Anchorage Daily News

KODIAK -- Alaska fishermen are hoping to catch tax breaks on two fronts: high fuel costs and oil spill payouts, if any, from Exxon.

"We're seeing a 69 percent increase in fuel costs in Cordova from June of last year," said U.S. Sen. Lisa Murkowski, R-Alaska, after she traveled to several fishing communities.

"In Dillingham, the increase is 54 percent. In Kodiak, it's 58 percent over last year. Fishing families can't sustain this," she said.

Murkowski said she is troubled by the number of fishermen who tell her that high fuel costs are forcing them out of business.

"When you have 1,700 fishermen say we need your help in Washington to do something so we can be out working, we figured we had to find some way to provide relief," Murkowski said, referring to a statewide petition signed by Alaska fishermen and delivered to her Senate office.

Murkowski and fellow Alaska Sen. Ted Stevens are pushing a bill that would give fishermen an extra fuel-tax deduction for the next two years. The deduction would be based on the difference between fuel prices paid on Labor Day 2004, adjusted for inflation, and prices paid this year. The deductions would apply to fishermen across the United States.

"It does mean that you're going to have to put cash up front and absorb those costs at the fuel dock. But it gives some hope that when tax time comes around, you'll be able offset some of what you have paid," Murkowski said. "It's one small effort, but we believe it will be a help to our nation's fishing families."

Alaska fishermen will take any break they can get, especially in the face of lower-than-expected salmon catches in most regions.

"Cordova is like a ghost town," said Rochelle van den Broek, director of Cordova District Fishermen United. "It feels like the middle of winter, as very few can afford to pay fuel costs to return home between openers, and are docking at Whittier or staying out in the Sound on their boats. The loss to local businesses is yet to be fully realized. It is an industry-crushing problem."

Some in Congress will object to giving temporary fuel-tax breaks to fishermen, because all industry sectors are suffering. But Murkowski said the fishing industry is unique.

"Fishermen can't pass on cost increases to customers, turn to alternative modes of transportation or sell their product for a higher price," she said.

TAX BREAK FOR OILED FISHERMEN?

Also coming before Congress: A tax bill designed to give fishermen a break from paying taxes right off the top of Exxon Valdez oil spill awards. The measure would provide relief by allowing income averaging and increased retirement contributions.

The U.S. Supreme Court last week ended the lawsuit stemming from the 1989 tanker spill by limiting punitive damages to $507.5 million, plus interest.

The tax break could be included in the Tax Extenders bill that the House Ways and Means Committee will take up this week. The Oiled Fishermen group of punitive-damages recipients is lobbying hard for passage, and urges support by contacting lawmakers.

Questions? Contact UFA at 907-586-2820 or United Cook Inlet Drift Association at 907-260-9436.

NO NOSE FOR GOOD NEWS

It is a good fish story that was woefully overlooked by the mainstream media -- the status of our nation's fish stocks got high marks from federal managers.

NOAA Fisheries tracks population levels and harvest rates for fish caught in federal waters, meaning from 3 to 200 miles offshore. Its annual report to Congress last week revealed that seven stocks were removed from the overfishing list last year, and none were added. No fisheries in Alaska waters were on the list.

The agency admits there is still work to be done: Of the 244 stocks reviewed, 41 were subject to overfishing. Federal managers aim to end all overfishing by 2010, as required by the nation's top fish law -- the Magnuson Stevens Act.

Laine Welch is a Kodiak-based fisheries journalist. Her Fish Radio programs can be heard on stations around the state. Her information column appears Sundays. This material is protected by copyright. For information on reprinting or placing on your Web site or newsletter, contact msfish@alaska.com.

ADVERTISEMENT