License Limitation Regulations: Canada’s Experience

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Abstract
In the late sixties, Canada introduced legislation to provide for the limitation of fishing licenses in two specialized fisheries — the lobster fishery of the Atlantic coast, and the salmon fishery of the Pacific coast. These regulations were introduced for economic and not conservation reasons.As a result of the limitation program the number of licensed salmon vessels in British Columbia had been reduced from 7548 in 1968 to 5890 in 1972. The program called for salmon vessels to be grouped into two categories based on their record of production in 1967 or 1968. Vessels with low production ("B" category) can continue in the salmon fishery for only 10 years. License fees for "A" category vessels have been increased sharply. New salmon vessels can only be licensed provided an equal tonnage of "A" category vessels is retired from the commercial fishery. The Government is using the money from licenses to purchase from fishermen active salmon vessels and retire them from the fishing industry. Indians have been given the special privilege, for social reasons, of obtaining salmon licenses for their vessels at minimum cost, but they still cannot license a new vessel unless an equivalent tonnage of vessels has been retired. The average value of individual salmon vessels remaining in the fleet has increased substantially and the higher values are not justified in relation to the increased returns that can be achieved because of the fewer number of fishing vessels. The final phase of the plan is under review by an industry committee charged with making representation to the Government in 1973.In the Maritime Provinces the limitation program for lobster boats has not progressed as quickly as the salmon program in British Columbia. A base, however, has been established: vessels have been divided into "A" and "B" categories but no action had been taken up to September 1972 to limit the life of "B" category lobster vessels. Until this is done, or other means taken to reduce the fleet, very little reduction in the number of boats is expected.These limitation programs, for what are essentially small boat fisheries, are unique, since few attempts have been made in the world’s fishing communities to control the number of vessels for economic reasons. The progress of these programs will provide administrators and economists with criteria for future management.

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