The economy of this area is based solely on the fishery. In the past, people were engaged in the inshore fishery using gillnets, trawls, and cod traps. In the 1980's, these inshore fishermen would catch approximately 4 to 5 million pounds of cod per year in this area. In the late 1980's and early 1990's, the cod fish became very scarce. In 1992, the Government of Canada closed the ground fishery in Newfoundland. This meant that fishermen could no longer catch any type of
ground fish, not even a cod fish to eat.
     The cod fishery is still closed in this area and many fishermen have sold their fishing license back to the government. Since the closure of the fishery, some fishermen have attempted to earn a living by catching other species. People now participate in the crab and shrimp fishery, and the lump fishery which we know is also important in Iceland.
     In the last two or three years a large number of fishing boats from other areas of
Newfoundland have used the harbours in this area to unload their catch of shrimp and crab. Last year, between 40 and 50 million pound of shrimp and approximately 20 million pound of crab was landed in this area. However, no processing was done in this area. All of the fish was trucked to other parts of the province. However, in May of this year, a new processing plant was opened in the nearby community of St. Anthony. Companies from Iceland are partners in this plant and people from Iceland are working in this plant.
      The only jobs in this area, not involving the fishery, are teachers, people working in stores, etc. There are no other industries. Since the fishery closed in 1992, approximately 500 people have moved from this area to work in other parts of Canada. Unless things change, the future does not look bright.