Congressman Barney Frank
Representing Massachusetts' 4th District

Frank urges National Marine Fisheries Service to Fund Scallop Observer Program
October 5, 2009

WASHINGTON, DC -- Congressman Barney Frank, along with five coastal Members of Congress, urged Dr. Jane Lubchenco, Undersecretary for Oceans and Atmosphere and NOAA Administrator, to take the necessary action to fund the Scallop observer program currently managed through the National Marine Fisheries Service.  Congressman Frank was joined by Congressmen Walter Jones, William Delahunt, Robert Wittman, James Langevin and John Adler in urging Ms. Lubchenco to fund the observer program “until an appropriate set-aside management approach can ensure the proper compensation to scallop vessels and their crew.”    

The Scallop fishery is the only east coast fishery that must pay for observer coverage.  This is done through a resource set-aside that is managed by the National Marine Fisheries Service.  The fishery requires 10% observer coverage on all open area and access trips to fishing grounds that are opened and closed on a rotational basis or rotational management program.  Compensation is given in the form of extra days at sea for vessels requiring observer coverage in an open area.  In an access area, compensation is given in the form of extra harvest to cover the cost of observers.  Back in June, Congressmen Frank and Jones wrote to NOAA asking that they take regulatory action to restore Agency payment for the observer program when the observer set-aside total allowable catch for the Elephant Trunk Access Area was fully utilized many months before it was set to close.  The result was that fishing vessel owners and crew are now responsible for paying the cost of an observer in this access area out of pocket.  There was also concern that the compensation in open areas did not fully cover the costs associated with taking an observer on long trips. Unfortunately, NOAA basically denied the request and has been working on improving the program to avoid similar problems in the future. 

Recently however, the resource set-aside in the open areas was also exhausted resulting in fishing vessels and crews having to pay for observer coverage through the end of the Scallop fishing year for open area trips (Observer coverage can cost between $700-$800 per day and more than $10,000 for a single fishing trip).  During these difficult economic times this cost is particularly burdensome for fishermen and their families.  The Members’ letter asks NMFS to take the necessary action to fund the observer program until an appropriate management approach can ensure proper compensation to scallop vessels and their crew.

A copy of the letter is below. 

 

 

October 5, 2009

Dr. Jane Lubchenco
Undersecretary for Oceans and Atmosphere and NOAA Administrator
United States Department of Commerce Herbert Clark Hoover Building
1401 Constitution Avenue, N.W.
Washington, D.C.  20230

Dear Dr. Lubchenco:

Last June, I along with Congressman Jones wrote to you regarding the federally mandated observer program and the negative financial impact this program had on the Atlantic scallop industry.  As you know, the scallop fishery is the only East Coast fishery that must pay for observer coverage in a program managed by the National Marine Fisheries Service.  Fishermen are compensated for the significant expense of carrying an observer by awarding a vessel extra allowable catch either in the form of days at sea (DAS) or additional harvest depending on whether a vessel is fishing in open or access areas. 

Because the compensation is given in the form of a resource set aside, the scallop industry is simply paying for observers out of catch they would be allowed anyhow were these regulations not in place.  Therefore, the proper management of this program is critical to ensuring the scallop industry is not shouldering an unfair burden.

Originally, we, and now the several Members of Congress listed below whom like us represent the Atlantic scallop industry, were deeply concerned that awarding additional DAS for observer coverage on an open area trip did not properly compensate the significant costs associated with this requirement.  Also, the failure of NMFS to properly manage the Elephant Trunk Access Area program had already resulted in scallop vessels having to pay for observer coverage through February of 2010 without compensation.  However, we collectively believe that the recent failure of the 2009 observer DAS set-aside, in which fishermen will now bear the direct cost of carrying an observer through the end of the 2009 fishing year in open area trips, highlights the need for NMFS to take immediate and appropriate corrective action both this year and to ensure that this situation does not occur in the future. 

It is clear that poor communication exists between government regulators at NMFS and the Northeast Science Center which is responsible for providing the scientific stock information for the purpose of managing this program correctly.  While we appreciate that compensation rates are based on anticipated fishery conditions, this program has been in place for almost nine years and there should be few surprises. 

The recent breakdowns in the observer compensation program are not a failure of industry and to require fishermen to pay for this coverage without promised compensation is not an acceptable alternative and unfair.  Fishing crews will be forced to cover this cost at a time when coastal regions are suffering reduced fishing opportunities and significant loss of income.  As a result, fishing communities and businesses will also suffer.  Therefore, we strongly urge you to take immediate, necessary action to fund this program until an appropriate set-aside management approach can ensure the proper compensation to scallop vessels and their crew.

Sincerely,

 

 

___________________________              ___________________________
Congressman Barney Frank                     Congressman Walter Jones

 

___________________________              ___________________________
Congressman Robert Wittman                  Congressman William Delahunt

 

___________________________              ___________________________
Congressman James Langevin                  Congressman John Adler