Fisheries Committee on March 24th, 2009

[Shawn Murphy, Liberal, Charlottetown, PE]

That would be part of a new Fisheries Act.

[David Bevan]

That's correct.

[Shawn Murphy, Liberal, Charlottetown, PE]

I have one last point.

I want to get a comment from Ms. Watson-Wright on the whole issue of lobster incubator projects that are going on. I understand there's one in Shippagan, and there are a couple in the United States. Do you see that as an emerging science? Are they working? Do you see them becoming more frequent in Atlantic Canada? I know they've been around for quite a few years, but I think they're more successful now.

[Dr. Wendy Watson-Wright]

Yes, they have been around for quite a few years.

I think the advantage to this approach is that it does bring people together, including the industry and researchers, in trying to find common solutions.

We haven't actually been able to demonstrate that there's a very large effect far away from where these lobsters are released. That's not to say it doesn't happen, but we haven't been able to demonstrate it.

In terms of habitat enhancement that goes along with releasing juveniles into the ocean, we're not sure how effective that would be. It shows promise, and there are certain areas where artificial reefs are being put in place, but again, we lack the evidence to be able to demonstrate that this is a good approach. In our minds, it makes sense, but there's quite a lot of mortality once you do release these small animals to the ocean. Whether it will increase, I don't know.

[Shawn Murphy, Liberal, Charlottetown, PE]

Thank you.

[The Chair, Conservative, Rodney Weston]

Mr. Oliphant.

[Rob Oliphant, Liberal, Don Valley West, ON]

Thank you for being here.

I'll begin by expressing my naiveté about these issues. You don't get a more urban riding than where I come from, in mid-town Toronto, but I have the Don River going through my riding.

I come here as a consumer of lobster. I've read the briefing notes, and I'm trying to figure this situation out, as someone who thinks there's a tremendous opportunity for the Government of Canada to study some of the issues around consumer responses to price elasticity of lobster and look at some of the marketing opportunities we could be involved in, collectively, as a people. Half a million dollars on marketing for a billion-dollar industry doesn't seem like very much.

I'm wondering, first of all, what is that spent on? That would be my first question.

[David Bevan]

It basically had to be rolled out the door very quickly; it was spent on generic promotion.

Your question about price elasticity and the response of various components of the lobster market to price changes, etc., is a valid one. We don't have the degree of research we'd like on that. We know from discussions with buyers in the United States that we can sell every lobster we want at $5 retail, but that equates to something pretty low in terms of landed value. We do know the break-even prices for various LFAs. In low-volume LFAs, the break-even price needed by a fisherman is something like $3.80. If they don't get that, they don't cover their costs.

In other higher-volume LFAs, we have a lot more production per licence. It could be lower, but we don't know at this point how the market would respond to a different price, except to say that if you drop it low enough they will sell. But that doesn't help us in terms of what is needed to allow this industry to function effectively.

[The Chair, Conservative, Rodney Weston]

Thank you.

[Rob Oliphant, Liberal, Don Valley West, ON]

Are there any demographic studies on what the perception of lobster is among younger people?

[The Chair, Conservative, Rodney Weston]

Sorry, you're out of time, Mr. Oliphant

[Rob Oliphant, Liberal, Don Valley West, ON]

I thought we had five minutes.

[The Chair, Conservative, Rodney Weston]

Yes, a total of five minutes, between you and Mr. Murphy.

Monsieur Blais.

[Raynald Blais, Bloc, Gaspésie—Îles-de-la-Madeleine, QC]

My question goes to Mr. Bevan or to anyone else. With next season fast approaching, what measures is the department planning to take to confront the situation caused by the economic recession in the United States? It will surely have an impact on the sale and marketing of lobster products in the American market.

[David Bevan]

Last year, we made some policy changes. We talked with lobster fishermen about reducing the number of boats and fishing licences in each zone. But, clearly, those changes are not enough. In the 2009 season, there will be too many fishermen, costs will be too high and the price will be too low. We could perhaps find a way to bring down the level, to have less intensive fishing and to let the fish processing plants provide product for retailers, for stores. It is possible to sell lobster meat in stores, but not in restaurants and other places where food costs have dropped by 50%. Unfortunately, it is not easy to find quick solutions, even though they are needed. The only way to do anything is to talk to fishermen and to find a way to let the processing plants produce fish for stores.

[Raynald Blais, Bloc, Gaspésie—Îles-de-la-Madeleine, QC]

We can take steps to encourage consumption of the product in Quebec and in Canada. If the American market is less receptive this year, let us focus on our domestic market. That requires marketing, an advertising campaign, and so on. Is that in your plans?

[David Bevan]

Yes, we have spoken with the provinces and the industry and we are looking for new markets and for better ways to sell lobster. We want to find a way to expand the lobster market in Canada and elsewhere around the world. We are trying to find new technologies that will let us send live lobster to new markets.

[Raynald Blais, Bloc, Gaspésie—Îles-de-la-Madeleine, QC]

For 2009 specifically, what marketing efforts will the department be undertaking in the coming weeks?

[David Bevan]

For 2009, there was the program in March, but we have to work with other programs and other departments to set up a new program for coming years.

[Raynald Blais, Bloc, Gaspésie—Îles-de-la-Madeleine, QC]

How big is the marketing budget for lobster products domestically?

[David Bevan]

The budget is just for the United States market. It was not possible to use this money for the Canadian market; it was one of the conditions. The entire budget is set aside for the American and European markets.

[Raynald Blais, Bloc, Gaspésie—Îles-de-la-Madeleine, QC]

I want to be sure that I understood.

[David Bevan]

Correct, we are not allowed to use these funds for the Canadian market.

[Raynald Blais, Bloc, Gaspésie—Îles-de-la-Madeleine, QC]

Does that mean that the department has set aside nothing for Canada?

[David Bevan]

That was another situation, based on the conditions of the program. We have to talk to the other stakeholders in order to set up a new program for this year.

Previously, no, there was nothing spent in Canada.