NR-M-99-23E

FOURTH ROUND OF BIDDING UNDERWAY IN SCOTIA-FUNDY FOR GROUNDFISH LICENCE RETIREMENT PROGRAM

June 4, 1999

HALIFAX -The Department of Fisheries and Oceans (DFO), Scotia-Fundy sector, today announced the opening of the fourth round of bidding for the Atlantic Groundfish Licence Retirement Program.

THIRD ROUND RESULTS

The third round of bidding was launched in March, 1999, and generated a significant response. A total of 315 bids were submitted by the April 23 closing date from amongst approximately 3200 groundfish licences in the sector. Of these submitted bids, 88 were approved by the Director-General of the Maritimes Region after being recommended by the industry-based Licence Retirement Advisory Committee.

The average value of accepted bids was over just over $92,000 for "Core" licences. In future round(s) the committee will continue to recommend bids that represent the best value for money. In total, value of the approved bids in Round Three came to approximately $7 million for the Scotia-Fundy sector.

The committee evaluated bids for value-for-money during the third round, using the following criteria:

• TAGS status
• Core status
• location (open or closed fishery area)
• gear type and length of vessel.

FOURTH ROUND UNDER WAY

The program consists of multiple rounds of bidding. Fishers who did not bid in Rounds One, Two, or Three, or whose bids were rejected, may submit a bid in Round Four. The reverse-auction process will continue to be applied in Round Four.

Applications kits have been mailed to over 3000 groundfish licence holders in the Scotia-Fundy Fisheries Management Sector. Applications must be either received or postmarked by June 11, 1999.

The Atlantic Groundfish Licence Retirement Program is one of the final measures the federal government has put in place to allow fishers to permanently leave an industry affected by the collapse of groundfish stocks.

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