Legislature(2001 - 2002)
04/15/2002 01:57 PM House FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
CS FOR SENATE CONCURRENT RESOLUTION NO. 28(RES)
Establishing the Joint Legislative Salmon Industry Task
Force.
SENATOR ALAN AUSTERMAN, SPONSOR, testified in support of SCR
28. He observed that the legislation reflects what is
happening in the salmon industry in terms of a decline in
price and an influx of farmed fish. He observed that the
issue has been coming down the road for quite some time and
noted that it has been waiting for the industry to react and
the Administration to take on the issue. He noted that he
has attended four different salmon summits sponsored by the
Administration, which have not resulted in any action. He
hoped that legislators on the Task Force would drive the
issue and find answers and make recommendations that the
legislature can implement, which would help crisis and
indicate actions that the industry can take.
In response to a question by Representative Croft, Senator
Austerman stated that he did not object to changing the Task
Force to eleven members.
Co-Chair Mulder MOVED to ADOPT proposed committee
substitute, work draft 22-LS1572\P, 4/15/02. There being NO
OBJECTION, it was so ordered.
Senator Austerman noted that a change occurred on line 19 of
page 3 - 28, which reduced the membership from 13 to 9.
Co-Chair Williams observed his intent to change the
membership to 11: four legislative and seven public members.
Senator Austerman noted that there was some concern that the
amount of work would require more than 13 members. He
thought that 11 members would be sufficient.
Vice-Chair Bunde questioned the effect of 11 members on the
fiscal note.
SUE ASPELUND, EXECUTIVE DIRECTOR, CORDOVA DISTRICT FISHERMEN
UNITED, CORDOVA testified via teleconference in support of
CSSCR 28 (RES). She maintained that representatives of the
salmon industry: fishermen, tendermen, and processors, must
sit on the Task Force. Without the extensive and intimate
involvement of the industry at that level, constituent buy-
in of the results is unlikely. She noted that it would also
be critical to seek the knowledge and expertise of resource
managers, seafood marketers, economists, industry
regulators, infrastructure representatives and local
governments. She noted that they agree with the comment of
NorQuest President Terry Gardiner in his paper entitled
"Alaska Seafood Industry, Radical 5urgery? or Slow Death."
She maintained that leaders are needed to represent the
various segments of the industry. A forum needs to be
established to have serious discussions and a goal
established in order to develop a broad-based consensus for
change. Without a broad base of consensus, any plans for
change would be dead on arrival. She noted that the Cordova
District Fishermen United strongly believes that the
Austerman Task Force as it passed the Senate is the forum
described by Mr. Gardiner, and that consensus in the fishing
industry would only be realized when industry folks are
significantly involved in identifying the problems and
developing the solutions.
Ms. Aspelund maintained that formalizing and supporting this
Task Force is on appropriate role for government to play
given the importance of the industry to the economies of
dozens of coastal communities, to thousands of small
independent family fishing operations, to the seafood
processors and industry support infrastructures, and to the
tax base of the state.
PAUL A. SHADURA II, KENAI PENINSULA FISHERMEN'S ASSOCIATION,
KENAI, testified via teleconference in support of CSSCR 28
(RES). He stressed that the task force is an excellent
attempt by Senator Austerman and the legislature in
facilitating solutions for the Alaska fishing communities.
Mr. Shadura observed that at the salmon summit in Kodiak,
discussion moved toward the next step in the revitalization
process. Many felt that the discussions should continue and
that time was of the essence. Many representatives
identified problems they felt determined should be
addressed. The debate of whether there should be "regional"
task forces or a "statewide" task force seemed to be even
Mr. Shadura maintained that, with financial considerations,
the statewide concept should be the catalyst for regional
task forces and that the committee must be comprised of
diverse representation. He emphasized that all Alaskan
fishing communities must have identification within the task
force.
Mr. Shadura stressed the need to develop a consensus of
major improvements that will benefit every fishing community
and the people of Alaska. He acknowledged that that the
group could recommend hard decisions that would change
Alaskan lifestyles.
"It is my hope that this task force will design a
framework and thus a long range salmon fisheries plan
that regions can develop on and establish economic and
regulatory stability for the future of all residents of
the state. The last statewide plan was developed for
Governor Hammond in approximately 1975. It is a
comprehensive review for the fisheries in the entire
state. It established goals and objectives for
fisheries resources and concurrent users. Though not
perfect, the design could be identified as the
framework for preliminary discussions.
It is imperative that all ideas, studies, facts and
figures will be available to the committee. Equally as
important is that the administrative arm should
establish full support in supplying all it's
information gathering and expertise to facilitate the
task force.
JERRY MADDEN, UNITED SOUTHEAST ALASKA GILLNETTERS, JUNEAU,
testified in support of the legislation. He noted that there
is some concern regarding representatives from the private
sector. He suggested that the language be more specific to
address the appointment of commercial fishermen.
TAPE HFC 02 - 83, Side B
DAVID BEDFORD, EXECUTIVE DIRECTOR, SOUTHEAST ALASKA SEINERS,
JUNEAU, testified in support of the legislation. He noted
that 10 years ago a Bristol Bay permit was worth $250
thousand dollars; today it would be worth $25 thousand
dollars. In the course of 10 years the expectation on the
fishery has dropped to a dime on a dollar. The price of
salmon has gone from over a dollar a pound to .40 cents a
pound in the past year. There have been parallel collapses
in salmon prices elsewhere. Processors have laid-off dozens
of purse seine fisherman, some of which have been fishing
for scores of years. He emphasized that any solution must be
built on the communities that rely on the fisheries.
JERRY MCCUNE, UNITED FISHERMEN OF ALASKA, JUNEAU, testified
in support of the legislation. He stressed that problems in
the fishing industry run from infrastructure, to harvest and
processing. He felt that the forum would help turn the
industry around and acknowledged that it would take a lot of
hard work.
Co-Chair Mulder MOVED to changed the representation to 11
members with 7 public members. There being NO OBJECTION, it
was so ordered.
Senator Austerman noted that the original legislation set
out regional representation. Discussion in the Senate
expressed concern that the best-qualified persons be
appointed to the Task Force. The intent was to allow
appointments to be made by the Senate President and House
Speaker based on submissions and recommendations from other
legislators or institutions. The desire is to have persons
with financial and economics expertise relating to the
fishing industry. Small and large processors, the commercial
industry and other entitles need to be involved.
Co-Chair Williams added that he would like to see someone
with working knowledge of the world economy to identify ways
to compete in the current climate.
Senator Austerman pointed out that it would be impossible to
get everyone with an interest at the table. He stressed that
there is a large amount of work to be done and indicated
that the Task Force could appoint subcommittees that may
include others not on the Task Force.
Co-Chair Mulder agreed that the Task Force number should be
kept small, functional and focused on production. He asked
if the expertise of the Board of Fish would be utilized.
Senator Austerman agreed that the Board of Fish has
appropriate information and should be consulted. He noted
that the Legislature with the help of the Task Force is
going to have to push for a result.
Representative Lancaster assumed that the Task Force would
be broad based. He noted that there are questions regarding
over production.
Co-Chair Williams interjected that the Administration would
be engaged in the task force work. A subcommittee of
fishermen from throughout the state could work along with
the Administration.
Representative Harris noted that there are disagreements
within the fishing industry and expressed the hope that
there would be cooperation. He referred to the fiscal note
and questioned the $110 thousand dollar appropriation for
travel. Senator Austerman thought that the number may be low
by the time task force members are moved to meetings and
travel of experts needed to address issues such as anti-
trust is funded. He indicated that one-year might not be
enough time to address the long-range vision. The intent is
to stabilize the industry so that it is there 15 - 30 years
from now.
Representative Hudson agreed with the size of the board. He
noted that large boards become overloaded with logistics. He
noted that the activity could be significant, especially
with a new administration. He emphasized that existing
intelligence should be tapped into, such as the Alaska
Seafood Marketing Institute. He added that sports, guiding
and commercial fishermen should all be included.
Representative John Davies MOVED to ADOPT Amendment 2.
Amendment 2 would require that one of the four legislative
members be appointed from the minority. There being NO
OBJECTION, it was so ordered.
Senator Austerman stressed that the Task Force would
indicate that legislators could come up with creative ideas
and regulatory changes to make the industry work. He
expressed the hope that the result would be a separate task
to address all of the sustainable fisheries in the state of
Alaska in order to generate jobs. Salmon is only one of the
fisheries in crisis.
Representative Foster MOVED to report HCS CSSCR 28 (FIN) out
of Committee with the accompanying fiscal note. There being
NO OBJECTION, it was so ordered.
HCS CSSCR 28 (FIN) was REPORTED out of Committee with a "do
pass" recommendation and with a new fiscal impact note by
the Legislative Affairs Agency.
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