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.

On the agenda

MPs speaking

Also speaking

Christina Burridge  Executive Director, BC Seafood Alliance
Melanie Sonnenberg  President, Canadian Independent Fish Harvester's Federation
Leonard LeBlanc  President, Gulf Nova Scotia Fishermen's Coalition
Maxime Smith  Commercial Director, Group MDMP
Geoff Irvine  Executive Director, Lobster Council of Canada
Martin Mallet  Executive Director, Maritime Fishermen's Union
Ian MacPherson  Executive Director, Prince Edward Island Fishermen's Association
Mitchell Jollimore  Vice-President, Prince Edward Island Fishermen's Association
Jim McIsaac  Vice-President, Pacific, Canadian Independent Fish Harvesters Federation
Kate Edwards  Executive Director, Association of Canadian Publishers
Randy Ambrosie  Commissioner, Canadian Football League
Troy Reeb  Executive Vice-President, Broadcast Networks, Corus Entertainment Inc.
Martin Roy  Executive Director, Festivals and Major Events Canada
Darren Dalgleish  President and Chief Executive Officer, Fort Edmonton Management Company
Brad Keast  Acting Chair, One Voice for Arts and Culture
Peter Simon  President and Chief Executive Officer, Royal Conservatory of Music

3:45 p.m.

Executive Director, Prince Edward Island Fishermen's Association

Ian MacPherson

No problem.

The Prince Edward Island Fishermen's Association would like to thank the Standing Committee on Finance for providing the opportunity to present today on the impacts of COVID-19 on the fishing industry.

Prior to the virus being diagnosed in Canada, the impacts on the east coast fishery were already being felt. As many Canadians know, Canada has been a major supplier of seafood into international markets. Although domestic consumption of seafood is increasing, many offshore markets consume significant quantities of seafood on a daily basis.

Our reputation as a high-quality seafood provider is worldwide. We are proud of this reputation, and have worked very hard to diversify and keep markets in what is traditionally a very competitive environment. We are, however, facing an even more challenging environment with the impacts of the virus affecting restaurants, casinos, cruise lines, hotels and other travel-related industries.

On Prince Edward Island, we are very dependent on lobster as our primary seafood product. Most of our product is processed or shipped live on the island or in New Brunswick or Nova Scotia. Therefore, any slowdown in markets does have a direct bearing on our fishery. Our 1,270 members fish either a spring or fall lobster season of about two months' duration. This means that sufficient income must be generated during this compressed time to cover costs until the following year.

One very important point to make is that the men and women who harvest our seafood products are passionate about what they do, and fishing is what they want to do.

Today I'm accompanied by Captain Mitchell Jollimore. In addition to being our association's vice-president, he is an active harvester. Captain Jollimore is a knowledgeable resource in terms of identifying the challenges faced by younger captains in the industry. Although the past years have improved financially for a number of P.E.I. harvesters, there are additional challenges for those who have bought in over the past seven years to 10 years.

The fishing industry has been declared an essential industry in Canada. Over the past six weeks, all parts of the sector have worked tirelessly to create protocols that will keep plant and wharf personnel and boat crews healthy and safe. The best scenario is that harvesters are able to generate enough income to cover key expenses until 2021. In today's environment this will be challenging.

The PEIFA has therefore developed a proposal that will stabilize fleets with supports that will be activated if certain gross income levels are not achieved. We did submit our formal document, but Captain Jollimore has a written submission that he will cover. I apologize if it didn't make it in time for translation, but I think it's in a little more of an understandable format.

I'll turn this over to Captain Jollimore.

3:50 p.m.

Liberal

The Chair Liberal Wayne Easter

We'll get that presentation in due course, Ian.

Mitchell.

3:50 p.m.

Mitchell Jollimore Vice-President, Prince Edward Island Fishermen's Association

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.

3:50 p.m.

Liberal

The Chair Liberal Wayne Easter

Thanks very much to everyone for their presentations.

When questions are asked, there may be something that somebody wants to add even though somebody else answered the question. Raise your hand and I might see you. I don't have everyone on my screen, but I might see you.

We'll go to six-minute rounds, and we'll start with Mr. Arnold.

Go ahead, Mel.

3:50 p.m.

Conservative

Mel Arnold Conservative North Okanagan—Shuswap, BC

Thank you, Mr. Chair.

I'd like to thank all the witnesses who have made themselves available today for this finance committee session on fisheries. Fisheries are certainly an important sector of our economy. I think it's very relevant that we're taking a look at this today. I would like to point out, being from the west coast, that there is one part of Canada's fisheries that isn't being represented here today, and that is the recreational or the public food fishery on the west coast. It's certainly a massive input into the economy in western Canada which I think needs to be considered as well, not to take anything away from our Atlantic and gulf and Newfoundland fish harvesters, processors and marketers, which are all big parts of our economy.

I'd like to start by asking for yes and no answers from all of the participants. I'll go through the roll call after I go through my questions.

On April 25, the Trudeau government announced the $62.5-million Canadian seafood stabilization fund, which they claimed was a support package for our fish and seafood sectors. Unfortunately, this support was delivered to one link of the fish and seafood supply chain, the processors. It delivered no support for the harvesters. I've heard from harvesters who are shocked the government would deliver support to one segment of the sector but not to others, especially when you consider the fact that harvesters and processors depend on each other.

Have any of you been provided with an explanation from the government as to why the government chose to exclude harvesters from the Canadian seafood stabilization fund announcement, yes or no?

I'll start off with Ms. Burridge.

You can nod or shake your head. I can see you on the screen.

3:55 p.m.

Liberal

The Chair Liberal Wayne Easter

You had it on mute, Ms. Burridge.

3:55 p.m.

Executive Director, BC Seafood Alliance

3:55 p.m.

Conservative

Mel Arnold Conservative North Okanagan—Shuswap, BC

No? Okay.

Ms. Sonnenberg.

3:55 p.m.

President, Canadian Independent Fish Harvester's Federation

Melanie Sonnenberg

There's been a little bit of discussion. It's an in between.

3:55 p.m.

Conservative

Mel Arnold Conservative North Okanagan—Shuswap, BC

It's neutral. Okay.

Mr. LeBlanc.

3:55 p.m.

President, Gulf Nova Scotia Fishermen's Coalition

3:55 p.m.

Conservative

Mel Arnold Conservative North Okanagan—Shuswap, BC

Mr. Smith.

3:55 p.m.

Commercial Director, Group MDMP

Maxime Smith

I'm here on behalf of Mr. Gagné, so maybe Mr. Gagné has, but I haven't.

3:55 p.m.

Conservative

Mel Arnold Conservative North Okanagan—Shuswap, BC

Okay.

Mr. Irvine.

3:55 p.m.

Executive Director, Lobster Council of Canada

Geoff Irvine

Yes, I've had some explanations.

3:55 p.m.

Conservative

Mel Arnold Conservative North Okanagan—Shuswap, BC

You have had some information?

3:55 p.m.

Executive Director, Lobster Council of Canada

3:55 p.m.

Conservative

Mel Arnold Conservative North Okanagan—Shuswap, BC

Okay, thank you.

Mr. Mallet.

3:55 p.m.

Executive Director, Maritime Fishermen's Union

Martin Mallet

I'll answer as Ms. Sonnenberg did, yes and no.

3:55 p.m.

Conservative

Mel Arnold Conservative North Okanagan—Shuswap, BC

You're neutral, okay.

Mr. MacPherson.

3:55 p.m.

Executive Director, Prince Edward Island Fishermen's Association

Ian MacPherson

Yes, we've had some, but again no specifics, and we're anxiously waiting for something.

3:55 p.m.

Conservative

Mel Arnold Conservative North Okanagan—Shuswap, BC

Okay. Thank you.

I'm going to ask the same thing with a much shorter question this time.

Were any of your organizations or members consulted about the relief programs that were rolled out, whether that was the CERB, the wage assistance program or the business loan? Were any of you consulted on what would or wouldn't work for the fisheries sector?

Ms. Burridge .

3:55 p.m.

Executive Director, BC Seafood Alliance

3:55 p.m.

Conservative

Mel Arnold Conservative North Okanagan—Shuswap, BC

Ms. Sonnenberg.

3:55 p.m.

President, Canadian Independent Fish Harvester's Federation