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Group Releases Report Revealing Rapid Consolidation of U.S. Fishing Industry Under Privatized Quotas – Says EU Has Same Problems

Brussels — Food & Water Europe are calling on European Fisheries Commissioner Maria Damanaki to do more to ensure the review of the Common Fisheries Policy (CFP) promotes genuine economic as well as environmental sustainability by radically rethinking how fishing quotas are allocated.

Food & Water Watch launched a report and campaign yesterday in the U.S. calling on Congress to stop the National Oceanic and Atmospheric Administration (NOAA) from further expanding a widely unpopular fisheries management program known as catch shares — a program that has resulted in job loss for thousands of fishermen across the United States. The international consumer advocacy group revealed that the number of catch share programs, which grant once-public access to fish to private interests, have increased by 150 percent (from 6 to 15) in the United States in less than a decade, while NOAA plans to expand the programs by an additional 33 percent in the next 5 years. Europe has similar problems; with privatized access to fishing leading to increased corporate concentration at the expense of local jobs and economies.

“Fish are a public resource. Unfortunately, private interests have shamelessly and publicly compared access to fish to the stock market and are treating it like an investment that can be bought and sold for personal profit,” said Wenonah Hauter, Food & Water Watch Executive Director. “Their model for fishing is big agribusiness on land, with giant commercial operations controlling the market, but they seem to ignore all the problem inherent in this model. As the UK’s Anne McIntosh MP, Conservative Chair of Environment, Food and Rural Affairs Committee has argued in the past few days, we’re not even clear who owns the rights to fish, but we do know it is driving smaller, more sustainable operations out of business and we agree it’s time to put that right.”

A means to essentially privatize fishing, catch shares, or individual transferable quotas (ITQs) as they are known, divide up the fish in any given area and grant access to certain companies and individuals based on historical catch— giving fishing privileges to fewer, often larger corporate interests while pushing out smaller-scale, more traditional fishermen and making it nearly impossible for new, younger or smaller local entrants to the industry.

As a result, catch shares consolidate the fishing industry when fish should be stewarded as a public good. According to the report, in 2010, about five months after a catch shares program began in New England, 55 of the initial 500 boats in the fishery controlled 61 percent of the revenue.

The amount of fish given to a fisherman through a catch share program, also known as quota, is often leased out for profit rather than fished by the quota owner. Last year in New England, for example, 253 of the 500 boats remained docked, unable to fish because they were not granted enough quota and could not afford to purchase more.

As Anne McIntosh suggests, the problems are not insurmountable. The solutions include:

– banning discards and highgrading

– creating new markets for the fish that are currently discarded

– urgently establishing a formal register of who holds quotas and who is actually fishing them

– ensuring that any quota that is not fully used by the holder in any given year, or any quota remaining if the holder leaves the market, is not sold for private gain but is redistributed to fishers, with new entrants and disadvantaged sectors (like inshore fisheries) receiving a fair share of the business.

“People who hold fishing quota should be fishing, not leasing out the right to others as an investment at a time when so many fishing businesses are being lost,” Hauter said.

These measures, in addition to continuing to improve the way total allowable catch is set and enforcing these improvements, will help ensure Europeans can continue the long fishing tradition into the future.

Proponents of catch shares have argued that they help combat overfishing. According to the report, however, catch share programs have shown little evidence that they increase fish stocks. In Norway, cod stocks dropped to their lowest level ever in 2006 after years of catch shares management.

“We hope that Common Fisheries Policy reform will incorporate lessons from around the world and move away from privatized individual fishing quotas,” Hauter said. “The last thing our fisheries management should be doing during the recession is spending money on a system that puts thousands out of work and undermines the economic base for the future. We need to get this right.”

The report Fish, Inc. and European context are available at www.foodandwaterwatch.org/europe/fish/catch-shares/.

CONTACT:

Eve Mitchell, +44 (0) 7962 437 128, [email protected]

Gabriella Zanzanaini, +32 488 409 662, [email protected]

Food & Water Europe is a program of Food & Water Watch, Inc., a non-profit consumer NGO based in Washington, D.C., working to ensure clean water and safe food in Europe and around the world. We challenge the corporate control and abuse of our food and water resources by empowering people to take action and transforming the public consciousness about what we eat and drink.

Statement of Wenonah Hauter, Executive Director of Food & Water Europe

Brussels – The results are in, and Italian citizens came out en masse this weekend and have overwhelmingly opted to overturn the laws promoting water privatisation in Italy. It is the first time since 1995 that a referendum managed to reach a quorum in Italy and of the 57% of the electorate that voted (about 26 million), 96% voted to keep their water services public.

“The success of the referendum in Italy is a true display of the power and potential of grassroots activism. The Italian Forum of Water Movements and Italian citizens managed to mobilize an entire nation and raise awareness around the human right to water and defending water as a common good,” declared Wenonah Hauter, Executive Director of Food & Water Europe.

One of the laws on water privatization that was overturned is article 15 of the “Ronchi Decree,” named after Andrea Ronchi, Minister of Community Policy from 2008-2010. It stipulated that by 2011, private companies that wished to participate in the public water services sector could do so with “equal treatment and no discrimination” and they were encouraged to buy up to 70% of any listed public water company.

The second law that was overturned is article 154 of the “Environmental Code” which states that the price of water services will be decided on the basis of a guaranteed return on investment. This meant that the private water companies could then charge as much as they wanted to guarantee a higher profit and further their view of water as an economic good instead of a common good.

“Even when all the odds were against them, Italian citizens, associations and networks managed to come together and make their voices heard.”

“The success of the referendum is seen as a blow to the Berlusconi government, but we must not forget that this referendum was born out of a water movement that refused to put its precious resource into the hands of profit seeking private companies,” said Hauter.

Contact:

Gabriella Zanzanaini, gzanzanaini(at)fweurope.org, +32 (0)488 409 662

Statement of Wenonah Hauter, Executive Director of Food & Water Europe

“We are disappointed that no one commenting on the drought currently afflicting England has mentioned the role that privatization and industrialization play in the management of public water resources. Private water companies have not been accountable for infrastructure management or the responsible use of this vital resource.

“One of the best ways to ensure that water is managed as a common resource, and that both farmers and householders get what they need in dry spells, is to look at water use holistically through public management. Water should not be commoditized for private gain, but stewarded for the long-term public good, in good times and bad.

“The idea that consumers are largely responsible for water use is a myth. In fact, consumer use accounts for only 10 percent of our global water supply. In reality, the problem lies in aging infrastructure systems whose pipes leak water, and unsustainable agricultural practices that squander precious water resources. Urbanization is also contributing to water scarcity problems because paved surfaces create run-off, rather than letting water absorb back into the earth.

“The solution to our collective water woes lies in adopting an integrated approach to the management of our watersheds, as well as using earth-friendly building materials such as water permeable pavements in our public works projects.

“While climate change is indeed a vexing problem, we cannot simply use it as the scapegoat for all of our water challenges, especially when modernizing and better maintaining the country’s water infrastructure systems could address many of the water scarcity issues from which England suffers. In failing to address the health of these water systems, the private companies that currently oversee these essential systems are granting their customers and the nation’s water resources a grave disservice.”

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Food & Water Europe is a program of Food & Water Watch, Inc., a non-profit consumer NGO based in Washington, D.C., working to ensure clean water and safe food in Europe and around the world. We challenge the corporate control and abuse of our food and water resources by empowering people to take action and transforming the public consciousness about what we eat and drink.

Contact:

Gabriella Zanzanaini, Food & Water Europe, gzanzanaini(at)fweurope.org, +32 488 409 662

Kate Fried, Food & Water Watch, kfried(at)fwwatch.org, +1 202-683-4905

Statement by Wenonah Hauter, Executive Director, Food & Water Europe

Brussels, Belgium – “It is deeply disturbing that McDonald’s Filet-O-Fish sandwich will soon carry the Marine Stewardship Council (MSC) eco-label at the fast food chain’s European locations. Filet-O-Fish sandwiches are made from a controversial fish, the New Zealand hoki — a species that we and many experts believe should not have been certified by the MSC to begin with.”

“We have documented in detail the many problems associated with private eco-labeling programs, including the Marine Stewardship Council’s. In particular, we are disappointed that the MSC continues to certify fisheries such as New Zealand hoki — fisheries that have committed to environmental reforms in name only. In fact, the New Zealand hoki fishery has been found to violate the country’s Fisheries Act, which requires adverse effects on the aquatic environment – such as the fishery’s troubled history of deadly interactions with seabirds – be addressed and avoided.

“Despite numerous objections to the hoki’s certification over the past decade – including concerns about seabird and seal deaths associated with the fishery – this fish inexplicably remains certified by MSC. Because of this, it is unlikely that MSC-certified fisheries meet European consumers’ high standards for sustainability.”

“The pressing concern we have with eco-labeling programs is the ‘pay-to-play’ aspect built into certification. Smaller and more sustainable fishing operations often cannot afford to certify, frequently leaving the label accessible only to the largest multinational fishing companies and ‘foodservice operations’ like McDonald’s. An MSC label appearing on a mass-produced fast food item like the McDonald’s Filet-O-Fish is an indication that these types of labels may be less focused on sustainability than profits.”

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Food & Water Europe is a program of Food & Water Watch, Inc., a non-profit consumer NGO based in Washington, D.C., working to ensure clean water and safe food in Europe and around the world. We challenge the corporate control and abuse of our food and water resources by empowering people to take action and transforming the public consciousness about what we eat and drink.

Contact:
Eve Mitchell, Food & Water Europe, emitchell(at)fweurope.org, +44 (0)1381 610 740

Darcey Rakestraw, Food & Water Watch, drakestraw(at)fwwatch.org, +1 202-2683-2467

For more information, read our report, De-Coding Seafood Eco-Labels: How the European Commission Can Help Consumers Access Sustainable Seafood and Food & Water Watch’s fact sheet, About the Marie Stewardship Council

Washington, D.C. The Utility Workers Union of America and Food & Water Watch today filed a petition under an international convention criticizing the labor and environmental practices of United Water, a U.S. water utility and a subsidiary of French multinational Suez Environnement.

The petition – which the two organizations submitted pursuant to the Guidelines for Multinational Enterprises adopted by the Organization for Economic Co-operation and Development (OECD) – raises both labor and environmental concerns with United Water activities in the U.S. The OECD Guidelines are designed to promote responsible conduct by multinational corporations in all countries in which they operate.

“Utility workers have been astonished at the bad faith conduct of United Water in labor negotiations in the U.S.,” stated Michael Langford, UWUA National President.

The U.S. National Labor Relations Board has authorized complaints against United Water in two separate locations charging the company with illegal bargaining tactics. UWUA members are working under expired labor agreements in four states – Delaware, New Jersey, New York, and Pennsylvania – because of United Water demands for steep cuts in employee retirement benefits.

“Food & Water Watch believes strongly that water should be managed in the public interest, not for private profit,” stated Wenonah Hauter, Executive Director of Food & Water Watch.  “When water services are privatized, the environment and workers lose out, as some of the examples in this petition to the OECD illustrate. Consumers are on the losing end as well, often seeing worse service at a higher cost with private water management. Communities, workers and the environment in the U.S. take a back seat to shareholders in Europe and elsewhere when water services are privatized.”

The OECD petition filed by the two organizations raises the following concerns:

-On May 31, the National Labor Relations Board issued a complaint charging that United Water Pennsylvania illegally refused to provide information necessary for the UWUA to negotiate over the company’s demands for concessions in retirement benefits for workers. The NLRB has authorized a similar complaint against United Water in New Jersey.

-In December 2010, a federal grand jury issued a criminal indictment charging that United Water intentionally manipulated E. coli bacteria monitoring tests at a wastewater treatment plant in Gary, Ind. between 2003 and 2008. The company has pleaded not guilty in the case.

-The indictment charges that United Water manipulated the monitoring results as part of a scheme to reduce its costs for purchasing chlorine, which is used as a disinfectant before the plant discharges treated sewage into a public waterway near Chicago. United Water’s President has publicly dismissed the seriousness of the charges, claiming the indictment involves a “disagreement about operating and monitoring methods.”

UWUA and Food & Water Watch filed the OECD petition today with officials of the U.S. and French governments. Under OECD procedures, the governments are obligated to forward the submission to officials of the French parent company and the U.S. subsidiary for a formal reply.

Contact: Kate Fried, Food & Water Watch, (202) 683-2500, kfried(at)fwwatch(dot)org; Mark Brooks, Utility Workers of America, (615) 259-1186, mbrooks(at)uwau.net.

Utility Workers Union of America, AFL-CIO, represents working men and women in the utility and related industries throughout the U.S., including United Water employees in Delaware, New Jersey, New York, and Pennsylvania.

New Report: China’s Food Exports to the United States Triple in 10 Years

Washington, D.C. – While Europe suffers from a “super toxic” E. coli outbreak, a national advocacy group warns that potentially unsafe food from China could provide the next food safety scare in the United States. Whether it’s frozen or canned produce, seafood, candy, vitamins, or any type of processed food, these products or their ingredients increasingly come from China, where food manufacturers are legendary for cutting corners, substituting dangerous ingredients, and compromising safety in order to boost sales. Officials there have publically acknowledged their inability to regulate the country’s sprawling food production sector and last week China’s highest court even recommended stiffer penalties—including death—for those found violating food safety regulations.

The new report A Decade of Dangerous Food Imports from China, released today by Food & Water Watch, analyzes how many common foods (many of which children eat on a daily basis, including apple juice, candy, and canned fruit) come from China.

“Our next safety scare could come compliments of China,” says Food & Water Watch executive director Wenonah Hauter. “Given the scale of the distribution of poorly regulated Chinese food exports, it’s just a matter of time before a problem with one unscrupulous facility gets exported around the world and causes another major health threat.”

China’s food exports to the U.S. have tripled over the past decade to nearly 4 billion pounds of food in 2010, worth nearly $5 billion. The U.S. Food and Drug Administration prevented over 9,000 unsafe products from entering the country between 2006 and 2010, but with a less than 2 percent inspection rate on imported food, countless other unsafe products no doubt entered the U.S. food system, the group warns. According to the report:

• Two-thirds of apple juice that Americans consume—more than 400 million gallons annually—come from China.
• By 2007, 90 percent of America’s vitamin C supplements came from China.
• By 2010, China supplied the United States with 88 million pounds of candy.
• Around 85 percent of U.S. imports of artificial vanilla along with many vitamins frequently added to food products like folic acid and thiamine come from China.
• In 2009, more than three-quarters of the tilapia Americans consumed (287.5 million pounds) came from China, an increase of 200,000 percent from 2000 levels.
• One in 11 canned peaches consumed in the U.S. comes from China; 20 percent of frozen spinach and half the cod consumed in the U.S. come from China.

U.S. food safety oversight of Chinese food processors has not remotely kept pace with the exploding number of imports. In fact, when the melamine-tainted pet food crisis began, it took the FDA nearly a month to even identify its counterpart in China.

Melamine contamination continues to be a problem, with U.S. regulators finding high levels of melamine in a dog food shipment as recently as January 2011. The group also warns of a new milk adulterant being found in Chinese-made processed dairy products: hydrolyzed leather protein, made from scraps of animal skin.

“The FDA prevents thousands of unsafe Chinese products from entering the country every year, but it’s not because of vigilant inspection,” says Hauter. “The agency’s low inspection rate—less than two percent of imported produce, processed food and seafood—virtually guarantees that unsafe Chinese products are making their way into American grocery stores. And while some chemical adulteration in food might not manifest itself as acutely harmful, low levels of contamination can have long-term health risks that haven’t been clearly studied.”

The FDA has even more limited capacity and authority within China. Between 2001 and 2008, it inspected 46 food firms there—less than six a year. “And, to compound this problem, the Agriculture Appropriations bill passed by the House Appropriations Committee on May 31st cuts the FDA funding by more than $280 million compared to FY2011 levels,” says Congresswoman Rosa DeLauro.

Commercial and trade interests deter U.S. leaders from being tough on imported food standards. “As Congress considers funding for food safety and implementation of trade agreements, it is critical that we have a complete understanding of the problem that we face. This report by Food & Water Watch is a valuable part of our understanding and this information should not be overlooked as protecting the public health must be a top priority in our trade agreements,” said Rep. DeLauro.

The explosive growth in China’s food exports to the U.S. is due to China entering the World Trade Organization (WTO) in 2000. The WTO limits the ability of member countries to establish health, safety or environmental rules that hamper global commerce.

“The WTO’s structure promotes commerce at the expense of other goals like food safety,” says Hauter. “Congress and the Obama Administration must revisit the current trade agenda and make public health, environmental standards and consumer safety the first priority. Unfortunately, it looks like they will pursue more broken deals with South Korea, Columbia and Panama instead.”

Contact: Darcey Rakestraw, Food & Water Watch, 202-683-2467; drakestraw(at)fwwatch(dot)org