New lobster season could add to oversupply

With a lot of frozen lobster already in storage, and banks not likely to finance larger inventories in the current economic climate, P.E.I.'s lobster processors are turning to the government for help.

In addition to the credit crunch, the global economic crisis is also hitting the lobster industry at the demand level. The combination has many processors worried about the spring season: where will they borrow money to pay fishermen for catches, and where will they sell the catch?

P.E.I. Fisheries Minister Allan Campbell wouldn't be specific about how much money the seafood processing companies may be looking for from government.

"There's not a dollar figure, and you know, I guess until we as a group collectively make a decision as to where we can have the most impact with our efforts and with resources, it's hard to put a figure on that at this point," said Campbell.

"Our premier certainly is acutely aware of the importance and the situation in the fishery, and I'm confident of saying he would be very supportive of some effort to try and put some resources in to try and help the situation here."

Campbell said the lobster industry generates $250 million for the provincial economy each year and employs close to 7,500 people during peak season.

The province has also been meeting with the P.E.I. Fishermen's Association, and Campbell said talks with everyone in the lobster fishing industry will continue.