With the price paid for lobster at the wharf threatening to go below the cost of catching it, the P.E.I. Fishermen's Association says it looked in vain for any targeted aid in Tuesday's federal budget.

Ed Frenette, executive director of the P.E.I. Fishermen's Association, was looking for a direct approach.

"We were hoping that a fund would have been established that could subsidize the shore price to fishermen in the event that it went below, the price they received went below, the cost of production," said Frenette.

'It's to make sure we find new markets.'— Provincial Treasurer Wes Sheridan

While there is nothing specific in the budget for the fishery, the province is looking to use a portion of P.E.I.'s $14-million federal budget share of the Community Adjustment Fund, designed to assist places with struggling industries.

One factor driving down the cost of lobster is $25 million worth of frozen inventory held by P.E.I. processors, which didn't sell in the face of flagging demand for luxury products such as lobster.

"If we take care of the inventory problem, it should take care of the problem on the wharf," said Provincial Treasurer Wes Sheridan.

Enticing lobster into traps could prove to be too expensive this year. (CBC)

"That's the key. There's no reason to actually buy the inventory. It's to make sure we find new markets to help them find ways to correct the issues that are taking place inside the industry."

Federal Fisheries Minister Gail Shea said the $14 million from the Community Adjustment Fund will be administered through the Atlantic Canada Opportunities Agency, and it is too soon to say how it would be spent, whether at the wharf, promoting new markets or for some other purpose.

She also noted the budget did have some good news for Island fishermen in the announcement of improvements to some small craft harbours.

Talks between the federal government and P.E.I. on what to do for the lobster industry are continuing, as the May 1 deadline of the opening of the lobster season approaches.

Frenette said no matter how the Community Adjustment Fund is spent, $14 million is not likely to be enough to prop up the $250-million industry.