Public Responses to Salmon Task Force October 17, 2002
Compiled by UFA
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Public Responses to Salmon Task Force
Volume 2
As of October 17, 2002
Table of Contents
Responses by:
Victor Goldsberry 10/17/02 ................................................................................................2-4
Jeff Berger 10/16/02............................................................................................................5-7
Russ Parkison 10/15/02.......................................................................................................8-10
Peter Schonberg 10/15/02 .................................................................................................11-13
Victor Smith 10/14/02.......................................................................................................14-15
Paul Harder 10/12/02 ........................................................................................................16-18
Gary C. Lang 10/11/02......................................................................................................19-22
Mark Buckley 10/11/02.....................................................................................................23-26
Testimony by Jerry Spencer 10/11/02 ............................................................................................. 27-29
Gerry Merrigan 10/11/02................................................................................................................. 30-32
Testimony of Albert and Melinda Hofstad 10/11/02 ........................................................33-34
Public Responses to Salmon Task Force October 17, 2002
Compiled by UFA
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Victor Goldsberry
PO Box 867, Nome, AK 99762
October 17, 2002
Quality
1. What does the Alaska salmon industry need to achieve a higher quality product?
Higher quality should equel higher price plus continued and increased marketing of “wild” Alaska fish
as natural & better, plus home”grown”.
2. Should the state be involved in creating a quality standard, state quality seal, and a state quality
commission?
Yes.
3. Should the state have a quality education program for industry participants?
Yes.
4. What incentives do you need to improve the quality of your harvested and/or processed salmon?
Things happen. Higher price for higher quality, lower price for lower quality seems most fair, easiest to
administer and does not penalize fishermen unable for whatever reason to deliver the best quality.
Marketing
2. Who or what entity or entities should be paying for the promotion and/or marketing of Alaska’s wild
salmon? (e.g. salmon harvesters, processors, federal government/USDA; state general fund; other
federal funds; other sources)
ASMI seems to be doing good work from what I read.
3. Should the state help individual fishermen promote and market their wild salmon? If so, how?
Quality, Quality, Quality!
Production
1. How can we remove or reduce costs from the harvesting sector in a way that allows regional selfdetermination?
We have limited entry. The problem wasn’t fleet reductions when there were fish and a decent price for
salmon.
2. How can we remove or reduce costs and aid the processing sector?
This is not my area of expertise. However if processing costs are reduced this should equal 1) a higher
price for fishermen & 2) a lower cost to customers=more fish sold or 3)both.
Finance
2. Do current State of Alaska loan practices address the needs of the salmon industry? If not, what
changes would you suggest?
Since fishing, like mining and farming is always going to be iffy even when things go well, the uncertain
nature of any given season or year has to be figured into loans.
Public Responses to Salmon Task Force October 17, 2002
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3. Should the State of Alaska provide for the permanent retirement of limited entry permits in your
fishery? If salmon limited entry permits were retired in your fishery, what incentives would you suggest
for retirement? If funding is needed, who should pay?
Here (NW & Western Alaska) there are no fish. Natives I know have lost permits because of inability to
pay the basic permit fee. Our permits have no value.
Hatcheries
1. Would you support legislative development of a State of Alaska hatchery policy and/or performance
standards for hatcheries, and/or changes to the state’s relationship with all hatchery owners?
Wild fish are better. Where have they gone? Are Alaskan and Japanese and Russian hatcheries part of
the reason wild stocks are disappearing? Alaska used to have about the best hatchery program in the
world. Now Japan does. Why is this?
Education
1. What role should the State play in providing fisheries education (K-12, post-secondary, and voc/tech)
in order to promote Alaskans in the fishing and seafood industry?
Our family is native. Various kids have worked and are working fishing. Its interesting to hear these
first comments after working docks etc & finding out Natives are treated where Natives are minorities
in this state –so sad.
2. Does Alaska’s university system adequately meet the research and post secondary educational needs
of the Alaska salmon industry? If not, what changes would you suggest?
Don’t know.
3. If you are displaced by changes in the salmon industry, what could the state do to provide retraining
and/or alternative employment?
C’mon – I haven’t been able to commercially or subsistence fish salmon for years.
Agency Oversight
1. Apart from the Board of Fish decisions, are there other state agency regulations that could be changed
to benefit Alaska’s salmon industry?
I’m sure there are.
2. Do you support Alaska’s board of fish process? If changes are necessary, what would you suggest?
Listen to science, forget political favors.
3. Do you support a task force created by the legislature to review the Alaska Board of Fish?
A good idea but wouldn’t mean anything.
Seafood Commission
1. Should the State of Alaska develop an Alaska Seafood Commission to annually advise the legislature
on the needs of the seafood industry?
It seems to me things should be Priority 1-Subsistence; 2-Commercial; 3-Sport. It seems priorities are
now 1-Sport; 2-Commercial; 2-Subsistence – tied.
Public Responses to Salmon Task Force October 17, 2002
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Economic Development
1. As Alaska’s salmon industry changes, what are the economic development issues, community and
individual concerns that should be addressed by the State Legislature?
We need more fish biologists –this means funding these positions. We need more data as to why fish are
gone, and where. This means funding. The Bering Sea is changing drastically. Why and to what? We
need a State income tax so we can be at the forefront of fisheries knowledge and production again. I
guess it’ll just keep going downhill.
Public Responses to Salmon Task Force October 17, 2002
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Jeff Berger
dccp@ptialaska.net
Box 2219 Ninilchilk, Alaska 99639
907-567-3980
Fish_area: Cook Inlet
Gear_type: all
October 16, 2002
Quality
1. A) What does the Alaska salmon industry need to achieve a higher quality product?
First if all differentiate between #1 grade and off grades. The quality of the fish will increase
immediately. Educate all participants at every level of the chain of custody especially fishermen and
process workers.
B) Should chilling at point of harvest of commercially harvested salmon be mandatory statewide?
ABSOLUTELY NO!!!! The government has no business in this arena. The only time government
should be involved is in the case of health risks. Besides it will happen when competative forces make it
happen.
2. Should the state be involved in creating a quality standard, state quality seal, and a state quality
commission?
No. Again this should be left to competitive forces to make it happen. The state should help in some
aspects as a means of helping a transition but has no permanent place in this arena. A business
dependent on public funds is not an asset but a liability.
3. Should the state have a quality education program for industry participants?
There could be a voluntary organization. This would be helpful in coordination of effort.
4. What incentives do you need to improve the quality of your harvested and/or processed salmon?
Money is the key. We have to improve or we will loose all of our markets to others. It happens all the
time. Look at Washington apples.
Marketing
1. Do we use existing state salmon promotional structures or do we change the structures? If changed,
what changes should be made?
I would support the existing structures but change them to be more effective. Times are changing and we
need to focus less on export markets and more on our own domestic markets. If we capture half of the
farmed fish market existing right now we will selkl most of our Alaskan pack domestically.
Stop sueing our best market.
2. Who or what entity or entities should be paying for the promotion and/or marketing of Alaska’s wild
salmon?
We need help right now but in the long run it has to be the fishermen and industry.
3. Should the state help individual fishermen promote and market their wild salmon? If so, how?
No. The state should help existing entities to market wild salmon. The fishermen market their salmon to
processors. Processors and marketing firms market the production on the open market. We need tgo
Public Responses to Salmon Task Force October 17, 2002
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help them increase and differentiate the product on the open market. This will increase prices for all
concerned. Industry is responding to these forces, but, it is slow. We need help for the short run. Doritos
sell for $15.00 #.
Production
1. How can we remove or reduce costs from the harvesting sector in a way that allows regional selfdetermination?
First of all get the politics out of fisheries management. Let the Biologists manage the fisheries for
maximum sustained yield, not political goals. The local area fishermen will solve the other problems.
Let the chips fall where they may.
2. How can we remove or reduce costs and aid the processing sector?
If industry needs a shot in the arm the fastest and most direct help would be fisheries business tax relief.
Taxes are to generate revenue from healthy business, not tax ailing business out of business. Then you
have nothing.
3. In addition to the removal or reduction of costs, are there statutory/regulatory changes that can help
the harvesters and/or the processors?
Let the biologists manage the fisheries for the benifit of all users. Maximum sustained yield and realistic
escapement goals. They can factor in things like having openings on a schedule that helps increase
efficiency and reduce production costs.
Finance
1. Are there better ways in which the state can use existing fishing industry taxes to assist the salmon
industry?
Yes, Help with marketing. Tax relief for ailing processors.
2. Do current State of Alaska loan practices address the needs of the salmon industry? If not, what
changes would you suggest?
I would say there are many financing avenues for fishermen and boat owners, but, it is exceedingly
difficult to find financing for pack loans and processing plants. We sure could have used the money
spent for the ASI plant for more worthwhile help. I guarantee that if the SouthCentral processors had a
few million dollars each we would have frozen microwaveable entrees and dinners on the shelves
nationwide right now!
3. Should the State of Alaska provide for the permanent retirement of limited entry permits in your
fishery? If salmon limited entry permits were retired in your fishery, what incentives would
you suggest for retirement? If funding is needed, who should pay?
No. The effort will allocate itself through competitive forces and sound business decision making. If
there is no profit people will quit doing it. If it becomes more profitable in the future more people will
resume. Just do not create any more limited entry of ifq systems that foster these problems. We need to
follow our own good example and let free market forces allocate resources where ever possible. I know
it can be painful but the reward is it gives us the encentive to be the greatest producing nation in the
world.
Hatcheries
Public Responses to Salmon Task Force October 17, 2002
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1. Would you support legislative development of a State of Alaska hatchery policy and/or performance
standards for hatcheries, and/or changes to the state’s relationship with all hatchery owners?
I do not know enough about the way things are now to comment on this.
Education
1. What role should the State play in providing fisheries education (K-12, post-secondary, and voc/tech)
in order to promote Alaskans in the fishing and seafood industry?
Educate with facts not fiction. People think that the more salmon you harvest the less fish that there are.
The truth is, the more you harvest in most cases the more are produced. Everyone should be educated in
rudimentary fisheries biology.
2. Does Alaska’s university system adequately meet the research and post secondary educational needs
of the Alaska salmon industry? If not, what changes would you suggest?
I think they are doing an excellent job. I have received help from the extension service and the fish tech
center many times.
3. If you are displaced by changes in the salmon industry, what could the state do to provide retraining
and/or alternative employment?
Many things. Our state is the richest state in the union in natural resources, yet we are the most
undeveloped. We have unimaginable development opportunity. If we have development capital. We
need everything.
Agency Oversight
1. Apart from the Board of Fish decisions, are there other state agency regulations that could be changed
to benefit Alaska’s salmon industry?
Don't create any new regulation we have too much already. If we pass a new regulation we should be
required to retire an old one.
2. Do you support Alaska’s board of fish process? If changes are necessary, what would you suggest?
I support the process but, I think the board needs professional membership. Or at least a high
level of training or experience to serve on it.
3. Do you support a task force created by the legislature to review the Alaska Board of Fish?
I think that would be a good start.
Seafood Commission
1. Should the State of Alaska develop an AlaskaSeafood Commission to annually advise the legislature
on the needs of the seafood industry?
The legislature needs to be better educated and informed about this vital industry. If that is what it takes
to do this then I would support that.
Public Responses to Salmon Task Force October 17, 2002
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Russ Parkison
1462 W 37th St
San Pedro, CA 90731
Cook Inlet Driftnet
October 15, 2002
Quality
1.What does the Alaska salmon industry needs to achieve a higher quality product?
In the Kenai drift gillnet fishery: Low prices will not allow us to retrofit our boats for chilled seawater
and iced handling on board. My boat will not lend itself to this retrofit. Bleeding live fish when they
come on board raises the quality of the fish significantly. Our processor, even after the fish was
“Surefish Certified”, left our fish, until his pack was completed. This was very detrimental to
quality.Our filleting and pinbone removal was done for value added then vacuum packed. As of October
we have lost about 10% to bad vacuum bags or process. Quality becomes an issue when you are
catching a big load of fish. You bleed as many of the live ones as you can, but at $.50 a pound you catch
as many as you can because you are not paid significantly more for iced-bled fish. More frequent and
shorter fishing periods to spread out the product. Maybe Individual fish quotas for salmon would let us
fish when we want and take our time on the grounds. The farm fish industry has a fine product and a big
market. We will not match their quality or price with the methods and fleets we have at present.
2. Should the state be involved in creating a quality standard, seal, and commission?
All of these standards are in place now. HACCP training from UofA- Surefish certification of product
was in use at the dock in Kenai. Mayor, Dale Bagley developed a Branding program for Kenai Sockeye.
You already have five sub committees to work on a problem that was created by all the committees that
preceded you.
3. Should the state have an education program?
Use the HACCP program. And still, only the motivated fisherman, processors will care to change. It’s
motivated by individual profit.
4. Incentives for me to improve quality!
For all the years I have been fishing in Cook Inlet people have wanted their piece of the salmon.
Sportsmen-subsistance-vacationers-setnetters-drifters-dipnetters. The Kenai River is the backyard for
Anchorage. We now have too many people, and to few fish.Kings, Silvers, Sockeye, fishing time reduced
for user groups.With today’s methods, expenses, and allotted catch it would take $1.80 a pound to get
me to fish again. With the market and the economy where it is today it is impossible. Too little too late!
Our Co-op fish is still not sold!
Marketing
1. Do we use existing promotional entities?
If ASMI had done the job of promoting Alaska Wild stock Salmon then our co-op would not be sitting on
9,000 pounds of certified frozen vacuum packed fillets that have no market. We would also not be fishing
for $.50 pound for sockeye. The State of Alaska needs to spend the millions that it would take to hire a
major marketing agency to do a big job of advertising the fish we catch. It wouldn’t be a bad idea to put
a tariff on import farm fish to pay for the advertising. If all the things that I have previously responded
to were in place today and product quality were to radically change, then marketing would have a sound
Public Responses to Salmon Task Force October 17, 2002
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base with which to start. At present we have no market for our fish. Our co-op still has not sold the fish
for this season.
2. State help for fishermen to market their own fish?
Fishermen are fishermen. Most are not market people. To give millions to fishermen to market fish will
not get the fish to market. Our co-op is doing the best we know how and still our fish is not sold. We
could sell it for about what we could break even with when we were forced into this by $.50 a pound this
year. Check our web site: http://www.bnet.org/rbsd/shores/health/kenaisalmon.htm
Production
1. How can we remove or reduce costs?
Subsidize my fuel costs! Reduce the fleet in Cook Inlet to 200 boats. Make it economically feasible for
me to sell my boat and permit. Develop a system of I.F.Q.’s to enable the smaller fleet to fish when best
conditions are in place to produce a high quality product. i.e. weather-run size-processor capability. We
have a co-op now and it is not working very well. (10 boats) Fishermen are independent businessmen.
There are great fishermen, good fishermen, and poor fishermen. You will not get them to pool product.
If we all got I.F.Q.’s for salmon we could sell them like the Halibut guys! The best fishermen would get
the higher I.F.Q. poundage. Alaska should not go into the farming business. It’s saturated and will fall
to wild stocks! HACCP certification would allow the fisherman to process (head and gut) fish on board
if there were allotted time on the grounds. Enforcement of 200 boats would save time and money to
ADGF. Corridors produce a poor quality fish from fishing in the mud and towing the net. It’s hard to
rationalize reduced cost to harvest when the fish that we did harvest is still not sold!
2. Reduced cost for processors?
The processors along with the fishermen have been taxed into oblivion! Raw fish tax- aquaculture-
ASMI. All of a sudden you found the money so we could make a few bucks!!
The hatcheries have never helped the drift gillnetter in Cook Inlet.
3. Regulatory changes
Let the ADFG regulate the fishery biologically. Throw out subsistence for the “CITY” of Anchorage.
Stop dipnetting. IFQ’s for salmon.
Finance
1. Are there better ways to use tax money to assist the salmon industry?
If our co-op were to go into processing our own fish it would have to be totally funded with state money.
Three freezer plants have closed on the Kenai and the rest are ready to close. How could we possibly
fish and process too! Check our web site for an explanation of our co-op :
http://www.bnet.org/rbsd/shores/health/kenaisalmon.htm
2. AK loan practices?
Would you give me a $50,000 loan on my boat and a $50,000 loan on my CI permit? Then would you
forgive the loan? Call me when you can do this!
Hatcheries
1. Hatcheries do not play a role in the future of Cook Inlet wild Sockeye harvest.
Public Responses to Salmon Task Force October 17, 2002
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Education
1. K-12 education is doing all it can to prepare these young people to enter a workforce that is not in
existence today. The evolution or demise of the fishing industry should not be put on the shoulders of
educators.
2. The University systems research in my judgment is suspect to the whims of the politicians. In the mid
90’s they were given untold thousands of dollars to determine the impact on the economy of the Kenai
Peninsula commercial fishery. They failed! And now you have five committee’s to undo the demise of a
fishery.
The University is doing the HACCP training. It is an incredibly boring but important part of the quality
issues you are facing.
3. I am already displaced by changes in the salmon industry. The key to the Cook Inlet commercial drift
net fishery is “Keep your winter job”.
Agency Oversight
1. The board of fish decisions is made for the Sports interests in the State of Alaska. If we are to address
the commercial issues we must let the ADFG manage the fisheries biologically. If you want to have a
commercial fishery then see my responses in the Quality Subcommittee Response.
2. No, I do not support the Alaska Board of Fish. It is a pawn of Bob Penny and Tony Knowles.
Eliminate it and manage biologically and get ride of Anchorage subsistence. Anyone living 1 hour from
a Safeway market is not a subsistence user.
3. No, manage the fishery biologically!!!
Seafood Commission
1.Some kind of commission should have seen the demise of the commercial fisheries coming years ago!
You now have five subcommittees to look at why we are where we are! How many committees does it
take to change the light bulb to get the idea that it may be to late to save the fishery in Cook Inlet and
around the state?
Economic Development
1. The Alaska salmon industry is not just changing. It’s imploding, and it all has to do with the allotment
of the resource to user groups. There are too many people, and to few salmon. Do you want a
commercial fishery? Then manage biologically and lessen the impact of sport and subsistence. Do you
want a recreational fishery for Anchorage? Then get rid of my boat and me. Do you want everyone to
subsist on the stocks that are left at the present time? You’re a little bit late for me. I have a fishing boat
in a yard in Kenai. I had to sell the house I built on the Kenai River and my permit sits in the drawer
and there is not much chance of it fishing in 2003. That is an economic impact on me. Thank you for
allowing me to give input into this process. Please make sure all committees get all responses. They are
very intertwined. I’m sorry if it is a bit cynical. I have lost a major part of my livelihood for all these
years and it hurts a lot. Check our web site: http://www.bnet.org/rbsd/shores/health/kenaisalmon.htm
Russ Parkison F/V Tina D.
Public Responses to Salmon Task Force October 17, 2002
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Peter Schonberg
pschonberg@aol.com
75-816F Hiona St., Holualoa, HI 96725
808-331-0989
Fish_area: SE
Gear_type: Seine
October 15, 2002
Quality
1. A) What does the Alaska salmon industry need to achieve a higher quality product?
The product needs to be chilled ASAP and the temperatures need to be monitored from catch to
customer. Bleeding the fish would be great, but very difficult in the high volume seine fishery. The
amount of time between catch and freezing or canning needs to be minimized. I believe that ASMI is on
the right trac with its recommendations.
B) Should chilling at point of harvest of commercially harvested salmon be mandatory statewide?
Chilling should be mandatory!
2. Should the state be involved in creating a quality standard, state quality seal, and a state quality
commission?
Yes, all of the above.
3. Should the state have a quality education program for industry participants?
All fishers, crews, and processors should have to get a certificate attesting to the fact that they have
been trained to properly handle the fish.
4. What incentives do you need to improve the quality of your harvested and/or processed salmon?
We need quality bonuses for those who have invested in the equipment and training to handle the
fish properly. Perhaps these come at the expense of those who don't care.
Marketing
1. Do we use existing state salmon promotional structures or do we change the structures? If changed,
what changes should be made?
ASMI should be cut loose from state control if the current marketing restrictions remain. ASMI as a
structure is an excellent start. Do we really need to reinvent here? No! Let's improve what we
have.
2. Who or what entity or entities should be paying for the promotion and/or marketing of Alaska’s wild
salmon?
Fishers should continue to pay in, but we need much more support from federal and state governments.
Marketing with enough money will be far cheaper that any kind of buyback or continuing disaster
funding.
3. Should the state help individual fishermen promote and market their wild salmon? If so, how?
Sure-monetary credits for investments made in marketing.
Production
Public Responses to Salmon Task Force October 17, 2002
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1. How can we remove or reduce costs from the harvesting sector in a way that allows regional selfdetermination?
Allow formation of co-ops, buybacks etc. and let the groups from each are decide which way they want
to go.
2. How can we remove or reduce costs and aid the processing sector?
Don't know.
3. In addition to the removal or reduction of costs, are there statutory/regulatory changes that can help
the harvesters and/or the processors?
Yes. I believe that all hatchery fish should be harvested in coops. The way we do it now does not make
any sense. A terminal hatchery fishery could easily be run as a coop which would greatly reduce costs
for everyone involved.
Finance
1. Are there better ways in which the state can use existing fishing industry taxes to assist the salmon
industry?
At this time, all fish taxes should be used in the industry for management, improvements and buybacks.
2. Do current State of Alaska loan practices address the needs of the salmon industry? If not, what
changes would you suggest?
Not sure. I don't use the programs.
3. Should the State of Alaska provide for the permanent retirement of limited entry permits in your
fishery? If salmon limited entry permits were retired in your fishery, what incentives would you suggest
for retirement? If funding is needed, who should pay?
Definitely! Fishermen should contribute, the state should contribute, and the federal government should
contribute. I'm sure it would end up to be cheaper than a constant bail out of fishermen and
communities.
Hatcheries
1. Would you support legislative development of a State of Alaska hatchery policy and/or performance
standards for hatcheries, and/or changes to the state’s relationship with all hatchery owners?
Yes. The state provided loans, but the fishermen have paid for the hatcheries. Any policies should
recognize this. The fishermen should have considerable say about the hatcheries. I think the processors
should be kept out of this discussion.
Education
1. What role should the State play in providing fisheries education (K-12, post-secondary, and voc/tech)
in order to promote Alaskans in the fishing and seafood industry?
Don't know.
2. Does Alaska’s university system adequately meet the research and post secondary educational needs
of the Alaska salmon industry? If not, what changes would you suggest?
Public Responses to Salmon Task Force October 17, 2002
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If you look at the current managers, I think you will find a lot of U of W school of fisheries influence.
Why isn't the U of A turning out the qualified managers on the same scale?
3. If you are displaced by changes in the salmon industry, what could the state do to provide retraining
and/or alternative employment?
I won't be.
Agency Oversight
2. Do you support Alaska’s board of fish process? If changes are necessary, what would you suggest?
The board of fish is highly political and many of the members represent interests different from
commercial fishing. This has resulted in some very bad decisions. Where are the levelheaded
professionals in the process. The appointment system is terrible.
3. Do you support a task force created by the legislature to review the Alaska Board of Fish?
Yes
Seafood Commission
1. Should the State of Alaska develop an Alaska Seafood Commission to annually advise the legislature
on the needs of the seafood industry?
Yes
Public Responses to Salmon Task Force October 17, 2002
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Victor Smith
sawmillcreek@rockisland,com
PO Bos 2477 Fricay harbor, WA 98250
360-378-3639
Fish_area: Southeastern
Gear_type: salmon seine
October 14, 2002
Marketing
3. Should the state help individual fishermen promote and market their wild salmon? If so, how?
Yes.
Production
1. How can we remove or reduce costs from the harvesting sector in a way that allows regional selfdetermination?
I would like to comment on this question as well as attempt to answer it.
The assertion by the Task Force, that there is no intention of limiting discussion on Fleet Reduction to
permit stacking/ fractional permits, is contradicted by the omission of any mention of the Federal,
Magnuson-Stevens fishing reduction loan program. All across the nation, fishermen interested in fleet
reduction have embraced this program.
But, an amendment to this program, the Gilchrest Amendment, has been, and still is, being lobbied for in
the US Congress. If passed, this amendment would make Processor Quota Shares possible in all of
Alaska’s fisheries. Executives of at least two of Alaska’s fisherman’s associations, the United Fisherman
of Alaska, (UFA), the umbrella association that claims to represent over 10,000 Alaskan fishermen, and
the Southeast Alaska Seiners Association (SEAS), took steps to prevent their organizations opposition to
the passage of the Gilchrest Amendment, in spite of their members whishes or best interests. During
the same period of time they were doing this they also gave support to candidates who hadn’t voiced
opposition to Processor Quota Shares.
A year ago, the UFA voted to oppose Processor Quota Shares in the red crab fishery. According to one
first hand report, the UFA president “nearly went ballistic” over the vote, and a special session of the
UFA’s executive board was called that reversed the previous decision. Dave Bedford of SEAS, one of
UFA’s execs, then returned to the SEAS board and advised SAES not to take a position on Pro Quos
either. The justification given was that the red crab fishery was not within the realm of concern of
SEAS, and SEAS should stay out of it.
Not getting involved in the Red Crab fishery was about way more than just the crab fishery though, and
should have been of great concern to SEAS. The UFA, and SEAS didn’t tell their members about the
Gilchrest Amendment. Fishermen in Alaska should have been made aware of the Gilchrest Amendment,
and it’s significance, and the UFA had the responsibility to bring it to their attention. Not having done
so is just one example of how the UFA violated its charter to represent the interests of Alaskan
Fisherman. Instead, the UFA isolated the crabbers, and hung them out to dry. As applied so far, the
"regional self-determination" that the Salmon Task Force talks about appears to mean, divide and
conquer.
Public Responses to Salmon Task Force October 17, 2002
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Similarly high-handed tactics were used in the passage of the permit stacking/fractional permit bill,
HB286. At the Nov. ’01 SEAS meeting in Seattle, a proposal for a new fisheries management program
utilizing permit stacking, was presented by Terry Gardner, of Norquest Seafoods. His presentation was,
met with stony silence by the SEAS board, and one of SEAS board members even commented after Mr.
Gardner left the room “Terry doesn’t know a thing about fishing”. Yet, in spite of his member’s
opposition to fractional permits, SEAS general manager, David Bedford, without the authorization or
knowledge of his board or his committee that was looking into fleet reduction options, assisted the
UFA in writing, and passing HB286, that would make fractional permits possible. This is not an
example of self-determination.
The claim that the Task Force “did not intend to limit public comment to these two proposals (permit
stacking incentives and fractional entry permits), but just “wanted to highlight them for public
discussion.” doesn’t ring true either. Most of the people involved in the passage of HB286, and the
efforts to not oppose Processor Quota Shares, are in positions of influence on the Salmon Task Force.
They literally have appointed themselves, and have brought with them their old agenda and
tactics.
Fishermen do not want Processor Quota Shares or fractional permits, and they should pay close
attention to who is proposing them, or they could get them, and worse. Fishermen’s interests are no
longer being
represented by their organizations, yet the fishermen’s organizations names, and misrepresented
intentions, are being used to rip the fisherman off.
If fisherman want a fleet reduction program that just reduces their fleets, with no sneaky deals; one that
is fair, and legal, and that’s been closely examined, and approved by fishermen all over the United
States, they should look at the Federal plan. The proponents of fractional permits on the Task Force
have misrepresented the Federal plan, making it appear not to be workable, while at the same time,
misrepresenting HB286 to make it appear to be a better choice.
The proponents of HB286 have said that they wanted a fleet reduction program they could control, and
they are attempting to do that, not only by directing the discussion, but also by misrepresentation of
facts, and making deals that don’t represent the fisherman’s best interests. The temptation to reap
personal gain from ownership of two permits, or to use the prospect of such gain as a carrot or incentive
for making deals is just to great for some to resist. If reduction permits don’t actually go away, or be
removed from individual’s hands, the problems we have with too many permits will not go away. The
present problems we face will just be traded for ones that could potentially be worse. In answer to the
question, yes, I am personally in favor of a fleet reduction program.
Production
2. How can we remove or reduce costs and aid the processing sector?
The processing sector needs to put more effort into finding profits in sails rather than getting cheaper
raw product.
Hatcheries
1. Would you support legislative development of a State of Alaska hatchery policy and/or performance
standards for hatcheries, and/or changes to the state’s relationship with all hatchery owners?
Yes.
Public Responses to Salmon Task Force October 17, 2002
Compiled by UFA
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Paul Harder
harderpaul@hotmail.com
1860 Sherman St. #4 Port Townsend WA 98368
360 344 3429
Fish_area: Kodiak and PWS
Gear_type: Seine
October 12, 2002
Quality
1. A) What does the Alaska salmon industry need to achieve a higher quality product?
Low interest loans or grants to build fishermen owned cold storages and packaging/shipping centers
and upgrade vessels.
B) Should chilling at point of harvest of commercially harvested salmon be mandatory statewide?
No!
2. Should the state be involved in creating a quality standard, state quality seal, and a state quality
commission?
No!
3. Should the state have a quality education program for industry participants?
No!
4. What incentives do you need to improve the quality of your harvested and/or processed salmon?
The chance to earn money from the product. Fishermen are required to have contracts with their crews
that guarantee a percentage of the catch. Why is there no such law for processors? Packers should be
required to have contracts with permit holders that would guarantee a percentage of the finished
product and open books to fishermen the same as skippers do for crews!
Marketing
1. Do we use existing state salmon promotional structures or do we change the structures? If changed,
what changes should be made?
ASMI is run by people that don't have enough incentive to improve our situation. What wild salmon
lacks is a distribution network in the states. It needs to be built from the ground up one step at a time.
Instead of ASMI stumbling around throwing a little money here and a little money there, our
infrastruction needs to be built just like a corporation for a chain of restaurants or stores. Start with
one "WILD ALASKA SALMON" store/restaurant and pay smart people to make sure it's done right.
Serve cheap inexpensive salmon by the plate, package, or case. Become the dominant supplier for
salmon in that local and then move on to other markets. Franchise the business and we're off and
running.
2. Who or what entity or entities should be paying for the promotion and/or marketing of Alaska’s wild
salmon?
Those that make the most money from it. We need to open some books to determine that.
3. Should the state help individual fishermen promote and market their wild salmon? If so, how?
Public Responses to Salmon Task Force October 17, 2002
Compiled by UFA
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Of course. Low interest loans, matching funds, grants, or whatever it takes to save the industry.
Production
1. How can we remove or reduce costs from the harvesting sector in a way that allows regional selfdetermination?
Allow co-ops to be formed. If a co-op of 25% of one areas fleet is formed that co-op should be granted
25% of the harvestable run.
2. How can we remove or reduce costs and aid the processing sector?
Co-ops will reduce tender costs, book keeping costs and the cost of serving a big fleet.
3. In addition to the removal or reduction of costs, are there statutory/regulatory changes that can help
the harvesters and/or the processors?
Co-op support in any form.
Finance
1. Are there better ways in which the state can use existing fishing industry taxes to assist the salmon
industry?
Start a competition to see who can come up with the best plan and have big prizes for the winning ideas.
2. Do current State of Alaska loan practices address the needs of the salmon industry? If not, what
changes would you suggest?
Rock and I mean ROCK bottom interest rates for long and I mean LONG TERM loans.
3. Should the State of Alaska provide for the permanent retirement of limited entry permits in your
fishery? If salmon limited entry permits were retired in your fishery, what incentives would you suggest
for retirement? If funding is needed, who should pay?
Retiring of permits sounds good on the surface. However, anyone that takes the time to pull out a
calculator and compare the benefit of removing part of the fleet as compared to forming co-ops, will
discover that the cost of buying a permit in for example Prince William Sound would be exorbitatant.
Consider that PWS seiners have been earning about $13,000,000 per year on average for the last 10
years. If 15 boats were paid $300,000. each to harvest the run. $8,500,000. would be available to be
divided up. If every non catcher boat permit in PWS shared in the co-op equally it would amount to
about $33,000. each. Compare that dividend to a certificate of deposit and you got an investment worth
over $1,000,000. There is a group of guys in Alaska that are trying to hoodwink unsuspecting fishermen
in hopes of buying their permits for pennies on the dollar. It's criminal!
Hatcheries
1. Would you support legislative development of a State of Alaska hatchery policy and/or performance
standards for hatcheries, and/or changes to the state’s relationship with all hatchery owners?
Yes. Hatcheries are guaranteed not to fail and they can choose how much they will compensate
themselves. What a scam!
Education
Public Responses to Salmon Task Force October 17, 2002
Compiled by UFA
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1. What role should the State play in providing fisheries education (K-12, post-secondary, and voc/tech)
in order to promote Alaskans in the fishing and seafood industry?
Teach them about the carcinogens in farm raised salmon.
2. Does Alaska’s university system adequately meet the research and post secondary educational needs
of the Alaska salmon industry? If not, what changes would you suggest?
I have no clue! Being a salmon fisherman I can't afford to put one foot in a university. That's only for
people that have state jobs with free health care etc.
3. If you are displaced by changes in the salmon industry, what could the state do to provide retraining
and/or alternative employment?
Maybe giving us remote land to start tourist related lodges for sport fishing etc.
Agency Oversight
1. Apart from the Board of Fish decisions, are there other state agency regulations that could be changed
to benefit Alaska’s salmon industry?
How about unemployment benefits for fishermen ...for ever!
2. Do you support Alaska’s board of fish process? If changes are necessary, what would you suggest?
Nobody should be on the board that works for a company that is dominated by foreign owners.
3. Do you support a task force created by the legislature to review the Alaska Board of Fish?
Sure why not.
Seafood Commission
1. Should the State of Alaska develop an Alaska Seafood Commission to annually advise the legislature
on the needs of the seafood industry?
No!
Economic Development
1. As Alaska’s salmon industry changes, what are the economic development issues, community and
individual concerns that should be addressed by the State Legislature?
Fishermen need some programs that will help them move into other industries.
Public Responses to Salmon Task Force October 17, 2002
Compiled by UFA
- 19 -
Gary C. Lang
gclang@ptialaska.net
po box 2586,sitka ak.99835
907-747-4573
Fish_area: southeast alaska
Gear_type: purse seine
October 11, 2002
Quality
1. A) What does the Alaska salmon industry need to achieve a higher quality product?
Incentive from processors to pay more to fishermen for higher quality product at present processors
refuse to take unchilled fish, but also refuse to pay the fisherman for chilling the fish, and at paying
pennies per lb,80% of a very meager price disappears as soon as we start our rsw, with fuel at $1.50 per
gal or more, we also need to allow any and all fish buyers, foreign and domestic to be able to purchase
our fish, to get rid of the big 4 monopoly on Alaska fish, and to let the rest of a very fish hungry world to
purchase our fish, if they want them, and to eliminate the Japanese monopoly, they are as foreign as any
Russian, Chinese, Korean or European buyers.
B) Should chilling at point of harvest of commercially harvested salmon be mandatory statewide?
Only if it is also made mandatory that any buyer of fish statewide be required to pay a minimum of $.10
lb. for rsw added to the per lb price of the fish, and if the price of fuel goes up, the buyers price for rsw
goes up. Processors want chilled quality consistently, but refuse to pay for it consistently. If this is
passed, make it beneficial for the fisherman for once, excellent quality from the fishermen should be
rewarded.
2. Should the state be involved in creating a quality standard, state quality seal, and a state quality
commission?
No, we already have a very high quality standard in the seine fleet, we deliver chilled fish daily, the
quality starts to diminish when the processors take possession and the fish are handled 4 times or more
before they reach the market, at 40 to60 times the price paid the catcher, if quality standards are set, set
them for the processors, and check them with observers because of the wasted fish they have all been
caught dumping and grinding
3. Should the state have a quality education program for industry participants?
Again, only if it is for the shore based, Japanese owned, so called Alaska canneries
4. What incentives do you need to improve the quality of your harvested and/or processed salmon?
A decent price per lb + a minimum $.10 per lb. rsw because chilling the fish requires engines[diesel]to
run 24 hrs per day while fishing to chill +the main propulsion motor to catch the fish, processors should
be required to pay for a third of a boats fuel cost per season, or the rsw cost.
Marketing
1. Do we use existing state salmon promotional structures or do we change the structures? If changed,
what changes should be made?
Market to the world, not just Japan, if possible eliminate Japan and find some new markets, many other
Asian countries eat fish also, get off this fixation on Japan
Public Responses to Salmon Task Force October 17, 2002
Compiled by UFA
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2. Who or what entity or entities should be paying for the promotion and/or marketing of Alaska’s wild
salmon?
The same processors that spend all that money in Juneau lobbying for different ways to cheat the
fishermen of their fair share.
3. Should the state help individual fishermen promote and market their wild salmon? If so, how?
Yes, allow fishermen to sell their product as they find their own market for those fish, also allow
the eggs to be marketed by seiners along with the fish, eliminate the red tape involved with these things,
now there are so many permits and licenses and paperwork involved in this process it's ridiculous,
punch a road into Wrangell thru Canada, so we can market in Canada and the lower 48,many buyers
say they are willing to give good prices for all our salmon if we could get a road into southeast, so they
could truck the product to their markets, and we could displace farm fish, simply because this is the only
salmon the midwest sees
Production
1. How can we remove or reduce costs from the harvesting sector in a way that allows regional selfdetermination?
Get the hatcheries in southeast out of the fish selling business, they take away 50% or more of our
markets, we can eliminate cost recovery by all hatchery fish being caught by fishermen, and a
percentage of the hatchery caught fish price being taken off the fish ticket for the hatchery cost, also
eliminate all private non profit hatcheries, these are politically approved fish farms in Alaska, and
anyone that thinks cost recovering 24 million lbs[100%] of chum at $.45lb like the Juneau hatchery
does every year is non profit, they have blinders on. The processors pay this amount to hatcheries for
the same chum salmon they pay fishermen $.12 for, any excess return to any hatchery, chum, coho, or
king salmon should be for the fisherman, not hatcheries to roe strip and or sell, seiners have never ever
gotten any of the millions made from the sale of salmon eggs.
2. How can we remove or reduce costs and aid the processing sector?
Eliminate the Japanese, get new management with new ideas, automate wherever they can, create
different salmon products, get off the can syndrome, require all processors to use pin bone machines,
allow all foreign buyers in, obviously our present processors don't want pink salmon, let us sell our
pinks to anyone that wants them, and we'll sell our money fish to the shore processors, a road to
Wrangell would help transport the processors product south also
3. In addition to the removal or reduction of costs, are there statutory/regulatory changes that can help
the harvesters and/or the processors?
Change the magnusen act wording so that it actually helps fishermen and not let processors based in
Seattle and Canada abuse it to exploit the fishermen it was created to help. Eliminate the sale and
ownership of any salmon permits that allow Canadians[vessel and crew]to fish Alaska waters,
reimburse them and cancel their permits if you want to eliminate permits
Finance
1. Are there better ways in which the state can use existing fishing industry taxes to assist the salmon
industry?
Create an emergency fund to help fishermen pay their fishing related bills in a year like 2002 where
certain Japanese owned, Seattle based processors are trying to put as many seine fishermen out of
business as they can
Public Responses to Salmon Task Force October 17, 2002
Compiled by UFA
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2. Do current State of Alaska loan practices address the needs of the salmon industry? If not, what
changes would you suggest?
Loaning only to Alaskans that reside year-round in Alaska, allowing fishermen to skip payment where
payment is not possible and add the passed payment on to the end of the loan, lower the interest on
loans to 5% or lower. We need a solution for now, 2002; many of us cannot make it thru the upcoming
winter without state or federal financial assistance
3. Should the State of Alaska provide for the permanent retirement of limited entry permits in your
fishery? If salmon limited entry permits were retired in your fishery, what incentives would you suggest
for retirement? If funding is needed, who should pay?
It should be voluntary, ask for federal funding to pay each fisherman $300,000. That chooses to retire
his permit, most net fishermen don't have retirement, and have most of their lives in this fishery and their
vessel and gear, this would be their only compensation for a lifetime of fishing. the ones with the big
fancy gear have many permits, ifq's, inherited wealth, greed and cheating going for them, many are
Seattle lawyers doctors etc and do this for their vacation time, so divide the cost between federal, state,
and processors
Hatcheries
1. Would you support legislative development of a State of Alaska hatchery policy and/or performance
standards for hatcheries, and/or changes to the state’s relationship with all hatchery owners?
Yes, first eliminate all private hatcheries, their fish farms, and should be illegal in Alaska anyway. Get
the state and fish tax supported hatcheries out of the fish selling business, if they are going to have
cost recovery and the hatcheries get paid 70% more for the same fish that the fisher gets, eliminate the
hatchery tax and get the gill-netters out of seine areas, or eliminate cost recovery and raise the hatchery
tax to 4% and let the fishermen catch all hatchery fish, eliminate roe sales by hatcheries
Education
1. What role should the State play in providing fisheries education (K-12, post-secondary, and voc/tech)
in order to promote Alaskans in the fishing and seafood industry?
The instructors should be retired fishermen, teaching in their own field of expertise, salmon, crab,
pollock, halibut etc. a secondary class that would be very helpful to a new [greenhorn] person entering
the business, would be teaching gear work to them, many new people don't get hired or get the lowest
pay because they can't do gear work or navigate or can't use the electronic gear provided on any vessel,
this can all be taught by retired fishermen and skippers in their field
2. Does Alaska’s university system adequately meet the research and post secondary educational needs
of the Alaska salmon industry? If not, what changes would you suggest?
No, put more emphasis on how entire cultures depend on salmon, the poor returns in the chum rivers in
western Alaska, Yukon river area can be helped to recover by the same hatcheries they blame for their
demise, send sraa and nsraa people to educate these people on how to enhance a run by hatchery
help, another case of teaching
3. If you are displaced by changes in the salmon industry, what could the state do to provide retraining
and/or alternative employment?
Most independent seiners are in their late 50s and 60s, retraining would be very hard, but not
impossible, most job training would be told were to old, classes are geared for 18 to 25 year olds, I’ve
run my own boat for 26 years and would like to finish on the ocean, if the state could help me get black
Public Responses to Salmon Task Force October 17, 2002
Compiled by UFA
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cod and halibut ifq's, or set up in Dungeness crabbing, I would be very willing to go this route as
alternative employment, and all it would take would be a very low interest loan
Agency Oversight
1. Apart from the Board of Fish decisions, are there other state agency regulations that could be changed
to benefit Alaska’s salmon industry?
Re opening areas the state took away from seiners in the 60s, so we could fish areas we traditionally
fished before bad political decisions took them away from us, inian islands, cape edgecumbe, beam
canal, boca de quadra, home shore, these are some of the areas lost to seine fisheries because a
politician had friends in other fisheries etc these areas provided seiners with a decent amount of money
fish, plus would spread the fleet, no more big concentrations of boats in small open areas, don’t regulate
the fisheries so the f&g people can sit in their offices, regulate for the fishermen
2. Do you support Alaska’s board of fish process? If changes are necessary, what would you suggest?
New people with new ideas, eliminate political appointees, no special interest people that are there
because they promised someone something, actually get some people involved that know something
about whats going on in the seine fishery, get politics out of this, think Alaska fishermen instead of
Japanese owned processors, these processors put us in this mess
3. Do you support a task force created by the legislature to review the Alaska Board of Fish?
As long as no processors were involved, and seine fishermen were, no appointees that know nothing
about the seine or fish business in general. Lets actually get something done this time
Seafood Commission
1. Should the State of Alaska develop an Alaska Seafood Commission to annually advise the legislature
on the needs of the seafood industry?
Absolutely, made up of people in the fishing end of the business, not the processing end
Economic Development
1. As Alaska’s salmon industry changes, what are the economic development issues, community and
individual concerns that should be addressed by the State Legislature?
Rules should be implemented that allow small fish companies to operate in se Alaska without fear of
getting put out of business by the very big companies [cossack seafood etc.]all fishers should be able to
sell any seafood caught anywhere without need of special permits, licenses or unnecessary red political
tape designed to set the fisher back instead of foreword, the road to Wrangell would solve a lot of the
present problems
Public Responses to Salmon Task Force October 17, 2002
Compiled by UFA
- 23 -
Mark Buckley
mkbuckley@alaska.com
Box 649 Kodiak, AK 99615
907 486 4680
Fish Area: Bristol Bay
Gear Type: Drift gillnet
October 11, 2002
Quality Subcommittee
1. What does the Alaska salmon industry need to achieve a higher quality product?
Industry and government must first understand what the market wants and must then make the necessary
changes to provide products that people want to buy. Today, most Alaskans in the industry believe that
a ‘quality’ fish is mainly one that tastes good. However, my research demonstrates clearly that our
perception and the market’s perception are at odds.
In truth, the salmon move through distribution channels that are concerned mostly about two things: 1.
Appearance, and 2. Shelf Life. Buyers who place orders for Alaska salmon are typically interested in
moving the product through a distribution chain quickly and profitably. Those buyers are not the
consumers, but they are our most important customers. If they get burned they stop coming back.
Similarly, if there is cheaper product available at similar or superior quality (e.g. farmed fish), many of
those buyers will stop placing orders for Alaska fish or will negotiate the price downward. I would say
Appearance and Shelf Life each account for about 40% of the buyer’s concerns with taste accounting
for 10%.
For its part, Appearance can be broken down into two sub-categories: External Appearance and
Internal Appearance. External appearance refers to the fish’s color and the overall condition. Does it
look fresh and ocean-bright? Does it smell? Are there scales missing? Has it been mutilated in any
way?
Internal appearance refers to the look of the fish’s flesh. Is there bruising? Is it discolored or of uneven
color? Is it firm?
Shelf life is relatively self-explanatory. Basically it refers to risk management, insofar as the buyer
wants to have the maximum amount of time to hold the fish before he has to drop the price to move it or
to throw it out altogether.
With those thoughts in mind, what can the State do to promote salmon quality? Plenty.
First, the state should recognize the current regulatory and management practices are in large measure
outdated. Most systems now in place made good sense in 1959, but they are a great hindrance in 2002.
Regulations that work against fish quality are numerous, but the biggest offenders are the ones that
prohibit fishermen and processors from delivering quality products. The state forces many fishermen to
catch fish in places that are far from optimal for fish quality and in ways that the market does not want.
Those regulations are rooted deep in the Limited Entry system. They require fishermen, for example, to
fish in some areas with gillnets only. This is true even though many fishermen and fish buyers would
prefer to use other means to harvest fish. Basically, gillnets are bad for quality in two ways: they
frequently negatively affect the fish’s appearance due to scale loss and internal bruising. Also, gillnetPublic
Responses to Salmon Task Force October 17, 2002
Compiled by UFA
- 24 -
caught fish are often dead when brought aboard ship. If the fish is dead, it cannot be bled effectively,
and that affects shelf life.
The state should allow fishermen the option of converting existing licenses from harvest methods that
work against quality to methods that work for quality.
For example, the state forbids any commercial salmon trolling west of Cape Fairweather. Why? There
is no logical reason for this. Fishermen are businessmen who should have the option to deliver trollcaught
fish wherever they can find a market, not merely in SE Alaska.
In Kodiak in September 2002, seine-caught silver salmon were fetching 10 cents per pound for the
fishermen. At the same time in Sitka, troll-caught fish were worth 90 cents per pound. One reason for
the wide disparity is due to processing costs. In a typical plant that processes fish in the round, more
than 20 persons handle each fish as it moves down the line being headed, gutted, cleaned and boxed for
fresh shipment. In a Sitka plant I counted 4 persons handling each troll fish from unloading to boxing.
Trollers usually bleed and clean the fish soon after harvest, saving labor and enhancing shelf life.
Another way the state works against quality is by requiring fishermen to harvest salmon in or near
stream/river terminuses. This practice often results in the fish appearing water marked, affecting their
appearance and reducing their quality. The regulatory process and ADFG should work to limit harvests
near fresh/brackish water whenever possible and instead encourage harvests in or near the open ocean.
A third way the state limits quality is through regulations limiting vessel length. Fishermen should be
allowed to use whatever boat makes sense to them as they strive to deliver higher-quality product.
Forcing fishermen into boats whose lengths made sense in 1959 is counter productive. Fishermen who
want to improve their quality should be free to equip their boats with whatever processing machinery
and devices they need to deliver a catch wanted by the market. Perhaps, for example, a fisherman will
want to convert his boat into a live tank and hold fish live until just before processing.
2. Should the state be involved in creating a quality standard, state quality seal, and a state quality
commission?
Yes, the state should do this. There must also be mandatory controls on fishermen, processors, and,
where possible, on public carriers such as airlines and shipping companies to assure, whenever
possible, that all seafood leaving Alaska is handled in a manner that supports quality as defined above.
3. Should the state have a quality education program for industry participants?
Yes. It might be a requirement for getting a license renewal. OR, if a person has completed a quality
course, he/she might qualify for a license at a reduced fee.
4. What incentives do you need to improve the quality of your harvested and/or processed salmon?
Before I return to harvesting fish, I will need to see sweeping regulatory reform along the lines I have
outlined above. I will want to have more options in the way I can harvest the fish and in the ways the
state
Hatcheries
1. Would you support legislative development of a State of Alaska hatchery policy and/or performance
standards for hatcheries, and/or changes to the state’s relationship with all hatchery owners?
This question is too vague. What is its real meaning?
Public Responses to Salmon Task Force October 17, 2002
Compiled by UFA
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Education
3. If you are displaced by changes in the salmon industry, what could the state do to provide retraining
and/or alternative employment?
I would prefer that the state change its regulations so I can get back to work.
Agency Oversight
1. Apart from the Board of Fish decisions, are there other state agency regulations that could be changed
to benefit Alaska’s salmon industry?
The CFEC regulations need to be changed to allow permit holders to convert existing licenses into other
types of license: E.G. convert a Bristol Bay driftnet permit to a BB troll permit; facilitate harvest
practices that would allow fishermen to retain live fish, and allow for certain new gear types and/or
harvest techniques that will promote, rather than degrade, quality.
2. Do you support Alaska’s board of fish process? If changes are necessary, what would you suggest?
The BOF should recognize the current regulatory and management practices are in large measure
outdated. Most systems now in place made good sense in 1959, but they are a great hindrance in 2002.
Regulations that work against fish quality are numerous, but the biggest offenders are the ones that
prohibit fishermen and processors from delivering quality products. The state forces many fishermen to
catch fish in places that are far from optimal for fish quality and in ways that the market does not want.
Those regulations are rooted deep in the Limited Entry and Fish Board systems. They require
fishermen, for example, to fish in some areas with gillnets only. This is true even though many
fishermen and fish buyers would prefer to use other means to harvest fish. Basically, gillnets are bad
for quality in two ways: they frequently negatively affect the fish’s appearance due to scale loss and
internal bruising. Also, gillnet-caught fish are often dead when brought aboard ship. If the fish is dead,
it cannot be bled effectively, and that affects shelf life.
The state should allow fishermen the option of converting existing licenses from harvest methods that
work against quality to methods that work for quality.
For example, the state forbids any commercial salmon trolling west of Cape Fairweather. Why? There
is no logical reason for this. Fishermen are businessmen who should have the option to deliver trollcaught
fish wherever they can find a market, not merely in SE Alaska.
In Kodiak in September 2002, seine-caught silver salmon were fetching 10 cents per pound for the
fishermen. At the same time in Sitka, troll-caught fish were worth 90 cents per pound. One reason for
the wide disparity is due to processing costs. In a typical plant that processes fish in the round, more
than 20 persons handle each fish as it moves down the line being headed, gutted, cleaned and boxed for
fresh shipment. In a Sitka plant I counted 4 persons handling each troll fish from unloading to boxing.
Trollers usually bleed and clean the fish soon after harvest, saving labor and enhancing shelf life.
Another way the state works against quality is by requiring fishermen to harvest salmon in or near
stream/river terminuses. This practice often results in the fish appearing water marked, affecting their
appearance and reducing their quality. The regulatory process and ADFG should work to limit harvests
near fresh/brackish water whenever possible and instead encourage harvests in or near the open ocean.
Public Responses to Salmon Task Force October 17, 2002
Compiled by UFA
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A third way the state limits quality is through regulations limiting vessel length. Fishermen should be
allowed to use whatever boat makes sense to them as they strive to deliver higher-quality product.
Forcing fishermen into boats whose lengths made sense in 1959 is counter productive. Fishermen who
want to improve their quality should be free to equip their boats with whatever processing machinery
and devices they need to deliver a catch wanted by the market. Perhaps, for example, a fisherman will
want to convert his boat into a live tank and hold fish live until just before processing.
3. Do you support a task force created by the legislature to review the Alaska Board of Fish?
Yes
Economic Development
1. As Alaska’s salmon industry changes, what are the economic development issues, community and
individual concerns that should be addressed by the State Legislature?
The state needs to change many existing regulations to allow harvesters and processors the opportunity
to begin providing markets with quality fish.
Public Responses to Salmon Task Force October 17, 2002
Compiled by UFA
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Testimony by Jerry Spencer
October 11th, 2002
My name is Jerry Spencer, I came to Petersburg in 1984 and have made a home and a career as a
crewman salmon, crab and long line fishing. I started crewing in Bristol Bay in 1987. I crewed until
1997 at which time I purchased a Bristol Bay Drift Permit and became an owner/operator. I purchased
by permit for $180,000. In making the deal I put down $46,000 on the permit and borrowed $133,000
from the Alaska Dept. of Investments. With that $46,000 down the Department agreed to hold the
permit as collateral. My annual payment is $18,000.
In 1999 I was diagnosed and treated with two surgeries for Lymphoma Cancer. I managed to
return to my long lining job eight weeks after surgery. I was also injecting inter-feron (a chemotherapy
treatment for cancer) and continued with my injections during the 1999 Bristol Bay season. I was
moderately successful and made my season and payments and have survived cancer.
Fall of 1999 I had to move to Arizona where I could receive proper medical treatment and find
winter employment. As a result I forfeited my Alaskan residency and any benefits or assistance from
the State of Alaska and the Dept. of Investments. Now being a non-resident my loan interest went up
from 7.5% to 9.5% I managed to survive by borrowing $19,000 from the small business administration
and relying solely upon my crew wages in other fisheries to make my loan payments.
I made no money in Bristol Bay for my efforts. In short, I’m using my crew wages to subsidize
Salmon fishing in Bristol Bay for the Dept. of Investments. To clarify I paid $46,000 plus $102,000 in
payments and interest. Also to include $50,000 for a boat, $12,000 in gear and all expenses incurred
from 1997 – present time. With the devaluation of permits in Bristol Bay the Dept. of Investments opted
to recollatoralize my loan (ie: attach my assets, which of course was not our original agreement). In
2001 my gross stack was 18,000 dollars. I managed to make interest only payment of $11,000.
However, now that I’ve fallen behind the principal payment the department now wishes to alter our
original agreement and attach my other assets. I interpret that as, changing the agreement and that is
wrong.
In 2002 I got lucky, caught 73,000 pounds and made my entire payment with a gross stock of
$33,000. Anyone else (other than most fishermen) would have failed at this small independent business
venture.
Again to conclude (summarize) my situation I have purchased and entrusted in the State of
Alaska a transaction for a permit for $180,000. That permit is now valued at $20,000. My payments are
$18,000 for ten years also at an interest rate of 9.5%. It is simple math and criminal to expect me to
hold up my end when you “the State of Alaska” has failed to hold up your end and when things get tight
opt to change your agreement we have made.
If I may offer my input to this Task Force I would like to begin with the Legislative Mandate to
which the Department of Investments must operate.
Firstly, Non-Resident interest rates and relief or aid:
Non-resident interest rates must be lowered. Bristol Bay is in Alaska and we are all in
trouble in Bristol Bay. Discrimination to non-residents of any state is against federal law and is
WRONG. The money I earned to purchase my permit, boat, gear, has been earned in Alaska “as a
crewman”. The fuel, maintenance, storage, equipment, provisions, crew shares and fish taxes I pay
every season are in Alaska. It is wrong to discriminate.
The Dept. of Investments, especially Jim Anderson, is doing a great job working with us
fishermen and out financial obstacles. The Department is bound and must operate under the guidelines
of the Legislative Mandates. The legislature must allow the Dept. of Investments flexibility in order for
them to operate on a case-by-case situation and work with us fishermen to fulfill our debt obligations.
The department must be allowed to re-write terms and conditions to accommodate fishermen through
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these troubled times. Lowering interest rates and extending terms is our only chance of avoiding total
financial disaster. Fishermen even attempting to make their payments should be commended not
penalized with higher interest rates and late fees. If the Department of Investments is not allowed to
negotiate or compromise not only will they not collect needed loan revenue they will ruin the system
Alaska Fishermen, their Families and their Communities.
I feel that if permits continue to be sold for nearly nothing they will be worth nothing. “Again a
breech of “In Alaska we trust”. I also feel that permits not being fished for a period of time should be
returned to the state and retired. 700 boats did not fish in Bristol Bay in 2002. It greatly helped those of
us who chose to fish.
Up until 1999 the Department of Investments has managed to survive without any cash influx
from the State of Alaska, that fact tells me that the revolving loan system is working. Now we are
confronted with diminishing runs and historically low fish prices that equates to small gross stocks thus
producing less money to make loan payments. Fishermen who are financially obligated to pay in full for
permits devalued by at least ten times their original purchase price cannot and will not survive. On the
water there is a term for this MAYDAY, MAYDAY, MAYDAY.
I also feel that in order to save Bristol Bay we must create a position at the State level to
implement and manage the price setting and sales of our resource. The processors and Japanese were
already found guilt of unsavory practices and price setting. What ever there I don’t know, I was fishing.
I’m asking you legislators, why not implement controls to prevent manipulation of our revenues?
Marketing:
Talk is cheap in the creation of avenues towards a domestic market. Make the Processors and
Buyers in Alaska a lot a percentage of gross sales towards a domestic outlet. The only marketing action I
know of was fellow fishermen traveling to the lower 48 to cook salmon and spread the word in the midwest.
Why doesn’t the State utilize the mammoth Processing Plant in Anchorage for a Domestic
market? Contract some air freight or utilize the National Guard to fly from King Salmon to Anchorage
to process fish for a domestic market.
Our Senators and Congressmen must be informed and respond. Demand Federal
Assistance as with American Farmers. Tax breaks and subsidies are probably a pipe dream but national
recognition would at least be a comfort.
Quality:
If methods of harvesting salmon need to change in order to ensure product quality, change them.
For example, co-op seining or fish wheels would enhance quality and management of the
resource with less expense to the fisherman and the State. The State’s management goals and make so
the enforcement budge would be greatly reduced and focus on the success of a viable manageable
productive resource would come into play.
Lastly touching on Federal interdiction, High Seas Gillnetting is intercepting Alaska’s Salmon
Resources. The U.S. knows they are doing it yet nothing is done. With our borders and waters even
more importantly watched as ever before in our nations history I find it hard to accept the efforts and
results made by our federal government to curtail high seas operations.
Impose tariff tax on imported farmed salmon. That revenue could aid domestic marketing and
aid Alaska.
The Japanese are instrumental in Farmed Salmon worldwide. If a tariff was imposed on Farmed
Fish this would raise the price of farmed Salmon and wild Salmon could compete. Demand for Bristol
Bay Sockeye on the foreign market would then be more competitive with farmed fish prices.
I feel we need to get the support of our federal government with America under attack in 2001
and eminent war ahead of us it is only prudent to protect and utilize our domestic food sources. The
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world has changed as Americans we should actively pursue and utilize our own domestic resources
especially food to feed our nation.
Public Responses to Salmon Task Force October 17, 2002
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Gerry Merrigan, Petersburg
October 11, 2002
Governance: Board of Fish
1.) Appointment/Confirmation Process: To have a successful Board of Fish process, issues should be
decided on their merits and not based on politics. Likewise, candidates to the BOF should be also be
judged on their merits. Qualifications should be the foremost consideration of the Legislature rather than
the political affiliation of the appointing Governor. To the extent practicable, effort should be made by
the Legislature to keep politics out of the BOF.
Suggestion: Statutorily require the Legislature to confirm BOF appointees by April 15. Change existing
statute so that no action by the Legislature by that date would result in confirmation.
Reasoning: Currently, the Governor is required to make nominations by April 1. The only time frame
requirement for the Legislature is to take confirmation up in session. No action by the Legislature is
tantamount to rejection.
What currently happens is that the Legislature takes up appointments at the very end of session. This is
the time when the Legislature is wrestling with the budget and every other issue which involves
considerable political wrangling. The result is that BOF appointment confirmations are then traded off
against other issues that have no relevance or bearing on fisheries.
The intent of requiring action by April 15 is to remove the BOF confirmation hearings from the political
maelstrom that exists at the end of session. The intent of changing the "no action" end result
(confirmation rather than rejection) is to force the Legislature to give proper consideration to citizens
who have made the time and effort to be considered.
2.) Legislative Task Force Review of Board of Fish: This concept would need a considerable number
of caveats. The review should be of BOF process only and not be an annual case-by-case review by the
legislature of individual BOF actions. If this review is just an other mechanism to wield a political axe
and second guess the BOF, then it is not necessary.
However it maybe appropriate for the legislature to review the BOF process as it is inextricably linked
to the budget provided by the Legislature. The Legislature needs to know that the allocated budget is
providing a fair and equitable process.
However, if the review is anything like the previous legislative audit (1999-2000) of the BOF process,
than the review is probably not worthwhile doing. In that legislative audit, staffers sat through almost
every meeting in that cycle. The audit also heard from a considerable number of individuals and
associations on how the BOF process could be improved. After all that, the audit emerged with only two
recommendations: mediation trading and more reliance on the Local Advisory Committees. No mention
is given to other suggestions. It appears that this particularly a