Lobster third round of bidding results
The Newfoundland Lobster Sustainability Board (NLSB) has announced the results of the third round of bidding under the Lobster Enterprise Retirement Program (LERP).
A total of 54 ‘Offer to Sell Applications’ were accepted for retirement in Round Three bringing the total to date to 93 accepted bids.
Interest in the LERP continues to remain strong in all Lobster Fishing Areas (LFAs) covered by this program. Close to 20 per cent, or just over 200, of the eligible licence holders submitted a bid in Round Three.
Approximately one-quarter of these bid submissions were accepted by the NLSB.
LERP Program Co-Coordinator Bill Broderick said the third round results are encouraging and demonstrate the program can have an impact on overcapacity in the New- foundland lobster fishery.
“The round three results reflect a stead round-by-round increase in the number of accepted bids. Eight bids were approved in Round One and 31 in Round Two.
“This will contribute to an improvement in the economic viability of the lobster fleets in these areas and, more importantly, the incomes of harvesters who want to remain in the industry.”
The LERP consists of a competitive or ‘reverse auction’ bidding process where individual lobster licence holders determine the price or amount of money they would accept to retire their fishing enterprise and submit an Offer to Sell Application (or bid) for this amount to the NLSB.
The program is intended to improve the income levels of fish harvesters and the economic viabil- ity of lobster dependent fishing enterprises in the area between Point Crewe in Fortune Bay (LFA 11) and Big Brook on the Northern Peninsula (LFA 14B).
To accomplish this objective, the LERP provides lobster licence holders with an opportunity to voluntarily sell their licence and retire their fishing enterprise. The program is slated to run until March 2014 unless all of the program funding has been spent prior to this date.
Round Four of bidding is now underway. Lobster licence holders in LFAs 11 to 14B will receive an Offer to Sell Application for this round within the next few days.
Licence holders who are interested in retiring their fishing enterprise are encouraged to submit a Round Four bid prior to the Sept. 14 closing date.