Sponsor Statement for HB 394

House Bill 394 was introduced to define a direct-market fishing vessel and to restore the permit fee imposed by the Department of Environmental Conservation (DEC) to 1996 levels. Prior to 1997 the permit fee was set in regulation at $100 per year. In 1997 the fee was increased to $400. At the same time the DEC, to their credit, has implemented efficiencies into the system. The DEC should continue its progressive attitude towards efficient change and make its’ fees reflect that efficiency.

Direct-market fishing vessels are defined as vessels that are less than 65 feet whose operators process their own catch on board for direct retail sale to consumers. In 1996 there were 235 permits issued. After the fee was quadrupled in December of 1996 the number of permits for 1997 dropped to 169.

One of the biggest hurdles our fishing industry faces is diminishing market share for Alaska seafood, especially salmon. It is obvious that our current approach to the market is no longer effective. Direct-market fishing vessels are forging new ground in the marketplace for Alaska salmon. Their product is unique and their efforts will help get high quality, fresh, wild Alaska salmon onto the plates of the consuming public across America and around the world.

Owners of these vessels are not your average, old school fishermen. They are entrepreneurs who are catching, processing and marketing their own catch. They are working in a highly competitive market where governments around the world are undercutting Alaska markets with high government subsidies. An indiscriminate increase of their operating costs by the state of Alaska is simply a bad policy decision.

I believe we must help these fishermen to access and hold these lucrative markets. Lowering these fees is a drop in the bucket in the overall budget of the DEC, however the benefits to the industry and the state of Alaska are immense.

I ask you for your support of this legislation.