of
commercial fisheries permits, vessels, gear, equipment, and leases
by the Department of Fish and Game, sport fishing license
surcharge, and the entry permit surcharge; and providing for an
effective date."
Number 0113
REPRESENTATIVE ELDON MULDER stated that he introduced HB 423 at the
request of the Board of Fisheries, due to the conflict in relation
to the harvest of fish and because of the potential solution that
buy-backs can provide. House Bill 423 sets up a funding mechanism
to do so. He said, "The substance of the bill that pertains to the
actual operations of a buy-back, as you will hear in testimony
later, they don't work and that is not the purpose of the bill."
He explained that it was important to get a framework established
to bring the affected parties to the table to work out a buy-back
program that does work.
Number 0296
CHAIRMAN AUSTERMAN asked Mr. Coffey if he would see a need for this
bill.
MR. DAN COFFEY, Vice-Chairman, Board of Fisheries, said "Yes, Mr.
Chairman. Basically what lead us to this was, we have had
discussions, over the two plus years that I've have been on the
board, with members of the Commercial Fisheries Entry Commission
and of course we see the issues in the winter time, when we are in
cycle, we see monthly the kind of battles that result from the
circumstances in which our fisheries currently find themselves,
which is a combination of -- some instances reducing availability
of resources but in more instances just the overcapitalization and
the efficiencies of our fishing fleets. The gear is better, the
positioning is better, the boats are better, all the equipment is
better and that has made our fishermen much more efficient at their
jobs. And as a result we find shorter seasons, less opportunity on
all the allocation battles that go on between not only different
types users, sport, commercial and so on, but also within the
commercial industries between the various different gear types,
those allocation battles become as sacrimonious and as divisive as
any between different types of users. So, we needed -- we wanted
to express to the legislature was some of our frustration and to
express the hope that in some manner the legislature would be able
to deal with this. We know it is a very intractable problem, Mr.
Chairman, because of our discussions with Commercial Fisheries
Entry Commission and the problems intended on any such buy-back and
when we heard of the possibility of a funding mechanism being
established we wanted to lend our support because we think the
problem is significant enough that it needs to be addressed by the
legislature. As to any particular solution the Board of Fisheries
had no -- has no agenda in terms of do this don't do that -- its
just that we very much have to face the problem consistently and
regularly and we were hoping that the legislature could find a
solution to this problem. Mr. Chairman, thank-you."
Number 0469
CHAIRMAN AUSTERMAN asked if he had any thoughts if the legislation
should look at this as a statewide proposal or should the
legislature look at this on a region to region basis.
Number 0500
MR. COFFEY replied "Well -- when the board discussed it, it was --
Mr. Chairman, the discussion was generally that it would be
statewide because although there are some fisheries in our state
which are not necessarily overcapitalized, the vast majority of
them are and so we felt it would be more appropriate to be
statewide. But there's -- the flip side of the coin could be,
there's some that are more overcapitalized and more intensive than
others and so it might be appropriate, after the plan and the
funding mechanisms are established, to maybe focus on this area and
not another area because of the matter of degree of
overcapitalization."
Number 0535
CHAIRMAN AUSTERMAN stated the burning issue is the Cook Inlet issue
and asked if the Board of Fisheries would be receptive if this
ended up to be just a Cook Inlet issue that the legislature tried
to resolve.
DAN COFFEY replied, "That -- you are correct when you say it is a
burning issue. I mean that's where the biggest conflicts exist
between sport and commercial users and to the extent that the
endeavor of-- the goal of buy-back would be to resolve disputes
between sport and commercial users and that would be an appropriate
place to start. To that degree, yes, that would certainly be
helpful to the board. Ya, I agree with that."
Number 0595
CHAIRMAN AUSTERMAN asked if he visualized this as more of an
overcapitalization of the fleet in reference to commercial fishing
or if it is more of an issue of overcapitalization in reference to
allocation between the sport fish industry and commercial fishing
industry. For example, the bill had an allocation of the sportfish
licence of $1 plus the 5 percent of the commercial fishing fees,
which indicates that sportfish is involved in this. He asked if it
was the Board of Fisheries intention, whether this is an
overcapitalization of the commercial fishing industry issue or is
it a sportfishing versus commercial fishing issue that they are
trying to resolve.
Number 0638
MR. COFFEY replied "No, I think the main and thrust of it was that
it is a commercial fisheries issue and the rub point, resulting
from it are found at not only the commercial levels and the
allocation battles between commercial users but also at the level
of where the sport and commercial interests conflict. And that of
course, is you have properly identified, is to the greatest degree
found in Cook Inlet, that is were most of the sport fishermen
(Indisc.--paper shuffling). So I view it as, from the board's
perspective, my understanding Mr. Chairman, from the debate, of the
boards perspective, that we were viewing it from the fact that the
commercial fishing industry has become more and more efficient and
in that sense overcapitalized and to some degree the number of
limited entry permits that were issued at the time were probably
greater than the fisheries could handle. We talked about problems
like when a family that used to fish one permit went in to apply
for it, Mom got a permit, Dad got a permit, and all three kids got
a permit. So where before you used to have one, now you've got
five. And things like in -- we've talked about in area M, where it
used to be that a one fishing family would have a seine permit and
a drift permit and a setnet permit and that's cause they fished
different fish at different times of the year. And then they sold
off their permits one at a time and kept the one they wanted to
fish and you compound that with the fact that Mom, Pop and the kids
all got a limited entry permit and then you compound it that the
same permit that they had in the 50's and 60's was a beach seine
permit and now its a power seine permit and instead of having a
boat that could go out only in good weather they've got a boat that
you know is 58 feet and can fish year round and so on and so on.
So that's the discussion we had about the overcapitalization, Mr.
Chairman."
Number 0771
CHAIRMAN AUSTERMAN stated that he was going to table HB 423.
HJR 55 - ALLOCATION OF POLLOCK AND PACIFIC COD
Number 0801
CHAIRMAN AUSTERMAN stated that HJR 55, Relating to the allocation
of pollock and Pacific cod, is before committee again and he is not
aware of any amendments to it. He stated that he would take
further testimony.
Number 0850
JEROME SELBY, Mayor of Kodiak, testified via teleconference from
Kodiak to urge passage of HJR 55 as it is appropriate and in line
with a lot of the efforts that have made by coastal communities for
a number of years to develop Alaska's economy of the resources. He
stated that factory trawlers that hire a few Alaskans does not
build an Alaskan economy. An Alaskan economy is built by having
Alaskan fishermen deliver fish to the docks and by having the
processing plants hire the residents of Alaska's coastal
communities. Alaska's transportation system is built up by
transporting the fish market. Shore-based processors build up
Alaska's economy. He stated that it is ridiculous to have factory
trawlers catching the fish and taking it to other countries. He
reiterated the need for supporting HJR 55.
Number 0967
AL BURCH, testified via teleconference from Kodiak that he urged
support of HJR 55 with the understanding that it will be taken up
in April by the NPFMC.
Number 1027
DAN JAMES, testified via teleconference from Kodiak in support of
HJR 55, as processing jobs need to be kept onshore.
Number 1057
MITCH KILBORN, testified via teleconference from Kodiak in support
of HJR 55, as coastal communities need this protection to keep the
economies strong.
Number 1081
OLIVER HOLMS, Commercial Fisherman, testified via teleconference
from Kodiak in support of HJR 55. He stated that the salmon
industry is in tough times and it is necessary to maintain the
health of the overall shore-based salmon industry as it is all
interconnected.
Number 1129
CHRIS BLACKBURN, Alaska Groundfish Databank, testified via
teleconference from Seattle in support of HJR 55 as it helps every
Alaskan community through local hire.
Number 1169
JIM INGRAM, Commercial Fisherman, testified via teleconference from
Dillingham against HJR 55. He stated that in Bristol Bay the
offshore fleet supports the communities as it employs the
residents. He stated that they promote a drug and alcohol free
work place. He stated that without the offshore fleet they will be
controlled by the Japanese market. American Seafoods is now
promoting Alaskan markets.
Number 1287
STAN SMALL, Commercial Fisherman, testified via teleconference from
Dillingham against HJR 55 because "I think whenever they put it to
onshore we're going to get less money for our product." He stated
that the offshore sector provides jobs for his kids in the
wintertime, otherwise there is no work.
Number 1380
KENNY WILSON, Commercial Fisherman, testified via teleconference
from Dillingham against HJR 55 because the offshore sector employs
the residents and it would hurt the community if they were
allocated a greater percentage.
Number 1455
CHRIS ARNIM, Manager, Trident Seafoods, testified via
teleconference from Sand Point that the plant relies on groundfish
and is a major employer. The local fleet and the community are
dependant on the plant. He stated that more opportunity in the
Bering Sea means greater tax revenue, greater job stability, and
he urged support of HJR 55.
Number 1522
DAVE AVBASIAN, Assistant Akutan plant Manager, Trident Seafoods,
testified via teleconference from Akutan in support of HJR 55. He
stated that their combined recovery rate is 38 percent and their
goal is to raise it to 40 percent by next year. With the fish meal
plants they are able to utilize the bycatch. He stated that they
employ up to 800 people a year, of which 200 are employed year-
round. More allocation to the onshore sector increases the
contributions to the local and state economy through taxes and
through the indirect services.
Number 1597
JOE BERESKIN, Mayor of Akutan, testified via teleconference from
Akutan in support of HJR 55 because the onshore sector provides the
greater benefit to Alaska.
Number 1644
JUDE HENZLER, Executive Director, Bering Sea Fishermen's
Association, testified via teleconference from Anchorage that the
rationale for HJR 55 is not compelling and is premature as the
North Pacific Fisheries Management Council is still analyzing the
bill. Most of the jobs the Bering Sea residents have are offshore.
He stated that in general he does not agree with HJR 55.
Number 1708
BOB JUETTNER, Representative Aleutians East Borough, testified via
teleconference from Anchorage in support of HJR 55. He stated that
in 1993 groundfish was valued at $29.9 million and in the past year
the value was up to $54.6 million which equals $1.9 million in
taxes to the Aleutian East Borough and almost the same amount to
the communities. He stated that the onshore sector has created a
market and economic gain for local residents. He reiterated that
the plants brings in other industries and affects other industries.
Number 1870
GRANT YUTRZENKA, Employee, Unisea, testified via teleconference
from Unalaska in support of HJR 55. He stated that his family
depends on his income made from the resource of the Bering Sea.
Unisea employs about 250 year-round residents in Unalaska. He
thought the direction, the mobility of the trawlers and future
revenues to the state need to be thought of. He stated that the
future of the fishery is headed towards comprehensive
rationalization, meaning quotas, which will be awarded to those
with recent fishing history. With the current, 65/35 split the
majority of the fish will go to the factory trawlers. He stated
that the factory trawlers are mobile as they have dropped off crew
in Unalaska and then headed to Japan to deliver their products.
The landing tax from Alaska's resource is then not paid to the
state or in the community. He stated that the pollock fishery is
very important to the shore-side sector of Alaska.
Number 2019
SHIRLEY MARQUARDT, At-sea Processors Association, testified via
teleconference from Unalaska that she is unsure why this decision
is being made before the analysis of the North Pacific Fisheries
Management Council has been finished. There are many questions
that need to be answered and taken into account, it is the
council's place to make this decision. She stated that there are
over 4,000 people living in the community and it is a stable
atmosphere, she asked what has changed or what is trying to be
fixed. She stated that she was against HJR 55, as it is a
premature decision.
Number 2150
FRANK KELTY, Plant Manager, Alyeska Seafoods, testifying via
teleconference from Unalaska in support of HJR 55. He said that it
will send a strong message to the North Pacific Fisheries Council
to support an increase of pollock in the Bering Sea to the onshore
sector. He stated that at 35 percent for the onshore sector it is
not meeting the requirements of the Magnuson-Stevens act. He said
"I would also like to remind the committee that the offshore sector
controls additional quota through the CDQ program. They control
about 90 percent of that 7.5 percent on top of their 65 percent
allocation in the Bering Sea." He stated that the onshore sector
contributes locally and statewide, through taxes and employment.
He stated that Alyeska Seafoods is totally dependant on the
resources in the Bering Sea.
Number 2250
DON GRAVES, Employee, Unisea, testified via teleconference from
Unalaska in support of HJR 55 and is concerned that if reallocation
is not done the onshore sector may lose some of the production
facilities. He stated that he would like to see the industry
become more responsible and add value to the product that they
harvest. He stated that Unisea is working with manufacturers to
further utilization and increase recovery. He stated that they
have developed a process to produce pollock roe and utilize all
recoverable meat from the fish to produce fillets or surimi. They
are moving towards a 30 percent human consumption recovery product
from pollock. He stated that it is not for fish meal. At-sea
processors average 15 to 17 percent which is roughly half of the
shore-side sector. He stated that the Unisea markets seafood to
the lower 48.
Number 2365
EMIL BERIKOFF, Commercial Fisherman, testified via teleconference
from Unalaska against HJR 55, because it is premature. He stated
that the CDQ groups went with the offshore sector because they are
getting a better price for the product and good paying jobs. He
stated that local people are faced with low wages at the shore-side
plants. He stated the longshoreman put in many hours off-loading
fish from the trawlers and live in Unalaska year round. He stated
with the Japanese ownership of the shore plants the price has been
considerably lower at present they are fishing for salmon at the
same price that they did 30 years ago. He stated that if the
onshore plants receive a higher allocation, the price of pollock
and all the other fish are going to go down.
TAPE 98-10, SIDE B
Number 0007
SINCLAIR WILT, Surimi Plant Manager, Alyeska Seafoods, testified
via teleconference from Unalaska in support of HJR 55. He stated
that he would like to point out the difference between the onshore
and offshore sectors. The National Marine Fisheries Service
currently uses surimi recovery rates of 16 percent in the A season
and 17 percent in the B season. He stated that Alyeska Seafoods
has been above 24 percent each year for the past five years, which
means that they have been able to produce 50 percent more surimi
from a given amount of fish than a factory trawler. He stated that
it comes down to the question of who best could utilize the
resource, onshore producers use more of the resource.
Number 0070
MR. WILT stated that the economy of the community is dependant on
the survival of the shore plants. He stated that in the late 1980s
the plant operation for surimi was about 300 days a year, this year
it will be less than 100 days. He explained that the build-up of
factory trawlers has created a tremendous impact. The full-time
employment has gone down to seasonal employment.
Number 0135
DON STILES, Chairman, Board of Directors, Norton Sound Economic
Development Corporation, testified via teleconference from Nome
against HJR 55. The resolution is detrimental to the CDQ interest
in Western Alaska and it does not take into consideration the 55
villages which rely on the offshore for employment. He stated that
it does not provide jobs for the poorest regions in Alaska and
logistically it makes sense to be partnered with the offshore
sector. The offshore sector and Glacier Fish provides markets for
the local fisheries and the revenue generated stays in the
community. Regional residents have brought home $2.7 million in
wages since 1992.
Number 0245
CHRIS BERNS, testified via teleconference in support of HJR 55 as
the dollars from the shore-based plants benefit all communities.
It affects property values and stabilizes the economy. He stated
that the offshore sector, at first, opposed the fish tax. He
pointed out that due to the low price of oil the fishing industry
needs to be looked at as a bigger tax base. He asserted that the
CDQ groups will still get their 7 percent allocation and reap all
the benefits. He stated that this is a political campaign with a
lot of misinformation coming from the offshore sector hurting the
Western Alaska villages.
Number 0379
JOHN IANI, Employee, Unisea, stated that they buy fish from about
30 individual groundfish boats, buy salmon from 80 to 100 boats in
Bristol Bay and buy herring from 60 to 70 seiners and gilnetters
and buy crab from about 35 crab boats. He stated that the North
Pacific Fisheries Management Council passed an onshore allocation
which included up to 45 percent of the onshore pollock, but the
factory trawlers managed to get that allocation back. He stated
that if he had 65 percent of the resource for free he would also
say the this resolution was premature and would want to look at
this analysis until Jesus came back. He stated that the factory
trawlers utilize 15 percent of the fish that they harvest compared
to 35 percent with onshore sector. He stated that the allocation
should go to the sector that utilizes the resource the best.
Number 0525
MR. IANI stated that the offshore sector is unconscionable for
whipping up the CDQ communities into a frenzy, by telling them that
if the allocation changes they will not pay the communities for the
fish that buy from them. He stated that they have had the
opportunity to bid for some of the CDQs and have put together a
proposal with a factory trawler company, based on a royalty amount
to the CDQ group, paying them for their pollock and providing jobs
and internships for both of the operations. He stated that the
factory trawler company did not indicate that this hinged on the
allocation. The proposal went in at a specific number and the
allocation had nothing to do with that number.
Number 0616
DAVID STANCHFIELD, Owner, Catcher Boat, F/V Morning Star, stated
that he has been doing this since 1979 and has been involved with
the factory trawler end of the business as well. He stated that he
has had his ship in Unalaska, for three years without taking it
South as he relies on the local community for services and boat
repairs. He stated that when he worked with the factory trawlers,
when they were done with there A season and B season they would go
back to Seattle to buy their supplies and services. He stated that
the onshore sector pays a fish tax on every single pound of fish
that they land. The offshore sector only now pays a fish tax on
part of the fish that they catch because a good share of it goes to
the Seattle area. He explained that he only hires Alaskans.
Number 0810
TERRY SHAFF, President, Unisea, that Unisea has been doing business
in Alaska for over 25 years. He stated that he would like to
represent tonight the three major shore-based processors, Unisea,
Westward and Alyeska. He stated that in the A season of this year,
Unisea had 2,200 employees and 32 percent were Alaskan residents
and that is continuing to grow. The onshore sector can provide a
variety of lifestyles from seasonal to permanent work and from
processing to administrative jobs. He stated that it is just not
employment for the A season because they do not leave when that
season is over, they then switch to processing cod, yellow fin
sole, halibut, herring, turbot and salmon. They are providing
markets for the independent fishermen of Alaska. He stated that it
is appropriate for the legislature to pass HJR 55 because the
onshore processors have proven to be the best stewards for the
resource and the best corporate citizens because they are the
permanent seafood processors in the state.
Number 1069
DAVE GALLOWAY, Representative, F/V Ocean Phoenix, stated that they
are a mother-ship operation and a co-operative. He stated that
they are the smallest vessels on the grounds. He stated that they
are in support of HJR 55. He stated that they buy the fish and
make the best utilization of the fish and produce a higher quality
of fish. He asserted that it is critical to show support for this
bill as the problem has stemmed from the huge influx of foreign
factory trawlers in 1990's that crippled the traditional harvesting
fleet and processors.
Number 1210
DOUG FORSYTH, Representative, F/V Ocean Phoenix, stated that he has
been in the seafood business for 22 years and it is his belief that
the best structure of the seafood industry for Alaska is having
small boats delivering their catch to processors. It is best in
terms of creating jobs for Alaskan residents, for creating the
largest possible tax base and is best for the resource.
Number 1296
MR. IANI stated that the legislature has always been a strong
supporter of the seafood processing industry in Alaska and is
grateful for the support and in hearing HJR 55.
Number 1314
HEATHER McCARTY, Lobbyist, At-Sea Processors Association (APA),
stated that was excellent testimony preceding her. The At-Sea
Processors are made up of seven processors, all the major ones with
the exception of Tyson Seafoods. She stated that APA supports the
status-quo in the allocation battle. She stated that the
legislature should reserve their judgment until the council's
analysis is done on the impacts of the allocation shift. She
stated that the economic well being of the state, as a whole, is
the reason to look at this issue and therefore they should have
the facts from the council's and the state's analysis on the issue.
Number 1444
MS. McCARTY referred to the 1991 allocation decision and stated
that the 45/55 percentage was overturned due to overwhelming
evidence that such a shift would have resulted in a net loss from
the pollock fishery. She stated that the council came up with an
alternative of 37.5/62.5 percent which was also turned down. She
stated that in 1995 the council unanimously voted to maintain to
35/65 allocation.
Number 1557
MS. McCARTY stated that the onshore processors and the offshore
processors have both made great contributions to the communities
that they serve. Communities that do not have infrastructure to
maintain an onshore structure. She stated that competition is
healthy. She stated that there is competition between communities
because there are communities that support the offshore sector
since it is logistically and economically impossible for them to
gain from the onshore sector. She asked that the legislature look
at the impact their decision will have on those communities.
Number 1719
CHAIRMAN AUSTERMAN stated it is an emotional issue, he would like
to see 100 percent allocation go to the onshore sector. He stated
that he is going to hold the bill over.
HB 423 - ACCESS FISHERY TRUST/LIC. PERMIT SURCHARGE
Number 1816
CHAIRMAN AUSTERMAN stated that he would take up HB 423 again.
Number 1829
CHRIS BERNS testified via teleconference from Kodiak that there are
a lot of problems with the bill but the basis to have a fund for
a buy-back should be investigated and he supports that.
CHAIRMAN AUSTERMAN stated that HB 423 will be held over.
ADJOURNMENT
Number 1999
CHAIRMAN AUSTERMAN adjourned the House Special Committee on
Fisheries meeting at 6:35 p.m.
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