Hay River (May 22/06) - The Hay River commercial fishery underwent big organizational changes last week.

At the annual spring meeting of the Northwest Territories Fishermen's Federation, members voted to create a separate co-operative.

Stephen Kendall, vice-president of operations with the Freshwater Fish Marketing Corporation, says changes have to be made to ensure the financial viability of the Hay River fish plant. - Paul Bickford/NNSL photo

They also signed a lease, creating the Great Slave Lake Harbour Authority to take control of the Fishermen's Wharf area in Hay River.

And fishermen heard plans for the Hay River fish plant from the Freshwater Fish Marketing Corporation (FFMC).

The creation of the Great Slave Lake Fishery Co-op Ltd. is a significant step for fishermen.

The co-op is starting with seven members out of 44 head fishermen on the lake.

Under the co-op, the fishermen will seek to gain more control of marketing their product.

Lionel Rundle, federation president and interim president of the co-op, said fishermen will still sell fish to the FFMC plant in Hay River, but the co-op will buy some of the fish once it is processed. It can then sell the fish outside the NWT, something it cannot do without the product going through an FFMC plant.

"We're not replacing Freshwater. Definitely not," Rundle said.

Once the summer fishing season begins, the co-op hopes to sell 900 kg per day of whitefish, Northern pike and trout to markets in Western Canada.

Rundle said the co-op will also help fishermen control expenses by getting bulk shipments of fuel from a co-op in the south.

Nothing changes for fishermen who are not part of the co-op, he said, noting they can continue selling fish to FFMC just like they always have.

Fisherman Shawn Buckley has not yet signed up for the co-op, and is not sure what it will mean for the industry.

"I'll have to wait and see," Buckley said, adding he supports as much freedom as possible for fishermen to sell their catches.

The Hay River fishermen officially leased the local fishing wharf on May 16 to form the Great Slave Lake Harbour Authority.

The one-year lease - for one dollar, plus GST - was with the Small Crafts Harbour Branch of the Department of Fisheries and Oceans. The lease runs from April 1, 2006, to March 31, 2007.

The new authority will set fees for use of the wharf, while other harbour facilities in Hay River will not be affected.

The wharf area now becomes eligible for federal funding for improvements.

Alan Kathan, manager of the western region with the Small Craft Harbours Branch of the Department of Fisheries and Oceans, told the fishermen that if things work out, the lease could be extended to longer periods.

"Let's just go year by year to get things working," Kathan said.

Rundle, who is the president of the new harbour authority, said the arrangement is a significant step for Hay River fishermen.

Seven head fishermen of the 44 operating out of Hay River are members of the authority, he noted, adding everyone can join if they wish.

Rundle said Small Craft Harbours Branch wanted the facility leased.

"If we didn't take it, it would have been leased to someone else," he said. "Then we would have lost control of that facility."

Stephen Kendall, vice-president of operations with the FFMC, told those who attended the federation meeting that changes are coming to reduce a persistent deficit at the Hay River fish plant.

Losses on the operation were $483,000 for 2003/04, $351,000 for 2004/05 and $258,000 for 2005/06.

Kendall said FFMC can't seem to get a handle on the deficit. "We still have a problem up here and we still have to work on it."

For one thing, he said FFMC will make changes to credit management, noting it has accounts receivable of between $155,000-$175,000.

Some former fishermen have left the industry with money owed to FFMC and moved on to other jobs, he noted. "We are considering court action to get these accounts paid down."

Kendall said there will also be stricter application of credit policy for current fishermen, such as a limit of 15 per cent of average earnings and a policy of paying FFMC first.

"I know this sounds tough, but we can't let this place get out of financial control," he said.

Kendall added the problem also requires a long-term solution, involving a review of assets.

Among the possibilities he outlined are disposing of unused lake stations, and subdividing and selling the FFMC land on which the Hay River plant sits. The FFMC would then consider re-investing in a small, energy efficient building capable of being winterized and closed in the off-season.