The permit bank dilema: solved.

It’s no secret that all of the pro-sector management folks are selling permit banks as the savior for fleet diversity.  A bogus sale from the start, I have always thought that turning fishermen into life-long sharecroppers depending on the allmighty permit banks to dole out their right to fish as they see fit was not a good alternative.  Not to mention the reason our industry is so special is because you have to work to make money.  Making money simply by having money is a new development in our industry (or at least has become much more prevalent  in recent history).  No one seems to want to adress the huge profits that these permit banks will eventually be turning in the near future…which basically means while these banks have driven the cost of a license beyond the reach of the average owner/operator, they will show investors what a wise financial decision it would be to scoop up as many permits as possible and simply lease out the fish.

By selling themselves as saviors of the community; or hero’s to the small boat fleet; or champions of the environment these permit banks convince engo’s to donate vast amounts of money to help them secure permits.  Well, why can’t we hold them to the ideals that they advertise?  If the permit banks want to lease out 100% of the allocation associated with their holdings,  they should be required to sell the permit for a set profit margin once the investment has paid for itself.  Then, said permit could return to fishermen’s hands if they  meet a set list of requirements to have the right to purchase the permit.  The permit banks will still be making a profit; the cost of permits will become more reasonable; fishermen will once again own their right to fish rather than rent it; it will allow new entrants to the fishery assuming that some of the set ‘requirements’ are looking out for the actual future of the industry. 

A scoping hearing for amendment 18 will take place in Gloucester on the 30th in an effort to brainstorm ideas that will promote fleet diversity and prevent over consolidation.  This idea will be my contribution.

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One Response to “The permit bank dilema: solved.”

  1. Kevin Says:

    Waiting for these to be securitized and traded on an exchange just like any other commodity ?

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