Evidence of meeting #26 for Finance in the 43rd Parliament, 1st session. (The original version is on Parliament’s site, as are the minutes.) The winning word was sector.
A recording is available from Parliament.
Liberal
The Chair Liberal Wayne Easter
I won't take time away from you, Gord, but I will just interrupt for a second.
The lineup for the next series of questions is, first, Mr. Bragdon and then Mr. Fragiskatos.
It's back to you, Gord.
NDP
Gord Johns NDP Courtenay—Alberni, BC
I am hearing, from coast to coast to coast, that many independent fishers are locked into contracts with licence-holders. This could bankrupt them before they leave the dock because they bargained on a price that was what they expected the market to be.
Mr. McIsaac, can you talk about the impacts of COVID-19 on licence lease costs and the importance of fair distribution of benefits?
Vice-President, Pacific, Canadian Independent Fish Harvesters Federation
Thanks again for the question.
This is an issue that is long-standing in the Pacific, where you have investors holding licences and quotas and then leasing them to fish harvesters and processing companies to prosecute the fishery.
This year, in the lead-up to the season, fish harvesters will make arrangements to lease licences and lease quota based on market prices that were received last year. For instance, the prawn licences were leasing anywhere from $60,000 to $70,000 in January of this year, and for harvesters now the season has been delayed for over a month. There are huge questions about what's going to happen in the market for prawns going forward. Those harvesters are having to cover those costs already, and cover interest payments on those until the fishery happens. There is a huge impact for those harvesters.
The other side of that is on quota leases. One of the things that has happened with COVID-19 and quota leases is there is the realization that harvesters and processors can't take the full risk of market conditions. There have been, across the board, harvesters and processors who refused to lease quotas at a set dollar price and a 50-50 sharing arrangement has been the one that's been put forward. That's what's been happening.
There has been a response from some of the licence-holders and quota holders on that, trying to extend a quota as a carry-over into next year so that they don't have to use it this year and can avoid the kind of market conditions that are happening right now.
NDP
Gord Johns NDP Courtenay—Alberni, BC
Thank you.
My colleague, Mr. MacGregor, from Cowichan—Malahat—Langford, and I have been pitching really hard for a national food procurement strategy. We sent a letter. We're glad to see the government support a $50-million purchasing program for agriculture.
Can you talk about how important it would be to apply that to the fisheries sector so that Canadians, food banks and Canadian institutions get Canadian proteins, healthy proteins? Maybe you could also cite other jurisdictions that have done something similar.
Back to you again, Mr. McIsaac.
Vice-President, Pacific, Canadian Independent Fish Harvesters Federation
We're obviously facing huge market issues given the majority, something close to 90%, of our seafood is exported. With the conditions in Europe and the United States and Asia, pivoting now to the domestic market is virtually the only option that's available for some fisheries. Helping support that, a purchase Canada program could help get our sustainable fish with high protein value onto Canadian plates and at the same time stabilize the market across the board.
The United States is doing a similar program with seafood. They have had a program in existence for some time to do that. You can look to them for examples on how to do that.
Liberal
The Chair Liberal Wayne Easter
We will have to end it there. Thank you.
Mr. Bragdon, the floor is yours for a five-minute round.
Conservative
Richard Bragdon Conservative Tobique—Mactaquac, NB
Thank you, Mr. Chair.
Thank you, everyone, for being on the call and to all the witnesses, thank you for your time.
The Minister of Fisheries, Oceans and the Canadian Coast Guard has repeatedly stated that the government response measures, including the emergency wage subsidy, the emergency response benefit and business credit availability program, the emergency business account and others, provide adequate support to assist fish and seafood operators to weather the storms they are facing today.
However, my Conservative colleagues and I have received many concerns from fishery stakeholders and even their accountants who have told us that the government's response measures are not accessible to fisheries operators and workers for a number of reasons.
Many fisher organizations have asked for clarification from Minister Jordan's office, as we have in writing. Sadly, no one seems to be getting a response.
Are your members sure that the response measures I just mentioned are indeed accessible for them and their employees? Do you have any answers or feedback on that?
Liberal
Conservative
Richard Bragdon Conservative Tobique—Mactaquac, NB
It could be for any of the witnesses who feel they have something to contribute to it.
Vice-President, Prince Edward Island Fishermen's Association
I can speak personally to that. My accountant says that we don't qualify for that as fish harvesters, and I have an incorporated company that holds my licence.
I don't qualify, and the majority of the licence-holders on the island, I think, would have a set-up similar to mine.
Liberal
The Chair Liberal Wayne Easter
Does anybody else want to come in?
Go ahead, Leonard and then Mr. Mallet.
President, Gulf Nova Scotia Fishermen's Coalition
When the minister came out with that statement, we went to our accountant to make sure and verify with them. They told us from the very beginning that it doesn't fit. What we need for the fishery is something that's specific to the fishery. On land businesses and businesses for the water are totally different. Therefore, I don't know who advised her but obviously she was ill-advised.
Executive Director, Maritime Fishermen's Union
I'll echo what Mitchell and Leonard just mentioned.
On several fronts the current programs are not adapted to the fishery. One good example is the fact that many fishermen have family members as their crews, so the program for wage subsidies, which is an important one, is not accessible to them.
Liberal
The Chair Liberal Wayne Easter
Okay. Thank you for that.
If I don't see you, just yell at me and we'll catch you when you want in.
Conservative
Richard Bragdon Conservative Tobique—Mactaquac, NB
Thank you, Mr. Chair.
On April 2, the Trudeau government released guidance on its essential services and functions in Canada during the COVID-19 pandemic.
I joined our fish and seafood sectors in welcoming the federal government's acknowledgement of the essential role these sectors can play in supporting Canada's food security. One of the challenges our sector is facing is with retooling processing and logistics to provide essential support for Canada's food supply.
Another target of the government is the $62.5-million Canadian seafood stabilization fund for processors for adding storage capacity for unsold product. This suggested to me that the freezer storage on the Atlantic coast was maxed out. Another month before the announcement of the fund, it was reported that an estimated three million pounds of lobster was stranded in storage.
If the purpose of your sector being deemed essential was to allow you to support food security, I assumed that would mean Canadian fish and seafood would be made more available to Canadians, but now the government is funding storage so the stockpiles can be made even bigger.
Have any of you received an explanation from the government as to why they have not taken any action to promote or do more promotion of Canadian fish and seafood for Canadian dinner plates?
Does anyone want to take that one on?
Liberal
Executive Director, Lobster Council of Canada
Thanks, Mr. Chair.
I did have a couple of calls with Ag Canada, which was supposed to be rolling out a buy Canadian program for all agri-food products before this happened. I think that COVID-19 has put that on the back burner.
We are talking to all the provinces about ensuring that lobster specifically is on the docket for buy local programming.
Liberal
The Chair Liberal Wayne Easter
Does anybody else want to come in with a quick response? We are just a little over time.
Executive Director, Prince Edward Island Fishermen's Association
Yes, I want to make a quick comment.
We need to remember that although lobster, for example, is viewed as a luxury product, it's a great protein. I think there are some awesome marketing opportunities for that. Maybe we'll have to change our market focus a little bit, but I think a focus on Canada is well warranted and will help us immensely.
Executive Director, BC Seafood Alliance
Thanks very much. I'm sorry that I got kicked off from my participation by Rogers.
We have certainly had some conversations with the Province of B.C. and we understand that the government is looking at that. The challenge for us is that to buy the kind of automated equipment that would allow a company that has, up to this point, been primarily in food service, would cost the best part of half a million dollars.
While I don't want to sound ungrateful for the $62.5 million, when you look at the number of processors we have in B.C., that's really quite a lot of money.