Federal Fisheries Minister Robert Thibault is consulting with the provinces over aid which Ottawa might offered if what's left of the East coast cod fishery is closed, suggesting the federal government is bracing for a shutdown.

Thibault has been meeting with his provincial colleagues over what employment programs could be offered to about 4,000 fishermen and plant workers if cod fishing is banned off the South coast of Labrador, the entire Gulf of St. Lawrence and around Newfoundland, except its southern coast.

A source in Ottawa said the fisheries department wanted to be better prepared than it was in 1992, when then-minister John Crosbie announced a crippling moratorium.

"There were some lessons learned the last time since the department might not have been as well prepared," said the official.

Signs of stocks recovering in the late 1990s prompted Ottawa to reopen the fishery on a limited basis in 1997-98, but the recovery faltered leading to the consideration of a full closure.

Thibault is expected to make a decision on whether to close the cod fishery after he receives a report from the Fisheries Resource Conservation Council, due around March 21.

A closure is expected to cost about $30 million in annual revenues and severely affect at least 900 fishermen who are considered heavily dependent on cod.

With a report from Canadian Press