Dan Georgianna Archives - Saving Seafood

Massachusetts: Post-Rafael, New Bedford fishing industry looks to move forward

February 22, 2018 — NEW BEDFORD, Mass. — For perhaps the first time, at least publicly, fishermen on Carlos Rafael vessels sat in the same room Wednesday as John Bullard, the former regional administrator for NOAA, who implemented a groundfishing ban for those vessels.

Bullard, wearing a blue NOAA jacket, sat in front of a four-person panel brought together by Rhode Island Public Radio. The fishermen, wearing baseball caps and New Bedford Ship Supply sweatshirts, sat to the left of the panel, which discussed fishing in New Bedford after Carlos Rafael at Star Store.

“It’s an issue that’s near and dear to my heart, not just because I was the regional administrator of NOAA Fisheries to close the sector, but I care about this,” Bullard said. “This is my hometown.”

Bullard, now retired from NOAA, declined to comment specifically on the groundfishing ban, which went into effect in November.

However, Cassie Canastra, marketing director of BASE seafood, and Dan Georgianna, economist and professor emeritus at SMAST, are each on the board of the fishing division that’s affected by the ban. They said Sector IX plans to meet with Greater Atlantic Regional Fisheries Office to propose a new operational plan. If approved, it would end the ban, however, Canastra said no date for a meeting has been determined.

Neither offered more insight into negotiations to end the ban.

Canastra and Georgianna were joined by Laura Ramsden, co-owner of Foley Fish, and John Quinn, chairman of the New England Fishery Management Council, offered a smorgasbord of insight regarding fishing in New Bedford.

Read the full story at the New Bedford Standard-Times

John Sackton: Claims of 300 Job Losses Due to Sector IX shutdown Are Overblown

January 19, 2018 — SEAFOOD NEWS — Frequent claims that the NOAA action against Sector IX for failure to comply with its operational permits have cost New Bedford 300 jobs are simply not true. The figure being bandied about is based on an economic model, and it inflates the impact of this short term action.

Economist Dan Georgianna created the 300 lost jobs number by looking at the volume and value of what sector IX vessels delivered to the Whaling City Display Auction during the one month from Nov. 20^th to Dec 20^th 2016, and assumed that if the sector was still operating, they would land the same amount this year.

Georgianna first assumes that the four vessels seized by the court had quotas that would be immediately transferred to other operating sector IX vessels. This is a unlikely assumption, as NMFS has the power to approve or disapprove such transfers, and they have emphatically said they will not permit sector IX to continue business as usual without restitution for fishing violations. In the real world, no one would count on such vessels continuing to provide an economic return.

But the 300 jobs figure also seems aimed at pressuring NOAA to take a more lenient position regarding the operational permit of sector IX.

Here too, the math is dubious. For example, Georgianna says the sales impact of the shutdown is approximately $5.6 million, which is thought to represent about 49 jobs involving harvesters, processors and wholesalers in New Bedford, with the majority of these jobs being harvester jobs

This is a good estimate. But then, Georgianna relies on a Michigan state visitor spending survey for restaurant multipliers, and also includes his own estimates of retail multipliers, and using these models says that the loss of restaurant and retail jobs is much greater. He claims that the number of restaurant waiter, chef and supermarket jobs lost due to the Sector IX shutdown is around 250 jobs.

No restaurant worker got laid off because the owner couldn’t get fish from sector IX. Same thing with Retail. In both cases, the restaurants and retailers simply replaced the product they could not get from Sector IX with other product, including seafood not from New England.

So this loss of 250 jobs is largely fictitious, and certainly is not something that could possibly have happened just in New Bedford, or just in New England.

The actual fair disposition of permits following Sector IX’s failure to monitor illegal fishing remains a complex issue for NOAA, but it certainly is not helped by a public campaign by New Bedford officials claiming 300 job losses in their city, when in fact the real number is around 50, most of whom are harvesters working on the vessels that are shut down because of violations by their Sector.

For those who want to judge the numbers for themselves, here is a link to the report.

This story originally appeared on Seafoodnews.com, a subscription site. It is reprinted with permission.

‘The government is what created Carlos Rafael’

January 18, 2018 — NEW BEDFORD, Mass. — Bill Straus saw the writing on the wall years ago.

In 2009 — eight years before Carlos Rafael went to prison — the representative of Bristol’s 10th District spoke out during the establishment of the current catch-share system in the Northeast fishery. And even with Rafael behind bars, Straus says the threat of another Codfather emerging is ever present.

“The risk is still there,” Straus said. “And that’s why what comes out of the different remedies is so important.”

NOAA defines catch shares as a portion of catch for a species that is allocated to individual fishermen or groups. Each holder of a catch share must stop fishing when his/her specific share of the quota is reached. It’s often also looked at as quota. Fishermen and organizations can buy and sell quota.

Like any industry, the largest organization buys the smaller entities, whether it’s Disney purchasing Fox, AT&T attempting to acquire Time Warner or Rafael acquiring more quota.

“Catch shares are complicated things; there’s pluses and minuses,” SMAST Professor Dan Georgianna said. “Almost every study of catch shares shows decline in employment.”

Straus echoed that in a letter to the editor published in 2009 and in a conversation with The Standard-Times on Wednesday.

“The system encourages one owner or permit holder to gobble up the permits, and that it really works to that effect in a stressed fishery like New England groundfish,” Straus said. “What Rafael was able to do was approach people who had tiny bits of shares, and say, ‘I’ll just take it off your hands because you can’t afford to be sending your boat off to get that tiny amount.’”

In buying permits from across the Northeast, Rafael became one of the biggest organizations on the East Coast, not only catching the fish but also using Carlos Seafood Inc. as the landing’s dealer, which masked the act of misreporting.

Read the full story at the New Bedford Standard-Times

Study: 300 jobs lost in first month of NOAA groundfishing ban

January 17, 2018 — NEW BEDFORD, Mass. — Nearly two months have passed since NOAA imposed a groundfishing ban on Carlos Rafael’s fleet. Those within the Port of New Bedford estimate it’s put upward of 80 fishermen out of work.

That number only scratches the surface according to a study done by SMAST professor Dan Georgianna.

Within the first 30 days of the ban, Georgianna estimates that across the Northeast 300 jobs were lost, with an income loss of about $5.7 million. When including the retail loss, the number surges to $12 million.

“They’re estimates, but I think they’re pretty good estimates,” Georgianna said.

The numbers include all those linked to Rafael’s vessels: fishermen, those working at the port handling Rafael’s landings, like lumpers or cutters, restaurants that once served Rafael’s fish and even the grocery stores that supplied his vessels with food for trips.

Georgianna performed the study at the request of Mayor Jon Mitchell, after NOAA banned groundfishing for Sector IX in November. Sector IX is comprised of Rafael fishing vessels. The ban represented NOAA’s penalties lobbied against Rafael.

Georgiana said he was not compensated for the study.

He used a model developed by NOAA to estimate the economic effects on harvesting grounfish, including supplying and maintaining the vessels, processing and wholesaling. He also used a model developed by Michigan State University to estimate the retail effects.

Read the full story at the New Bedford Standard-Times