The provincial government is reopening the low-interest loan program for fishers, says Fisheries, Aquaculture and Rural Development Minister Ron MacKinley.
“The low-interest loan program will assist Prince Edward Island fishers who are facing financial challenges because of rising costs, low landings in some areas and shore prices for lobsters that are slowly recovering,” said Minister MacKinley. “Reoffering this program reflects government’s commitment to support the fishery as an economic driver in communities across the province.”
The program was first launched in 2007 and reopened in 2009. Since that time, more than 250 fishers have participated in the program, accessing more than $36 million in low-interest loans.
“The lobster industry is the backbone of the fishery and the lifeblood of many rural communities,” said Minister MacKinley. “While we are working with industry on important measures to strengthen the sector, such as fleet rationalization, trap reductions, carapace size increases and diversifying markets, this program will provide immediate relief for fishers and build long-term sustainability for the industry.”
Innovation and Advanced Learning Minister Allen Roach said the PEI Lending Agency is supporting the lobster industry because of the importance of this industry to the Island economy.
“Lobster fishers are a vitally important group of independent businesspeople and their catch provides work for hundreds of Islanders who work in the seafood processing industry,” said Minister Roach. “Government can do a lot of good for Islanders by helping our lobster fishers.”
The landed value of lobster declined nearly $25 million in 2009 from approximately $100 million to $75 million. While prices have improved in the past two years, the landed value remains at less than $85 million.
The program will be administered by the PEI Lending Agency in conjunction with the Department of Fisheries, Aquaculture and Rural Development. Loans will be available to eligible fishers from LFA 24, 25 and 26A with net cash positions less than $40,000 as demonstrated by their 2010 or 2011 tax returns.
Loans will be provided to eligible fishers at a rate of four per cent for the initial six-year term of the loans. Expenses must be attributed to the fishery.
The program will open immediately and applications will be accepted until June 30, 2012.
Program guidelines can be obtained from the PEI Lending Agency or the Department of Fisheries, Aquaculture and Rural Development.