Proposals Submitted to Joint Legislative Salmon Task Force Vol. 2 November 1, 2002

Compiled by UFA

- 1 -

Salmon Task Force Proposals

From the Public, Volume 2

As of November 1, 2002

1. Finance

a. Salmon Revolving Pack Loan Fund (Scott McAllister)................................................................. 2

b. Capital Construction Funds (CCF's) (UCIDA).............................................................................. 3

c. Incentives Related to Repair / Maintenance (Bob Weinstein) ....................................................... 4

2. Governance

a. Help! (David Cusato).................................................................................................................... 5

b. Salmon Restructuring (Jeff Steele) ................................................................................................ 6-7

c. Permit Loan expansion to allow Native Corporations to loan and hold liens on permits for their

shareholders (Duff W. Mitchell). ................................................................................................... 8

d. Conservation/Allocation Issues (UCIDA) ..................................................................................... 9

e. Serve on the Governance sub-committee (Bob Sanborn) ........................................................... 10

f. How our children are affected in school the cooperative fishing this year in the Chignik Area (Laura

Stepanoff ) .................................................................................................................................. 11

g. Nuisance Regulations (Lloyd Pukis) ........................................................................................... 12

h. Fleet/Permit Reduction (Jim Kallander) ..................................................................................... 13

i. Equity Protection for Fleet Reduction Programs (Victor Smith) ................................................. 14*

3. Marketing

a. Lack of Marketing to the average household in the lower 48 (Renee Claggett) ......................... 15

4. Production

a. Non-finfish Aquaculture Permits (Gail Marshall) ...................................................................... 16

b. Bristol Bay Concerns (Avi J. Friedman) ..................................................................................... 17

c. Producing a product the consumer will buy (Chuck Thompson)................................................. 18

d. Seine Corridor in Bristol Bay (Chuck Thompson) ...................................................................... 19

e. Maximum Sustained Yield (MSY) (UCIDA).............................................................................. 20

f. Local/Regional Long-Term Planning (UCIDA).......................................................................... 21

g. Untitled (Paul Harder)................................................................................................................ 22

h. Fish handled too much, held too long (Robert Hall)................................................................... 23

i. Fleet Reduction Programs (Victor Smith) ................................................................................... 24*

5. Quality

a. Owner of F/V Sea Comber, S.E. purse seiner, and cod, rockfish, prawn freezer processor (Robert Hall).

.................................................................................................................................................... 25

b. COLD FISH (Eric Hesselroth) ................................................................................................... 26

c. Quality will improve our industry (Mark A. Niver)..................................................................... 27

d. Untitled (Dale Johnston)............................................................................................................. 28*

e. Recommendation for improving quality for fish caught in any outlying areas-Bristol Bay, Cook Inlet

examples.( Roy M. Smith) .......................................................................................................... 29*

f. Ice barges (Randy Kroeze) .......................................................................................................... 30*

6. Miscellaneous

a. Long Term Stability of Salmon Harvests (UCIDA) .................................................................... 30

b. Access to Salmon Resources (UCIDA) ....................................................................................... 31

c. Are Hatchery's new competition? (Troy Thomassen) ................................................................. 32

d. Representing 35 Area M Driftnetters (Dick Wooding)................................................................ 33-34

* indicates recent additions updated after 10/25/02

Proposals Submitted to Joint Legislative Salmon Task Force Vol. 2 November 1, 2002

Compiled by UFA

- 2 -

Finance

Title: Alaska Salmon Revolving Pack Loan Fund

Problem: The expense and terms of pack loans let to processors from traditional banking sources often

force short selling of salmon by processors to meat loan obligations instead of holding product for better

prices later. In Today’s buyers market this has increasingly become a problem.

Discussion: I offer this suggestion for consideration by the task force, it combines user friendly pack

loan financing with quality and marketing incentives to reduce the industries interest costs and may also

help to improve quality and the "Alaskan Wild Salmon" label.

Recommendations: Establish the Alaska Salmon Revolving Pack Loan Fund. Using state and any

available federal funds, establish a loan fund available to processors processing salmon in Alaska for the

purpose of purchasing salmon from harvesters.

Loans would be collateralized with the pack and terms tailored to encourage a sellers environment

without the pressures of expensive bank interest rates and inflexible repayment schedules.

For processors to qualify for these loans one would have to meat quality standards and be required to

package and sell using an "Alaskan Wild Salmon" label in conjunction with their own branding

methods. This label will be the same label used in the generic marketing programs of Asmi

and others.

Name: Scott McAllister

Email: scooski@aol.com

Address: 316 Distin Ave., Juneau Alaska, 99801

Phone: 907-463-5831

Fishery/area: Se Alaska

Proposals Submitted to Joint Legislative Salmon Task Force Vol. 2 November 1, 2002

Compiled by UFA

- 3 -

Finance

Title: Capital Construction Funds (CCF's)

Problem: Currently there are hundreds of thousands of dollars setting in (CCF's). The industry needs

cash to help finance the revitalization effort.

Discussion: CCF's were created as a method and means of putting aside, before taxes, capital dollars to

replace or upgrade fishing equipment. However, the legal uses for the CCF's are quite restrictive. There

could be large amounts of cash available to help fund some of the solutions if flexibility was created

regarding approved uses of the CCF's. Some of the CCF's could be used to stack permits, buy multiple

fishery permits, IFQ's, and invest in production or product development. The CCF's are federally

controlled and would require federal laws and regulations to be changed. If this is something desirable to

do then let's start working to put flexibility into the legal sues for CCF's.

Recommendation: Work toward flexibility in use of CCF's.

Name: United Cook Inlet Drift Association (UCIDA)

Email: ucida@kenai.net

Address: 43961 K-Beach Road, Suite E

Soldotna, Alaska 99669

Phone: (906) 260-9436

Fishery: Statewide

Proposals Submitted to Joint Legislative Salmon Task Force Vol. 2 November 1, 2002

Compiled by UFA

- 4 -

Finance

Title: Incentives Related to Repair / Maintenance

Problem: many vessels involved in the Alaska fishing industry and based out of state and use out of

state ship repair facilities to the exclusion of Alaska shipyards.

Discussion: This situation encourages ship repair to occur out of state, further harming the economies of

Alaska coastal economies.

Recommendations: That the Task Force develop incentives which provide some priorities / benefits /

access to capital / access to product to companies whose fleets are maintained in state to the extent that

capacity for such maintenance / repair exists.

Name: Bob Weinstein

Address: 344 Front St. Ketchikan, AK 99901

Phone: 907-247-8103

October 17, 2002

Proposals Submitted to Joint Legislative Salmon Task Force Vol. 2 November 1, 2002

Compiled by UFA

- 5 -

Governance

Title: HELP!

Problem: The value of our salmon catch has fallen over the last few years while our operating costs have

risen. This is not a good combination.

Discussion: Alaska fishers must be given the latitude to reduce costs yet be able increase product quality

which would allow their fishing operations to become profitable and be able to compete with farmed

salmon in the market place.

Recommendations: Allow Alaska fishers to co-op so that costs can be reduced. Change state law to

allow the reintroduction of fish traps. Give ADF&G biologists more flexibility when managing the fish

runs so a more orderly harvest can take place.

Name: David Cusato

Email: www.kbeach1977@aol.com

Address: 600 W. 76th Ave., Apt. 508, Anchorage, Alaska 99518

Phone: (907) 522-4037

Fishery/area: Set Net - Cook Inlet

Proposals Submitted to Joint Legislative Salmon Task Force Vol. 2 November 1, 2002

Compiled by UFA

- 6 -

Governance

Title: Salmon Restructuring

Problem Statement

1) Erosion of markets due to low cost and availability of farmed salmon

2) Interstate user group battles over the state of dwindling resource supplies between commercial -sports

and subsistence

Groups intensify

3) Serious economic problems with the commercial salmon fleet and the costal communities

Discussion

The future of the salmon industry as a whole for the state of Alaska is not a pretty picture. We are

getting are ass kicked and liable to be put out of business-this is a state of war and aggressive measures

are needed.

Southeastern Alaska seems to be holding its own and should be looked at for a model to redevelop

around. They have an optimum number of fishermen whose success so far is based on volume and

strong diversified runs.

The reason for there success seems to be a well developed hatchery program (ocean ranching). The

hatcheries are targeting the sweet spots in the markets and helping the commercial groups out. They are

also developing strong king and coho returns for the sports groups.

This seems to have eliminated a lot of the user group bickering and fighting between sports commercial

and subsistence users. If there is plenty to go around and it benefits all groups, what’s there to fight

over?

The killer for the commercial fleet is low returns coupled with low prices

Recommendations

1) Develop the hatchery program (ocean ranching) even further in Key spots around the state to promote

and develop strong diversified runs. This will help the coastal communities with salmon based canneries

and businesses that still need volume to survive.

The hatchery in Juneau has contributed to the economic stability of the community also. Tourist traffic,

sports fisherman work the docks nearby as the runs return. The hatchery is coupled with some

production of eggs for the caviar market and could be doing more also to stimulate some niche market

through its own involvement of salmon processing also.

2) Optimum number of fisherman with the ability to harvest volumes at the most efficient way.

a) Buy back program with state money based by regions on a reverse auction bid

3) Quit pussyfooting around with the ad campaigns against farmed salmon. As our industry ramps up

with there quality reforms there is enough good info available that truth is on our side with the issues to

do significant damage to there marketing.

Proposals Submitted to Joint Legislative Salmon Task Force Vol. 2 November 1, 2002

Compiled by UFA

- 7 -

4) Senator Stevens have offered to take the money from the ANWR and use it to help and develop our

renewable resources (salmon).

UFA should get involved and help him with ANWAR so he can help us!

5) Kodiak has an opportunity to use the Cook Inlet plant, which is on city property to develop a modern

multiuse hatchery.

Problems that need further discussions

1) obstacles to ramping up hatchery production

a) reduced limits on egg takes from AYK pressure

2) canned pink market-industry has gotten too weak to hold inventory to prop up prices

a) canned salmon marketing cartel

b) government subsides and purchases for redistribution to underdeveloped and 3rd world

countries with food and protein source problems

Name: Jeff Steele

Email: j.t.steele@worldnet.att.net

Address: PO Box 1732, Kodiak, AK 99615-1732

Phone: (907) 487-2248

Fishery/Area: Kodiak seine

Proposals Submitted to Joint Legislative Salmon Task Force Vol. 2 November 1, 2002

Compiled by UFA

- 8 -

Governance

Title: Permit Loan expansion to allow Native Corporations to loan and hold liens on permits for their

shareholders.

Problem: Rural Alaskan villages are losing permits and their economic base as permits migrate from

Native Alaskans and are sold. This migration eliminates deck hand jobs and the traditional

apprenticeship program that exists in Native villages. Permit holders are usually a large part of the rural

economy because they buy gear, groceries and marine services in their home community. Once a permit

is sold and leaves the community, it shrinks the economic base of the rural community. If there were

more lending sources available to buy permits, there would be more demand for permits. If there is more

demand for permits, permit prices stabilize and increase in value.

Discussion: Currently only CFAB and State of Alaska, Division of Investments can make permit loans

and hold liens against permits. Native Corporations and their respective communities have a vested

interest in maintaining strong rural economies. The State of Alaska has a vested interest in keeping rural

community economies strong as well. No jobs means higher unemployment rates, social problems, and

more money spent from State coffers to mitigate the effect of poor economies.

Many Native Corporations would like to assist and expand the fish harvesting capability among their

shareholders for the obvious economic reasons. At present they are precluded from doing so because

they cannot legally lien a permit and protect their investment in the case of a default.

Allowing Native Corporations to lien permits either on their own or through a State regulated financial

institution would start the process whereby Native communities could invest into their own future.

This change would cost the State nothing, but would have the following benefits:

1. It would increase the ability and opportunity for rural Native Alaskans to finance permits and

enter this trade.

2. It would assist rural communities in stabilizing and expanding their economic base.

3. It would assist all permit holders in that it would stabilize and over time increase their permit

value because now there is a new demand to buy permits.

4. It would lessen and mitigate some State assistance that is rendered to communities that have poor

economies i.e. high unemployment, low job opportunities etc.

5. It is good public policy to allow people to support themselves through self- financing, education

and development. This allows Native Corporations the opportunity to assist their communities

that are dependent on fishery resources for their economic livelihood.

Recommendations:

Change the current State laws and policies to allow Native Corporations and their wholly owned

subsidiaries the ability to finance and lien limited entry permits for their shareholders and descendents.

Name: Duff W. Mitchell

Email: duff@alaskafoods.com

Address: Box 23000 Juneau, AK 99802

Phone (907) 586-3333

Fishery/Area: Statewide

Proposals Submitted to Joint Legislative Salmon Task Force Vol. 2 November 1, 2002

Compiled by UFA

- 9 -

Governance

Title: Conservation/Allocation Issues

Problem: It is our view that the ADF & G and BoF mask salmon allocation issues by calling them

conservation issues. The precautionary rule in concert with conservation is used as a means of

allocation.

Discussion: Currently the BoF has conservation listed as a duty and responsibility. However, on several

occasions the BoF has used conservation or the precautionary rule to achieve allocations. By achieving

allocations through a conservation agenda the BoF never has to use the legislative mandated allocation

criteria as outlined in AS 16.05.251 (e)(5) & (6). The practical effects of using conservation in place of

allocation as the reason for regulatory changes makes it impossible for anyone to challenge the decision

or its affects. The level of proof needed to overturn such an event is almost impossible to prove in a

court.

Recommendations:

1) Have conservation a clear mandate of the ADF & G.

2) The commissioner must agree on the existence of true conservation issues. Both the BoF and

ADF & G must agree that a conservation issue exists before the BoF can conduct hearings to

amend or create conservation regulations.

3) Apply allocation criteria as found in AS 16.05.251 (e)(5) & (6) for other species that are or may

be associated with the species that has a conservation concern.

4) BoF must look at the indirect consequences of a conservation concern e.g. effect on other

species.

Name: United Cook Inlet Drift Association (UCIDA)

Email: ucida@kenai.net

Address: 43961 K-Beach Road, Suite E

Soldotna, Alaska 99669

Phone: (906) 260-9436

Fishery: Statewide

Proposals Submitted to Joint Legislative Salmon Task Force Vol. 2 November 1, 2002

Compiled by UFA

- 10 -

Governance

8-21-02

To: United Fishermen of Alaska

211 Fourth Street, Suite 110

Juneau, Alaska 99801

From: Bob Sanborn

6916 South Inland Empire Way

Spokane, WA 99224

Re: Joint Legislative Salmon Task Force

I would like to serve on the Governance sub-committee.

The only thing I would propose at this time is that licensed fisherman be

allowed by legislative mandate to form non-profit co-ops for the purpose of

buying and selling Salmon. Right now it is difficult for fishermen to secure

grants/financing for the purchase of processing facilities (i.e. canneries in

Bristol Bay).

Thank you,

Bob Sanborn

Pennit#SO4T58931P

Proposals Submitted to Joint Legislative Salmon Task Force Vol. 2 November 1, 2002

Compiled by UFA

- 11 -

Governance

Title: How our children are affected in school the the cooperative fishing this year in the Chignik Area.

Problem: Every year local fishermen fish in the Chignik Area fish more then 7 days a week and 20 miles

or less from their homes. So fishermen travel days way from their villages. Our local school districts

receive funds from the government for Migrant Ed for our children that fish each summer. This year our

school district will not receive any funds because our local regular fishermen didn't get to fish enough.

There was never a 7 day opening in a row for Migrant Ed to give funding to our school children. The

cooperative never hire our school children because they were liabilities. Now our children will suffer

twice, once by taking way their way of life and taking the funding way from their education.

Discussion: The Task Force need to make sure that whatever their decisions are for the cooperative fleet

and the regular fleet that is does not effect the local schools and the school districts. Most of the boats in

the cooperative fishery don't live in the Chignik Area. Only 17 boats in the cooperative fishery our from

the Chignik Area.

Recommendations: Make sure that local school and school districts get their funding through other

programs like Migrate Ed. Our school district are having trouble keeping school open and this

cooperative fishery and regular fishery is going to affect them also.

Thank You for your time.

Name: Laura Stepanoff

Email: clvc101@aol.com

Address: P.O. Box 11 Chignik Lagoon, Alaska 99565

Phone: 907-840-2211

Fishery_area: Chignik Area

October 5, 2002

Proposals Submitted to Joint Legislative Salmon Task Force Vol. 2 November 1, 2002

Compiled by UFA

- 12 -

Governance

Title: NUISANCE REGULATIONS

Problem: REGULATIONS THAT CREATE INEFFICIENCY IN ALL FISHERIES-- NOT

JUST SALMON 32' LIMIT, 48 HR TRANSFER, 2 HAND GURDYS, 4 POWER GURDIES,

NO POT STACKING, CAN'T FISH 2 SIMILAR PERMITS SAME YR, CAN'T USE SAME

BOAT IN 2 GILLNET FISHERIES. MOST NEW PROPOSALS BY F&G TO BOARD IMPOSE

MORE RESTRICTIONS UNDER THE DISGUISE OF BETTER MANAGEMENT BUT REALLY

JUST CREATE MORE INEFFICIENCY.

Recommendations: RESEARCH REGULATIONS & LAWS AND IF THEY DO NOT DEAL

WITH CONSERVATION DO AWAY WITH THEM.

Name: LLOYD PUKIS

Email: QASJUN@HOTMAIL.COM

Fishery_area: SOUTHEAST

October 23, 2002

Proposals Submitted to Joint Legislative Salmon Task Force Vol. 2 November 1, 2002

Compiled by UFA

- 13 -

Governance

Title: Fleet/Permit Reduction

Problem: Due to low price competion from salmon farms, most areas are no longer economic with the

original number of permits allocated to the area.

Discussion: There are many ways to reduce fleet size in a given area. As a fisherman, I can say a state or

federal buy out is the most preferred. I beleive some sort of industry financed scheme would be more

desirable from a public point of view. The permit stacking bill passed last session is a good start but I

dont believe we will ever achieve optimum numbers without going further. We need to permit some

sort of organization to be assembled that can hold permits and cooperate with fisherman in obtaining

funding to retire a more significant number of permits.

Recommendations: Regional aquaculters have the ability to collect tax and conduct cost recovery to

cover ther operating cost and make payment on debt. With a vote of the permit holders in a region, I

would like to be able to collect cost recovery [and or] borrow money and pay back with cost recovery, to

puchase permits to reduce fleet size.

Name: Jim Kallander

Email: jkall@ctcak.net

Address: PO Box 2272, Cordova AK 99574

Phone: 907 424 7603

Fishery_area: seine/gillnet area E

October 25, 2002

Proposals Submitted to Joint Legislative Salmon Task Force Vol. 2 November 1, 2002

Compiled by UFA

- 14 -

Governance

Title: Equity Protection for Fleet Reduction Programs

Problem: Fishing associations, lenders, and taxed fishermen, have no assurance that permits won't be

reissued in a fishery that they wish to reduce.

Discussion: It will be dificult to get funding, and support for a reduction program, unless those that are

being asked to invest in the program are confident that their investment is safe. This requirement of the

fishery needs to be balanced by the need to prevent a fishery from becoming too exclusive.

Recommendations: Establish that:

A permit re-issued by CFEC in a fishery that was reduced by a fishermen's association, should first be

from the pool of permits reduced by the association, and the accociation reimbursed their cost of

reduction of the reissued permit.

Name: Victor Smith

Email: sawmillcreek@rockisland.com

Address: PO Box 2477 Friday Harbor, WA 98250

Phone: 360-378-3639

Fishery_area: Southeast salmon seine

October 31, 2002

Proposals Submitted to Joint Legislative Salmon Task Force Vol. 2 November 1, 2002

Compiled by UFA

- 15 -

Marketing

Problem: Lack of Marketing to the average household in the lower 48.

Discussion: After fishing in Alaska for 13 years I moved South. It is amazing to me that in the depths of

our struggling industry that the word is not being put out to the general public. In an age of celebrity

support for everyone's cause why aren't we jumping on the band wagon? As the reports of health risk

and/or no health benefits of farmed salmon why isn't our industry pouncing on the advantage? In a time

of crisis in our country and the resulting world wide donations where was our industry sending surplus

salmon to feed the firemen and other rescue workers of 911? These all missed opportunities to enlighten

the average household of our product, our struggle and our dedication.

Recommendations: I recommend that the task force look into a complete marketing promotion that

includes commercials, convenience products, and celebrity endorsements. After nearly 3 years of living

in the lower 48 and still traveling to Alaska to fish I have taken many opportunities to educate the people

I meet. They are amazed at our economic struggle and they are surprised to know what they buy from

the grocer as 'farmed fish' is truly different from wild salmon. I have taught several people how to know

the difference and how to request a change in their local stores, and THEY do! If we can just get off our

"Oh Woe is Me Attitude" and do something aggressive and productive the people who shop will buy. It

is no longer a time of cramming the salmon in a can, storing it for who knows how long and then

complain. It hasn't worked it won't work and it can't work. The only way many of see a future in this

industry is to shake it up and tell everyone that we are shaking it up because it is worth saving and

passing on.

Name: Renee Claggett

Email: brettandrenee@claggetts.com

Address: P.O. Box 287, Metlakatla AK 99926

Phone: 949-249-2483

Fishery/area: Southeast Salmon, Herring, Shrimp

Proposals Submitted to Joint Legislative Salmon Task Force Vol. 2 November 1, 2002

Compiled by UFA

- 16 -

Production

Title: Non-finfish Aquaculture Permits

Problem: Legal barriers in the state that preclude and/or significantly hinder development of non-finfish

aquatic species.

Discussion: Alaska has a tremendous opportunity to culture crustaceans, molluscs, seaweeds, aquatic

invertebrates, etc. in the many miles of coastline. Many barriers [seem] to exist re exploring these

opportunities, that could provide additional jobs and income to coastal communities. Would also enable

production of very HIGH VALUE PRODUCTS for US markets and international trade.

When the wrinkles in the salmon industry in AK are ironed out, there will likely be quite a number of

coastal communities and fishers without jobs and income.

Recommendations: Legislature should change regulations and allow development of aquaculture

opportunities, be it ground, raft, or pen based.

Name: Gail Marshall

Email: phoenixak2000@aol.com

Address: 15600 Bridgeview Dr

Phone: 907-345-9912

Fishery/area: Fisheries Biology and Food Product Development

Proposals Submitted to Joint Legislative Salmon Task Force Vol. 2 November 1, 2002

Compiled by UFA

- 17 -

Production

Title: Bristol Bay Concerns

I don't know how to break down my comments to fit your outline here so I'll just make my comments as

brief as possible. I am a Bristol Bay set-net fisherman. In the early 90's it was easy to see what the

future would bring. I built a small processing facility on land I bought near my fishsite. I worked within

the system set up by the State of Alaska DEC and DOR. I process a portion of my catch and bring them

to market myself at home. I do not sell into any public markets, I only sell to individual people. So I'm

doing the right thing, is this not correct?

My concern is that I will now be forced to spend more money to maintain my already permitted right to

participate in the fishery and obtain enough salmon to support myself. Now that the fishery is in

turmoil, I fear that certain elements will seek control of the resource. Isn't this what processor shares are

all about? If that scheme comes to fruition, am I going to be guaranteed the opportunity to obtain my

usual amount of salmon? I have already paid dearly to enter the system of commerce legally. What

about permit stacking? Why should anyone currently holding a permit have to buy another one? It's not

fair to change the rules after someone has worked very hard to follow what he thought were the rules

then in effect.

Perhaps the rules should be changed for new entrants into the fishery, but not for those who have already

paid with the sweat of many years hard and dedicated work - you can't make them start all over again!

Thank you for your consideration, Avi J. Friedman

Address: 6109 Pimlico Rd. Baltimore, MD 21209

Phone: 410-358-3008

Fishery/area: Bristol Bay Set-Net

Proposals Submitted to Joint Legislative Salmon Task Force Vol. 2 November 1, 2002

Compiled by UFA

- 18 -

Production

Title: Producing a product the consumer will buy.

Problem: Alaskan salmon processors have ignored the American consumer and market.

Discussion: Americans are a grab and eat society. If it can't be prepared in 20 minutes, they won't buy it.

The Chilean's took one look at the American market and made the decision to give the consumer what

they wanted; a pin-bone out fillet ready to cook. We were not undersold. Our product wasn't ever

presented in and acceptable form.

Recommendations: Pay attention to Gail Marshal of Phoenix Food. If the fisherman is required to bring

Quality to the dock, a percentage of pack should be required to leave processing plant in a consumer

acceptable form.

Name: Chuck Thompson

Email: dsfisheries@yahoo.com

Address: box 2193 Kodiak Ak 99615

Phone: 907 486 3034

Fishery/area: Kodiak, Bristol Bay

Proposals Submitted to Joint Legislative Salmon Task Force Vol. 2 November 1, 2002

Compiled by UFA

- 19 -

Production

Title: Seine Corridor in Bristol Bay

Problem: Over capitalation. It takes 10,000$ to put a gillnetter in the water and participate in one

salmon season. Allow fisherman to consolidate and restructure.

Discussion:

1. Create a seine corridor outside of each district.

a. this would allow participants to produce an ocean quality product.

b. pump live fish into tenders and deliver superior quality to processors.

2. Allow fishermen to form co-ops and sign up with the seine corridor

group, instead of participating with a gillnetter.

The quality and efficiency with this type of consolidation would eliminate a

vast number of problems in all arenas; catching, processing, and marketing.

Recommendations: Bounce this idea around.

Name: Chuck Thompson

Email: dsfisheries@yahoo.com

Address: Box 2193 Kodiak Ak. 99615

Phone: 907 486 3034

Fishery/area: Kodiak, Bristol Bay

Proposals Submitted to Joint Legislative Salmon Task Force Vol. 2 November 1, 2002

Compiled by UFA

- 20 -

Production

Title: Maximum Sustained Yield (MSY)

Problem: Currently the various statutes, regulations and policies are crafted and interpreted that

"sustained" yield is perfectly acceptable. Sustained yield can be a fraction of maximum sustained yields

(MSY) or optimum, biological, social or economic yields. In other words the BoF can decide to set

"yields" at 10%, 25%, 40%, 60% or at MSY (100%) for just about any reason. As a state and a matter to

public policy why would we encourage any yield other than MSY on a renewable resource?

Recommendation: Establish in statute that salmon resources of the state shall be managed at or above

90% of the maximum sustained yield. Of course considerations will have to be given where two or more

salmon species have interlocking events that prevent both to be at the 90% or greater of MSY.

Name: United Cook Inlet Drift Association (UCIDA)

Email: ucida@kenai.net

Address: 43961 K-Beach Road, Suite E

Soldotna, Alaska 99669

Phone: (906) 260-9436

Fishery: Statewide

Proposals Submitted to Joint Legislative Salmon Task Force Vol. 2 November 1, 2002

Compiled by UFA

- 21 -

Production

Title: Local/Regional Long-Term Planning

Problem: There are few one-size-fits-all salmon restructuring solutions. The current legislative task

force process is good. However, there is still an ongoing need for regional long-term revitalization plans.

Discussion: All the information collected, organized and presented by the legislative task force will

ultimately have to be applied on a region-by-region basis. Because each region has slightly different

applications based on socio-economic-historical-biological uniqueness slightly different applications

will be required in each of the eight regions.

Recommendation: Build into the process a place for and facilitate long-range revitalization planning.

This most appropriately needs state coordination, support and approval by the legislature. Once these

plans are created these also form a set of controls on the ADF & G and BoF.

Name: United Cook Inlet Drift Association (UCIDA)

Email: ucida@kenai.net

Address: 43961 K-Beach Road, Suite E

Soldotna, Alaska 99669

Phone: (906) 260-9436

Fishery: Statewide

Proposals Submitted to Joint Legislative Salmon Task Force Vol. 2 November 1, 2002

Compiled by UFA

- 22 -

Production

Title: I think if you want to make the task force site easier and faster to navigate, you need to have

proposals and reponses for each separate fishery under a different link. It takes for ever to scroll down

to find the subject of interest. It's simple to do.

Name: Paul Harder

Email: harderpaul@hotmail.com

Phone: 360 344 3429

Fishery_area: salmon seine PWS

October 12, 2002

Proposals Submitted to Joint Legislative Salmon Task Force Vol. 2 November 1, 2002

Compiled by UFA

- 23 -

Production

Title: Robert Hall, owner/operator f/v Sea Comber, Sitka.

Problem: Fish handled too much, held too long.

Discussion: Most salmon leaving the State would not go on my mothers plate or would you serve it to

yours? I have done my share of delivering quality i.e., daily deliveries in rsw ect., however pumping

them two or three times from my vessel to a tender to sometimes another tender, then to the plant is

compromising quality, plus you have the sorting table that fish get tossed from into a tote that is seven

feet below just bruises them even more.

Recommendations: I have a freezer/seiner that may be used next year as an alternate method of

marketing, however the current 58 foot limit does not allow sufficient space for getting the job done as it

should. The fish should leave the sea by live silkstream pump to either a live tank for further bleeding or

into an r.s.w. tank for pre-chilling. The vessel could take the small catch to calmer waters for processing

into supreme quality wild salmon whole, h&g, or portions. A larger vessel would also have a freezer

hold for keeping. Plus space for packaging, crew and so forth. Lift the 58 foot limit for frozen-at-sea and

live delivery vessels only.

Name: Robert Hall

Address: Box 1284

Phone: 907-738-3263 cell, or 907-747-3262 home

Fishery_area: S.E. Seine

October 19, 2002

Proposals Submitted to Joint Legislative Salmon Task Force Vol. 2 November 1, 2002

Compiled by UFA

- 24 -

Production

Title: Fleet Reduction Programs

Problem:

1) There are too many boats. Most of the time, a good portion of the fleet if waiting to set or fishing in

less productive areas just to spread out. Less boats can catch just as many fish as too many boats.

2) The total “pie” that the fleet is splitting has shrunk due to lower prices, yet all our costs continue to

rise. Fewer boats would increase earnings per boat.

3) There are not enough markets for the number of boats we presently have. This has contributed to

artificially low prices, further reducing the overall value of the catch.

Discussion: Even prior to the ruinous ’02 season there was general agreement that many of Alaska’s

fishing fleets are overcapitalized. A fleet reduction program would make the fleet as a whole, more

productive by reducing some of the following problems.

Recommendations: The key elements of any fleet reduction program should be:

1) Each boat in the resultant fishery should have equal access to the resource as every other boat.

Any other result would be a radical departure from our present system, which seems to be

holding up well legally. There is no demand, or mandate from fisherman to embark on a

different system.

2) The target number for the remaining fleet should not be chosen arbitrarily. There should be an

optimal numbers study, or there should be some strong justification for the target number chosen

to avoid legal challenges.

3) The plan should not trigger creating Processor Quota Shares in the fishery.

4) The plan should just reduce the fleet. If other changes are desired, say like longer

boats, they should be talked about separately, by the remaining fleet.

Fisherman should insist that programs used for fleet reduction preserve and protect their present rights to

harvest the recsurse. This can best be done by sticking to the same permitting plan we presently have.

This plan is standing the test of time.

Name:Victor Smith

Email sawmillcreek@rockisland.com

Address: PO Box 2477 Friday Harbor, WA 98250

October 23, 2002

Proposals Submitted to Joint Legislative Salmon Task Force Vol. 2 November 1, 2002

Compiled by UFA

- 25 -

Quality

Title: Owner of F/V Sea Comber, S.E. purse seiner, and cod, rockfish, prawn freezer processor.

Problem: Access to buyers, buyers access to fishers.

Discussion: With Knowles recent rejection of allowing Russian buyers in, "APPROVED" processors

(75% Japanese owned) were taking Alaskan salmon for pennys. And steering F&G on openings, along

with terminating small independent businesses and some giving individual quotas for pinks.

Recommendations: Allow small independent businesses with quality products new opportunity, by

building a road to Wrangell, and other coastal communities. The fishers need access to markets, this

would give buyers access to our products, new revenue, new products, new business. There are many

buyers who would prefer buying direct from harvesters, however most Alaskan seafood is leaving the

State as it did 50 years ago. Live and frozen-at-sea salmon products could compete, fish handled too

many times and held too long cannot. Vessel size limits should be lifted, allowing smaller for harvests

and better quality.

Name: Robert Hall

Address: P.O. Box 1284 Sitka, Alaska 99835

Phone: 907-738-3262 c. 907-747-3262 h.

Fishery/area: Southeast salmon seine/ Kodiak jig cod

Proposals Submitted to Joint Legislative Salmon Task Force Vol. 2 November 1, 2002

Compiled by UFA

- 26 -

Quality

Title: COLD FISH

Problem: A big portion of the fleet does not have RSW.. It is too expensive at today’s fish prices...

Require fish to be delivered at min. of 36 degrees and that would force all buyers to provide slush ice to

it's fleet,, thus improving quality..

Discussion: In order to compete with farmed salmon,,, we must put out a better product..

Recommendations: The task force should put into law that all fish delivered to buyers be no warmer

than 36 degrees....

Name: Eric Hesselroth

Email: erichesselroth@hotmail.com

Address: 1001 Duchess Road Bothell Washington 98012

Phone: (425) 483-4295

Fishery/area: Bristol Bay Drift

Proposals Submitted to Joint Legislative Salmon Task Force Vol. 2 November 1, 2002

Compiled by UFA

- 27 -

Quality

Title: Quality will improve our industry.

Problem: Our Bristol Bay salmon is of pour quality

Discussion: I fished for Leader Creek Fisheries last summer and I liked what I saw. It's a start, so let's

keep the ball rolling

Recommendations: I like the idea of ice barges in river systems. We could make it manditory if the

system was a smooth operation. We have to start treating our fish like it was our home pack.

Name: Mark A. Niver

Email: kniver@gci.net

Address: 955 Loch Ness Ct.

Phone: 907-376-3210

Fishery_area: Naknek/Kvichak/Egegik/Ugashik/Nushagak

October 16, 2002

Proposals Submitted to Joint Legislative Salmon Task Force Vol. 2 November 1, 2002

Compiled by UFA

- 28 -

Quality

Let’s provide mechanisms for salmon fishermen to separate the wheat from the chaff on the grounds,

whenever possible. Select for the roe and pinbone free tail sections of lower value salmon. (Frame bone

only roast, or FBR.)I feel that pink salmon FBRs, marketed in the meat case in a styro tray like chicken

thighs, would sell with STATE OF ALASKA QUALITY assurance labeling. Should the state have a

quality education program for industry participants? NO. DEC inspections patterned after the USCG’s

vessel safety inspection program, YES.

ALLOW DRUM SEINING, with no permit stacking required. Society should quickly make every effort

to insure that the Alaskan salmon industry is economically viable, from a national security perspective.

Dale Johnston

PO Box 33982

Juneau AK 99803

Fishery: SE Salmon Drift

October 25, 2003

Proposals Submitted to Joint Legislative Salmon Task Force Vol. 2 November 1, 2002

Compiled by UFA

- 29 -

Quality

Title: Recommendation for improving quality for fish caught in any outlying areas-Bristol Bay, Cook

Inlet examples.

Problem: Fisherman are catching a potentially awesome product in Bristol Bay. The whole mind set in

the Bay for years has been-catch as much as you can as quickly as you can. Delivering a quality product

is not for most in the minds of most fisherman especially when refrigeration equipment is so expensive

and just not a possibility for most fisherman. Now if ice was made available in the major river systems

we could just possibly turn this whole quility problem on its ear. Every fisherman could deliver a cold

fish and Bristol Bay Sockeye would take some huge strides forward in quality and thus new marketing

ideas.

Recommendations: Figure out away to finance and operate some ice machines in major remote fishing

areas. Are their any grants in this area?

Roy M. Smith

roymsmith49@hotmail.com

P.O. Box 20481 Juneau A.K. 99802

907 586-1889

Fishery_area: Bristol Bay&

October 26, 2002

Proposals Submitted to Joint Legislative Salmon Task Force Vol. 2 November 1, 2002

Compiled by UFA

- 30 -

Quality

Title: Ice barges

Problem: In order for wild salmon to compete in today's market we need to better the quality of are

salmon. The only way of doing this is to have only rsw systems,or more practical ice barges available to

fisherman so we can ice slush are fish to better the quality. Having a ice barge in each river system in

Bristol Bay will improve quality tremendously.

Name: Randy Kroeze

Email: rnmkro@safeaccess.com

Address: 939 n. James Way Camano Is. Wa. 98282

Phone: (360) 387-2548

Fishery_area: Bristol Bay

October 27, 2002

Proposals Submitted to Joint Legislative Salmon Task Force Vol. 2 November 1, 2002

Compiled by UFA

- 31 -

Miscellaneous

Production, Governance, Finance

Title: Long Term Stability of Salmon Harvests

Problem: The BoF has too much authority to determine the long-term stability of salmon fisheries of the

state. By a 4/7 majority vote of non-elected individuals the BoF can allocate a fishery out of existence or

create an entirely new fishery.

Discussion: The executive and legislative branches, which are elected by the will of the people, are in a

far better position to decide the long-term future existence of a commercial salmon industry in any of the

eight regions of the state. As the statutes and regulations exist the BoF has total allocative discretion and

hence control of the stability of a region's salmon industry. In any one year the BoF can allocate any

fishery out of existence and thereby causing massive economic disruptions and instability.

Recommendation: Put sideboards on the BoF such that some incremental changes can be made,

however over a 10 year period historic catches must be maintained. It is very difficult to maintain capitol

or attract new capitol need for revitalization of a salmon fishery when the BoF can decide that a

particular fishery no longer exists. Example if drift gillnets harvest 30% and seine harvests 40% of the

total catch on average at various run strength then the BoF would be required to honor these harvest

rates when making regulations. The current BoF have paid only lip service to the allocation criteria

contained in AS 16.05.251 (e)(5) & (6).

It may be possible to also attach to the 10-year allocations certain secondary processing requirements.

Secondary processing could include battering portions, breading, smoking, nuggets and other new

salmon products. These secondary products diversify and provide year-round employment for Alaskans.

Name: United Cook Inlet Drift Association (UCIDA)

Email: ucida@kenai.net

Address: 43961 K-Beach Road, Suite E

Soldotna, Alaska 99669

Phone: (906) 260-9436

Fishery: Statewide

Proposals Submitted to Joint Legislative Salmon Task Force Vol. 2 November 1, 2002

Compiled by UFA

- 32 -

Miscellaneous

Production, Governance, Finance

Title: Access to Salmon Resources

Problem: There is no long term commitment by the State Executive or BoF that limited entry permit

holders will have a reasonable access to the state's salmon resources.

Discussion: How can any industry maintain operating and capital dollars needed to remain healthy

when the regulators (BoF) can withhold access to those natural resources? Our salmon industry is like

oil and gas in that there are large up front capital outlays in order to get into production. I don't think it

would be good public policy to ask an oil company to invest millions of dollars on finding, developing,

marketing and creating thousands of jobs only to say sorry we are going to give the oil to the company

down the street just because we can or want to do that. Yet, every year, every time the BoF holds

hearings they have unilateral authority to give the salmon to the other guy down the street.

Recommendation: Put controls on the BoF and limit the latitude they exercise in dividing up the salmon

resources of the state. Otherwise how do fishermen, processors or markets develop the confidence to put

at risk millions of dollars to revitalize our industry.

Name: United Cook Inlet Drift Association (UCIDA)

Email: ucida@kenai.net

Address: 43961 K-Beach Road, Suite E

Soldotna, Alaska 99669

Phone: (906) 260-9436

Fishery: Statewide

Proposals Submitted to Joint Legislative Salmon Task Force Vol. 2 November 1, 2002

Compiled by UFA

- 33 -

Miscellaneous

Title: Are Hatchery's new competition?

Problem: Hatchery's receiving better price from cannery's for cost recovery fish. And the fishermen get

less price for common property, and its the same fish!

Discussion: Hatchery's paid for from the fish tax should help fishermen, not compete against them.

If hatcheries bid their cost recovery fish out for a higher price shouldn’t the fishermen get the same

price.

Recommendations: Don't let are hatcheries compete against the fishermen who paid for them.

Have the fish put out to bid as a whole and each cannery compete to get them. Lets turn hatchery

programs into all cost recovery projects, and let a few fishermen fish (Those w/o markets)while the rest

of the permit holders receive dividends.

I think something like this would provide better quality, and spread the wealth that hatchery fish could

provide.

Name: Troy Thomassen

Email: troy@aptalaska.net

Address: p.o.box 152 petersburg ak 99833

Phone: (907)-=772-2320

Fishery_area: Southeast

October 4, 2002

Proposals Submitted to Joint Legislative Salmon Task Force Vol. 2 November 1, 2002

Compiled by UFA

- 34 -

Miscellaneous

From, Dick Wooding, president of Alaska Peninsula Fishermans Cooperative, representing 35 area M

driftnetters all of which have RSW systems.

In response to your recent mailing I offer some of my personal opinions based on 28 years of fishing

experience, over 20 years of attending board meetings and five years of direct marketing (almost

exclusively to Japan) while serving as president of APFC.

We believe that the quality of our fish is close to being "as good as it is going to get" with the present

methods and regulations imposed on our fishery. In the years we have been operating we have been

very selective and fortunate in choosing processors who share our concern for quality. We have

developed markets and have high demand for our "ocean run" false pass sockeye. While we have been

able to sell these fish at a premium over our local Port Moller sockeye, the reality is the glut of farmed

salmon has kept the price very low. Because of this the only success we have had in raising the grounds

price to our fisherman is to lower our overhead. In order to raise quality and lower overhead we have

eliminated tenders by delivering directly to our processor on the fishing grounds. In some cases our fish

are processed and frozen within two hours of being caught. This has significantly raised our percentage

of No. 1's

Quality is the key to having a market, getting a higher price is a slower process and is frustrating to our

fishermen when they are not immediately rewarded when an extra effort is made to produce a top

quality product. The future of the Alaska Peninsula Fishermans Coopertive is dependent upon our

delivering consistent quantities of high quality salmon. Japan's acceptance of farm salmon has been

enhanced by Alaska's failure to meet this criteria.

Farmed salmon is our biggest problem and one that we have little control, however, the board of fish is

also contributing to our decline. I cannot speak for other areas but for the past twenty years I cannot

recall one board of fish ruling that gave any consideration to the economics of the industry.

Board members refuse to look at fishing as a business and have openly stated that quality, efficiency and

cost of operation are of little or no concern to them. Lower prices to the fisherman means less taxes to

the state and ASMI. Without elaborating recent rulings have been very detrimental in conducting a

viable fishery in Area M. False Pass sockeye is one of, if not the best Alaska has to offer. We need to

go head to head with the farm guys and it makes no sense to take our best player off the field.

As far as other means of reducing overhead one can do the math. Divide the value of the fishery by the

number of fisherman and subtract the overhead and you have an ugly picture. Fleet reduction through

attrition is taking place at this time as is testimony that a smaller fleet has a better chance of surviving.

Additional reduction through stacking of permits (I believe that fisherman and boats with stacked

permits should be given additional benefits such as additional gear and time, otherwise once conditions

improve those permits will be more fully utilized) or fleet by back may be helpful. With the price of

permits at an all time low such a project may not be that expensive. Also permits seized through

foreclosure or other means should be retired. Both fishermen and processors pay taxes. Some of this

tax money should be reinvested back to their respective fishing areas in some form such as a buy back

program for the benefit of the fishemen and incentives for the processors to improve operations and

reduce overhead by reevaluating questionable regulations.

Proposals Submitted to Joint Legislative Salmon Task Force Vol. 2 November 1, 2002

Compiled by UFA

- 35 -

I strongly oppose the "Chignik" style of cooperative. While this may give some compensation to

someone who really does not want to compete in the fishery or to those who cannot sell their boats and

permits, it does little for the guy who wants to make a full time living as a fisherman. It again goes back

to the math. In addition, individuals with permits in multiple areas should be allowed to move from area

to area in any given year. Considering that it is impossible to be in two areas at the same time, owing

two or more permits in different areas would lesson the impact of that permit and allow those who fish

exclusively in a given area more access.

I fully support the task force as long as they leave the politics out and take the position that commercial

fishing is a business and processors and fisherman need to make money. Like all businesses tough

decisions have to be made that may eliminate some of the participants.

I have additional thoughts on some other issues that I will pass on later

Thank all of you for the time and effort

Dick Wooding

October 11, 2002