Lob­ster third round of bid­ding re­sults

The Southern Gazette - - FRONT PAGE -

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.

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