Sparks fly as Maine Aquaculture Task Force hears fishpen industry critic.

ROCKLAND. The Task Force on Marine Aquaculture in Maine heard powerful criticism of the economics of fishpen and shellfish aquaculture in Maine from one of its top advisors

The task force met October 16th at the Trade Winds Motor Inn in Rockland to hear assessments of the economic future of salmon farming in Mainhe. The task force also opted to examine at their next meeting a new plan for bay-level management & protection of Maine waters.

A member of the Task Force's Stakeholder Advisory Panel was sharply attacked as he delivered testimony graphically outlining the risks that promoting aquaculture expansion posed to the state's existing and highly profitable coastal fisheries and tourism industries

Veteran fisherman, seafood wholesaler and part owner of a shellfish farm Rob Bauer of Blue Hill, Maine represents large shellfish growers and seafood wholesalers on the panel.

"You've heard the cola. Now you're going to get the un-cola." Bauer warned the task force as he began. He proceeded to refute the findings of the state consultant and salmon industry representatives' assertions that their business is necessary to provide jobs for Mainers on the coast.

"You're here because a long time ago a governor thought there was a need for jobs on the coast," he said. "That time is gone."

Bauer said that apart from one area, the Washington county coast, unemployment along the Maine coast averages only 4%.

"Aquaculture as a policy to create jobs is a failed idea in every county except for Washington," Bauer said flatly. "There are four industries that are running the economic engine of the state of Maine on the coast. They are boatbuilding, tourism, home building and commercial fishing, mostly lobstering, scalloping and clam digging."

"As a policy, to create more jobs for aquaculture in any county but Washington County is ridiculous," Bauer said. "The people aren't there to fill the jobs. They're just not there."

"The jobs that are available now are better jobs." he noted, describing major coastal employers in the boatbuilding and marine supply industries that offer full time jobs and vacation and medical benefits. "Why would you try to create a job that's less than full time and has less benefits than these?" he asked. "I don't understand that. So that's a question you people have to answer."

Bauer went on to describe what he called the far greater contribution to the tax base made by the boatbuilding, tourism, home building and commercial fishing industries on the coast.

"The Maine Marine Trades Association figures for 2000 was $612 million dollars." he said. "That figure represents taxable money. The aquaculture industry does not produce (other than earned income taxes) a sales tax. It produces some minor sales tax from purchases of fuel, etc. That's all."

"The fact is, all these other industries produce sales tax," Bauer told the Task Force. "Those industries are important for the coast of Maine. They contribute more to the economic engine of the state than aquaculture ever will."

Bauer drew sharp fire from one member of the task force and an industry representative. The task force member interrupted Bauer's statement, calling it inappropriate for the meeting, due to it being so so critical of aquaculture. The industry representative questioned Bauer's position on the Task Force's Advisory Panel.

Bauer responded to the critics by describing his twenty years experience in the seafood fishing and wholesaling industry, and explaining his business partnership with a mussel farm operation in Blue Hill Bay

Bauer also submitted the following written report challenging the direction of Maine aquaculture policy to the Task Force.

Thoughts on the Economics of Maine Aquaculture
By Rob Bauer, Stakeholder Advisory Panel

1. Maine Marine Trades Association figures for 2000. Total Sales $6l2 million. 3000 direct jobs, 5,000 indirect. Total wages $85 million. Wayfarer Marine of Camden and the Hinckley Co. of Southwest Harbor have had help wanted adds in their local papers for the past 5 years non-stop. All their jobs are full time with benefits. This is the only manufacturing sector that is not losing jobs to overseas.

2.Figures for Aquaculture Employment are way inflated. Total direct jobs are less than 500. Maine Department of employment lists less than 250 as Aquaculture related . Many of these jobs are seasonal. Peacock Processing has shut down and most fish are now sent to Canada to be processed.

3. Growers are abandoning leases for mussel culture due to poor anticipated rate of return. P.I.E. is not the only producer of mussels. Link Murray, former President of Blue Gold Mussels in R.I. has started a large rope mussel operation in Newfoundland. Chile is now the largest supplier of frozen mussel meats in the U.S.. My company had to stop production of fresh mussel meats due to low priced meats from Chile. If you want the truth about mussel culture talk to John Price, President of JP's Shellfish the largest Seafood Company in Maine or Evan Young, President of Acadia Mussel and not Carter Newell of Great Eastern Mussel.

4. The Maine Salmon Industry is the Donut Tire in the Trunk of the International Salmon SUV. It exists as a fall back producer and helps with currency changes. There are 2 companies that control world wide Salmon production. Fjord ASA and George Weston Limited of Canada, owner of Herit7age Salmon.

What does the commission know about these 2 companies? Is the commission doing its fiduciary duties to the people of the state of Maine by not looking into the corporate history of these companies? Did you know the Fjord ASA was sanctioned by the Norwegian Stock exchange for its hurried sale of stock to Continental Grain?

Did you know that it was recommended to the Canadian Committee on Fisheries and Oceans that George Weston be barred from ownership in the Wild Fishing industry due to his alleged destructive fishing practices which were to benefit his farmed salmon operations?

5. If the return for salmon farms is so great, and one is given that impression from Pinfold's study then why are the salmon farmers trying to eliminate the penny a pound fee. Given the projections in the Pinfold paper the fee should be increased to at least 3 cents to help offset the costs of the Industry to the state.

6.The Oyster, Scallop, and clam aquaculture Industries will be forever influenced by fluctuations in the wild harvest. The Successful management of the Georges Bank Scallop Resource and the influx of imported scallops from China will exert strong downward pressure of the price of scallops. Should the Oyster Resource in Chesapeake Bay recover, and it will, the price for oysters will go down to the 30 cent level.

Ask Eric Home if he could get by with even a 35 cent oyster? The wild production of Hard Clams is quite healthy and demand has been dropping as consumers are less eager to consume raw shellfish for fear of coming down with some sort of shellfish sickness. Buyers in R.I. shut down buying 3 weeks ago due to flooded market. Talk to Bill Silkes, former President of Blue Gold Seafarms and present President of American Mussel Company, the 2nd largest wild shellfish Company in the U.S. if you want to hear the real story of prospects for shellfish aquaculture.

7. Nothing succeeds like success. Don't reinvent the wheel. Fact is, except for Washington County, the Coast of Maine doesn't have an employment problem, one of the stated reasons for having Aquaculture. In fact the problems that plague other Maine Business's also bother aquaculture. We have the highest costs for electricity, workers comp, health insurance and transportation. Chile and Canada both provide healthy subsidies to their farmers in the form of health insurance, capitol construction and transportation assistance. On our Coast we need high value and high margin activities like home building and boat building to cover our high costs of operation. Aquaculture is not such an Industry and never will be because it can be done a lot cheaper in another country. Maine mussel grower cannot compete with PIE and never will. Maine oyster growers have a small niche market now, but what will happen if their production doubles? The price will fall and none of them will make any money.

8. The new millennium has shown all of us some interesting economic truths. Companies that went on buying spree's in the 90's and left their core activities soon found that this was a huge mistake. Remember how popular Crispee Donuts was as a stock during the recent Stock market crash. This was due to the fact that it did what it advertised. Look at AOL time Warner. No synergy there after all. We must look at the Coast in the same way .

We have a history of core business's on the coast. They are commercial fishing, boat building, home building and tourism. These 4 activities are the economic engine of the state of Maine. The commission must put these business's first when it considers recommendations for the transformation of the Maine Aquacufture Industry. Does the commission even have the expertise to consider these and many other economic factors for the Coast? Perhaps it's time to look at a group that would. A Coastal Zone Management Council

End.

More links to Information about the Aquaculture Task Force

For more information on the aquaculture task force contact Penobscot Bay watch 594-5717