The Demise of Commercial Fishing, and How to Fix ItHow do environmental regulations impact commercial fishing?

Branden CordeiroConor Halpin

Mr. Thomas Whalen2016 Capstone April 6th, 2016

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Abstract

This project explores the impacts that environmental regulations by state and federal regulators have on the commercial fishing industry. The goal of this project is to prove there is a link between the demise of the commercial fishing industry and the current regulatory environment, and to find a solution that would provide a realistic resolution that would preserve the fishery, along with revitalizing the commercial fishing community. Regulators fail to realize the impacts that their statues on fishermen and their families until after they are put into place, and fail to provide fishermen a voice in the process, despite the heavy effects the rules have on them. It is reasonable logic that regulations are required in order to preserve the ecosystem and resources that is the fishery, but the importance that the industry has on the everyday life of millions of Americans, particularly on the coastline, must not be ignored. This report will focus on past regulations, and their impacts on the economy that followed. It will focus on the regions of New England, Atlantic Canada and Alaska, which are major fishing ports in North America that have been impacted by large regulations. Finally, the research will attempt to find a solution to the rift between regulators and fishermen.

While researching this topic, most sources of information came from government sources, newspaper articles, economic data and academic journals. The sources provide useful information regarding examples of personal plights of fishermen, the impacts on fishermen’s bottom line and regional economy, the specifics regarding regulations, and possible resolutions to the issues of over regulation and overfishing, on both sides of the aisle of opinion. The research question, which aimed to prove the link of the demise of commercial fishing and the burden of environmental regulations, was expanded after discovering information which pointed out the disastrous impacts that certain forms of regulations have, including catch shares, and its ineffectiveness, but also introduced better ideas for regulations that would prevent fisheries from being depleted, and fishermen from being negatively impacted. The research also led to the introduction of increasing the role that fishermen, consumer, and commerce advocacy groups have in the regulatory process, rather than just from the science community. It’d be important to look at the impacts that regulations have on saving stocks, and whether there would be more sustainable ways to achieve those goals in further research.

Overview

Commercial fishing is an integral industry in the international economy. The Food and

Agriculture Organization reports that 500 million people depend on the fishery in order to

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survive. In the United States, 1.7 million jobs are supported by commercial fishing and the

industry contributes over $70 billion to the United States economy. (NOAA) It is vital for the

health of the economy and environment that overfishing is prevented through multiple attempts

at preservation and regulation. In the United States, and most federal governments throughout

the international community posses the authority to regulate the harvest of fish, and their goal is

to prevent the depletion of stocks and the destruction of ecosystems. Considering the importance

of commercial fishing, it is important to investigate whether these measures are abusive,

inefficient, and economically unsustainable. In order to improve the quality of life of fishermen

and consumers, it is necessary to take an in-depth review of the regulatory apparatus surrounding

fishing, and look at reforms that will allow the most economic prosperity, and the most efficient

programs to protect fish and the environment. Reforming the regulatory apparatus extends past

the lines of commercial fishing, and the data can be used to open up other important areas of the

international marketplace.

The federal and state regulatory system is broken, which is hurting many blue-collar

workers throughout North America. Many regulations on fishing are based solely on scientific

data, which can be flawed. The tracking of fish in their environment is very costly, and difficult

to analyze. In order for regulatory groups, like the National Oceanic Atmospheric Association, to

make even-keeled decisions, it would be best for fishermen advocacy groups and consumer

advocacy groups to have a voice in the process. This will ensure the streamlining of future

regulations which would keep in mind the scientific consequences of under regulation, and the

economic consequences of over regulation. Additionally, the conventional regulatory system

(output, input and technical controls) has been proven ineffective in the modern economy, and

modifications shall be explored to adapt to the times. Market-based alternatives should be

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implemented in order to improve the health of ecosystems (rather than specific species) and

would give fishermen a better ability to control their fishing methods. This report will be helpful

in guiding policy makers and fishermen advocacy groups to promote regulatory proposals that

keep fisheries sustainable, while preventing thousands of blue-collar workers from going into

poverty. In addition, it will assist fishermen in advocating for more say in the regulatory process.

This report is organized through an abstract, introduction, an overall review of the fishing

industry and its impact on the economy (including the industry’s relationship with environmental

regulations), the overall proposal to solve the economic depression in the fishing industry as a

result of environmental factors and regulations, and specific examples of fishermen encountering

issues as a result of environmental regulations.The review of the fishing industry will address the

efficiency of current regulations, the impact on the economy (focusing on New England, Alaska

and Atlantic Canada), and the influence fishermen have on the regulatory process. The research

has led to the introduction of plans to solve the rift that exists between regulators and fishermen.

In order to improve the efficiency of the regulations, a market-based alternative to the

conventional means of regulations will be introduced. The paper will then begin to come up with

solutions to solve the fishing community’s economic woes. The proposals will include a 10-year

phase in program for large regulatory changes in order to soften the blow that the fishing

community will go through as a result of the large changes. Among others, another proposal

would be requiring NOAA and other regulatory agencies to have input from consumer and

fisherman advocacy groups in order to make the process better. Along with the economic impact

of over regulation, the report will look at environmental issues caused by the inefficient

regulatory system currently in place. The paper will conclude with related works and a

conclusion that will summarize the full report.

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Literature/Research Review

In order to acquire most of the information used in the research, it was necessary to

search through numerous news sources that addressed past regulations, and the consequences

that could have followed. It was also important to go through academic journals and government

sources, which provided the research with reliable data regarding regulations and the economy.

The National Oceanic Atmospheric Association releases yearly economic impact studies

regarding commercial fishing, and this information proved valuable in our research. Aside from

data, the news sources (namely WMUR-9 and The Boston Globe) provided valuable stories

regarding the personal plight of fishermen, and the impact that regulations have on workers and

consumers. The personal impact on fishermen was more vital to the research than the data, as it

allowed the report to appeal to people’s emotions regarding the economic problems in

commercial fishing. The academic journals were very important in crafting policy proposals to

fix the problems facing the fishing industry as a result of inefficient and over regulation.

When conducting the research, it was required to discover specific regulations in order to

understand the background of fishing regulations. Discovering this specific information allowed

the research to address the current regulatory environment, and craft changes based on current

inefficiencies in the system. It was important to utilize resources provided by federal and state

governments (particularly the Commonwealth of Massachusetts) in order to trust the source’s

reliability. After discovering specific regulations, academic journals and government data on

economic information were utilized to analyze prospective proposals that helped form solutions

to the rift that exists between environmentalists, regulators and the fishermen in the industry. The

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economic data was used to analyze the correlation between the economic health of the regional,

national and international economy and the success of commercial fishing.

In order to acquire a personal perspective of the economic struggles of commercial

fishing, newspaper articles were used to cite personal accounts of the happenings in commercial

fishing. These sources included reputable sources; including the Manchester, NH ABC affiliate

(WMUR-9), The Boston Globe, The Central Maine News, Fox News, Newsweek. The newspaper

articles provided the research with important direct quotes from local fishermen dealing with the

federal regulations. The articles also allowed the research to focus the research on particular

regions, as fishermen from Gloucester, Massachusetts and the New Hampshire seacoast were

featured. An important part of our research was to focus on the New England region, and these

sources allowed the paper to project the struggles of local blue-collar workers and their families

as a result of powerful government regulations. The most revealing personal statement came out

of Fox News, when a Gloucester fishermen (Joe Orlando) discussed his personal financial plight

after the onset of a large cod fishing ban enacted in the Gulf of Maine during 2013. The catch

shares for cod was reduced by 77%, and Orlando was forced to sell his fleet after losing his

$150,000/year income. (FOX News) Revealing statements by fishermen will allow the research

to be multidimensional, and will be able to touch the audience personally.

Analysis/Approach

Since fishing is an integral factor of the New England economy, it is important to analyze

the industry. In order to learn more about the internal conflicts in the private and public sector

regarding commercial fishing and corresponding environmental regulations, a month long

research initiative took place. After initial research, it became clear that the current

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environmental regulatory apparatus is a large factor in the demise of commercial fishing. After

proving the economic importance of commercial fishing, the research attempted to find

correlations between large regulatory initiatives and the corresponding demise in the regional

economies as a result. The research focused most of the attention researching the cod fishing

bans that were put into place in the early 2010s and during the 1990s off the coast of New

England and Atlantic Canada. Then, to analyze the economic impact of the ban, unemployment

and revenue data was analyzed after the bans took place. The most in-depth analysis was done

reviewing the impact of the Halibut fishing regulations on the Alaskan economy. The Halibut

regulations led to inept fishing tactics (which can be environmentally damaging, making the

regulations counter-productive) and widespread economic hardship in the region. The sources of

this information were from an academic journal, which discussed the economic penalties and

environmentally damaging fishing methods that occurred as a result of the spike in regulations.

After proving the link between economic distress and the rise of regulations, it was

necessary to find solutions to the issue and draft plans to solve the economic depression in the

fishing industry. This was done by analyzing information through academic journals and

supporting arguments from differing aspects of opinion regarding the government’s role in the

fishing industry. The research analyzed arguments that supported little to no reform in the

regulatory system, and then researched alternatives to the present policy proposals. The most

logical alternatives explored by the research included a market-based alternative to the

conventional systems of regulations, including setting up a system that allows fishermen to

control the quota of fish in their own designated region, which will force the fishermen to have

incentive to keep the stock healthy in their quota. In order to ensure that the regulatory process is

fair for the entire fishing industry, representatives from fisherman advocacy organizations should

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be placed on regulatory committees, in order to add the perspective of fishermen to a panel

dominated by scientists. These proposals were crafted due to the immense research done

regarding the lack of transparency that exists between federal regulators and the private sector,

and analyzing fish stocks after the introduction of conventional regulations.

Results

The overregulation of the fishing industry cannot be understood without analyzing the

economic impact that commercial fishing has on the national economy. Unlike many other

industries, commercial fishing is strictly a regional business, providing an economic bonanza to

New England, the Canadian Maritimes, the Pacific Northwest and the Gulf Coast. According to

the National Oceanic Atmospheric Association, commercial fishing brought in 9.6 billion pounds

of seafood, worth over $5.1 billion into the United States in 2012. The state of Alaska brought in

the highest volume and value, bringing in $1.7 billion and 5.3 billion pounds of harvest.

Massachusetts ($618.2 million), Maine ($448.5 million), Louisiana ($356.6 million) and

Washington ($302 million) also have very lucrative fishing industries which are vital to the

regional economies. Dutch Harbor, Alaska is known for the Alaskan King Crab, bringing in 452

million pounds and $214 million in value and making it the top fishing port (volume) in the

United States. In regards to value, the top fishing port in the United States is New Bedford,

Massachusetts. The city of New Bedford is known internationally for a lucrative Atlantic Surf

Clam and Cod industry.

State Sales from corporate fishing

Massachusetts $7.4 billion

Rhode Island $978 million

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New Hampshire $752 million

Connecticut $730 million

Maine $1.6 billion

Source: National Oceanic Atmospheric Association (2010)

When looking at New England, fishing is arguably the most important industry that

contributes to the regional economy. Commercial fishing is the most impactful in Massachusetts,

where $7.4 billion of sales were made in 2010. The industry also contributes 90,000 jobs, $1.9

billion in income and $2.9 billion in investment value into the Massachusetts economy. The

investment value contributes to the state Gross Domestic Product, which is a measure of all

finished goods and services produced within an area’s borders. In regards to landings revenue,

the region amassed a total of $954 million in revenue from seafood landings in 2010.

Massachusetts ($352 million) and Maine ($345 million) are the fishing meccas of the New

England economy, where both states’ high reliance on commercial fishing in blue-collar coastal

communities are show in the data. Maine and Massachusetts are home to robust groundfish and

lobster fisheries, which are highly valuable products and demanded my millions of consumers

throughout the world. Between 2001 and 2010, the American Lobster has the highest landing

value of any species ($332 million) in New England. During the year of 2013, $500 million of

lobster was harvested in New England. Besides American Lobster, other important harvests

include Sea scallops, American eel, Atlantic herring, and Softshell clam in New England. The

New Bedford fishing economy is based on the highly valuable resources of Sea scallops are

Softshell clam. (NOAA)

The conventional system of fishing regulations include input, output, and technical

controls. These controls are enforced and enacted by the federal government, along with multiple

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differentiating state governments throughout the United States. The input controls include limits

on the equipment used to catch fish, and the vessels that are used by fishermen. When input

controls are enforced, the goal is to limit the amount of equipment and people that are fishing in

a regulated area. Output controls include catch limits and quotas put into place on fishermen,

while technical measures are used to regulate the technical ways to catch fish, like regulating the

size of fishing meshes.

The most popular means of regulations that are used by government agencies are output

controls. They are put into place by enforcing two main programs, including a system of quotas,

referred to as the Total Allowable Catch (TAC) and catch shares. “Catch shares are a type of

management system that dedicates a secure share of fish or fishing area, to individual fishermen,

communities or fishery associations.” (Environmental Defense Fund) After the catch share is

reached , fishermen are often forced to cease fishing operations for that fishing season. The

restrictions are often seen in size, seasons and species of fish. The quota system, based on the

Total Allowable Catch policy, sets a weight or harvest limit in a fishery based on biological data

and information regarding the seasonal catches from fishermen. This information is referred to as

stock assessments, which scientists use to assess fish stocks from different regions. Rather than

the Total Allowable Catch policy being allocated to a specific region, the system has been used

famously in the past to regulate Alaskan halibut and quahog industries. The regulations are

enforced by state governments when the fishing takes place less than 3 miles from shore, and

enforced by the federal government in fisheries that are 3-200 miles offshore.

Much like any industry, the regulations that are required for the industry to exist can

hamper economic growth within the fishing business. In the past, regulations have shown to save

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stocks and create safer environments for fishermen. Unfortunately, in too many cases, fishing

regulations have shown to destroy fishing communities and their families throughout the United

States. This is often the case when regulations are backed by stingy scientific data, are enacted in

large quantities over short periods of time, and show ignorance on varying methods of fishing,

and the impact on family incomes in communities where fishing is important. During the 1990s,

cod fishing was banned in the Gulf of Maine after a noticeable drop in the health of cod stocks.

This legislation was heavily pushed by the Canadian and the United States governments during

that decade, and left many fishing communities in Atlantic Canada, Maine and Massachusetts

with little cod fishing industry to continue. After the ban was passed, processing plants and

fishing boats were shut down from Newfoundland to Massachusetts, causing the $700 million

industry to be shuttered from New Brunswick to Newfoundland. Marking the largest layoff in

Canadian history, 30 thousand jobs were lost before the entire program would be expanded

throughout Canada. It was originally supposed to be a 2 year program, but has lasted 2 decades.

Some biologists have agreed that the cod stocks are rebounding off Canadian shores, but it is

debatable whether the large moratorium was solely responsible in saving the stock. Dr. George

Rose, a director of the Centre of Fisheries Ecosystems Research at Memorial University, ties the

rebound in the health of cod off the Canadian coastline to the warming ocean temperatures,

pointing out that the ocean temperature is 2 degrees Celsius warmer than it was in 1990. Don

Power, another director of Fisheries Ecosystems Research at Memorial University, reports that

cod stocks are still measured at being 90% below the levels that were measured in 1980. The

bans were rushed into law by lawmakers, as Ottawa enacted the program in under a year of

notice. This large change in regulations forcefully destroyed the ways of life of hundreds of

thousands of Canadians. Elizabeth and Doug Harvey, residents of Isles aux Morts,

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Newfoundland; echo the harsh circumstances that came to light after the cod ban was in place.

The town’s population dropped 60% after the ban, from 1500 to 600. Her sons wanted to be

fishermen, but were forced to move from the area due to a lack of job opportunities. One son

works at a hardware store in Nova Scotia, while another one is unemployed in Newfoundland.

These harsh realities are faced by many families in the Canadian Maritimes due to the ignorant

and fast incorporation of the cod fish ban. 20 years later, it is questionable whether the

moratorium was successful in accomplishing the goal of saving the cod stock. Biologists have

pointed the small rise in cod stocks off of the Canadian coast to varying environmental factors,

and point out that the stock is only 10% of what it was in 1990. Any impartial observer of this

information should realize that shutting down commercial fishing entirely was not effective in

achieving its goal, and that the harsh economic repercussions the region encountered afterwards

were a large penalty to pay for little reward. (CTV)

After the cod ban was enacted, many government programs were put into place in order

to ease the transition into post-commercial fishing life for Canadians. A decade after the cod ban

was put into place, the population dropped 10 percent in the region and the region is heavily

dependent on the federal government. A common financial issue that came into light was the

purchase of huge amounts of fishing equipment on credit, and fishermen were not able to pay

back the balances due to the lack of capital from their business. NCARP and other government

relief programs were put into place to support blue-collar families in the affected region. The

program ran out of funding in 2 years, after providing fishermen with $300 a week in insurance

earnings between 1989 and 1991. 28,000 residents participated in the program, and after the

program fell, TAGS went into place which also would run out of funding in the late 1990s.

(Newfoundland and Labrador Heritage) The over regulation caused the government to use

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taxpayer dollars in order to support the poverty that was caused by its programs. The cod ban in

Canada was wasteful for the federal government, harmful for the economy, and did little to help

the rebound in cod populations over 2 decades.

In the United States, similar cod fishing bans and large regulatory initiatives have been

put into place over the past 5 years. During the summer of 2011, New Hampshire fishermen

voiced their concerns to WMUR-9 News in Manchester, New Hampshire after large regulations

were enacted. A rise in suicide attempts and divorce rates in Seacoast New Hampshire towns

were noticed after a new program of “catch shares” were put into place. A fishermen coalition in

New Hampshire, Yankee Fishermen's Cooperative lost $750,000 in business since the new

regulations were put into place. (WMUR-9) In early 2014, regulations were put into place that

“barred cod fishing” in the Gulf of Maine. The regulators banned fishing in historically

important cod fishing grounds, enacted harsh catch shares and banned recreational fishing of cod

for 6 months. NOAA enacted the regulations after stock assessments reported that the cod stock

was the lowest in 40 years, and fishermen argue that they have cut back on cod fishing for years

with little positive effects. In response to the anticipated economic hit that was coming to

fishermen, regulators softened restrictions on haddock (another species of groundfish).

Regulators failed to realize that haddock and cod are similar species, so fishermen were unable to

take advantage of the easing of restrictions. In 1990, New England’s #1 cod fishing port was

located in Portland, Maine. 13 years later, groundfishing made up 1% of the state’s commercial

fishing landings, dropping from $16.3 million to $736,000 in revenue throughout that timeframe.

The easing of haddock regulations in relation to the strengthening of cod regulations, with the

goal of easing the economic damage caused by the cod ban shows a lack of transparency and

sheer ignorance that can be shown in the complicated regulatory process. Since fishermen cannot

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harvest haddock in their ecosystems due to them having the same habitat as cod, the easing of

that regulation was not made with any conscience to the effect of the ban on fishing in those

particular cod grounds. The regulating process can have sides of ignorance by regulators and the

process is not transparent. (Bell)

Outside of Maine, the fishing ban had a major impact on Gloucester, Massachusetts. The

ban was expected to cut the catch by 75% in the following season. Fishermen from Gloucester

were vocal about their skepticism of the ban. They believe that the ban on cod fishing will have a

devastating blow to small fishing boats in Gloucester, and would not have any impact on big

commercial boats that do heavy bulk fishing. The large corporations can afford to drastically

change their fishing methods to reach federal mandates in short periods of time, while small

boats find it impossible to adjust to those standards. Fishermen also question the science behind

the regulations, and point out that they are the ones that know the waters, and they believe the

stock is healthy enough to fish in certain areas. In contrast, Peter Baker, a conservation activist,

advocates for expanded regulations, including a trawling ban in the Gulf of Maine. Baker has

ignorance to the makeup of the fishery of the Gulf of Maine, not realizing that it is very

expansive and difficult to institute such a ban. Brett Trolley, a local fishermen from Gloucester,

believes that the reported drop in cod stock was due to a 2010 law that allowed fishermen to sell

fishing quotas, which gave big corporations an advantage to increase fishing capacity. The

regulations have forced the United States to import cod, and the prices for consumers on cod

would also increase. (Main) In a 2014 The Boston Globe article, a local fishermen talks about

being forced to sell his vessel, Lady Jane, because of the onset of many regulations over the past

decade. He also has not made an annual income of over $50,000 in 10 years. Joe Orlando, a

veteran fishermen from Gloucester makes an argument regarding fishermen having little input in

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the enaction of new regulation, declaring “[The federal government] is God and jury and that’s

it. We’re nothing.” He was forced to sell his vessel, and his son left the industry. The former

mayor of Gloucester, Carolyn Kirk believes that these regulations have prevented boats from

going fishing and have left families in tough financial hardship. (Crimaldi)

Outside of New England and the Canadian maritimes, the Stellar sea lion was added to

the endangered species list in 1997. The increase in regulations was inevitable after that

development, and the $1.2 billion Alaskan fishing industry braced for the increase in government

intervention. A federal judge closed an area from the Prince William Sound to the Aleutian

Islands to commercial fishing in 2000, in order to prevent the extinction of Stellar sea lions. The

large pollock fishing fleet on the Alaskan coast was now banned from fishing off the coast of

which prevents them from having access to the richest area of the fishery. The North Pacific

Alaska. Consequently, small boat operators were not able to fish more than 20 miles offshore,

Ocean fishing industry includes 1,300 boats, and over 4,000 full time jobs in processing plants

on the west coast. The vessels contribute $1.2 billion to the local economy, and pay $367 million

in wages. Commercial fishing contributes $1.7 million to Kodiak Island through tax revenue, and

30-45% of those revenues are from groundfishing. The National Marine Fisheries Service

projected an $191 million a year hit to the fishing industry. The goal of the regulations in Alaska

to prevent the decline of the sea lion population is questionably being met. The regulations main

purpose was to provide prey for the sea lions, but fails to address the main causes of the

population’s demise. The scientific community in Alaska ties the demise of the sea lion

population to the killing of sea lions in the mid-20th century, and killer whales eating pups to

their demise. Between 1963 and 1972, 45 thousand pups were killed by government contractors.

Fishing had little to do with the endangerment of the sea lions, but the government passed the

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buck onto fishermen, causing immense economic harm to the local economy and causing

financial problems for thousands of blue-collar Alaskan workers. (Jeffrey)

Discussion

When trying to solve the issue of over regulation in the fishing industry, it is important to

understand the economic impacts that large regulatory programs have on blue-collar

communities and the economy. After researching the economic impacts of fishing and

comparing it to times of heavy regulation, it is evident that the current system is doing a lot of

harm to fishermen and their business. In addition to the economic side effects to inefficient

regulations, the conventional methods of present day regulations do not prevent overfishing or

effectively protect species of fish important to the United States and international economy. In

order to solve those issues in the regulatory system, new ideas regarding differing proposals to

introduce regulations, new methods in regulating, and to expand the justification of new

regulations to mixing the needs of fishermen with the recommendations of the science

community.

The current conventional methods of regulating (technical, output and input controls) are

ineffective of preventing overfishing and cause large problems economically with many

fishermen and their communities. Government intervention in the fishing industry is required in

order to protect fishermen and the ecosystems from vulnerabilities caused by humans, but a new

system would be more effective in preventing the destruction of ecosystems and would be less

economically damaging to fishermen. The current regulatory system focuses its efforts on saving

particular at-risk species, rather than ecosystems. This should leave observers skeptical of the

regulators’ scientific explanations of incorporation of regulations; as ecosystems provide habitat,

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food, and mating partners for species to develop. The catch share system is flawed because

preventing the harvest of a particular species will have little impact on the overall biological

makeup of the area. A market-based solution, a quota system based on property ownership of

fishermen, would provide fishermen with the incentive of protecting the habitats in which they

fish, providing economic empowerment to fishermen to protect ecosystems in which they fish.

There are important changes that could be made to the current regulatory system, based

on historical precedent. Jonathan Adler, a law professor at Case Western Reserve University,

believes that season-shortening methods are an example of an ineffective regulatory system, as it

requires fishermen to “ramp-up” fishing efforts putting stress on fish stocks and putting

fishermen at a health risk. The U.S. North Pacific Halibut Initiative decreased the halibut season

65 days to 2 days in 1991, and also decreased the Alaskan King Crab season to 2 days. This

measure led to the result of less valuable catches and lower quality of fish due to inefficient

fishing tactics that had to be used because of the shortened season. More important than the less

valuable catch that results due to this flawed medium, the situation is dangerous for fishermen.

After the law was put into place, 5 crabbers and 1 boat did not return to port as a result of long

strenuous outings due to the shortened seasons. Despite the heavy regulatory apparatus currently

in place, the United Nations Food and Agriculture Organization reported that the fishery is

depleted. Transferable quotas and private property regulations are interesting alternatives to the

terrible current policy plans in face. (Adler and Stewart)

William Emerson introduced a proposal that would provide the fishing industry with a

better form of regulating its catches. The current system provides no incentive for fishermen to

protect fish, as they could lose that catch to a rival boat. The introduction of private ownership of

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fishing stocks would provide a market-based solution to overfishing and the economic problems

facing the fishing industry. The current system of output, input and technical fishing measures

have promoted overfishing, by decreasing revenues forcing fishermen to increase the intensity in

their fishing efforts. The intensity of their fishing methods were increased in order to make up

for revenue shortfalls caused by new regulation. Emerson notes that international governments

spend $54 billion regulating a $70 billion industry. Output controls produce quotas that flood the

marketplace with fish at the beginning of the fishing season, which lowers consumer prices. The

input controls, which includes forcing fishermen to be licensed, does not prevent investments

made in fishing or cabin-stuffing measures. Cabin stuffing allows fishermen to outfish

competitors. It is difficult to enforce technical measures, due to the complexity of fishing regions

and fishing methods used. (Emerson) The alternative to these programs would be to allocate a

specific region of the fishery to fishing vessels, and requiring them to a set quota in which they

regulate themselves. This would provide incentive to fishermen to protect the fishery rather than

overfish because of rivals. This could work in areas where ecosystems are difficult to protect

because of the vast fishing industry, like the Gulf of Maine and off of the Alaskan coastline.

Easier methods to solving the issue of over regulation involve reforming the regulatory

committees and the introduction of reformed rollouts of regulatory proposals. A common issue

facing fishermen is their lack of input on the regulatory process, as regulator committees are

mainly made up of bureaucrats and ocean biologists, who have a vested interest in government

lobbying. Joe Orlando, the Gloucester fishermen cited in the results section of the paper, had a

revealing quote declaring the regulators “God and jury”. (Crimaldi) This sentiment is echoed

across the fishing community, and has created a system in which fishing tactics and the impact to

the wallets of fishermen and their families are not considered. This has led to regulatory

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committees to make ignorant decisions based on their own interests. In order to fix this rift, the

addition to regulatory committees of elected representatives of fishermen advocacy

organizations, like the Institute for Fisheries Resources and the International Game Fish

Organization, will provide fishermen with a larger voice on regulatory decisions, solving any rift

between the government and fishermen. This will also allow for proposals that will protect fish

from being overfished and relieve the economic damage caused by overbearing decision by those

committees. In addition, the science community should introduce simpler metrics in measuring

stocks in which it is easier to create realistic goals in order to prevent overfishing. Instead of

short term introduction of wide ranging regulatory proposals, it would be less damaging to

commercial fishing to introduce policy changes through a 5, 10, and 20 year plan in order to

allow small fishing vessels to plan for changes financially and technically.

Conclusion

The objective of this research paper was to prove a link between the demise of the

commercial fishing industry and the incorporation of various strict environmental regulations. It

was also aimed to produce a modern superior system of regulations that promotes fishermen

accountability, economic empowerment, prevent overfishing and provide a template for

regulators to solve the economic issues in the fishing industry. The research was necessary to

prove that the current system of regulations is stale, and is not adapted to the modern day

economy. They are costly for the federal government to implement, and excessively expensive

for fishermen to adhere to the management measures. The solution to these problems was to

introduce a market based regulatory system, introduce a long-term phasing initiative to large

regulatory proposals, provide elected representation of fishermen advocacy groups on regulatory

committees, and changes in the metrics that the scientific community uses to analyze fish stocks.

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These proposals will solve the rift that exists between fishermen and regulators, and possibly

lead to the easing of economic stress on fishermen and their communities. When pursuing further

research on the topic, it'd be important to expand research on the demise of fishing stocks, and

investigating the connection between overfishing and poor environmental conditions in fishery

habitats. This paper should provide state and federal governments to revise their policy plans in

order to address the problems of their constituents, and remove the burden that is put on the

American consumer and blue-collar worker by government regulators.

Annotated Bibliography

"Fishermen Say Regulations Destroying Industry." WMUR-9. Hearst Television Inc., 11 May

2011. Web. 6 Feb. 2016. <http://www.wmur.com/Fishermen-Say-Regulations-Destroying-

Industry/11844954>.

This article explains the effects of fishing regulations instituted during the Summer of 2011. According to the article, fishermen are skeptical of the extent of “catch shares” being instituted on fishermen. The source quotes a fishermen who discusses the rise of suicide attempts and divorce rates in the local community in relation to the introduction of “catch shares.” The article suggests that the Yankee Fishermen's Cooperative lost $750,000 in business since the new regulations went into effect. The source is credible because WMUR-9 is a relied upon news source in New Hampshire. Hearst Television, WMUR’s parent company, has won 6 Walter Cronkite Awards for Excellence.

Bell, Tom. "New Restrictions to Essentially Prevent Cod Fishing in Gulf of Maine - Central

Maine." Central Maine News. MaineToday Media, 10 Nov. 2014. Web. 06 Feb. 2016.

Cordeiro, Halpin 20

<http://www.centralmaine.com/2014/11/10/regulators-to-place-strict-limits-on-cod-catch-in-

gulf-of-maine-2/>.

This article covers the introduction of new fishing regulations that were put into place in early 2014 that “essentially barred cod fishing” in the Gulf of Maine due to the demise. Regulators took harsh stances including barring fishing from well known fishing regions, stricter catch shares, and barring recreational fishermen from possessing the species for 6 months. The National Oceanic and Atmospheric Association is quoted in the article for basing their regulations on the cod stock being the lowest it’s been in 40 years, and the difficulty regulators face with dealing with the problem. Fishermen’s opposition of the ban is used in the article to provide their impact on the changes, noting that they have been cutting back on fishing for years in response to trying to preserve cod stocks. This article then goes into great detail about the specifics of the legislation, including mass closures of fishing grounds and heavy restrictions on catch tactics. In order to try to alleviate the hit to fishermen, the government softened the regulations on haddock, but haddock and cod are both groundfish and live in the same regions, so it’s impossible for fishermen to take advantage of this softening of regulations, and highlights the lack of transparency in the process. Finally, the article goes into more information discussing the financial problems that the industry will face as a result of this expansion of red tape. The Central Maine News is a highly reputable newspaper, ran by MaineToday which includes a large network of media outlets including the Portland Press Herald. The network has the largest subscriber network in Maine, as they reach 1.2 million Maine residents and 100,000 households.

Benson, Jonathan. "Government Regulations Set to Destroy Fishing Industry in New England."

NaturalNews. The Natural News Network, 14 May 2011. Web. 06 Feb. 2016.

<http://www.naturalnews.com/032397_fishing_industry_government_regulations.html>.

This article is an editorial skeptical of the increased regulations targeting the New England fishing industry, but cites its argument based on the information found in the WMUR-9 news story cited above. It begins to address the catch share issue, which are put into place in order to protect the overharvest of fish, but have the most detrimental impacts to fishermen and the economy. The article quotes a town manager of a Seacoast New Hampshire town (Hampton), predicting the demise of the fishing industry on the Seacoast. The article then goes into address common sense economics regarding the rise of prices and food shortages due to the lack of fish being harvested, and the sustainability of fishing on coastal communities. The author clearly has a skeptical view of the new regulations, but sources its outrage against them based on real

Cordeiro, Halpin 21

information from news sources; which this project is accomplishing. The Natural News is a health advocacy organization organized by scientist Mike Adams. Though out of the mainstream of thought, this article offers a constructive argument based on reliable information.

The Canadian Press. "20 Years Later, Cod Recovery off Newfoundland Finally Evident."

CTVNews. Bell Media Corp., 30 June 2012. Web. 06 Feb. 2016.

<http://www.ctvnews.ca/canada/20-years-later-cod-recovery-off-newfoundland-finally-evident-

1.860631>.

This news article addresses the economic impact that Canadian cod fishing ban had on fishermen

of Newfoundland in the early 1990s. It also mainly describes the rebound of the cod stock after

the fishing restrictions. Environmental scientists point to the increase in water temperatures,

which led to the boon of capelin, a valuable asset to the cod diet. The fishing industry of

Newfoundland was a $700 million industry, and it was shut down in a short period of time (only

a year), by Ottawa mandates. Over 30,000 Canadians lost their jobs as a result of the

moratorium, which would prove to be the largest mass layoff in Canadian history. The article

talks about the environmental benefits of the fishing ban, but also attributes the rebound of the

cod stock to the increase in ocean temperatures and other environmental factors. The article

concludes by providing information regarding the demise of communities as a result of fishing

bans. The story was published by The Canadian Press, a national news agency representing

Canada since 1917. The source of the article, CTV News, is a 24-hour Canadian news network

owned by Bell Media.

"Commercial Regulations." Energy and Environmental Affairs. Commonwealth of

Massachusetts, 12 Jan. 2016. Web. 06 Feb. 2016.

<http://www.mass.gov/eea/agencies/dfg/dmf/laws-and-regulations/commercial-regulations/>.

Cordeiro, Halpin 22

This source provided specific regulations regarding fishing in Massachusetts. The chart provided

the information necessary to cite The source is the Massachusetts Office of Energy and

Environmental Affairs, a government agency.

Crimaldi, Laura. "Fishermen Face Uncertain Future as Cod Fishing Ban Goes into Effect."

BostonGlobe.com. Boston Globe Media Partners, 12 Nov. 2014. Web. 06 Feb. 2016.

<https://www.bostonglobe.com/metro/2014/11/12/fishermen-face-uncertain-future-cod-fishing-

ban-goes-into-effect/W7UjLGVaZHCTKYwtRF7lmJ/story.html>.

This news article addresses the personal plight put on fishermen as a result of a six-month cod

fishing ban put into place in the Gulf of Maine in 2014. Focusing on fishermen from Gloucester,

Massachusetts; it begins on a story about the 66-year old fishermen who explains his distrust

with the government’s fishing ban and portraying strong language about those who regulate the

fishing industry. The article allowed the researchers of this project to go beyond that economic

data, and explore the personal side of the tragedy of the demise of commercial fishing, The

fishermen discusses his urge to sell his vessel, Lady Jane, as he hasn’t made over $50,000

annually in a decade. Tragically, the fisherman also discusses the end of his retirement plans as a

result of his vessel bringing in less money as a result of the closures. Joe Orlando, another

Gloucester fisherman, makes the powerful argument regarding the lack of input of fishermen in

the decisions declaring “They’re God and jury, and that’s it. We’re nothing.” Orlando was

forced to sell his vessel in favor of a smaller vessel, and his son was forced to leave the industry.

The regulators tried to alleviate the hit by liberating haddock regulations, but they did not take

into account that the areas in the Gulf of Maine that were closed are the habitat for groundfish,

like haddock and cod. Carolyn Kirk, the former Mayor of Gloucester, pointed out that the

Cordeiro, Halpin 23

regulations have kept boats from leaving port, and has left families struggling. The Boston Globe

has been awarded 23 Pulitzer Prizes since 1966.

Economic Impacts of the Cod Moratorium." Newfoundland and Labrador Heritage.

Newfoundland and Labrador Heritage, n.d. Web. 06 Feb. 2016.

<http://www.heritage.nf.ca/articles/economy/moratorium-impacts.php>.

This report addresses the economic impacts of the ban on cod fishing in the early 1990s. The

report addresses the lowering of cod stocks in the region during that time period, and the

government’s reasoning behind putting the vast moratorium in place. The main goal of this

article is to point out the economically damaging facts of the cod ban. Over 30,000 people lost

their jobs as a result of the ban. This report goes into the government programs that were put into

place as an effort to try to alleviate the damage done to the regional economy. A decade after the

moratorium, the province has become heavily-reliant on the government and its population has

dropped 10%. Many people invested a lot of money in fishing equipment, which proved hard to

pay off without a job after the cod ban was put into place. Government relief programs like

NCARP were put into place to support poor families as a result of the ban, but they would

eventually run out of funding. NCARP provided disenchanted fishermen with weekly payments

of approximately $300 of insurance earnings between 1989 and 1991. 28,000 residents were

participating in the program. TAGS went into effect after the fall of NCARP, but the program

ran out of money in the late 90s. The Newfoundland and Labrador Heritage Foundation was

founded in order to provide the general public with information regarding the history of the

provinces of Newfoundland and Labrador. The program is based out of the Memorial University

of Newfoundland.

Cordeiro, Halpin 24

EDF. "How Catch Shares Work: A Promising Solution." Environmental Defense Fund.

Environmental Defense Fund, n.d. Web. 6 Feb. 2016. <https://www.edf.org/oceans/how-catch-

shares-work-promising-solution>.

When crafting ideas on how to resolve the regulatory system, it was necessary to research

different forms of regulations. The most prominent and controversial form, catch shares, is

discussed in detail in this article submitted by the Environmental Defense Fund. This research

proves the ineffectiveness of catch shares, and looks to find alternatives to the method, but the

article is a proponent of using the regulatory tactic. The tactic uses a method called the “TAC”

(Total Allowable Catch), which sets a quota on the amount of fish harvested by fishermen in a

fishing “season”. The article argues that scientists can determine the state of the fishery. We are

arguing that the problem with the state of these proposals is that scientists have control of the

fishery, rather than input from actual fishermen. The article also argues that fishermen can divide

up the catch among themselves. The article is used as a method to build on our proposals to

reform these methods of regulating the fishery.

FoxNews.com. "New England Coastal Communities Threatened by Feds' Ban on Cod Fishing."

Fox News. FOX News Network, 12 Nov. 2014. Web. 06 Feb. 2016.

<http://www.foxnews.com/politics/2014/11/12/noaa-puts-ban-on-cod-fishing-hurts-family-

businesses-and-coastal-communities.html>.

This article is a news story regarding the closure of the cod fishery in the Gulf of Maine and its

impact on fishermen in the region. NOAA announced multiple measures to curb cod fishing,

including expanding the no-fishing zone off the New England coast, which is expected to cut

next season’s catch by 75%. Joe Orlando, a Gloucester fishermen is quoted as being used to

catching 700-2,500 pounds per day. As a result of the ban, he had to sell his boat and is unable to

Cordeiro, Halpin 25

travel outside the no fishing zone due to inept equipment. In a revealing statement, Orlando

points out that he is left with nothing, after making over $150,000/year on cod. Regulators cut

the catch limits for 2013 by 77 percent. Scientists believe that the only way to rebound the stock

is by enforcing strict bans and regulations on fishing. The United States is a major supplier of

cod in the world market, and it is not known whether or not the restriction would have an impact

on the price of cod. Congress has passed a $33 million federal aid package to help fishermen,

and tried to raise the haddock quota to help ease the burden left by cod. FOX News is a respected

news organization owned by 21st Century Fox.

Main, Douglas. "Feds Close Most of Northeast to Cod Fishing." Newsweek. Newsweek LLC, 13

Nov. 2014. Web. 06 Feb. 2016. <http://www.newsweek.com/feds-close-most-northeast-cod-

fishing-284126>.

Newsweek’s article discusses the cod fish ban and includes questions raised by fishermen

regarding those bans, including the effectiveness of the regulations and points out its negative

impacts on them. Fishermen believe that regulations impact small businesses more than large

corporations, who may be able to afford to drastically change their means of operation in a short

period of time. A Marshfield, Massachusetts-based fishermen discusses the role that the

groundfishing ban has had on fishermen, saying that it has been effectively banned. The

fishermen have also questioned the science that the federal government uses in these

determinations. They are the ones on the water, and they seem to believe that the cod stock is

healthy enough to be harvested in certain areas. Peter Baker, an ocean conservation activist,

believes that regulations should be expanded and that trawling (netting fish on the bottom floor

of the ocean) should be permanently banned in certain areas. It is necessary to report that due to

the scope of the Gulf of Maine, it is difficult to enforce the bans effectively, and target the so-

Cordeiro, Halpin 26

called danger zones. Brett Tolley, a fishermen ally, believes that the depletion in the stock could

have stemmed from a 2010 law that allowed for people to sell fishing quotas, which gave an

advantage to large ships to fish more than smaller boats. A consequence of these regulations

would lead to an increase of prices of cod to the consumer, and force the United States to import

the species from other countries.

JEFFREY, SUE. "Groundfish Industry Hard Hit by Fishing Ground Closures." Alaska Business Monthly June 2001: 20. Academic OneFile. Web. 7 Jan. 2016. Due to the addition of the Steller sea lion to the endangered species list in 1997, the Alaskan fishing community faced an unfortunate reality of the likelihood of an increase in fishing restrictions in the $1.2 billion industry. A federal judge, during the summer of 2000, closed fishing from Prince William Sound to the Aleutian Islands in order to protect that species from extinction. As a result, the vast pollock fishing fleet on the coast was barred from fishing in Alaskan coastal waters. As a result, small operators were not able to get their fleet up to 20 miles offshore, leaving them unable to have access to the fishery. The article breaks down the issue into the economics of the groundfishing industry in the North Pacific Ocean, the decline of the sea lion population and possible causes of their decline. The industry encompasses 1,300 boats, and over 4,000 full time jobs in processing plants on the west coast. These vessels contribute $1.2 billion to the local economy, and pay a total of $367 million in wages. The article goes into the importance that commercial fishing has on local communities throughout Alaska, pointing out the importance of tax revenue, which funds schools and infrastructure improvements. Including contributing $1.7 million to Kodiak Island alone. Groundfishing alone accounts for 30-45 percent of those allocated revenues. NMFS (National Marine Fisheries Service) projected an $191 million hit to the industry, annually, due to these regulations. In contrast, the article published in this journal discusses the decline in the sea lion population, noting an 80 percent decline over the last 30 years (the article was published in 2001). The fishery regulatory committee banned fishing in order to provide prey for the sea lions. In conclusion of the article, the reality of killer whales eating pups, and the killing of sea lions in the mid-20th century through shooting as possible causes of the decline in population. 45,000 pups were killed by government contracts between 1963 and 1972. These issues in the scientific community

Cordeiro, Halpin 27

highlight the issues with the science community and the fishing industry, and the stark divide between the groups.

Adler, Jonathan H., and Nathaniel Stewart. "Learning How to Fish." Case Western Reserve University School of Law; Property and Environment Research Center (2014): 46-51. Academic OneFile. Web. 8 Mar. 2016.

This article provides an intriguing in-depth look at catch shares, and its effectiveness at limiting

overfishing, and other methods of possible successful regulation. The aim of the piece is to find

better ways to protect the fishery from being overfished, but create legislation that is efficient

economically and environmentally. Jonathan Adler is a law professor at Case Western Reserve

University who specializes in environmental law. He argues in the article that catch shares and

other forms of regulations are necessary in order to keep the fishery sustainable. When looking at

improving forms of regulation, Adler is able to point out the issues with season-shortening

measures, noting that they require a “ramp-up” of fishing during a short period of time in order

to maximize the catch. The U.S. North Pacific Halibut Initiative decreased the halibut season

from 65 days in 1980 to 2 days in 1991. This measure also decreased the Alaskan King Crab

Season to 2 days, which resulted in less valuable and lower quality fish due to inefficient fishing

tactics. In addition to the inefficiency of the fishing, these methods lead to a dangerous situation

to the fisherman. During that time period, an average of 5 crabbers and one boat would not come

back to port. The regulation of seasons is a widely accepted process, but despite this; the United

Nations Food and Agriculture Organization reports that the fishery is depleted in someway. The

article closes by introducing ideas including private property regulations and transferable quotas.

Emerson, William. "Can private property rescue fisheries?" OECD Observer 205 (1997): 34+. Academic OneFile. Web. 7 Jan. 2016.

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This article, authored by William Emerson, introduces an intriguing new system of fishing regulations. It begins by stating that fishing provides many jobs throughout the international economy, and fishery products are important to the food source. He introduces a skeptical idea of the current regulatory system, stating that in Extended Economic Zones, which stretch up to 200 miles offshore, fishermen have no incentive to let go of fish, as they could give up that product to a rival. He believes that this absence of private ownership in the fishery has led to poor economic conditions and overfishing. The article introduces three conventional ways of regulations; output controls (annual quotas on harvest amounts), input controls (limit vessels and equipment to fish), and technical measures (regulated mesh sizes, ie), and notes there ineffectiveness at achieving their goal. He believes that the natural cycles of fish are not easy to access, and are expensive to analyze, making it difficult to monitor in their natural environment. Importantly, he proclaims that they have promoted increased fishing intensity, as decreased revenues has led to an increase in the effort to reduce the revenue shortfalls. The issues has led the world-wide political apparatus to spend $54 billion dollars attempting to keep an industry afloat that lands $70 billion worth of fish. The author goes into individual criticisms of the three conventional regulatory systems. In summary, he concludes quotas flood the markets with fish at the beginning of the season, lowering prices. Licensing fishermen does not impact how much money is invested in the industry, prevent cabin-stuffing (which is used to outfish competitors), and enforcing technical regulation is impossible due to the vast differences between fishery regions and methods used in them. His solution to these problems is to incorporate a market-based solution, in which fishermen harvest a set quota of the resource. The fishermen owning that share of the quota will be inclined to protect this resource, and promotes the participation of efficient fishermen.

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