Legislature(2003 - 2004)
01/31/2003 08:32 AM House FSH
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* first hearing in first committee of referral
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+ 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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