NR-M-98-45E

SECOND ROUND OF BIDDING UNDERWAY IN SCOTIA-FUNDY FOR GROUNDFISH LICENCE BUYBACK PROGRAM

December 22, 1998

HALIFAX -- Response in the Scotia-Fundy sector has been encouraging during the first round of bidding for the Atlantic Groundfish Licence Retirement Program, the Department of Fisheries and Oceans (DFO) announced today. DFO has now opened the second round of bidding under the program.

FIRST ROUND RESULTS

The first round of bidding was launched in October 1998 and generated a significant response. A total of 459 bids were submitted by the November 6 closing date from approximately 3300 groundfish licences in the sector. Of these submitted bids, 84 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 less than $ 50,000 for "Core" licences, and less than $9,000 for "non Core" licences. In future round(s) the committee will continue to recommend bids that represent the best value for money. In total, the approved bids in Round One come to just over $3 million for the Scotia-Fundy sector.

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

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

The total number of bids approved from just the first round of bidding in the Scotia-Fundy sector during the current program is approximately 50 % more than the total number accepted in Scotia-Fundy in both rounds of licence retirement carried out under The Atlantic Groundfish Strategy (TAGS) in 1995 and 1996.

SECOND ROUND UNDER WAY

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

Applications kits have been mailed to over 3000 groundfish licence holders in the Scotia-Fundy Fisheries Management Sector. Applications must be received or postmarked by February 1, 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.

For information:

Gary Marsh
Policy and Economics Branch
Fisheries and Oceans
Maritimes Region
Halifax, N.S.
(902) 426-6595