Annapolis Basin pollution cost millions this summer

By Stephen Hawboldt

This summer the problems with municipal sewage treatment has triggered closures of the clam industry in the Annapolis Basin that have cost the local communities millions of dollars. This apparently ongoing situation clearly illustrates economic costs of pollution.

Several times this summer, the clam flats in the Annapolis Basin were closed to all harvesting because the sewage treatment plant operated by the Town of Digby was unable to handle the water volumes created by even minor rainstorms. While the poorly functioning Digby treatment plant may have been the trigger, provincial and federal regulators are not blameless.

Since there is more than enough blame to go around, pointing fingers is not productive. It is important now to recognize that significant economic damage has been done and to seek solutions that will rebuild this important industry.

As a first step, it might be worthwhile to put a number on the economic losses that our communities have suffered as a result of the clam flat closures. These losses are composed of direct income losses plus economic multipliers that account for the spin-offs to other parts of the local economy.

A conservative estimate, based on feedback from many involved in the industry, is an average loss income of $100 per day per participant, which includes harvesters, processors and all others involved in the industry. In a recent media report, harvesters estimated the daily income at $120 for their segment of the industry.

Assuming an average of 100 participants, the daily loss is $10,000. The less conservative estimates from the industry would double the number of harvesters and the daily losses.

Since local residents earn most of this income, it is reasonable to assume that the lion’s share would be spent in this region, suggesting that for every $1 earned by the industry, an additional $2 would be generated in spin-offs to the rest of the local economy. This translates into a conservative estimate of $30,000 per participant, per day.

Media reports have indicated that the clam harvesting has been closed for more that two months. If one were to assume that pollution shut the industry down for 75 days, the total losses are conservatively estimated at $2,225,000. Since industry insiders estimate 200 clammers have lost their livelihoods, the total losses could approach $5,000,000 for the summer.

These costs are a direct result of the failure of the Digby, Nova Scotian, and Canadian governments to fulfill their legal responsibilities. In doing so, they have cost the local economy between two and five million dollars this summer.

Since there is little indication that any of these three governments are responding in a positive way, these unnecessary economic losses can be expected to continue. This is a clear and compelling economic case that pollution costs jobs.

Pollution in the Annapolis Basin has cost the local economy millions this summer. Without governments accepting their responsibilities, the lost income and jobs can be expected to continue.

Comments are always welcome and can be addressed to stephenhawboldt@annapolisriver.ca