July 8, 2009 : Keeping Fisherman Afloat

>> WHEN WE CONTINUE, FISHING

PERMITS FOR THE LOCAL

FISHERMEN.

SOME FISHERMEN ON CAPE COD SAY

YOU EITHER HAVE TO BE A

MILLIONAIRE TO GET STARTED OR

BE A LAWYER TO NAVIGATE THE

REGULATIONS.

NOW ONE CAPE NONPROFIT IS

TRYING TO MAKE IT EASIER FOR

CAPE COD FISHERMEN TO GET

PERMITS.

LIFE ON THE CHATHAM PIER

REVOLVES AROUND ONE THING,

FISHING.

BUT THE STAGGERING COST OF

FISHING PERMITS NOW THREATENS

THAT EXISTENCE.

>> I'VE SPENT MY LIFE SAVINGS

AND I'VE BEEN FISHING HARD FOR

THE LAST TEN YEARS TO SKBORK

NOW IT'S ALL OVER.

>> THAT'S BECAUSE FISHERMEN

ARE ON THE HOOK FOR $180,000

TO $300,000 PER FISHING

PERMIT.

SECOND GENERATION FISHERMAN

TIMLIN EL SAYS THAT HAS FORCED

MORE FISHERMEN TO THE DOCK FOR

GOOD.

>> I SEE THE FLEET BEING CUT.

BY 70% IN TEN YEARS.

>> BUT NOW A NONPROFIT GROUP

IS FIGHTING BACK, FORMING A

TRUST TO BUY PERMITS AND LEASE

THEM BACK TO LOCAL FISHERMEN

AT AFFORDABLE PRICES.

>> WE'RE WORRIED THAT THIS

MIGHT BE THE LAST GENERATION

OF FISHERMEN ON CAPE COD.

>> THE DIRECTOR OF THE CAPE

COD FISHERIES TRUST SAYS IT'S

AN INVESTMENT, NOT A HANDOUT.

>> LARGER BUSINESSES WITH

BETTER ACCESS TO CAPITAL AND

FINANCING ARE BUYING UP OUR

FISHING PERMITS AND WHEN THEY

BUY THOSE PERMITS THEY LEAVE

CAPE COD FOREVER, SO IT

REPRESENTS A REAL THREAT TO

THE WORKING FABRIC OF THE CAPE

AND TO THE LOCAL TRADITIONAL

ECONOMIES.

FISHING THAT YOU SEE BEHIND

ME.

>> BUT TIMLIN EL IS SKEPTICAL,

SAYING IT'S STILL ALL ABOUT

WHAT YOU CAN PAY.

>> THEY'RE NOT GOING TO GIVE

ANYTHING TO THE FISHERMEN.

WE'LL BUY IT IF WE HAVE THE

MONEY.

BUT IF WE CAN'T AFOR IT WE

CAN'T AFOR IT.

>> BUT WITHOUT NETS FULL OF

CASH, MAYBE IN CHATHAM COULD

BECOME FISHERMEN OUT OF WATER.

WITH ME NOW IS PAUL PARKER,

DIRECTOR OF THE CAPE COD

FISHERIES TRUST.

WELCOME TO YOU.

>> THANKS.

>> TELL ME HOW THIS WORKS.

THESE BIG COMPANIES COME IN,

THEY BUY THE FISHING PERMITS.

WHAT DO YOU MEAN THEY LEAVE

CAPE COD, WHY AREN'T THEY

USING THEM RIGHT THERE?

>> THE WAY IT WORKS IS THAT

THE GOVERNMENT ISSUES FISHING

PERMITS AND QUOTA TO THE

FISHERMEN THAT HAVE CAUGHT

FISH RECENTLY.

AS THE RAL YOUS GO UP, OLDER

FISHERMEN ON THE CAPE WANT TO

GET OUT OF THE BUSINESS.

WHEN THEY SELL THEIR PERMITS

TYPICALLY THE YOUNGER

FISHERMEN LIKE TIM IN THE SHOW

THERE ARE UNABLE TO AFFORD TO

BUY THEM, AND THE BIGGER

BUSINESSES ARE ABLE TO SCOOP

THEM UP.

>> THEN THEY TAKE THEM, THEY

DON'T DAY RIGHT THERE?

>> WHAT WE SEE IS THAT A LOT

OF THE FISHING PERMITS ON CAPE

COD ARE MIGRATING OFF OF CAPE

COD.

IN2001 WE HAD --

>> BECAUSE THERE'S A LIMITED

NUMBER.

>> RIGHT, THERE'S A LIMITED

NUMBER SO, THE POOL DECLINES

AS EACH PERFECT MY LEAVES THE

CAPE.

I ISN'T LIKELY TO COME BACK.

>> WHY ARE THEY SO EXPENSIVE?

AND HOW LONG IS THAT GOOD FOR?

>> THE PERMIT WOULD ALLOW YOU

TO CATCH FISH EACH YEAR.

YOU WOULD PAY A ONE-TIME COST

OF $180,000 FOR A GROUND FISH

PERMIT.

AND SCALLOP PERMITS CAN FETCH

UP TO $2 MILLION THESE DAYS.

SO PERMITS ARE EXTREMELY

EXPENSIVE AND IT REFLECTS THE

FACT THAT YOU'RE GETTING A

RIGHT TO CATCH THE FISH EACH

YEAR INTO THE FUTURE.

>> HOW MUCH OF A BREAK CAN YOU

OFFER THESE GUYS?

>> WHAT WE'RE DOING IS WE

WOULD BUY THE PERMITS, IF

THERE IS NO LOCAL FISHERMAN

THAT'S ABLE TO BUY IT, THEN WE

WOULD COME IN AND PURCHASE THE

PERMIT, AND RENT IT TO THE

FISHERMAN FOR A SINGLE YEAR.

>> HOW MUCH BOY COST TO RENT

ONE?

>> RIGHT NOW WE ARE RUNNING

RENT RATES ABOUT 10 TO 20%.

OF THE FAIR MARKET VALUE.

SO OF WHAT THE FISHERMAN WOULD

EARN ON CATCHING THE FISH.

>> WHAT KIND OF RESPONSE ARE

YOU GETTING TO IT?

>> WE'VE HAD GREAT RESPONSE

THIS YEAR, WE PUT OUT 100

LETTERS TO ALL THE OWNER

OPERATOR FISHERMEN THAT LIVE

ON CAPE COD AND RECEIVED 15

QUALIFIED APPLICANTS.

AND WE'RE IN THE PROCESS OF

DISTRIBUTING THE OPPORTUNITY

RIGHT NOW.

>> WHO IS CONTRIBUTING TO

THIS?

YOU WANTED TO RAISE $10

MILLION, YOU'VE GOT 2 AND A

HALF OR SOMETHING, BUT WHO IS

CONTRIBUTESING?

>> OUR SINGLE LARGEST INVESTOR

IS THE FORD FOUNDATION, WHO

HAS PROVIDED WITH US A LOW

INTEREST ECONOMIC DEVELOPMENT.

WE REACHED AN AGREEMENT WITH

THE CALVERT FOUNDATION FOR

ANOTHER LOAN.

AND THERE'S A NUMBER OF

GENEROUS CONTRIBUTORS ON CAPE

COD, PEOPLE THAT THINK IT'S

IMPORTANT TO KEEP WORKING

FISHERMEN AND ALSO SUSTAINABLE

FISHING TAKING PLACE ON CAPE

COD.

>> I THINK PEOPLE AREN'T

REALLY AWARE OF HOW

COMPLICATED THIS REALLY IS,

WITH THE GOVERNMENT

REGULATIONS, THE QUOTA SYSTEM,

THAT YOU CAN'T JUST THE GO OUT

AND RANDOMLY FISH FOR

ANYTHING.

BUT THE QUESTION I ALWAYS HAVE

IS WHO'S WATCHING?

IS THERE SOMEBODY THERE

CHECKING EVERY BOAT THAT COMES

IN ON THE DOCK?

>> YOU'D BE SURPRISED.

THERE'S VESSEL MONITORING

SYSTEMS, SAT LIGHT SYSTEMS

THAT MONITOR EACH BOAT.

>> HOW DO THEY KNOW WHAT

THEY'RE LOADED?

>> THOSE NEED TO BE HAILED

THROUGH A COMPUTER SYSTEM OR

WHEN YOU GET TO THE DOCK, YOUR

PAPERWORK IS RECONCILED WITH

PAPER FROM THE DEALER THAT

BUYS YOUR FISH.

SO IT'S AN INCREASINGLY

STRINGENT MARKETPLACE, AND THE

GOVERNMENT IS DOING AN

INCREASINGLY STRICT JOB

CONTROLLING WHERE THE BOATS

ARE AND WHAT THEY CATCH.

>> SO A LOT OF THESE GUYS, I

WAS TALKING TO A LOBSTER

FISHERMAN A COUPLE WEEKS AGO,

JLS A ONE-MAN OPERATION, BUT

HE HAD LOST ANOTHER LICENSE

AND WAS PROBABLY BECAUSE HE

COULDN'T AFFORD IT.

>> THERE'S A COUPLE OF

DIFFERENT REASONS PEOPLE WOULD

LOSE A LICENSE, BUT OFTENTIMES

IF PEOPLE DON'T USE A LICENSE

FOR A PERIOD OF TIME THEN THE

GOVERNMENT WILL TAKE IT BACK.

>> BECAUSE YOU'RE JUST HOLDING

IT?

>> THAT'S CORRECT.

SO THAT TYPICALLY REDUCES THE

NUMBER OF LICENSES AND

OFTENTIMES THE PLY COMES DOWN,

THE PRICE GOES UP.

>> SO I'M NOT ALLOWED TO PASS

I DOWN THROUGH THE FAMILY IF I

HAVE A LICENSE, I CAN PASS IT

TO MY SON OR DAUGHTER?

>> YOU COULD PASS A LICENSE

DOWN TO YOUR SON OR DAUGHTER,

BUT IF YOU THINK ABOUT WHAT

HAPPENS WHEN A FAMILY HAS A

VALUABLE PIECE OF REAL TAELT,

IT CAN BECOME CONTEND HUSBAND

TO PASS DOWN THAT OPPORTUNITY

TO ONE OF YOUR CHILDREN.

WE SEE THAT SOMETIMES WHERE

THESE PERMITS ARE BECOMING

WORTH SO MUCH MONEY THAT

PEOPLE HAVE TO SELL THEM IN

ORDER TO EK WHICHABLY

DISTRIBUTE THE CASH VALUE TO

THEIR FAMILYS.

WE'RE LOOKING FORWARD TO

RAISING $10 MILLION AND WITH

THAT WE'D BE ABLE TO SUPPORT

75 FISHING BUSINESSES ON THE

CAPE.

EMPLOYING ABOUT 175 FISHERMEN

AND LANDING A CATCH OF $10

MILLION WORTH OF SEAFOOD EVERY

YEAR.

SO IT'S A BIG PROJECT.

>> GOOD LUCK TO YOU.

THANKS FOR COMING.

THAT IS IT FOR "GREATER

BOSTON".

TOMORROW NIGHT, A NEW BOOK

ABOUT GETING RID OF

FRIENDSHIPS, BOSTONES, SPOUSES

AND ANYONE ELSE YOU'RE DONE

WITH.

THAT'S TOMORROW AT 7:00.

I'M EMILY ROONEY.

GOOD NIGHT.

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