A Brief History of Trade and Commerce in the Labrador Straits
The first trading activity in the Labrador dates to early prehistoric times, when a flourishing aboriginal culture known today as the Maritime Archaic tradition occupied much of the Labrador coast. About 5,000 years ago, after thousands of years of settlement in Labrador, these people spread to the island of Newfoundland. At Ramah Bay in northern Labrador a unique type of stone called Ramah chert (especially suited to the manufacture of stone tools) was quarried and traded throughout the Atlantic region, as far south as New England (James A.Tuck, Newfoundland and Labrador Prehistory 1976). Given its geographic position the Labrador Straits region likely figured prominently in this trade, especially as a departure point from Labrador to Newfoundland. This traffic in Ramah chert marks not only the start of trade in our region, but is also the first incidence in a long history of exportation of Labrador resources to Newfoundland.
In the early 1500s fishermen from European nations began to exploit the rich codfish resources in the waters of Newfoundland and Labrador. Amongst these were the Basques who, in the years after 1517, developed a cod fishery and whaling industry in the Strait of Belle Isle. Whale hunting and the processing of whale oil at shore stations along the southern Labrador and adjacent Quebec Lower North Shore coasts reached a peak in the decades after 1550. For some fifty years thousands of men were engaged each year in this extremely profitable enterprise. Whale oil refined on the Labrador coast and transported back to Europe served as a fuel for lighting, and was used in manufacturing and as a lubricant. According to one historian the profits from this enterprise spurred a tremendous growth in the Basque economy (Jean-Pierre Proulx, Basque Whaling in Labrador in the 16th Century 1993). Ironically the archaeological remnants of Basque whaling sites has spurred the growth in recent years of a new industry in the Labrador Straits: heritage tourism.
Prior to the 1763 Treaty of Paris southern Labrador was an extension of New France, under the ownership of the French King. The King granted concessions to select members of society which gave them exclusive rights to fish and trade. In 1702 a vast concession, including all of southeastern Labrador, was granted to Augustin de Courtemanche for a period of ten years.
It was not until 1713, when a much smaller concession in the Labrador Straits region was awarded to Pierre Constantin, that the first French post was built here. At Red Bay and Riviére des Francois (Pinware River) Constantin built establishments for a seal fishery. The post at Grand St. Modet (today's community of West St. Modeste) produced oil -- rendered from the fat of seals -- and salted seal pelts for shipment to Quebec City.
During this period the Labrador coast also figured in the French ship fishery. Forteau and L'Anse au Loup were the major French ports in the Labrador Straits. Good fishing years during the 1720s, '30s and '40s saw in excess of 10,000 quintals of dried cod produced annually at each of this ports for shipment back to France (Patricia Thornton, The Demographic and Mercantile Base of Initial Permanent Settlement in the Strait of Belle Isle 1977).
France's right to fish along the Labrador coast ended in 1763. The following decades saw the arrival of new mercantile interests in the Labrador Straits. English and Jersey merchants established cod fishing stations at L'Anse au Loup, Forteau and L'Anse au Clair and at Blanc Sablon in neighbouring Quebec (of course, the Quebec-Labrador border did not exist in its present form at that time). Unlike the Jersey merchants, who concentrated exclusively on the summer cod fishery, the English firms were interested also in other resources, including seals and salmon. The Devon-based firm of Noble and Pinson established a sealing post at West St. Modeste and a salmon post at Pinware as early as 1774.
Fishing crews were initially brought from England and the Jersey islands, yet this practise was expensive for the merchants who backed these enterprises. These merchants soon discovered it was advantageous, and cheaper, to hire crews from Newfoundland settlements and from the growing permanent population on the Labrador coast. Similarly it became cheaper to purchase supplies from St. John's or Halifax rather than ship them from across the Atlantic. As a result, management of the Labrador fishery became focussed in St. John's. English merchants eventually sold out to Newfoundland firms such as Job Brothers, who had purchased a major interest in the Labrador Straits fishery by 1871.
In the early 1500s fishermen from European nations began to exploit the rich codfish resources in the waters of Newfoundland and Labrador. Amongst these were the Basques who, in the years after 1517, developed a cod fishery and whaling industry in the Strait of Belle Isle. Whale hunting and the processing of whale oil at shore stations along the southern Labrador and adjacent Quebec Lower North Shore coasts reached a peak in the decades after 1550. For some fifty years thousands of men were engaged each year in this extremely profitable enterprise. Whale oil refined on the Labrador coast and transported back to Europe served as a fuel for lighting, and was used in manufacturing and as a lubricant. According to one historian the profits from this enterprise spurred a tremendous growth in the Basque economy (Jean-Pierre Proulx, Basque Whaling in Labrador in the 16th Century 1993). Ironically the archaeological remnants of Basque whaling sites has spurred the growth in recent years of a new industry in the Labrador Straits: heritage tourism.
Prior to the 1763 Treaty of Paris southern Labrador was an extension of New France, under the ownership of the French King. The King granted concessions to select members of society which gave them exclusive rights to fish and trade. In 1702 a vast concession, including all of southeastern Labrador, was granted to Augustin de Courtemanche for a period of ten years.
It was not until 1713, when a much smaller concession in the Labrador Straits region was awarded to Pierre Constantin, that the first French post was built here. At Red Bay and Riviére des Francois (Pinware River) Constantin built establishments for a seal fishery. The post at Grand St. Modet (today's community of West St. Modeste) produced oil -- rendered from the fat of seals -- and salted seal pelts for shipment to Quebec City.
During this period the Labrador coast also figured in the French ship fishery. Forteau and L'Anse au Loup were the major French ports in the Labrador Straits. Good fishing years during the 1720s, '30s and '40s saw in excess of 10,000 quintals of dried cod produced annually at each of this ports for shipment back to France (Patricia Thornton, The Demographic and Mercantile Base of Initial Permanent Settlement in the Strait of Belle Isle 1977).
France's right to fish along the Labrador coast ended in 1763. The following decades saw the arrival of new mercantile interests in the Labrador Straits. English and Jersey merchants established cod fishing stations at L'Anse au Loup, Forteau and L'Anse au Clair and at Blanc Sablon in neighbouring Quebec (of course, the Quebec-Labrador border did not exist in its present form at that time). Unlike the Jersey merchants, who concentrated exclusively on the summer cod fishery, the English firms were interested also in other resources, including seals and salmon. The Devon-based firm of Noble and Pinson established a sealing post at West St. Modeste and a salmon post at Pinware as early as 1774.
Fishing crews were initially brought from England and the Jersey islands, yet this practise was expensive for the merchants who backed these enterprises. These merchants soon discovered it was advantageous, and cheaper, to hire crews from Newfoundland settlements and from the growing permanent population on the Labrador coast. Similarly it became cheaper to purchase supplies from St. John's or Halifax rather than ship them from across the Atlantic. As a result, management of the Labrador fishery became focussed in St. John's. English merchants eventually sold out to Newfoundland firms such as Job Brothers, who had purchased a major interest in the Labrador Straits fishery by 1871.
Cooperatives and Regional Initiatives
This pattern of Newfoundland control of the Labrador fishery continued until recent years. A notable exception occurred in the community of Red Bay, where our province's first co-operative, the Red Bay Co-operative Society, was formed in 1896. Later, around 1940, all (or a majority?) of shares in the "Red Bay Co-op" were acquired by resident W.Y. Pike and the "Red Bay Stores" -- our region's first locally owned and operated business -- was established. (Cindy Gibbons, The Copper Store: The Story of Newfoundland and Labrador's First Co-operative, 1997.)
In more recent years other cooperative efforts in the Labrador Straits led to the development of two establishments that today figure very prominently in our regional economy.
In 1975 the company Northern Fisheries Ltd. was formed by Labrador Straits resident Mr. Pat Cabot and began operations at L'Anse au Loup, West St. Modeste and Forteau. After three years of operation the company experience financial difficulties and lay idle for a year. Subsequently a group of local residents, with the assistance of the (then) Fishermen's Union, successfully lobbied government for two offshore shrimp licenses and the Labrador Fishermen's Union Shrimp Co. Ltd. (LFUSCL) was born. The LFUSCL established its main plants at L'Anse au Loup, Mary's Harbour and Cartwright, with branches in L'Anse au Clair, Forteau and Red Bay. Buying stations were also established along the southeastern Labrador coast. The company's plant at L'Anse au Loup in the Labrador Straits is a modern, state-of-the-art facility, producing a variety of fish products, including cod fillets, salt cod, scallops, salmon, turbot fillets, snow crabs (in various forms) and fresh & smoked trout.
A similar story of local initiative surrounds the formation of the Eagle River Credit Union. In 1983 the Bank of Montreal closed it branch in the Labrador Straits, the only banking facility in the region. A committee of local interests was formed and, as a first step, approached the Bank of Nova Scotia requesting that a branch be established in the Labrador Straits. As this met with no success, the committee decided to form a local credit union, which it did with assistance from the LFUSCL. In the years since the Eagle River Credit Union first opened in L'Anse au Loup it has flourished. Additional branches now exist at Mary's Harbour and Cartwright in southeastern Labrador and at St. Anthony, Newfoundland.
In more recent years other cooperative efforts in the Labrador Straits led to the development of two establishments that today figure very prominently in our regional economy.
In 1975 the company Northern Fisheries Ltd. was formed by Labrador Straits resident Mr. Pat Cabot and began operations at L'Anse au Loup, West St. Modeste and Forteau. After three years of operation the company experience financial difficulties and lay idle for a year. Subsequently a group of local residents, with the assistance of the (then) Fishermen's Union, successfully lobbied government for two offshore shrimp licenses and the Labrador Fishermen's Union Shrimp Co. Ltd. (LFUSCL) was born. The LFUSCL established its main plants at L'Anse au Loup, Mary's Harbour and Cartwright, with branches in L'Anse au Clair, Forteau and Red Bay. Buying stations were also established along the southeastern Labrador coast. The company's plant at L'Anse au Loup in the Labrador Straits is a modern, state-of-the-art facility, producing a variety of fish products, including cod fillets, salt cod, scallops, salmon, turbot fillets, snow crabs (in various forms) and fresh & smoked trout.
A similar story of local initiative surrounds the formation of the Eagle River Credit Union. In 1983 the Bank of Montreal closed it branch in the Labrador Straits, the only banking facility in the region. A committee of local interests was formed and, as a first step, approached the Bank of Nova Scotia requesting that a branch be established in the Labrador Straits. As this met with no success, the committee decided to form a local credit union, which it did with assistance from the LFUSCL. In the years since the Eagle River Credit Union first opened in L'Anse au Loup it has flourished. Additional branches now exist at Mary's Harbour and Cartwright in southeastern Labrador and at St. Anthony, Newfoundland.
The Growth of Tourism
The decade of the 1980s, which saw the growth of the LFUSCL and the Eagle River Credit Union, also witnessed the appearance of a new industry in the Labrador Straits. Since the late 1970s tourism has grown significantly and is now a significant contributor to the regional economy. The tourism industry has had a tremendous impact on the business community especially within the past fifteen years. Within the hospitality sector numerous new businesses have appeared and many existing businesses have been substantially upgraded and expanded.
Tourism in the Labrador Straits still holds many opportunities for new entrepreneurs. For instance, there are at present very few personal tour and entertainment services offered to visitors to our region. Growth within the tourism industry is limited, however, by our transportation link with the Island of Newfoundland. The disruption of this service in May and June of 1997 saw a dramatic decrease in visitor numbers (and a dramatic increase in the frustration level of the visitors who did manage to make it here). Until our business community is assured (by our governments) that this vital transportation link will not suffer similar disruptions in the future, it is unrealistic to expect it to invest heavily in the development and marketing of a tourism industry.
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An extract from:
A Plan for the Business Community of the Labrador Straits
Doug Robbins
July 1997
Tourism in the Labrador Straits still holds many opportunities for new entrepreneurs. For instance, there are at present very few personal tour and entertainment services offered to visitors to our region. Growth within the tourism industry is limited, however, by our transportation link with the Island of Newfoundland. The disruption of this service in May and June of 1997 saw a dramatic decrease in visitor numbers (and a dramatic increase in the frustration level of the visitors who did manage to make it here). Until our business community is assured (by our governments) that this vital transportation link will not suffer similar disruptions in the future, it is unrealistic to expect it to invest heavily in the development and marketing of a tourism industry.
----
An extract from:
A Plan for the Business Community of the Labrador Straits
Doug Robbins
July 1997
Labrador Straits