ROCKPORT, Maine (AP) — Gov. Paul LePage wants to eliminate a tax on diesel fuel used by groundfishing boats to help level the playing field between Maine and Massachusetts, he told fishermen Friday.
Speaking at the Maine Fishermen’s Forum, LePage said incentives are needed to bring groundfishing vessels and their hundreds of thousands of pounds of fish back to Maine ports. Easing regulations on processors and promoting Maine seafood are other ways the state can help fishermen and coastal communities, he added.
“We cannot tax or regulate our way to prosperity. It can only come from the private sector. State government can be a partner,” he said at the annual forum that draws thousands of fishermen, fishery managers, scientists, seafood processors and dealers and others with an interest in commercial fishing.
The diesel fuel issue has long been a frustration for Maine’s fishing fleet. Massachusetts does not impose a tax on fuel used by large groundfishing boats, while Maine has continued to do so. Massachusetts is also closer to the prime fishing grounds for cod and haddock.
In Maine, the Legislature’s joint Taxation Committee has given unanimous approval to a bill that would end sales tax collected on fuel used by groundfishing vessels. The bill requires additional votes in the Legislature.
Easing restrictions on processing plants is another way the state can help, LePage said. A change in laws governing the processing of lobster last year has allowed new products like Maine lobster “cocktail” claws sold in 750 Wal-Mart stores, the governor said.
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