Thank you, Mr. Chairman. As I think everybody knows, we've known each other for quite a while.
Mr. Chairman, fellow board members and fellow industry reps, the Gulf Nova Scotia Fishermen's Coalition is thankful for the opportunity to be able to appear before you, the Standing Committee on Finance.
In the past, this industry has survived the collapse of the groundfish stock in the southern Gulf of St. Lawrence in the late 1980s and early 1990s. The worldwide financial market crash of 2008 caused some of my members to withdraw money from their RRSPs to pay their crews and boat payments. The fishery is now facing a crisis that it has never witnessed before. We have very poor market conditions, if any at all. The COVID-19 virus, which is not the common cold or flu, has taken the lives of many Canadians and unfortunately will continue to do so.
Today, I appear before you to bring to your attention issues regarding the Canada emergency business account and the Canada emergency response benefit.
First, CEBA cannot be accessed by the majority of the members I represent. They have only one crew member and their payroll is under $20,000. As was previously mentioned, some of the harvesters have the fish buyer pay their helper; therefore, they don't have a payroll number. One of my members was denied because his employee is an immediate family member. This is discrimination and probably unconstitutional.
Second, I will talk about the $40,000 tax-free loan. Most harvesters are not registered with the provincial registry of joint stock companies. If their financial institution is a credit union, they will receive the loan, but if they are a client of the Royal Bank, they will not receive it. New entrants who recently bought a commercial fishing licence will simply not qualify. We would suggest that the government require that harvesters who need assistance only show proof that they have a GST number, a personal fisher registration or PFR, or a lobster licence number to qualify.
I will also mention the suite of points presented to Minister Jordan and other ministers by the Gulf Nova Scotia Fleet Planning Board for financial aid. I am secretary-treasurer of that board.
We wish to extend employment insurance benefits for all fishing industry seasonal workers: harvesters, crews and plant workers. For example, a harvester receiving $576 a week and having his EI benefits ending soon would have his EI benefits automatically reactivated for a supplementary 12-month period until the next fishing season. Currently, harvesters are on EI before and after their fishing season. This request would add an additional 12 weeks at a cost of $6,912 per harvester.
We are asking for help in deferring payments and freezing interest on existing bank loans and provincial board loans for 12 months.
Defer mortgage payments and freeze interest for 12 months through Canada Mortgage and Housing Corporation and other mortgage insurers. I know that the government does not have power over the private banks, but I think it could probably help them in this way.
Defer 2019 income tax payments and freeze the interest rate for 18 months.
Enable RRSP withdrawals, tax free, for 2020.
Special income tax credits could be used to stir the economy, because we're not only in a mess now but we have to come out of it sometime.
We ask for interest-free loans in the form of lines of credit of up to $120,000 to fishing enterprises of which 25%, up to $30,000, would be eligible as a subsidy, tax free, if the loan is repaid within five years.
A wage subsidy of 75% for fishing enterprises that may be able to fish for other species this year could be used.
As well, eliminate the fees for fishing licences for those who aren't fishing.
I will take the opportunity to thank the following MPs who have helped us greatly: Mike Kelloway, who is my MP; Dominic LeBlanc; Serge Cormier; Wayne Easter; and Sean Fraser, to name a few.
I will leave you with the following comment, which a processor from New Brunswick told me. He said that in 2019, 10 million pounds had no home and was bought by the processors in New Brunswick. He said that in 2020, 20 million pounds plus of lobster will have no home, period. We need help, and we need financial help quickly.
Thank you, Mr. Chair.