 Requests Federal Aid For Western Alaska Knowles Says Beleaguered Fishing Communities Deserve Help August 24, 2002
"This year I am once again declaring the Western Alaska region an economic disaster due to the hardships brought on by fundamental changes in world salmon markets and chronic low prices that have left the region reeling from devastating economic hardship," Knowles said. "Having just visited the Bristol Bay region, I know first-hand that the situation is desperate. The loss of fishing income is as if the big three automakers suddenly pulled out of Detroit, or Boeing and Microsoft closed their doors in Seattle. The impact is multiplied throughout the entire community as lost fishing income means less business for local stores and services." According to the news release, this season the overall ex-vessel value of the Bristol Bay commercial salmon harvest is projected to be about $31 million, nearly a ten-fold decrease in value compared to the 1989 season when fishermen netted $305 million for their catch. This precipitous decline in earnings also has led to a huge reduction in the value of limited entry permits and vessels. The average value of a Bristol Bay drift gillnet permit was over $250,000 in 1989 compared to less than $20,000 in 2002. In the Nome census area, commercial fishing for salmon has been decreasing for over a decade and is virtually non-existent today. Commercial salmon fishing in the Yukon-Koyukuk area appears to be headed for the same fate. Similar to Bristol Bay, salmon fisheries provided 71 percent of the economic base in the Lake and Peninsula Borough and 31 percent of the economic base in the Aleutians East Borough. "The current situation in Bristol Bay is no different than conditions that were experienced in agricultural states during the dust bowl days of the 1930s," Knowles said. "The systemic unemployment and institutionalized poverty in other parts of Western Alaska is similar to that seen in the Appalachian region." To respond to the situation this year, Knowles is taking several immediate actions to mobilize state resources on behalf of fishing communities:
In making his declaration, Knowles also wrote President George W. Bush and Sen. Ted Stevens, requesting his assistance at the federal level to address the economic and social hardships faced by this region. In his letters, Knowles suggests a major restructuring of the federal government's approach to the frequent recurrence of poor fish returns and low prices. "For much of the last decade, the state and federal governments have been compelled to cobble together a makeshift series of temporary measures to address the very real economic and social hardships experienced by Alaska's fishermen and coastal residents," wrote Knowles. "I believe now is the time for significant changes in our basic approach. We must bring about a transition from temporary, year-to-year solutions to major structural reform designed to promote economic diversification and the long-term viability of the fishing industry." Knowles' letter outlines a restructuring of governmental responses to low fish prices, implemented in partnership with the fishing industry and coastal communities. His approach emphasizes:
"Just as federal assistance is provided to farmers experiencing the effects of drought, flood, crop disease, global competition, and over capitalization, and price supports are paid for many crops, I believe federal assistance should be provided in the same way to fishermen whose livelihoods are threatened by circumstances beyond their control," Knowles wrote to Stevens. "Federal assistance should be provided to the fishing industry whenever unfair foreign competition or environmental conditions jeopardize the ability of fishermen to earn a fair return from their labors." Knowles noted that in 1989, Congress spent almost $160 billion to bail out the savings and loan industry. The commodity program provisions of the 2002 Farm Bill will cost $168 billion in commodity supports over the next 10 years. Some $30 billion was spent during the last six years as emergency aid to farmers because of low prices or natural disasters. And in the past, Congress has invested billions of dollars in rescuing failed automakers, and Knowles noted the generous and rapid assistance that was extended to Alaska timber communities with over $137 million provided over a 3-4 year period. "Considering the economic impact of this disaster on Alaska, I believe it is clearly within the ability and the responsibility of Congress to take serious steps to deal with the economic crisis faced by those involved in the biggest fishery in the United States," Knowles said. He called the recent announcement of several millions in federal assistance to be provided over the next few years a "good start," but he noted it fell short of meeting the immediate or long-term needs of fishermen across the state. "I understand this immediate $2.3 million of economic adjustment assistance funding must be obligated prior to the end of this federal fiscal year (September 30) and only two fishing communities, neither of which is in Western Alaska, have applications pending with the EDA that are funding ready," Knowles said. "Additionally, the future funds have not been appropriated, leaving only a promise of pending help at a time when the federal government is once again facing budget deficits." Knowles said he looked forward to working with the President and Sen. Stevens to develop the short and long-term approaches necessary to get the residents of Western Alaska through the upcoming winter and into an era when a restructured industry will have a fair opportunity to compete successfully, while having access to the safety net established for other American workers in similar circumstances.
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