Canadian Cataloguing in Publication Data Financing in the B.C. fishing industry. Cover title. ISBN 0-7719-8271-2 1. Fisheries - British Columbia Fisheries subsidies Finance. 2. SH334.F66 338.3'727'09711 C80-092005-8 INTRODUCTION -95 APPENDIX A GOVERNMENT FINANCING ON THE EAST COAST There is a vast difference in the approach to and funding of government assistance programs to the fishery of Eastern and Western Canada. Because the Newfoundland government has made a very strong commitment to the development of a viable fishing industry and because of the importance of the fishery to the provincial economy, it was chosen as a representative province for comparison of East and West Coast fishery financial assistance programs. Because of the limited time frame for this report, the magnitude 05 assistance programs--nearly 200 available to the fishing industry in Newfoundland--and the various different forms of record keeping by program, the information presented in this chapter is as complete as possible, within these many constraints. -96 In order to carry out this research task, programs were reviewed under federal, federal-provincial, and provincial levels of funding. Under each level of funding, the purpose of the financing such as capital costs, working capital, manpower assistance, export and marketing, efficiency, and new product development and research will be pointed out. In this review it must be remembered that the major programs have been researched and that as many as possible of the minor ones are presented here. However, the list is not complete due to the previously mentioned constraints. Programs were reviewed under assistance to fishermen, the processing industry, and the industry in general. After a review of government financial assistance programs, the role of the banks in the Eastern Canadian fishery, with specific reference to Newfoundland, were documented. An attempt was then made to compare the types of financial assistance programs of the two provinces. Finally, some suggestions on the relevance of Newfoundland programs was .made. It must be borne in mind that this examination is by no means exhaustive. FEDERAL FINANCIAL ASSISTANCE PROGRAMS Financial Programmes for Fishermen The federal government provides a considerable number of financial assistance programs to the fishing industry. The major difference in the types of programs available is the resource subsidies available to fishermen to make up for -97 There are programs dealing salmon and gear loss. The shortfall in catch and/or income. with bait, ground fish, Newfoundland bait program ensures a continuous fishing bait supply for commercial fishermen through a system of fiftyseven depots and units which purchase, freeze, store and sell bait. While bait is purchased at market price it is re-sold at a lower value. Table A.1 gives a fairly clear indication of the federal assistance available to fishermen. The major portion is obviously subsidy programs and some assistance for capital construction. Manpower assistance is very limited. Financial Assistance Programs for Processors From Table A.2 it is clear that the major differences in financial assistance programs to the processors in the province of Newfoundland as compared to B.C. is the larger amount given out for capital construction and the significant subsidies. It must be borne in mind that in B.C. no money has been given as subsidies for processors. Senior officials of Industry Trade and Commerce point out that the fishing industry in Newfoundland compromises 25 percent of PEMD approvals and 5/6 of EDP approvals. Figures of costs were unavailable. Federal Financial Assistance to the Total Fishing Industry Capital Costs and Related Activities Department of Fisheries - Small Craft Harbours Branch: This Small Craft Harbours Branch of Fisheries Canada is given an annual budget of $5 million to provide for the administration, construction and maintenance of the small craft |