Why did Britain tolerate permanent settlement in Newfoundland despite its antisettlement policy?

Britain’s antisettlement policy in Newfoundland was driven by the influence of West Country merchants, who viewed the island primarily as a seasonal training ground for mariners and an economic asset for the migratory fishery. Consequently, the government issued an order in 1675 requiring all settlers to leave the island.1

However, this order was never implemented. The British government realized that maintaining a year-round presence was essential to prevent the island from falling under French control, particularly after France established a garrisoned colony at Placentia in 1662. By the end of the 17th century, Britain shifted its stance, acknowledging that while Newfoundland was foremost a fishery, permanent settlement would be tolerated to secure its sovereignty.1