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Abstract: Excessive overfishing combined with negative environmental conditions led to the decimation of the northern cod stock and its closure to commercial fishing in 1992. During the ensuing dozen years, the stock has not recovered. This paper considers the current state of the Newfoundland economy and the Newfoundland fishery and asks whether the lessons of the earlier day have been learned. The answer appears to be no. The main mover of the economy is exogenous to the fishery, the unemployment rate remains high, currently more than twice the Canadian rate, and the population of the province has fallen by ten percent. With respect to the fishery, although the decimated groundfish have been replaced by shellfish and the nominal value of landings has doubled since 1992, the fishery still has excess capacity, fishermen and fish plant workers generally earn low incomes, and the fishery remains heavily subsidized. [Copyright &y& Elsevier]

This paper reports on the results of an investigation of management costs in the fisheries of Iceland, Newfoundland and Norway and discusses them in a more general framework. Management costs are defined ascosts necessary to overcome the problems associated with common property. The question of whether management costs should be paid by industry is discussed, as is the likely effect of user pay on the efficiency with which management is provided. Since management has public goods characteristics, it is likely that there is an unavoidable role for government in providing these services. The question of who pays for it is separate, and recovering costs from industry has both efficiency and optimal taxation aspects. A greater involvement in management by industry further raises the question of compatibility between the industry's interests and the public interest. Measured as percent of gross value of fish landings the management costs are by far highest in Newfoundland (15/25%), lowest in Iceland (about 3%), with Norwayin the middle (about 10%). Management costs thus appear to be substantial and quite variable. This gives rise to three conclusions. First, when calculating optimal harvesting and investment paths one must take the management costs of implementing these paths explicitly into account. Second, what is the economic efficiency of management? Couldthe same level of benefits be produced at lower costs? Third, can fisheries management expenditures of the magnitude discussed be justified in the sense that the benefits exceed the costs? [ABSTRACT FROM AUTHOR]

The fishermen's unemployment insurance system in Canada must be among the most controversial aspects of this most controversial of industries. The implementation of the system in 1957 did nothing to stem the tide of opposition. While virtually every 'expert' who has ever looked at the system has suggested that seasonal fishermen be removed from unemployment insurance coverage, there have been only two serious attempts to do so. The first occurred during the first half of the 1960s, following the release of the Gill Report. The second occurred during the mid-1970s following an ultimately abortive federal Cabinet directive. The primary question asked, and answered, is why in the face of determined opposition to the system, did attempts to reform the fishermen's unemployment scheme repeatedly fail. [ABSTRACT FROM AUTHOR]