Thank you, Mr. Easter.
Hello everyone. Thanks for taking time to hear our concerns today. While these times are uncertain, I'm proud to be Canadian and thankful that PEI is where my family calls home.
On Prince Edward Island there are 1,270 captains, myself included, as Ian alluded to. All of us are members of the PEIFA. I take this job today of speaking on their behalf very seriously.
COVID-19 has affected us all and our industry is no exception. Unpredictable markets and new health and safety protocols have created a lot of anxiety and added pressure for all the fishers across Canada. While it's anticipated that revenues to fishing enterprises will be down a minimum of 30% compared with 2019 across the lobster harvesting sector due to these conditions, this reduction in revenue is not sustainable for fishers as proud small business owners.
This drop in revenue will be extremely hard to demonstrate before we begin fishing. A modification to the Canadian emergency wage subsidy that would see all licence-holders qualify would have the same outcome as originally intended. This would continue and stabilize employment. Similar relief measures have been put in place for other self-employed persons in different sectors, and I commend your willingness to continue adapting these programs as the pandemic evolves. We all ask that you use that same forward thinking to help address some of these gaps.
We have requested, in our document that Ian has forwarded, an 18-month deferral of the 2019 income taxes that will be due. This deferral, at no added interest cost, would give fishers some more financial flexibility during this uncertain time. Once our gear is in the water, we can expect our expenses on P.E.I. to be approximately $60,000 to operate. This doesn't include any capital loan payments. We've outlined a working capital loan program of $50,000 similar to the CEBA as an important request for our members. This working capital loan would give us the financial ability to start our season knowing that we would be able to have our expenses covered. We want everyone to be safe and we want everyone to be able to fish.
We recognize that not all fishers might have the same level of demand for their product. Because of this, we have proposed that the working capital loan will have income targets: If a fisher cannot participate fully in the spring 2020 lobster season and is unable to generate $50,000 in fishing-related income, the entirety of the working capital loan would be forgivable. Over $50,000, 50% would become repayable, and then as our members continue to fish and generate revenues, the amount that is repayable would increase. This is going to get to people who need help.
The PEIFA and its members recognize that the marketplace is obviously the most appropriate source of revenue for the fishing industry. The assistance that we've outlined in our proposal and today would be instrumental in stabilizing our industry. It would allow those affected the most to get the help that they need and it would allow rural communities to get through this together.
Thanks again for the opportunity to speak today. We're more than happy to answer any questions you might have.