Ottawa says money for lobster fishermen would violate trade pact

Federal Fisheries Minister Gail Shea says providing Maritimes lobster fishermenwith subsidies in this time of low priceswould violate Canada's trade agreement with the United States.

Instead, Shea said,the industry needs to be revamped to include more efforts in publicity and marketing of Atlantic lobster.

"Its a supply-and-demand market, right?" Shea told CBC News on Saturday. "So you either have to increase the demand or decrease the supply. They have to match to get the maximum price for your product."

The fisheries minister was in Moncton, N.B.,on Friday to attend an emergency meeting with lobster fishermen in the region. The fishermenhad expectedShea to provide them with moreimmediate financial aid to get them through this season's low prices.

Cannery lobsters have beenselling for $3.50 a pound in some supermarkets in the region, compared with $3.99 for a pound of bologna. Some lobster fishermen have said the price oflobster this season is the lowest they've seen in decades.

The federal government will work with lobster fishermen to help them boostprices, Shea said.

Union says help needed now

However, Maritime Fishermen's Union representative Michel Richard said that approach will not helpmembers who are out in their boats this season.

"First of all, there has to be some way to have an adjustment on the price to at least get the fishermen to make it to the end of the season," Richard said.

Richard said the federal government and the provinces must realize the lobster fishery is just as vital to this region as other industries that receive government money to deal with an economic downturn.

"What the government has to know is that we're as important as the forestry sector and we're certainly as important as the auto industry," Richard said.

Richard said the MFU plans to meetMonday evening tocome up with its own plan to deal with thepricing crisis. The union hopes to have that plan in place later this week.