CCN Back Issues Vol 2 Issue 5

Which is the best approach to fisheries management; community based management or individual transferable quotas? The debate continued at a recent symposium held at Saint Mary's University on March 7. The one day event, called Fisheries That Work: New Directions in the North Atlantic, brought together about 50 fishermen, academics, bureaucrats and community leaders. Through a series of presentations and panel discussions, the participants explored the adverse impacts of ITQs in small scale fisheries and the current state of community management efforts underway in Nova Scotia, Maine and Iceland.

Arthur Bogason, chairman of Iceland's National Association of Small Boat Owners, kicked off the day long event by warning Canadian fishermen to be very wary of ITQs. Bogason states that ITQs have decimated the inshore fleet in Iceland. In 1991, before the introduction of ITQs, there were 1043 small boats fishing. During the following three and a half years, large corporations bought up 700 of those boats and transferred the quotas to large trawlers. The result has been high unemployment and uncertainty in communities accustomed to almost zero unemployment.

Bogason also points out that the increase in unemployment and the decreasing number of jobs in the Icelandic fishery are directly related. "In 1984 there were 60,000 people employed by the fishery. Today there are 2000 fewer people employed. From 1988 to 1996 the unemployment rate increased from about 1% to 5%", explains Bogason.

Iceland is a nation that relies heavily on the fishery. "There is not that much else for workers to do in Iceland", says Bogason. So when the fishery can no longer provide employment, other employment options are few and far between.

Bogason does concede that ITQs have managed to reduce the size of the fleet. Economists argue that the market should determine how many boats and people are needed in the fishery and ITQs are the best way to achieve this.

ITQs give individual boat owners the right to harvest a certain amount of fish. The individual fisherman is then free to manage or sell that quota as he or she sees fit. Bogason believes that the experience in Iceland demonstrates how quickly the small boat sector can be gobbled up by large corporate interests once quotas become saleable. For that reason a lot of small boat owners here in Nova Scotia fear ITQs and the threat they pose to a traditional way of life.

Supporters of ITQs believe that fishermen can make more money, better plan how and when to fish and not be tempted to over invest in boats and harvesting equipment in an effort to out fish someone else under the system.

These types of economic arguments do not hold up according to Arthur Bogason. A study completed by government and university researchers in Iceland discovered that the greatest profits from fishing could be realized by small boats. Other studies have also shown that small boats create three times as many jobs as the large trawlers, energy costs (fuel oil) are less for small boats and the highest quality, highest priced fish is caught by small boats. The cost of creating a job is also much less with small boats. An Icelandic study concluded that it cost about $30 million for a freezer trawler which would have a crew of 30 persons. Thirty small boats, on the other hand, with a crew of one person each, would only cost $8.4 million.

Bogason believes that the economic arguments are in favour of small boats. "These arguments can be used elsewhere in the world", he says. The warnings to Nova Scotian fishermen are clear in Bogason's message. "If you can prevent ITQs do it", he says. He tells the story of how excited and proud a small Icelandic village was when a shiny new freezer trawler arrived in its harbour. "They stood down on the dock and cheered. This was seen as a sign of progress, of great pride". Seventy jobs disappeared in the small community when the local fish processing plant closed because the freezer trawler took its place. They were no longer cheering.

Canada's Department of Fisheries and Oceans (DFO) are supporters of ITQs and have introduced this system of management into some fishery sectors already. The dragger fleet in Southwest Nova Scotia was placed under an ITQ system back in 1989. That resulted in buyouts and consolidations. Today there are about one third fewer boats fishing.

An alternative to ITQs being supported by many inshore fishermen in Nova Scotia, is community management or community based co-management. This system would allow fishermen and others in a geographic area to set quotas and manage the fishery for themselves. But lack of cooperation and disunity among the dozens of fishermen's organizations that dot Nova Scotia's coast is making it difficult for community management to catch on. "I believe there are about 70 fishermen's associations on your east coast", says Bogason. "The government must have a good time here."

Arthur Bull, chairman of the Fundy Fixed Gear Council, explained, to those gathered at Saint Mary's, that his organization has been successful in establishing a community management system along the Fundy coast. The Fundy Fixed Gear Council represents about 230 fishermen who work cooperatively to manage their own inshore fishery. This type of alternative favours small independent fishermen over corporate interests and allows the fishery resource to remain publicly held rather than giving certain individuals private rights to harvest fish resources.

Another speaker at the symposium was Parzival Copes, a faculty member within the Institute of Fisheries Analysis at Simon Fraser University in British Columbia. Copes is a long time critic of ITQs and presented a long list of economic, biological and social reasons why ITQs don't make sense. "ITQs have made the fishery very profitable for a few people. But their negative impact on communities and fish habitats greatly outweighs these benefits", he says.

According to Copes, ITQs have an adverse affect on fish resources because they encourage fishermen to dump fish caught as a by-catch or of poor quality or size. The social impacts are also significant he argues. "The adverse impact on community viability and the equitable distribution of fish resources is another part of what is wrong with ITQs", he says. Copes believes that the system of ITQs induces negative behaviours in fishermen and makes the entire approach to management an undesirable one.

For example, he says that ITQs encourage quota busting and poaching, high grading of fish catches (which means less valuable stocks are thrown overboard), price dumping (dumping low price catches back into the water), ratchetting of quotas ( there will always be an attempt to ensure that quotas don't fall) and data fouling due to all of the high grading and dumping.

As negative as he is about ITQs, Copes also believes that you have to offer a positive alternative to them. "You can't say ITQs don't work unless you have an alternative". His alternative vision is of a limited entry fishery with non-saleable licences. He sees this approach working hand in hand with community quotas and community based co-management. It is this approach that groups like the Fundy Fixed Gear Council are trying to accomplish. Arthur Bull says, "We are not doing this to fight ITQs. We are trying to create a viable and sustainable fishery". The key to success, according to Bull, is ensuring that the community based group is democratic in nature so that all interests and communities are represented.

Graeme Gawn of the Maritime Fishermen's Union supports Bull and says, "It is our goal to have all fishermen managing all fisheries". This one day symposium did not resolve the debate between those who favour ITQs and those who oppose them. It was not the intent of the organizers to do this.

Tony Charles, Saint Mary's University professor and organizer of the event explained, "We are searching for positive ideas for the inshore fishery. What the future might hold. This is more about finding positive approaches rather than final solutions".

What Is Wrong With ITQs?

The Alternative To ITQs

Important Features:
a) Limited entry licencing with buy back
b) Restricted transfers, non saleable licences
c) Community allocations; licences, harvest shares, fishing time
d) Co-management

Fisheries and Coastal Seminar Series
Gorsebrook Research Institute
Saint Mary's University
Halifax , NS
Phone: 902-420-5668

Documenting The History of a Newfoundland Protected Fishing Area

More and more communities in Nova Scotia are looking for ways to take greater control of their destiny. Community based co-management of the fishery is one area that has gained a lot of attention. Other Nova Scotians believe that marine protected areas may be a way to help secure the future of the fishery. In Newfoundland there has already been some experience with this approach. The following article documents the history of a marine protected area in Newfoundland. It may prove to be a positive example for communities in Nova Scotia to follow.

The Protected Areas Association of Newfoundland and Labrador has recently published a booklet documenting the history of the Petty Harbour-Maddox Cove Protected Fishing Area, perhaps the only community-initiated protected marine area in Canada. The booklet outlines how the area came to be established, what benefits it has afforded to the community and pressures on the area that have arisen since the call of the Northern Cod moratorium. To follow is an abridged version of the booklet.

Setting The Stage

Petty Harbour-Maddox Cove is a small fishing community 15 km. south of St. John's, Newfoundland. It, like many other Newfoundland coastal communities, has a long history as an inshore fishing community, dating back to the early 1600's. But, unlike many other Newfoundland fishing communities, Petty Harbour-Maddox Cove has sought an active involvement in fishery-related decisions since the turn of the century. An organized Fishermen's Committee has been in existence as far back as 1923. Residents also established the Petty Harbour Fishermen's Producer Cooperative Society in 1984, one of only three fishery co-ops in Newfoundland and Labrador. Fishers and residents continue this level of involvement today, creating for their community a history of, and reputation for, community leadership and decision making.

Methods of fishing for cod and other species have changed dramatically in this century. Petty Harbour-Maddox Cove fishers however, have resisted trends to larger boats, more "efficient" technology, newer gear types. Instead they have maintained traditional methods, and their initiative and determination paid off. Right up to the moratorium, Petty Harbour-Maddox Cove remained one of the most prosperous fishing communities in all of Newfoundland and Labrador.

While community involvement and determination have characterized the fishers of Petty Harbour-Maddox Cove since the early 1900's, one event in particular set the direction for the community's decision making on fishery issues. In May, 1961, the fishermen of Petty Harbour-Maddox Cove passed a resolution to protect their traditional handline fishing grounds against certain gear types they felt to be damaging to their fishery.

In the early 1960's, fishers from outside the community began to use longlines and gillnets on the Petty Harbour fishing grounds. Many Petty Harbour and Maddox Cove fishers were not impressed by the effects of these new technologies on their grounds, nor by the implications for the future of the local fishery. Their chief reasons were:

The fishers of Petty Harbour-Maddox Cove had two main goals when they resolved to create a Protected Fishing Area: to clear up gear conflicts, and to preserve the historical rights of their community. It became clear to most local fishers shortly after protecting the area from gill nets, however, that they had also protected their fishing grounds from destruction by "ghost nets". In neighbouring communities where gill netting was not prohibited, ghost nets played ever-increasing havoc with fish habitat.

"Dragging on the spawning grounds should never be allowed. Fish be kind of stunned, like trout or any other fish, when they're spawning." Clarence Weir, fisherman.

As well, some Petty Harbour fishers suspected that preserving the local fishing grounds as a hand-line "sanctuary" actually enhanced the area's stock. When a baited hook and line fishery is prosecuted, quantities of unused bait are regularly distributed over the grounds and serve as a food source for the cod. This, in turn, benefits fishers because the cod tend to stay close to such baited grounds. The establishment of the Protected Fishing Area also had significant benefits for the community of Petty Harbour-Maddox Cove as a whole, including:

Clarence Weir, a local fisherman explained, at one of the meetings establishing the Protected Fishing Area, "Petty Harbour has shoal water fishing grounds. If everyone was going to put gill nets and trawls here you'd be in a tangle.

During the more than three decades since its establishment (May 1961), the protected status of the Petty Harbour fishing area has been debated several times. On each occasion, the value of protection was reaffirmed by the community - until May, 1996. At that time, fishers voted to allow lumpfish gillnets into Petty Harbour waters, on a yearly basis until the lifting of the moratorium on Northern Cod. Fishermen felt that there was room in the local fishery, at least temporarily, to allow the change. This marked the first time the use of groundfish gillnets was sanctioned, and it called into question the status of the Protected Fishing Area.

Many people in the community fear that the move to allow lumpfish gill nets, even temporarily, was a step in the wrong direction, and one that sets a precedent for allowing cod or other gill nets to be allowed on the fishing grounds.

The community should be responsible for their local grounds because they know more than anyone else about it." Cyril Whitten, fisherman.

1996 was a turning point for Petty Harbour-Maddox Cove. The status of the Protected Fishing Area has been seriously compromised, but is not yet lost. The community is at a point where it must think carefully about what the Protected Fishing Area accomplished for them, and what type of fishery they wish to have in the future.

The community recognizes that their conflicts must be resolved, and that it is unlikely that the issues will be resolved on their own. Consequently, they have begun a more formalized community conflict resolution process. The project is being jointly carried out by the Petty harbour Fishermen's Committee and the Protected Areas Association of Newfoundland and Labrador.

The community conflict resolution process will unfold over the coming months. It proves to be an exciting, yet challenging, process for the community. The results may have positive effects on the resolution of other conflicts in the community, and may provide lessons for other coastal communities facing similar conflicts to learn from.

Portions of this article are from "Ancient Rights: The Protected Area of Petty Harbour-Maddox Cove." For more information, or to receive a copy of the booklet ($5.00), please contact:

Regional Development Authorities:
How Are They Doing Now?

Communities In Action

When they were established about two years ago, Regional Development Authorities (RDAs) were greeted with both cheers and jeers by different groups of Nova Scotians.

Supporters of the new centralized approach to community economic development saw them as the best way to stimulate greater results from development efforts and stretch declining financial resources as far as possible.

Opponents saw the new approach as a top down government imposition that ignored the real strengths of what community economic development was all about. All sides have now had some time to see how this new approach would work. RDAs have spent the past two years planning and organizing and in most cases have even started to implement some development projects.

It appears that many of the concerns raised during those early days of RDA organization were taken to heart and in some cases unique solutions have been tried. A concern of many community activists was that RDAs were just too large and too bureaucratic and would lose sight of smaller communities.

Jim Stanley, Director of Community Economic Development for the Atlantic Canada Opportunities Agency, says that as the network of RDAs has gained maturity they have started the process of building a bridge between the large regional boards and communities. He also knows that the concerns raised by many small community groups two years ago were legitimate. "In many cases the new RDA was simply an expansion of an old industrial commission. They were not experienced with dealing with community economic development", Stanley explains. He goes on to say that it has been a high priority with government agencies, like his, to ensure that the board of directors of RDAs are truly representative of and accountable to the region they serve.

Chris Bryant, Executive Director of Community Economic Development, Nova Scotia Economic Renewal Agency, agrees that accountability and good representation are keys to the success of RDAs. He explains that some RDAs have been encouraging very diverse boards of directors. He also admits that some though, are still dominated by municipal politicians, much like the old industrial commissions. One of the small communities that feared they would be overlooked by a larger RDA was Development Isle Madame Association (DIMA).

Karen Malcolm, DIMA director, explains that in the beginning their local community economic development group had very little contact or interaction with the RDA. Over the past two years that has slowly changed. "I believe they are starting to realize that we can help them achieve their goals. It is better for them to work with us." She goes on to explain that the Strait-Highlands RDA has started to support and push for DIMA sponsored projects and has a development officer working out of the local DIMA office.

Malcolm sees these as important steps forward but they are still not entirely happy with the RDA structure or the fact that DIMA cannot get access to direct funding to support its core operations. "We have no staff or money. It makes it very difficult to advance local projects", says Malcolm. Malcolm also explains that while DIMA serves the entire island of Isle Madame, it does not have a seat on the RDA board. "We have put a letter through to the RDA board asking for a seat", she says.

And it is those boards that Jim Stanley believes are the key to ensuring that communities are properly represented. "It is really up to the board members to ensure that the community is being served", says Stanley.

Chris Bryant agrees and says that there are good examples that have made the effort to structure a board that is representative of the community. He uses the Western Valley Development Authority as an example of one region where the board structure has been formulated to ensure there are many diverse voices. They have done this by using an open nomination procedure to ensure that the region is represented both geographically and by interest group.

Another fear that many small community economic development groups like DIMA, and the Cheticamp Development Commission, expressed at the outset of the regionalized approach was that the RDAs would take over and replace the smaller local development groups or at the very least interfere with their operations.

Chris Bryant says that government recognized this fear and shared it. "RDAs were not designed to replace existing community groups. They are supposed to be there to strengthen them". One example of an RDA that has tried not to interfere with local community priorities has been the Halifax RDA. They have set up four Local Development Agencies (LDAs) in different regions of the county to give direction to the RDA board.

"Community Economic Development Is About Getting Communities To Take Responsibility For Their Own Futures", Chris Bryant

Jim Legge, a member of the Greater Chebucto Community Development Association says the Halifax RDA approach has gone a long way to helping keep local concerns in focus. Two years ago Legge was cautious about the real benefits of the RDA approach, but he is pleased with the efforts being made by the Halifax RDA. "The Halifax RDA has put the 'community' in community economic development before 'economic'", says Legge. And while Legge believes that the Local Development Agency in his area needs improvement he is still expressing satisfaction with the assistance that his community development group is getting from the RDA. Legge also believes today, as he did two years ago, that what RDAs really represent is an opportunity. "What is being thrown at people is an opportunity. An opportunity to manage their own affairs", says Legge.

Chris Bryant believes that giving communities the opportunity to manage their own affairs is the cornerstone of the RDA process. "Community economic development is about getting communities to take responsibility for their own futures", he says. He goes on to say that everyone underestimated how difficult it would be to do community economic development. "There was and still is some resistance from communities. There is still the attitude that if you yell loud enough government will come and save the day", says Bryant.

Jim Stanley explains that government's role is to create the climate for new enterprises and growth. "Government does not create jobs. Private enterprises create jobs", says Stanley.

Another area of concern that greeted the arrival of RDAs was the sense that there was not enough money being made available from government to support the process, especially in areas with a larger population or geographic region. And while the operating budgets of RDAs have remained fixed at about $300,000 per year (provided by ACOA, ERA and local municipalities), other funding to support projects has been made available.

Karen Malcolm, of Isle Madame, points out that while the local RDA could be doing more to assist local groups they really don't have the resources to work with. She explains, "The Strait-Highlands RDA has the largest geographic area of any RDA and has little money to work with. What they are being asked to do with so little money is unrealistic."

A new Strategic Plan Implementation Fund has recently been made available to RDAs to help fund worthwhile projects that are in keeping and important parts of their strategic plans. To date about 139 projects have been proposed, with 5 being funded through this program. Between $6 and $8 million dollars will be available over the next five years to help implement these projects. But government funding remains scarce and it is becoming more and more important for RDAs and community groups to find other financial partners.

Chris Bryant says, "The government money that is there is all there is going to be." For remote areas this means that RDA staff are spread thin and this causes concern and frustration for many communities. For example, Grand Etang, a small community of about 700, on Cape Breton's Acadian coast has not been able to receive the staff and support it desires from the local RDA. They are working on a number of tourist and environmental projects including a harbour development project that involves a waste management facility. Monique AuCoin, development officer for the LeMoine Development Association, explains that while the RDA may mean well they have too few staff to serve the area. "They are too busy. They are too stretched out. What we have had to do here we have done ourselves", she says.

"What is being thrown at people is an opportunity to manage their own affairs...take it or lose it." Jim Legge

Other community groups have found RDAs helpful in accessing funding for community projects. Jim Legge of the Greater Chebucto Community Development Association explains that the Halifax County RDA was instrumental in helping his organization search out about $25,000 for a feasibility study on Pennant Point Park. Helping to access alternative funding is an important role of RDAs says Jim Stanley of ACOA. He states that RDAs routinely raise five or six dollars of outside money for every dollar the government provides.

Even though RDAs are considered a partnership of three levels of government (ACOA, ERA and local municipalities) the partnership has not been accepted as readily as was expected. Many municipalities remain sceptical about the benefits of RDAs. On the south shore the Lunenburg/Queens RDA has not been able to get the support of the Municipality of the District of Lunenburg. That municipality has not signed on or funded the local RDA.

"This municipality represents about 40% of the population of the area, so it is a big concern that they are not part of the process", says Chris Bryant.

Jack Logan, executive director of the Lunenburg/Queens RDA says, "We would like to see them as part of the RDA. As it is now they don't get any of the benefits."

In other areas there are still municipal rivalries that have spanned generations. This causes suspicions that one municipal unit may be trying to attract investment or businesses at the expense of another.

Still in other areas, like Antigonish and Guysborough, there was not agreement between the areas to form a single RDA, so the area was split into two different RDAs (Guysborough and Antigonish counties). To date all of the RDAs in Nova Scotia have completed strategic plans and have begun to implement them. The existence of a strategic plan is necessary for an RDA to qualify for provincial and federal funding. Each RDA establishes its own priorities and it was not an easy process for many of them to come up with a plan that reflected the needs of their region.

Jim Stanley says many wrestled with the planning process. For some areas it was a new experience or they were forced to work with other communities with whom they were unfamiliar. "There was fairly extensive community consultation during the planning process", says Stanley. In areas where there were concerns about the strategic planning process RDAs were asked to submit new plans. "We encouraged some RDAs to redo their strategic plan", says Stanley. The capacity of communities to take on the challenges of strategic planning and directing community economic development efforts was also called into question two years ago.

Indeed the need to provide training and instruction to RDA staff and volunteers has been undertaken during the past year. A certificate program in community economic development was developed and offered by the Truro campus of the Nova Scotia Community College. Some staff and other community workers from throughout the province attended the course during the past six months. "We have encouraged training for all staff and volunteers", says Stanley.

The relationship between RDAs and government has not been smooth either. The devolution of decision making power from government to communities has been a slow process. Jim Stanley explains that there is a need to strike a balance between the ability of communities to run their own show and the need for government to be accountable for public funds.

Devolving responsibility to local RDAs and giving each RDA lots of room to develop their own unique formula has meant a slow implementation process. For many it would have been quicker and easier if government had laid out a blueprint for each RDA to follow. "We have deliberately not said this is the way it should be everywhere. We can't have a model that will work everywhere", says Chris Bryant.

It still remains to be seen just how successful RDAs will beat achieving their goals. Each has different priorities. Some focus on job creation as a measure of success. Others measure new investment coming into the community. Others gauge success on the RDAs ability to build strong community development organizations in their region. Alan Sloan, of the Western Valley Development Authority, explains that one of the measures of success for his RDA is how successful the other community groups in the region are. "If they are functioning better then the RDA is doing its job", he says.

Approaches do vary from region to region though. Some RDAs have tried to consolidate all development responsibility into the hands of the RDA at the expense of smaller community development organizations. "Some RDAs have been encouraging more community groups rather than trying to reduce them to a few", says Chris Bryant.

There was also a promise of a report card system for RDAs to measure their success. That system is not yet ready. Chris Bryant explains that a consultant will soon begin designing the evaluation procedure. But just how do you measure the success of an RDA, especially if they all have different goals. It probably won't be easy but one thing almost everyone agrees on is that the number of new jobs created will have to be one part of the measurement.

Two years ago Chris Bryant said, "Ultimately the success of individual RDAs will be determined by people's attitudes. If RDAs can make a dent in creating the 53,000 or so new jobs we need in this province then they will be judged a success." Bryant still believes this but he admits that tracking the jobs created is not going to be easy. "We haven't done a comprehensive review of jobs yet. We are not ready yet."

Community economic development is not an easily measured process. How do you measure increased optimism in communities? How do you measure increased skill levels-and their impact on incomes or jobs? Chris Bryant admits that it was much easier to measure the success of the old industrial recruitment approach to development. "If you went out and attracted a new plant that created 500 jobs, it was very visible. Community economic development is less lumpy and visible. It is more about changes in attitudes", says Chris Bryant. But there are no more Michelins out there says Bryant. "If they are out there then there is a big bidding war to get them. That strategy is not going to produce the results we need in Nova Scotia."

After two years of organization and planning RDAs are starting to grapple with the real issues of community economic development, and it is turning out to be much harder than anyone thought it would be. It is still too soon to decide if RDAs will be successful but results will no doubt be reflected in the hearts and minds of Nova Scotians, especially if communities become more stable and jobs more plentiful.

The Good News:

A Look At Some Positive Developments
Taking Place Throughout Nova Scotia.

This month Coastal Communities News takes a snapshot of positive community economic development projects underway in Nova Scotia. The number and variety of projects is very encouraging. These projects are either RDA or community sponsored. There are a lot more projects underway than are listed here.

Resource Information:

How To Get The Advice And Financing
You Need To Start Your Own Business.

During the past few years there has been a tremendous amount of attention paid to the topic of small business and entrepreneurship. Governments and the business community at large have been singing the praises of the small business sector. And no wonder, it has been responsible for a large portion of all of the new jobs created in Canada during the past decade and continues to be a growing sector of the economy.

For many small, rural communities small business and enterprise development are seen as one of the best ways to grow the local economy and create jobs. And indeed more and more Nova Scotians are looking to self employment as a viable option. But getting started in a small business is not easy. Where do you find the money? Who do you talk to for advice and guidance? For many people the obstacles to getting started in a small business are seen as too great. They become discouraged before they even start or don't give self employment the serious consideration it deserves.

Because governments and community economic development agencies believe so strongly in the positive benefits of encouraging small business growth they have implemented programs to help individuals get the advice and financing they need. This month Coastal Communities News takes a look at two such programs that may be able to help you get started in a business of your own.

Community Business Loan Program

The Community Business Loan Program is offered by the Government of Nova Scotia, through the Economic Renewal Agency. There are two components to the program:

1) First Step Loans of up to $10,000 are specifically targeted to new full time business start ups (or ones that have started in the previous 12 months from the date of application). To be eligible, the business start up costs, including working capital, must not exceed $100,000. The loan can be used for any valid business purpose including working capital.

2) Small Business Growth Loans of up to $50,000 are specifically designed to assist in the start up or expansion of full-time small businesses. The loan can be used to purchase fixed assets but also for an element of "soft" costs (advice, technical help, marketing assistance and counselling, or training services) and working capital under exceptional circumstances. Loans will not normally be considered for working capital that can be secured through bank financing of receivables and inventories and/or replenish or offset operating losses.

This program is relatively flexible and encourages applications from manufacturing, processing, tourism, and selected service businesses. In order to make the program more effective in rural areas of the province some special rules apply. For instance, First Step Loans are available for some types of retail and wholesale businesses that are outside of Halifax and Dartmouth. And while projects in Halifax metro are required to provide an equity contribution to the business equal to the loan requested, applicants in rural areas are only required to provide a personal investment of at least 50%.

This program has proved popular and to date $5.7 million dollars of loans have been made. This lending has helped to create about 971 jobs and has helped to maintain 661 jobs. A total of 324 new businesses have been established and are still in operation. This program can be accessed through offices of the Nova Scotia Economic Renewal Agency.

Community Business Development Corporations

Another helpful resource, especially for residents of rural communities are Community Business Development Corporations (CBDCs). These are autonomous, not for profit corporations (formerly called Business Development Centres) which provide business counselling and financial assistance to just about every rural area of Nova Scotia. The program is part of the Atlantic Canada Opportunities Agency.

CBDCs assist in the creation of small businesses, and in the expansion, modernization and stabilization of existing businesses. CBDCs offer loans, equity investments and loan guarantees, up to a maximum of $75,000. These financial services are targeted to small businesses who are having difficulty finding financing from banks and other traditional sources. What makes CBDCs unique is that they are overseen by a local board of directors from each community and it is this board that makes the investment decisions. This allows each CBDC to be sensitive to the unique needs of each community.

To date the program has assisted about 1900 businesses in Nova Scotia with some $36 million dollars of loans. The average loan to each small business has been around $19,000. To date those investments have helped to create and maintain about 6500 jobs in Nova Scotia.

How To Find Out More About These Programs:

Community Business Loan Program
Canada/Nova Scotia Business Service Centre
Toll Free: 1-800-668-1010
Fax - (902)426-6530

Communications Secretariat News

Communications Secretariat Updates:

February 10, 1997.
The board of directors met with Deputy Minister of Fisheries and Oceans, Bill Rowat to discuss the recent activities of the Communications Secretariat. Funding for the Communications Secretariat has been guaranteed for the upcoming year.

The Regional Operations Centre (ROC) consolidates Coastguard's Halifax Vessel Traffic services, Halifax Coast Guard radio, Canso Vessel Traffic Services, Regional Operations Centre and Ice Operations into one facility. The ROC provides in both official languages, 24 hour, 7 day a week response to all fisheries related matters, except Search and rescue. Call 1-800-565-1633.

The Summit of the Sea Conference is taking place from September 2-14, 1997 and the annual Meeting of the North Atlantic Fisheries Organization will take place from September 15-19 in St. John's Newfoundland.

For more information, please contact Dave Finn at (709) 579-1997, fax (709) 579-2067, or E-Mail: david_finn@porthole.entnet.nf.ca

Coming Soon - Volume 3

This issue of Coastal Communities News is the last of Volume 2. During the past two years Coastal Communities News has taken its readers to every corner of Nova Scotia. We have attempted to bring the issues and concerns of coastal communities to the forefront of public attention. We hope that they have provided insight and inspiration for you and your community members.

Your support and positive feed back about the stories and issues we have covered, in the pages of Coastal Communities News, has been very encouraging.

Despite the troubled times facing many coastal communities it is clear that the spirit and ingenuity of Nova Scotians is alive and well. We have every intention of kicking off Volume 3 in the very near future. We would welcome your support, either in the form of advice and feedback or financial help.

Your continued support and assistance is greatly appreciated.
Until we meet again, take care.

Mary DesRoches Believes That More Women Need To Get Involved In Finding Solutions To The Problems Facing Coastal Communities.

Mary DesRoches grew up in a fishing family along Nova Scotia's Fundy coast in the small community of Harbourville. Mary's partner Ed, who is a fisherman, also grew up in a fishing family in PEI. They have four grown children and two grandchildren.

Mary has watched as the groundfish fishery has slowly disappeared in the Bay of Fundy and elsewhere in Nova Scotia. Mary has not been content to sit by and watch the collapse of a traditional way of life go unchallenged though. Mary is a member of the Coastal Communities Network, Oxfam Canada, Atlantic Coalition for Social Justice and Nova Scotia Women's FishNet. She strongly believes that coastal communities are viable and sustainable and are worth fighting for. She also believes that women can play a much bigger role in helping to sort out the future of coastal communities.

She says, "I spent some time working for the Maritime Fishermen's Union. Many fishing family enterprises require the female family members to invest an enormous amount of time. This fact as well as acknowledging that half of the citizens in these communities are women, it is appalling that coastal women are not at the decision making tables." She goes on to say, "Families are being torn apart because of job losses, financial pressures, drug and alcohol abuse, and family violence. These are not isolated incidents. They are becoming more common everywhere."

Support from CCN, Oxfam Canada and the Women's Program enabled Mary to organize, with the help of other Nova Scotia Women's FishNet members, a series of workshops, focused on women in coastal communities. Those events brought together women to talk about their experiences and concerns about the future of their families and their communities. DesRoches explains that this allowed women to see that similar things were happening in communities all over the province. Women also discussed ways of uniting their strengths as into strategies to address the needs of families and communities. Many women agree that their concerns are not being take into consideration by policy makers.

Mary believes that women bring a broader view of the issues facing communities. "Women have a different perspective that decision makers need to be aware of. As women, we are directly affected by these policies in our daily lives", says DesRoches. Those original four workshops eventually evolved into several local community FishNet groups. Today Mary is a director and spends many hours every week helping to build the group into a stronger lobbying voice for social justice.

Through her work with FishNet Mary has undertaken a study of how reforms to unemployment insurance would impact fishermen and communities. She has also worked to organize and establish Fishnet chapters in communities throughout Nova Scotia. Currently she is conducting another Fishnet research project, along the Bay of Fundy, to study the ongoing impacts of the fishery crises on families.

For Mary the struggle facing coastal communities is nothing less than a fight for the right to live and work in the community of your choice. "There are alternatives to everyone just packing up and heading west", she says. Mary has set an example and has done her part to open the door to allow women to gain the confidence they need to get involved and make a difference.

Dear Cod,

This month Dear Cod examines the technical aspects of Employment Insurance. Dear Cod thanks Leonard Buckles for preparing this article.

Q: When will a fishermen's income start counting as EI weeks? i.e. January or April.

A: On January 1, 1997, Revenue Canada has switched to a First Dollar insurable system. Fishermen will be required to pay premiums on the first $39,000 of insurable earnings. There is NO requirement to track time, either hours or weeks for fishermen.

Q: How much difference will there be in E.I. premiums this year? What costs to fishermen? Is there a maximum E.I. repayable?

A: The premium rate has actually dropped to 2.90 from 2.95. The difference is in the elimination of the maximum weekly amount of insured earnings. Now a fisherman is required to pay premiums on up to $39,000 at the 2.90 figure.

The employer still pays 1.4 times the employees amount. The maximum premium payable is $1,131 for the employee and 1.4 times for the payor which would be $1583 based on the maximum insurable earnings of $39,000

Q: Exactly how much (gross) earned income must a boat owner or Captain make to draw high E.I.? i.e. if the fisherman lived in an area requiring 12 E.I. weeks, will $14,000 gross give him high E.I. ($413 week)? If a fisher earns $14,000 in 20 weeks and his area requires 12 weeks how is the E.I. rate determined? How much would a crew member require?

A: To get maximum benefit rate, a fisherman would have to have insured earnings in the 31 week qualifying period of at least an amount equal to $750 X the minimum divisor for the economic region. The number could range from 14 to 22. The higher the unemployment rate the lower the divisor. If the rate of unemployment in the area was such that 12 weeks of employment were required (420 hours) the divisor would be 14. So, in order to have the maximum benefit rate the earnings would have to be (14 X 750 =$10,500).

Q: When will Revenue Canada begin determining whether a crew member is self-employed or an employee of the Captain? What process is involved? Does Revenue Canada send a letter informing the fisher of the change? Is there an interview? Is there an appeal process?

A: Upon request by the buyer, the fisher and or the crew member, Revenue Canada will forward to them a form to complete, either a CPT1 or a CPT2 whichever is applicable. When the completed form is received back, a determination on employment status will be initiated. It should be noted that Human Resources Development Canada may make a similar request.

All parties listed on the CPT will be contacted by a rulings officer and an interview conducted. When a decision has been made, all parties involved will be notified in writing of the findings and their effect on their status. There is an appeal process. The appeal must be filed within 90 days of the date of the notification letter. Q: What changes will the employee find when he applies for E.I.? Will he be considered the same as a labourer? How would his eligibility for E.I. be determined? If the crew member is switched midway through the season to an employee, who will he write as his employer when applying for E.I.? i.e. Fish plant or Captain. Would the first E.I. weeks the crew member earned still be usable?

A: The Captain would become the employer. The Captain would have to negotiate with the crew how many hours to credit for each day of a trip. Because of the nature of this work the crew members would easily have sufficient hours if they work in as many weeks as were required to qualify under the old system. An agreement of between 10 and 15 hours per day would seem reasonable.

As regular claimants the crew members would have to meet all the qualifying and availability requirements that other regular claimants do. One hopefully rare situation is the "busted trip" or "broker". Regular claimants have to declare the trip hours and there could be a possibility of a full work week which never applied on fishing claims.

Q: How much time is the Captain given to prepare for being the employer of the now employee?

A: This will be determined through consultation with either the buyer, payor or Revenue Canada.

A: There will be payroll training available upon request provided by Revenue Canada to those that require assistance in setting up and maintaining a payroll.

A: The Captain can hire an accountant or any other individual to handle and oversee his payroll account.

A: Section 82.1 of the Employment Insurance Act states that every employer paying remuneration shall deduct the prescribed amount. Section 21 of the Canada Pension Plan and Section 153.1 of the Income Tax Act describe the corresponding legislation relating to withholding.

Q: Whom should an employee contact for assistance if his employer fails to comply with this law?

A: If an employer fails to comply, the employee should seek assistance through Revenue Canada, Client Services Division, 426-5300 or 1-800-959-5525.

Q: After April, what will be eligible for tax exemption? Will fishermen receive a new tax number qualifying them for the 15% tax exemption on certain items? Will there be a new list of tax exemptions?

A: The same tax exemptions that were applicable in 1996 will be the same in 1997. Please direct your queries in this regard to Revenue Canada, Client Services Division at 426-5300 or 1-800-959-5525.

Q: What effect will the change from fisher to employee have on the individual's status as a "Core Fisher"?

A: The 21 of the Canada Pension Plan and Section 153.1 of the Income Tax Act describe the corresponding legislation relating to withholding.

Q: Whom should an employee contact for assistance if his employer fails to comply with this law?

A: If an employer fails to comply, the employee should seek assistance through Revenue Canada, Client Services Division, 426-5300 or 1-800-959-5525.

A: The same tax exemptions that were applicable in 1996 will be the same in 1997. Please direct your queries in this regard to Revenue Canada, Client Services Division at 426-5300 or 1-800-959-5525.

Q: What effect will the change from fisher to employee have on the individual's status as a "Core Fisher"?

A: The Department of Fisheries have indicated that there will not be any change. All inquiries should be directed to Linda Hunt, Department of Fisheries: (902) 426-9006.

How To Qualify:
To qualify for fishing benefits, fishers need sufficient earnings from self-employment in fishing in a maximum 31 week period before their claim starts (this is called the qualifying period). The qualifying period is flexible to take into account your fishing seasons. The earliest start date for the qualifying period for winter benefits is the week of March 1 and for summer benefits, September 1.

How Long Are Benefits Paid?
The benefit period is the period during which you can receive benefits. It provides a maximum period of 37-38 weeks during which 26 weeks of benefits can be received. A winter benefit period can start as early as the week of October 1 and must end no later than the week of June 15. A summer benefit period can start as early as the week of April 1 and must end no later than the week of December 15.

Do You Have Questions For Dear Cod? Write to: PO Box 5000 Antigonish, NS B2G 2W5

Coastal Communities News is published bi-monthly by the Coastal Communities Network, a non-profit society registered in the province of Nova Scotia.

Coastal Communities News is made possible by the generous efforts of many volunteers, and by financial contributions from Human Resources Development Canada, and by donations and in-kind contributions from the Nova Scotia Department of Education and Culture, as well as from member groups and organizations.

We welcome all articles and submissions, from individuals and groups, with content in keeping with the role and nature of this magazine. We reserve the right to edit all submissions. Except where additional credit has been given, all articles are prepared by the Editor and Editorial Board.

Our Mission Statement

The Coastal Communities Network is a volunteer association of organizations whose mission is to provide a forum to encourage dialogue, share information, and create strategies and actions that promote the survival and development of Nova Scotia's coastal and rural communities.

"A Large Voice for Small Communities"

CCN is made up of organizations rooted in Nova Scotia's coastal and rural communities, and it is the diversity of its membership that gives it strength. Your organization, and your community, can help CCN determine its direction and strengthen its voice still further. Join the Coastal Communities Network today.

— by participating in regular monthly meetings of the CCN membership. These are held in Truro (usually on the first Tuesday of each month), and allow representatives from member organizations to review what is happening in coastal communities across the province, plan actions on issues of common concern, and review progress on CCN-sponsored projects;

— by getting on our mailing list to receive regular copies of Coastal Communities News. Send us your name and address by mail or fax, or call us directly;

— by contributing written articles to Coastal Communities News, and so letting everyone know what's happening in your community;

— by taking part in CCN workshops and information sessions. Special events like this are held on topics of importance to coastal communities (for example, community economic development, co- management in the fishery, etc);

— by inquiring about CCN's resource library, which includes information, reports, and studies on topics that affect the future and sustainability of coastal communities.

CCN Coordinator:
PO Box 1613
Pictou, N.S. B0K 1H0
Phone:(902)485-4754 Fax:(902)445-7134
e-mail:coastalnet@ns.sympatico.ca

CCN Communications Office:
Phone: (902) 445-7168
Fax: (902) 445-7134
e-mail:ccnews@ns.sympatico.ca

Fisheries That Work

Exploring The Alternatives To Individual Transferable Quotas.

What Is Wrong With ITQs?

The Alternative To ITQs

Documenting The History of a Newfoundland Protected Fishing Area

Setting The Stage

Regional Development Authorities:
How Are They Doing Now?

Communities In Action

The Good News:

A Look At Some Positive Developments
Taking Place Throughout Nova Scotia.

Resource Information:

How To Get The Advice And Financing
You Need To Start Your Own Business.

Community Business Loan Program

Community Business Development Corporations

How To Find Out More About These Programs:

Communications Secretariat News

Communications Secretariat Updates:

Coming Soon - Volume 3

Mary DesRoches Believes That More Women Need To Get Involved In Finding Solutions To The Problems Facing Coastal Communities.

Dear Cod,

Coastal Communities News

Join the Coastal Communities Network

Our Mission Statement

"A Large Voice for Small Communities"

How to Become Involved
in the Coastal Communities Network

Fisheries That Work

Exploring The Alternatives To Individual Transferable Quotas.

What Is Wrong With ITQs?

The Alternative To ITQs

Documenting The History of a Newfoundland Protected Fishing Area

Setting The Stage

Regional Development Authorities: How Are They Doing Now?

Communities In Action

The Good News:

A Look At Some Positive Developments Taking Place Throughout Nova Scotia.

Resource Information:

How To Get The Advice And Financing You Need To Start Your Own Business.

Community Business Loan Program

Community Business Development Corporations

How To Find Out More About These Programs:

Communications Secretariat News

Communications Secretariat Updates:

Coming Soon - Volume 3

Mary DesRoches Believes That More Women Need To Get Involved In Finding Solutions To The Problems Facing Coastal Communities.

Dear Cod,

Coastal Communities News

Join the Coastal Communities Network

Our Mission Statement

"A Large Voice for Small Communities"

How to Become Involved in the Coastal Communities Network

Regional Development Authorities:
How Are They Doing Now?

A Look At Some Positive Developments
Taking Place Throughout Nova Scotia.

How To Get The Advice And Financing
You Need To Start Your Own Business.

How to Become Involved
in the Coastal Communities Network