Legislature(2001 - 2002)

02/27/2002 03:43 PM Senate RES

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
          SCR 28-JOINT LEGIS SALMON INDUSTRY TASK FORCE                                                                     
                                                                                                                                
CHAIRMAN TORGERSON announced SCR 28 to be up for consideration.                                                                 
                                                                                                                                
MR.  IAN FISK,  staff to  Senator  Austerman, sponsor  of SCR  28,                                                              
said:                                                                                                                           
                                                                                                                                
     I  know that  the  Senate  Resources Committee  is  well                                                                   
     aware  of the  crisis in  Alaska's  salmon industry  and                                                                   
     well  aware of  the gravity  of that  crisis. What  this                                                                   
     resolution does  is allow the legislature to  step up to                                                                   
     the  plate  and provide  some  real leadership  to  find                                                                   
     solutions  to the salmon  industry's problems.  Previous                                                                   
     summits,  there  have  been  three  of  them,  that  the                                                                   
     Administration  organized   on  this  issue   made  some                                                                   
     strides  and  members  of the  industry  put  some  good                                                                   
     effort into those. We will review  the findings of those                                                                   
     summits, but they have essentially  amounted to a strike                                                                   
     out. We're  going to step up  to the plate and  we might                                                                   
      not hit the homerun that wins that game, but we'll at                                                                     
     least get a few men on base.                                                                                               
                                                                                                                                
MR. FISK reviewed the changes in the committee substitute.                                                                      
                                                                                                                                
SENATOR  TAYLOR  moved  to  adopt   the  CS,  Version  L\Utermohle                                                              
2/27/02,  to  SCR 28.  There  were no  objections  and  it was  so                                                              
ordered.                                                                                                                        
                                                                                                                                
SENATOR HALFORD said  they might want to find people  who are in a                                                              
broad sense  involved in  the commercial  salmon industry  for the                                                              
public  members. He  wanted  to make  sure  that  was the  intent,                                                              
because they  might be excluding  people that might  be worthwhile                                                              
to have on it.                                                                                                                  
                                                                                                                                
MR. FISK agreed and said that is the intent.                                                                                    
                                                                                                                                
SENATOR ELTON said  he thought it would be important  to have some                                                              
one  from  the  transportation  industry  involved,  because  that                                                              
contributes  to the cost  effectiveness of  the industry.  He said                                                              
the language  on lines 15 and 16  on page 3 could be  construed by                                                              
some to  be in  conflict with  the further  resolved provision  on                                                              
lines 27 - 29  where it says the task force shall  be appointed to                                                              
represent the statewide salmon industry  as a whole and not just a                                                              
particular region or harvesting sector of the industry.                                                                         
                                                                                                                                
MR. FISK said  he was correct and that there  wouldn't necessarily                                                              
be solutions  that would affect the  industry across the  board as                                                              
each region of the state has particular  issues. The intent of the                                                              
sponsor  and this  language  is to  make  sure  that in  selecting                                                              
members for  this task force they  don't select people who  have a                                                              
narrow interest in the industry.                                                                                                
                                                                                                                                
SENATOR  HALFORD agreed  with narrowing  the  focus to  commercial                                                              
fisheries issues  from where it was  initially, but said  there is                                                              
one WHEREAS clause  that tweaks the other  interests unnecessarily                                                              
- "Whereas allocation issues between  commercial fishers and sport                                                              
fishers are becoming more problematic all the time."                                                                            
                                                                                                                                
MR. FISK replied  that the sponsor wouldn't have  any objection to                                                              
deleting it. He added the intent  of the membership is to focus on                                                              
the commercial  industry and to make  sure it is  well represented                                                              
on the task  force. They would be  able to contract out  and bring                                                              
in information from other sources.                                                                                              
                                                                                                                                
CHAIRMAN TORGERSON said he agreed with Senator Halford.                                                                         
                                                                                                                                
SENATOR HALFORD moved to delete lines  8 and 9 on page 2 and asked                                                              
for unanimous  consent. There were  no objections and  Amendment 1                                                              
was adopted.                                                                                                                    
                                                                                                                                
SENATOR  WILKENS said  he  has heard  a lot  about  the threat  of                                                              
farmed  fish  to  our  salmon industry,  but  that  issue  is  not                                                              
addressed and he  wondered if it would be appropriate,  "Or are we                                                              
just whistling past the graveyard by not addressing it."                                                                        
                                                                                                                                
MR. FISK  replied that  salmon farming is  responsible to  a large                                                              
degree for  what has changed the  market place for our  salmon and                                                              
the  task force  needs to  consider what  we can  learn from  that                                                              
industry. But there is broad based  consensus that it should focus                                                              
on the  strengths of the  wild salmon  industry to help  it better                                                              
compete. Starting  on the  bottom of page  2 there is  language to                                                              
that affect.                                                                                                                    
                                                                                                                                
SENATOR LINCOLN said she didn't have a fiscal note.                                                                             
                                                                                                                                
MR. FISK  replied that they  would have  a fiscal note  before the                                                              
bill gets to the Finance Committee.                                                                                             
                                                                                                                                
SENATOR HALFORD  recommended that  the fiscal note  be substantial                                                              
enough to get the kind of expertise  it would take to work on this                                                              
issue.  He thought they  would need  at least  $200,000 and  maybe                                                              
considerably more than that.                                                                                                    
                                                                                                                                
CHAIRMAN  TORGERSON  said there  had  been some  discussion  about                                                              
$500,000 being available.                                                                                                       
                                                                                                                                
SENATOR STEVENS  said that  they tried to  delineate seats  on the                                                              
task force to be  held by all the industries. They  didn't want to                                                              
exclude anyone.  He stated, "The  most important thing is  that we                                                              
get people that understand the business."                                                                                       
                                                                                                                                
SENATOR  ELTON said  he thought the  discussion  was on point  and                                                              
that the  Legislative Council has  approved requests that  lead to                                                              
the kind of purchase of knowledge  that we need to make reasonable                                                              
and rational decisions. He remarked:                                                                                            
                                                                                                                                
     Quite  frankly, this task  force is  going to need  some                                                                   
     staff that is  dedicated only to this and  I don't think                                                                   
     we can  go down to the  Department of Fish and  Game and                                                                   
     ask to  borrow their people.  I don't think  they've got                                                                   
     people to lend.                                                                                                            
                                                                                                                                
MS. SUE ASPELUND,  Executive Director, Cordova  District Fishermen                                                              
United (CDFU), supported CSSCR 28(RES).  It provides CDFU with the                                                              
opportunity  to begin  the very  important discussions  on how  to                                                              
restructure  the evaluation of  their industry.  They feel  that a                                                              
successful approach will involve three components:                                                                              
                                                                                                                                
   · it must be on a statewide basis and be controlled by                                                                       
     Alaskans in Alaska;                                                                                                        
   · representatives of the salmon industry - fishermen, tenders                                                                
     and processors - must be involved throughout the process                                                                   
     from the beginning and at the most basic levels;                                                                           
   · a funding mechanism is necessary to help them move forward                                                                 
     since  the   industry  does   not  have  the   resources  and                                                              
     infrastructure  necessary to facilitate  the broad  based and                                                              
     far reaching  considerations that  have to occur in  order to                                                              
     achieve success.                                                                                                           
                                                                                                                                
MS. ASPELUND said  she thought it was important  to recognize that                                                              
in order  to enable the participation  of the processors  in these                                                              
discussions, this  process will have to be convened  by government                                                              
in  order  to   address  antitrust  concerns  and   the  committee                                                              
substitute does  a good job of  outlining most of the  problems of                                                              
the industry.                                                                                                                   
                                                                                                                                
MR. CHRIS BERNS, Kodiak fisherman, supported SCR 28.                                                                            
                                                                                                                                
MR. OLIVER  HOLM, Kodiak fisherman,  said he has fished  since the                                                              
sixties and  supported SCR 28. He  said that the salmon  market is                                                              
world wide and a major cause of the  crisis is the price of farmed                                                              
fish. There are  some fair trade issues to look into  and there is                                                              
Japanese  and   U.S.  corporate  involvement  in   Russian  salmon                                                              
hatcheries  and  processing  and   Japanese  workmen  involved  in                                                              
Chilean farms and Alaska salmon processing.  SCR 28 should include                                                              
the  examination  of these  issues.  He supported  Sue  Aspelund's                                                              
comments about work being done on  a statewide basis and involving                                                              
everyone in the industry.                                                                                                       
                                                                                                                                
SENATOR TAYLOR moved  to pass CSSCR 28(RES) from  committee. There                                                              
were no objections and it was so ordered.                                                                                       

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