Saturday, June 8, 2013

Coastal Fisheries Reform Group Decries Ignominious Decision by Republican Caucus to Kill Game Fish Again



Too bad, it could have been the fish that laid the golden roe for Coastal North Carolina

Then Senator Mark Basnight and his confidant Representative Tim Spear, both Democrats aligned with commercial fishing interests, killed game fish in 2009 without a vote. Governor Bev Perdue killed it 2011 when Republicans traded game fish to override her veto of the budget with two dissident Coastal Democrats, one of them being Tim Spear. The Republican Caucus, operating in secret and without warning, killed game fish a week ago under the guise of it being a local issue.

Anyone with a grain of sense realizes that this issue has the potential to benefit the entire State. Over 500,000 licensed recreational salt water anglers live across the state from Manteo to Murphy. Maybe we should let coastal residents pay for hurricane damage to coastal roads, pay for beach nourishment and channel dredging, ferry boats, and so on. No, we recognize that all citizens must help one another in these public matters.

The same is true with game fish. Only three commercial fishermen caught, sold, and reported selling over $10,000 worth of estuarine striped bass, speckled sea trout, and red drum in any combination. These three fish constitute less than one percent of the total annual commercial catch and account for only about $3 million annually and 28 jobs according to the 2012 figures from the Division of Marine Fisheries.

The recreational value of the three fish is $131 million for the same period and supports 1.267 jobs. This appears to be a no brainer. Anyone who cannot see the imbalance here is a no brainer. Over 30 species of finfish in inshore waters are open to commercial fishing; not one fish is managed as a game fish.

The management of fisheries for commercial harvest creates a persistent drag on the population that over time always depletes the population and requires an emergency and drastic action to save the fishery. We were too late in the case of the gray trout, the sturgeon, the river herring and we are just beginning to see recovery in the red drum, striped bass, and flounder. Extraordinary measures by recreational fishermen have led the way toward recovery with commercial fishermen complaining about government interference all the way.

Leading Republicans told us to elect them and they would run our state like a business and allocate our valuable resources of all kinds for the highest and best use of all citizens. We elected you to Office as Governor, Speaker of the House, and President Pro Temp of the Senate. Killing game fish in this way is not consistent with your promise and will not sit kindly with the majority of over 500,000 licensed recreational fishermen as they cast their votes in the next election. Do you want to lose all you have gained over a few fish? It could happen!
Economic Impact of the Estuarine Striped Bass, Red Drum and Spotted Seatrout Fisheries by Sector: An Update for House Bill 983
Prepared by Gentner Consulting Group, Incorporated

May 28th, 2013

The Fisheries Economic Development Act (HB 983) seeks to create gamefish status for estuarine striped bass, red drum and spotted seatrout in the state of North Carolina and to compensate commercial harvesters for their lost revenue. This bill removes oceanic striped bass from the gamefish designation as proposed in HB 353. This document was produced to update the previous HB 353 fact sheet to show that the removal of oceanic striped bass fishing from consideration and compensating commercial harvesters only strengthens the case for HB 983 and gamefish status for these three important recreational species managed in the public trust.

Table 1 details the economic impacts of the recreational fisheries for these species. Overall anglers in North Carolina took 1.4 million trips that generated $131.4 million in total sales, $42.6 million in income and supported 1,267 jobs in 2012. This is even higher effort and economic impact than the previous report, even with the removal of oceanic striped bass, as red drum and spotted seatrout effort has increased considerably. This has significantly increased the divide between the economic activity generated by each sector.

Table 1. Recreational Impacts, 2012.

Species
Trips
Expendituresc
Jobsd
Output
(Total Sales)e
Incomee
Red Druma
788,814
$29,315,650
701
$72,569,869
$23,648,464
Spotted Seatrouta
746,150
$26,250,445
686
$71,244,325
$23,048,399
Estuarine Striped Bassb
29,246
$1,660,002
26
$2,707,321
$860,647
Totalf
1,402,613
$79,998,867
1,267
$131,384,480
$42,644,377
aDirected effort estimates from online MRIP query, 2012




bDirected effort estimates from NCDMF. John Hadley personal communication from NCDMF creel survey 2012




cExpenditures estimates from NCDMF. John Hadley personal communication 2012.




dEmployment multiplier from Fisheries Economics of the United States 2011. http://www.st.nmfs.noaa.gov/Assets/economics/documents/feus/2011/FEUS2011%20-%20South%20Atlantic.pdf




eOutput and income multipliers from NCDMF. John Hadley personal communication 2012.




fColumns do not sum because trips that landed or targeted both species were adjusted to avoid double counting





Table 2 details the economic contribution of commercial fisheries in the State of North Carolina from net to plate. In 2012 commercial harvesters in North Carolina harvested $934,654 worth of these three species. Harvesting contributes less than half of the overall impact supporting 28 jobs and generating $1.6 million in total sales and $498,024 in income. Across harvesters in 2011 less than three fishermen caught more than $10,000 worth of these three species and only six fishermen caught more than $10,000 worth of these three species in 2012 indicating that very few individuals depend on these species to make their living. Summing across all seafood sectors, estuarine striped bass, red drum and spotted seatrout supported 67 jobs and generated $3.3 million in total sales and $1.1 million in income for the state of North Carolina. Almost half of all the jobs in the seafood sector arise out of the retail sector. Because restaurants and markets will readily substitute for other fish species, it is unlikely that passing HB 983 will impact retail or wholesale sectors at all.

Table 2. Economic Activity Generated by the Commercial Seafood Industry from the Net to the Plate. 2012
 

Sector
Jobs
Output
(Total Sales)
Income
Harvesters
28
$1,580,955
$498,024
Dealers/Processors
5
$357,306
$102,179
Wholesalers/Distributors
2
$173,755
$46,113
Retail
32
$1,147,580
$439,767
Total
67
$3,259,595
$1,086,083



 

HB 983 will compensate commercial fishermen up to $1 million based on their average harvests across the 2010-2012 period. Since the average landings across this period are $998,064, the commercial harvesting sector will not suffer any negative economic impacts. Table 3 details the impacts of HB 983 after harvester compensation. 

With compensation, only 38 jobs, $1.7 million in total sales and $588,060 in income across dealers/processors, wholesalers/distributors and retails sectors are potentially at risk. However, in competitive and open markets supply chains will rapidly adjust and substitute to other species and products and it is unlikely that retailers, wholesalers and distributors would realize any loss from the passage of HB 983. If no impacts accrue to these sectors, potential negative impacts should be limited to the dealer/processor sector which includes five jobs, $357,306 in total sales and $102,179 in income.

Table 3. Economic Impacts to the Commercial Seafood Industry, Net to the Plate, from HB 983 After Compensation. 20122

Sector
Jobs
Output
(Total Sales)
Income
Harvesters
0
$0
$0
Dealers/Processors
5
$357,306
$102,179
Wholesalers/Distributors
2
$173,755
$46,113
Retail
32
$1,147,580
$439,767
Total
38
$1,678,640
$588,060



 

Recreational effort has been shown to increase when catch rates increase for most species that have been studied, including red drum. If recreational effort increases by as little as 0.3%, all potential losses in the dealer/processor sectors would be completely offset. Even if all uncompensated impacts in the wholesale/distributor and retail sectors cannot be reclaimed through normal market function, recreational effort would only need increase 1% to offset all potential impacts. It is not hard to believe that the passage of this bill will increase effort by such a modest amount.

The conclusions from the original comparison do not change overall but are made stronger by this new bill, HB 983. Recreational fishing for these species supports more economic activity than the commercial sector. In terms of total sales, the recreational sector generates 83 times more activity than the harvesting sector and supports 45 times more employment. If the entire seafood industry in North Carolina is included, the recreational sector generates 40 times more sales and 19 times more jobs than the seafood sector across these species. Again this comparison relies on recreational impact estimates that tend to be conservative while the commercial economic impact model, particularly across retail
 

#1 NCDMF. 2013. N.C. Division of Marine Fisheries’ Initial Review of the Game Fish Designation Aspect of the 2013 Fisheries Economic Development Act (House Bill 983).

#2 Landings from NCDMF, John Hadley personal communication. 2012. Multipliers from Fisheries Economics of the United States and IMPLAN. http://www.st.nmfs.noaa.gov/Assets/economics/documents/feus/2011/FEUS2011%20-%20South%20Atlantic.pdf


#3 John Hadley, NCDMF personal communication, 2012.

 
#4 Oh, C., R. Ditton, B. Gentner, and R. Reichers. (2005). A Stated Preference Choice Approach to Understanding Angler Preferences for Management Options. Human Dimensions of Wildlife. Vol. 10. Number3. Pp173-186.