Saving Seafood

Permit banking threat helped drive Canastra Rafael deal

October 6, 2017 — Richard and Raymond Canastra weren’t the only ones interested in buying Carlos Rafael’s New Bedford, Massachusetts-based fishing empire, Richard Canastra said in an interview with a local radio station on Thursday.

Several big corporations have approached both Rafael and the two brothers to inquire about either buying or investing in the 42-permit, 32 fishing vessel operation, he told drive-time, talk-show host Phil Paleologos on WBSM 1420 AM, in the nearby town of Fairhaven. But the “biggest competitors” Canastra said he was concerned about are non-governmental organizations that could buy Rafael’s permits and “bank” them.

The Nature Conservancy has been making an effort to buy up fishing permits in coastal towns, especially for groundfish, and leasing quotas to fishermen for more than a decade. Geoff Smith, marine director for the NGO’s Maine chapter, estimated that between 12 and 15 groundfish permits have been bought in New England over the past seven years, but he said the Nature Conservancy has not met with Rafael or anyone to make an offer for his permits.

“We’re not interested,” he told Undercurrent Friday. “…We’ve had no contact and we have no plans to contact anyone.”

Smith’s group was interested, two years ago, in obtaining at least one of the groundfish permits now owned by Rafael, according to Canastra.

“There was only one offer up in Maine and that was from the NGO, and I believe it was Nature Conservancy,” Canastra said, adding: “So do you want to see those permits go to an NGO, where it can be put on a shelf or the permit could be leased out to their favorites? That’s been happening since sectors.”

Read the full story at Undercurrent News

MASSACHUSETTS: Canastra Brothers Offering $93 Million for Carlos Rafael’s Fishing Fleet

October 5, 2017 — Last week in court, it was publicly revealed that the potential buyers of Carlos Rafael’s fishing fleet are brothers Richard and Ray Canastra, owners of the Whaling City Seafood Display Auction in New Bedford, Massachusetts. This morning, Richard Canastra appeared on WBSM to confirm that the brothers have entered into a memorandum of agreement with Mr. Rafael to buy his fleet for $93 million.

“We wanted to keep everything in New Bedford,” Mr. Canastra said. “Ray and I had to make a decision – do we want to do this? I’m 56 years old, Ray is 60 years old. It’s a big task…at this later stage in our life. We believe that it’s the right thing to do for New Bedford. The waterfront has been good for us since 1986, [we] started the auction in ’94, and we’d hate to see the industry collapse because of what Carlos did in the past.”

When asked about those who have raised questions about the relationship between the Canastras and Mr. Rafael, Mr. Canastra  said, “I look at it this way. We are the largest fish auction in the United States, and Carlos Rafael is the largest boat owner on the East Coast.” He said that although the Canastras and Mr. Rafael are friends, the negotiations became tense, and there was a period where tensions ran so high that the brothers and Mr. Rafael did not speak for three weeks. 

Mr. Canastra also discussed competition with NGOs over the permits. “Our biggest competitors here are the NGOs and people up in Maine who are in cahoots with the NGOs,” he said. He described a situation in 2015 in which Mr. Rafael purchased quota from a Maine seller at fair market value when no one else would. “There was only one offer up in Maine and that was from the NGO, and I believe it was Nature Conservancy. So do you want to see those permits go to an NGO, where it can be put on a shelf or the permit could be leased out to their favorites? That’s been happening since sectors. It was a fair deal, and everyone wants it back now.”

“There are groups up in Maine that believe that these permits should be dissolved back into the industry, or even given back to them,” Mr. Canastra added. “In reality, if they dissolve all these permits into the industry, every permit holder would receive anywhere between 200 to 300 pounds of each species, so it would not really gain anything for that permit holder but it would destroy New Bedford.”

The following is excerpted from WBSM’s exclusive article on the potential transaction:

NEW BEDFORD, Mass. — One of the owners of the Whaling City Seafood Display Auction in New Bedford is shedding more light on a proposed deal to buy [Carlos Rafael’s] fishing fleet.

Carlos Rafael has been sentenced to 46 months in prison for his illegal fishing scheme, and cannot be involved in the fishing industry during that time and three years after his release.

In an exclusive interview with WBSM’s Phil Paleologos, Richard Canastra confirms he and his brother, Ray, have entered into a memorandum of agreement with Rafael to buy his business, Carlos Seafood, Inc, for $93 million.

“We know boats. We know the business. We’re doing this to keep this in New Bedford,” said Canastra. “My plan is to get out, hopefully, in ten years when things lighten up and it can be sold properly instead of this fire sale where people want everything for nothing.”

Read and watch the full story at WBSM

Cause of Action’s Stephen Schwartz Discusses At-Sea Monitoring Lawsuit on WBSM

December 16, 2015 — WASHINGTON (Saving Seafood) — Last Saturday, December 12, on the Ken Pittman Show on WBSM in New Bedford, Massachusetts, Cause of Action Counselor Stephen Schwartz, discussed a lawsuit that the organization filed against NOAA for their at-sea monitoring program. During the interview, Mr. Schwartz explained that the federal requirement that fishermen fund at-sea-monitors is overly intrusive and too burdensome for the fishing industry.

“The federal government is making a huge imposition even when top agencies and regional administrators agree that fishermen can’t afford to fund the observers, and more than half of them would go out of business,” he said.

Mr. Schwartz said that most federal observers do not have the same expertise that fishermen do – fishermen who have made their living on New England waters often in inclement conditions – and present a danger to the fishermen by taking up space on the boats, and preventing them from efficiently collecting data on fish stocks.

“If fishermen were left to their own devices, they would actually protect fish stocks and be more productive,” he said.

Mr. Schwartz and Cause of Action are arguing that NOAA does not have the power to require that the industry fund the observer program, and that the principles of constitutional law involved have the potential to restructure fishing industry regulations in order to not place the burden solely on fishermen.

Listen to the interview here