Fisheries Committee on May 18th, 2006

[Marc Gagnon]

It's not clear.

[Peter Stoffer, NDP, Sackville—Eastern Shore, NS]

It's not clear.

[Marc Gagnon]

We do hope that what we were told maybe five months ago--that it was done--will be reconsidered by the new government.

[Peter Stoffer, NDP, Sackville—Eastern Shore, NS]

Did the government say that or did DFO say that?

[Marc Gagnon]

That's what I hope.

[Peter Stoffer, NDP, Sackville—Eastern Shore, NS]

So you're hoping, but you haven't heard anything.

[Marc Gagnon]

Yes. But I really don't know what the new government will do with this issue.

[Peter Stoffer, NDP, Sackville—Eastern Shore, NS]

My concern is, are we too late or is there still time?

[Marc Gagnon]

I don't think so. There is still time.

[Peter Stoffer, NDP, Sackville—Eastern Shore, NS]

Okay, merci beaucoup.

[The Chair, Conservative, Gerald Keddy]

Just before Mr. Cummins takes the floor, Mr. Gagnon, do you have a copy of the independent audit by Gardner Pinfold?

[Marc Gagnon]

Yes, I do.

[The Chair, Conservative, Gerald Keddy]

Could you make that available to the committee?

[Marc Gagnon]

I will do that, in both languages.

[The Chair, Conservative, Gerald Keddy]

Thank you.

Mr. Cummins.

[John Cummins, Conservative, Delta—Richmond East, BC]

Thank you, Mr. Chairman.

And thank you, Mr. Gagnon, for your appearance here this morning.

The issue I'd like to address, if you wouldn't mind, is the issue of costs. In your presentation here it says that DFO reimburses OCs for coordination and administrative costs while fishers pay the OCs for costs directly related to the deployment of observers at sea and on shore about 70% of the total cost. The negotiation of those costs, then, is part of the bidding process, is that correct?

[Marc Gagnon]

That's right.

[John Cummins, Conservative, Delta—Richmond East, BC]

So on this bidding process in the particular area that you're in now, the other companies would bid as well, under the normal circumstances?

[Marc Gagnon]

Yes. For instance, three years ago we bid for the present contract, and in this bid we had to enter the amount we would like to charge the industry. Every bidder puts in the amount, and there is a comparison of those prices that is part of the determination of the winning bidder.

[John Cummins, Conservative, Delta—Richmond East, BC]

Part of the issue here, from the fishermen's point of view, is that observer costs are onerous, and obviously at times I think they feel they are unnecessary. We all recognize that there is a need, so I'm not debating that point, but the issue is that the costs are seen by fishermen as being a cost they'd like to limit.

So the question becomes, that during the bidding process, is there ever an agreement between companies as to what the fee would be for the at-sea observers? Is there any kind of agreement between the four companies?

[Marc Gagnon]

No. Never.

[John Cummins, Conservative, Delta—Richmond East, BC]

Never?

[Marc Gagnon]

No. We're competitive companies. What our process does is define clearly what can be charged to the industry--for instance, for an hour at sea, for an hour on land, what is acceptable travel, what are the acceptable unit prices for travel, stuff like that.

[John Cummins, Conservative, Delta—Richmond East, BC]

So that's defined in the process?

[Marc Gagnon]

Clearly defined in the request for proposals.