Madam Speaker, I thank the member for her interest in this issue. We agree with her that the current economic downturn has had a big impact on the Atlantic lobster fishery, like many industries across the country. However, the current challenges facing the lobster industry are multi-faceted.
What we are confronting is a difficult marketplace as a result of the state of the world economy. The issue is not with the fishery. Rather, the problem is with weakened demand, which contributed to a significant drop in prices. Foreign demand for lobster has nosedived. As a result, the prices paid to harvesters have also fallen, and as a result, the industry is hurting. Our government understands that. That is why our government is working hard to help the lobster industry deal with the current decline in market demand.
On May 22, the government announced we would be directing $10 million from the community adjustment fund to the Atlantic provinces and Quebec for activities to improve marketing, assist in innovation, and develop new products and technologies in the lobster industry. This funding will be provided through ACOA and Canada Economic Development for Quebec Regions.
Federal and provincial governments and industry are currently collaborating to create a lobster development council that would be aimed at increasing domestic and international market access, as well as addressing market access issues, including obtaining eco-certification.
On February 27 of this year, the Atlantic lobster industry received a significant marketing boost of over $455,000, largely provided under the Canadian agriculture and food international program and with contributions from Nova Scotia, New Brunswick and Prince Edward Island. This funding has resulted in world-class market promotion of Atlantic lobster in international markets.
The current economic situation is also creating difficulties for the industry to access capital. To help alleviate this challenge, budget 2009 provided many measures that improved access to credit. For example, the Business Development Bank of Canada received $250 million in capital to increase the market's lending capacity. Budget 2009 also invested a further $100 million in the bank to create a time-limited working capital guarantee.
To support greater collaboration between the Business Development Bank of Canada, the Export Development Bank and private sector financial institutions, this government established the business credit availability program and allotted up to $5 billion in new financing.
Canada's economic action plan also established a new Canadian secured credit facility to support financing vehicles and equipment.
Budget 2009 increased the Business Development Bank's paid-in capital limit to $3 billion so that it can benefit from future injections of capital.
The consensus among stakeholders is that conservation cannot be assured unless the issue of excess harvesting capacity is addressed in a meaningful way. The solution must necessarily involve self-rationalization. Fisheries and Oceans Canada has made licensing flexibilities available to harvesters in order to promote reductions in catch capacity and to support economic viability. These flexibilities are lobster partnering, where two licence-holders can work the same boat; and licence stacking, which is investment by a single licence-holder in a second licence.
This government also continues to work with lobster harvesters on market access issues. This includes increased calls for fishery eco-certification and product traceability, among other things.
The lobster industry is a cornerstone of the regional economy. This government will continue to work with other federal departments, provinces, harvesters, processors, distributors and others to collectively improve sustainability, competitiveness and long-term viability of the lobster industry.