Fisheries Committee on Nov. 21st, 2006

[David Bevan]

No, the Marshall stuff is not long gone. We still have the operating capacity. We still have that, and we still have moneys available this year for wrapping up the process of obtaining access for first nations, as part of their current crop of grievances, and providing that to them in this fiscal year. We still have those funds. As of April 1, those will not be available, with the exception of whatever carryover we have for that program into the next fiscal year.

[Rodger Cuzner, Liberal, Cape Breton—Canso, NS]

As that winds down, as well, there will probably be an in-depth assessment of the successes and drawbacks of that initiative.

[David Bevan]

Some of that has already been done in terms of there being evaluations of the program. There has been work done, not just by the government, but also by first nations. There has certainly been a tremendous impact on the economies of a number of the first nations communities--jobs created, hope provided in terms of employment, and so on. A lot of that has been done. Of course, if there were going to be a reconsideration of how government responds to the current sunsetting, there would have to be some evaluation of whether or not that's a good way to spend taxpayers' money.

[Rodger Cuzner, Liberal, Cape Breton—Canso, NS]

How long do I have--about two minutes?

[The Chair, Conservative, Gerald Keddy]

You have 54 seconds.

[Rodger Cuzner, Liberal, Cape Breton—Canso, NS]

With some of the investments that were made in the initial years--harbour centralization, navigational aids, stepping back from lighthouses and investing in navigational aids--obviously there has to be money within the budget now from the savings realized from those types of investments. Where do we see those moneys turning up now? Are they being re-profiled into other areas? Are we seeing savings on those, as expected?

[Larry Murray]

I think what you're referring to is the coast guard modernization. Certainly part of the argument for the $99 million, if I can put it that way, was that in fact we hadn't rolled resources from.... We took $84 million out of our administrative overhead, for example, and those kinds of things. On the coast guard modernization, I'll ask the commissioner to say a few words.

We are making headway. We have made savings, and it has bought credibility in order to get the first phase of the fleet recapitalization program for the coast guard moving forward--the types of vessels, how many vessels, and that kind of thing. It's a work in progress, but those savings have been put to good use, in my view, although we still have a way to go. As you would appreciate, a number of those things are quite difficult, as well, because there are cultural aspects to some of them.

George.

[George Da Pont]

I wouldn't have a whole lot to add. For us, it is an ongoing effort to modernize our operations and take advantage of new technologies, as they become available, that change how we do and deliver some of the services. Often those things require pretty significant up-front investment, but once we have it in place, it can generate savings for us.

If I look back over the last five, six, or seven years, for part of that period we have been able to keep those savings and reinvest them in other things to offset higher fuel costs and various other things. Some of them did become some of the expenditure review committee reductions that were announced, so it's a mix of having been able to keep some of them and some having gone to general funding.

[The Chair, Conservative, Gerald Keddy]

Thank you, Mr. Da Pont.

Thank you, Mr. Cuzner.

If I could just ask our witnesses to bear with us for a moment, we have two motions, orders of business, that we need to look after, gentlemen. I'm afraid we're going to lose quorum, so could we deal with those? They have been distributed. You've had a chance to read them.

[The Clerk]

Just the budget has been distributed.

[The Chair, Conservative, Gerald Keddy]

Both of them are budgetary. If we can deal with them now, we will deal with them.

Motion number one is that the clerk be authorized to make the necessary arrangements for a working lunch at the Parliamentary Restaurant following the meeting with the European delegation on Thursday, November 23, 2006.

Is that approved?

[Some hon. members]

Agreed.

[The Chair, Conservative, Gerald Keddy]

Motion number two is that a proposed budget for the study on the Canadian seal hunt, in the amount of $11, 600, be adopted.

[Some hon. members]

Agreed.

[The Chair, Conservative, Gerald Keddy]

Thank you, gentlemen.

Could we have our next questioner? Monsieur Blais.

[Raynald Blais, Bloc, Gaspésie—Îles-de-la-Madeleine, QC]

Thank you very much. Of course, since I knew we would be meeting with you today, I prepared questions on small craft harbours, but I also prepared questions on other issues.

I am also pleased to say that I prepared myself by turning to the work done by our excellent research analyst, François Côté, from the Science and Technology Division of the Parliamentary Information and Research Service on the issue of shrimp.

Rather than summarizing the question I have in mind, I will read you the one contained in the document prepared by the Parliamentary Information and Research Service.

In 2001, the committee issued a report discussing the situation facing shrimp harvesters and processors primarily in Newfoundland and Labrador in relation to the 20% tariff imposed by the European Union on Canadian imports of cooked and peeled shrimp. The committee supported at the time the elimination of the tariff so that Canadian producers could compete fairly on a level-playing field with their non-EU competitors.

The issue resurfaced in September 2005 during the committee's hearings in St. John's, and this is also a matter of concern for Quebec, as you know. In the Atlantic provinces, and in Quebec in particular, the shrimp industry is in crisis because of the price we pay shrimp harvesters today. It is now about 42.5¢ per pound, but it was much higher in the past.

As far as the 20% tariff imposed by the European Union is concerned, I know that things are happening. However, can you tell us what exactly you are doing to address the situation?

[David Bevan]

We know there is a huge problem with the shrimp industry in the Arctic. It does not only affect cooked shrimp, but also other products.

We worked in collaboration with the provinces. In fact, we have studied the situation to find ways of helping the harvesters. Further, we also worked with a special team to study the issue of tariffs imposed by the European Union. Fortunately, as far as that is concerned—the European market situation—we have found a way to increase our seafood exports without an increase in tariffs. I believe there is a vote on the subject in Europe this month. That will not be enough, but at least it will provide some respite to harvesters.

As well, as I've already said, we have studied the situation and the policies regarding the shrimp fishery to see whether there is anything else we can do to improve the situation. We also received recommendations from the team studying the matter. Indeed, we also spoke with the ministers and provincial officials. We are now trying to implement the recommendations as they apply to the shrimp fishery sector.

As you perhaps know, there was a workshop in Newfoundland and Labrador entitled "Fishing Industry Renewal". We are now holding consultations. There will be a meeting in Quebec City this Friday where the issue will be discussed.

We might be able to implement measures to improve the fishery by the spring of 2007.

[Raynald Blais, Bloc, Gaspésie—Îles-de-la-Madeleine, QC]

But in the meantime, the damage is done—which you know as well as I do—as far as the tariffs imposed on shrimp exports to the European market.

As a retaliatory measure, have you looked at the possibility of Canada imposing an import tariff on large shrimp?

[David Bevan]

Unfortunately, large shrimp come from Asia or elsewhere, and we usually don't import large shrimp from Europe.

We are trying to improve the market here in Canada, and imposing a tariff on shrimp imports really does not help Canadian fishermen.

[Raynald Blais, Bloc, Gaspésie—Îles-de-la-Madeleine, QC]

Why do you say that it's not—

[The Chair, Conservative, Gerald Keddy]

Thank you, Mr. Bevan. I appreciate your answer.

[Raynald Blais, Bloc, Gaspésie—Îles-de-la-Madeleine, QC]

I'll come back to the issue later.

[The Chair, Conservative, Gerald Keddy]

Mr. Kamp.

[Randy Kamp, Conservative, Pitt Meadows—Maple Ridge—Mission, BC]

I have a couple of final short questions.

It appears that historically the amount of the supplementary estimates is increasing, at least as a percentage of the main estimates. Is there a reason for this, in your opinion?

[Larry Murray]

I don't know, but I'd ask Mr. Hegge to respond. It may be related to the transition this year, in terms of the change of government and that process. I'm not sure.

Cal?