Fisheries Committee on March 30th, 2009

[Joël Arseneau]

In 2008, we were talking about 2,252 tons of landed lobster, or 5 million pounds. That represented a slight increase, but I think you know as well as I do that landing volumes have been pretty stable for many years. On the other hand, the price declined in 2008, compared to 2007. You also are aware that operating expenses are constantly on the rise.

I wanted to come back to the need to preserve the resource in order to continue to exploit it in the coming years. That is exactly what fishers have been doing in recent years, since the year 2000. There were significant conservation measures introduced which, I believe, represent a model for the industry. One area of effort involved increasing the minimum lobster size. There we reduced the number of traps as well as lobster size. Those measures have born fruit, since lobster size has since increased. Landings have also stabilized. So, at the present time, fishing does not seem to be hampering the ability to collect samples of the species in our environment. I think there is a need to acknowledge the efforts made by the Association des pêcheurs propriétaires des Îles-de-la-Madeleine, which has demonstrated leadership with its troops and members in order to secure and implement specific measures in cooperation with the federal Department of Fisheries and Oceans.

I also wanted to mention concerns in the community.

Should I wrap up?

[The Chair, Conservative, Rodney Weston]

Yes, if you don't mind.

[Joël Arseneau]

All right. I would just like to conclude by saying that, in addition to the catch, there is also the matter of processing, which is of concern to us. It has increased in the last two or three years but, because of our isolation, there is the problem of costs. A study is currently underway to determine which factors would allow us to continue to operate as a processor of seafoods, and particularly, lobster. It should be noted that isolation results in additional costs, and that is what we are currently measuring.

I wanted to say, in closing, that fishing ports constitute an essential infrastructure. They have been rationalized. They require the involvement of fishers and the fishing community. We do hope that the federal government will consider the efforts that have been made by the community to adequately upkeep this infrastructure, for reasons of safety, in particular, and efficiency.

Thank you.

[The Chair, Conservative, Rodney Weston]

Thank you, your Worship.

Mr. Byrne, I'm going to ask if we could keep this to a short round, just in the interests of time for the members. We need to conclude earlier than planned to be able to exit the—

[Gerry Byrne, Liberal, Humber—St. Barbe—Baie Verte, NL]

Thank you, Mr. Chair. Then I won't be sharing my time with Mr. MacAulay.

I just want to say a very special thank you, Mayor, to you and to all those who have given us such a hearty and sincere welcome to the Magdalen Islands. This is my second trip. I have to report to you that while I would love to be able to say to you that Mr. Blais is not representing the needs and interests of the island, that he has been very ineffective at promoting your concerns, I unfortunately have to report that that would not be the truth or the case. He has gotten this committee back on several occasions to be able to talk about fisheries issues that are very important to you, and he's been a very strong voice for you.

The Magdalen Islands represent to the fisheries committee a unique model to study the impacts of natural resource industries in a unique way, in the sense that you are, by virtue of the island status, a test tube. Coming from Newfoundland and Labrador, I appreciate it because it does provide us with an analysis of what happens to a community when there is an economic downturn as a result of circumstances beyond your immediate control--the global economic financial crisis, reduction in prices.

What would be the impact if there were a 30% downturn in the lobster and crab fisheries? We'll stick with lobster for now. What would be the consequence in terms of employment and economic activity? As an economic development council and as a municipality, what is it you need to be able to overcome those serious issues and constraints?

[Joël Arseneau]

Very often, we prefer not to answer that question. We dare to think that we will never have to face that kind of situation.

The model could take its inspiration from the groundfish crisis that occurred in the late 1990s. At that time, the fisheries economy rested in large part on the groundfish fishery. It took a good ten years to get through that crisis and find a way to diversify the economy. There were 1,200 jobs lost out of about 6,500, which is huge. Ten or twelve years later, in the regions of Quebec that I am familiar with, I would say that our region and the Gaspé are the most dynamic, economically speaking. We also are able to attract young people and young families. Our growth is weak, but it is the opposite of what is going on in the rural areas of Quebec where I have contacts.

We need to diversify the economy. The LDC and the municipality, working with its partners, have benefited from some government assistance aimed at fostering that diversification. We have chosen to diversify within the fishing industry because we believe it is still possible to develop that sector and optimize revenues. I don't even dare imagine what could happened if there were to be a 30 per cent drop in lobster revenues. The actions taken by the industry seem to be appropriate for ensuring the sustainability of the stocks.

[Gerry Byrne, Liberal, Humber—St. Barbe—Baie Verte, NL]

Perhaps, Ms. Landry, you could go even a bit further with my questioning. As an island situated in the middle of the Gulf of St. Lawrence, obviously you have interactions with P.E.I., mainland Quebec, Nova Scotia, and New Brunswick to a certain degree. What kinds of partnerships have you established in terms of promotion of trade and commerce with your neighbours? Maybe you could address any concerns you may have in terms of a price decline or a rapid market reduction.

[Gabrielle Landry]

I think you are talking about a 30 per cent drop on the markets. In the Magdalen Islands, protecting the resource is what is important, and that seems to be well in hand. A certain volume of the available lobster biomass is landed here. That does not seem to be in doubt. It is the sale of processed products that appears uncertain.

The Local Development Centre, or LDC, works very closely with the maritime fisheries industrial processors to see how business partnerships can be developed and to maximize the positive spinoffs associated with lobster landings in the Magdalen Islands. For a long time, the spawn market had priority and that continues to be the case. For many years now, we have noted an increase in the amount of lobster being processed in the plants. The industrial processors are trying to maximize volumes and are focusing more and more on value-added.

There is no doubt that in an island community such as ours, you have to build partnerships and linkages with the outside. I believe industrial processors in the Magdalen Islands are used to developing those kinds of relationships. Do there need to be more in the years to come? That is something we may want to explore further, particularly sea farming. In recent years, seawater and mussel farmers here have developed a relationship with people in Prince Edward Island with a view to marketing their product. It is clear that there has to be close cooperation with partners in the Maritimes and Quebec in this area. No one can really afford to work in isolation under the current circumstances, in the context of globalized markets, lower prices on the U.S. market, and so on. As a result, market diversification, more value-added and business partnerships are all goals that we are pursuing.

If you don't mind, I would just like to add that the LDC is also supporting the industry's efforts. There have been a number of actions taken, including a lobster promotion campaign last year, on both the Quebec market and the domestic market in general. We made a financial contribution to that activity, along with other partners.

[The Chair, Conservative, Rodney Weston]

Thank you.

Mr. Blais.

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

Thank you, Mr. Chairman.

Joël, Gaby, Gerry's questions and comment are very interesting. It is true that, in the Magdalen Islands, jobs and the dynamism of the community rely to a great extent on two industries in particular, fisheries and tourism. At the same time, they function as an aggregate. We were saying earlier that a number of factors are in play and that, for reasons of isolation, transportation costs are higher. That is a very important piece of information when you're talking about development, problems or financial constraints due to a recession.

There are other elements to consider as well—for example, costs or ways of operating. It seems to me that, at the departmental level, one of those elements could be the small craft harbours—the infamous wharves. They are under repair and are more often in difficulty than anything else. However, there is a very special situation in the Magdalen Islands. In Cap-aux-Meules, for example, there is not enough space.

Perhaps you could talk about what is needed in terms of interventions by various partners, at different levels. You may want to focus more on the Department of Fisheries and Oceans.

[Joël Arseneau]

I am going to begin, and Gabrielle can add her comments.

First of all, our dependency on various means of transportation is such that, for some years now, the community's priority has been to establish a marine link with the mainland that is available year-long. Of course, most people are benefiting from that as a result of a pilot project that was carried out over the last two months. The fishing industry will also benefit: it will be able to lower its costs, and shipping will be facilitated, whether we are talking about bait, refit construction materials for boats, motors or anything else that fishers may need.

It was mentioned that processing activities had increased in the Islands thanks to local supply and imports. If we can operate six, eight or twelve months of the year, the entire Island economy will benefit.

The other way to establish a link with the mainland would be through air transportation. Our landing strip is only 4,500 feet. We will be tabling a proposal with Transport Canada, probably in June, to have our infrastructure upgraded and to extend the landing strip to 6,000 feet. That will stimulate tourism and the fishing industry. So, our analysis also includes this component.

There was a time when a lot of fresh fish was exported. Nowadays, the trend is towards fresh, traceable products and enhanced protein and vitamin content in fish and seafoods. As things now stand, we are not in a position to efficiently supply our domestic markets. For example, in Montreal, it is easier to buy a fillet of tilapia from Chile than a fillet of sole or a lobster tail from the Magdalen Islands. That is highly integrated approach as we see it.

There is also the question of small craft harbours and the need to improve safety and efficiency in the catch sector. We now have a much larger fleet that can operate offshore. However, space is limited in many of the Island ports. The ports are not in deep water and therefore require recurrent dredging. However, these investments are necessary in order for them to continue to operate.

[The Chair, Conservative, Rodney Weston]

Thank you.

Mr. Stoffer.

[Peter Stoffer, NDP, Sackville—Eastern Shore, NS]

Thank you very much, Mr. Chairman.

Again, Your Worship and Madame Landry, thank you for welcoming us to the Magdalen Islands. Again, our condolences on the first anniversary of the deaths of the four sealers and to their families.

You had talked about the good news that young families seem to be moving to the Magdalen Islands. I can see why. It's such a beautiful place. I also recommend to my committee colleagues that if you come here in July and August, some of the most beautiful beaches in Canada are right here.

You had talked about the young people here. One of the concerns we're always worried about is who will be catching lobster in the future. Just for clarification, if you have the answer, what is the average age of the average lobster fisherman now? Are young people whom you dialogue with on a consistent basis looking at the lobster fishery as a possible future occupation or trade?

[Joël Arseneau]

I will begin, and let Gabrielle continue with her own comments.

I just want to mention that bringing young people into the fishery to catch and process fish is a concern that I did not mention, but which is very real. Indeed, the Local Development Centre has had measures in place for many years now to support young people coming into the industry. There was nothing in place in the fishing industry previously, but over the past year, we introduced a program to facilitate the purchase of a fishing enterprise by young people starting out. We conducted studies to see what the needs were. Our contribution is relatively minor, but I believe it is significant. It was intended to complement other measures put in place by the Government of Quebec. The latter also wants to help young people enter this industry. In the Magdalen Islands, we are proud of the fact that we depend on the fishery for our livelihood, and the celebrations that begin each year when the nice weather begins and the fishing season opens are such that fishing is not seen as something negative by young people here. It is an occupation that is still considered to be extremely noble, and that is an asset for our community.

[Gabrielle Landry]

To answer your question, I would say that the average age of fishers in the Magdalen Islands is the same as elsewhere. Right now, our captains are between 45 and 50 years of age, on average. In the Islands, we are different from other areas in that, for the time being—and the words “for the time being” are important—we have a new generation of young fishers coming up behind. When a captain decides to retire, there are people interested in buying his fishing business. It is often an intergenerational transfer between father and son. The young people have been part of the business for some time and want to take it over. There is very strong interest on the part of young people here, and that sets us apart from other areas.

On the other hand, that positive element is fragile. The fact is that young people will be interested only if they are pretty certain they can earn a living at it. Right now, with market prices collapsing, the situation is somewhat worrisome, in terms of the future. As long as young people have the sense that there is a future in the industry, they will stay here, but first the industry has to survive these crises. That is one consideration. Furthermore, studies have shown that young people here are primarily interested in buying a fishing business because they want to be able to work at home, in their community. And, one way of achieving that is to work in the fishing industry. As you said earlier, that industry underpins development in the Magdalen Islands. By buying a fishing business, they immediately buy themselves a job. They are interested in staying in their community, which is extremely positive.

At the Local Development Centre, we decided that we wanted to help young people acquire fishing enterprises. It is said that this generation of young people will be far more indebted than previous ones. So, they need more support. Although it was possible to buy a business for practically nothing in the 1950s and 1960s, it is now clear that things have changed dramatically. The cost of buying a business is fairly high and operating costs are very significant. At the LDC, we have introduced assistance programs. They involve non-repayable contributions and start-up grants for young people who want to buy a fishing firm. We have also set up a system to provide support with business management. We believe that young people buying a fishing business need to learn the basic concepts of managing a business. That is why they have access to what we call consulting cheques. They can use these to secure support by recognized professionals over a three-year period. They can call on their own accounting firm to gain a better understanding of concepts such as financial statements, changes that affect the business, tax measures, and so on. For the time being, the younger generation is still here, and we have our fingers crossed that this will continue to be the case.

[The Chair, Conservative, Rodney Weston]

Thank you.

Mr. Allen.

[Mike Allen, Conservative, Tobique—Mactaquac, NB]

Thank you, Mr. Chairman.

Good morning, your Worship and Ms. Landry. I would like to know whether you have taken any action to lower energy prices or whether you have a plan in that regard. Also, I would like to know whether community revenues have changed much in the last five years, given what the fishermen are experiencing.

[Gabrielle Landry]

In terms of reducing energy prices, we would sincerely like to have a plan, but do not. You referred to fishing boats. We know that there are different ways of lowering consumption. We believe that people are more and more aware of the need to reduce their consumption, and documenting to a greater extent the steps that can be taken to lower energy expenses on a fishing boat is one of the components of the LDC's action plan for the industry.

In terms of community revenues, over the past few years, revenues from the fishery have been based on shellfish, which was not the case 10 or 15 years ago. There was a far wider breakdown of revenues between the different groundfish and shellfish—lobster and crab.

Here, like everywhere else, the mainstay of the fishery is shellfish. Therefore, any fluctuation in prices paid when the fish is landed or on the market has a direct impact on our community's revenues. So, looking at what has happened to the price of lobster and snow crab in recent years—and I am excluding 2008—prior to 2008, we saw that there was relative stability. Last year, however, that was not the case. This year, we still do not know what is going to happen. So, the community here is more sensitive to variations in the market price of shellfish than other areas or geographic regions of Quebec, because our entire economy is steeped in the sea and its resources.

With respect to energy reduction, some processing plants are currently looking at the possibility of adding equipment that could enhance their energy performance, by creating large enough economies of scale in the processing plants, according to what I have been told.

If you don't mind, since we are talking about operating costs, I would just like to digress for one moment. Earlier, Mr. Arseneau talked about sea ports. On the Islands, we had 20 or more sea ports in the 1970s. Over a period of 32 or 35 years, we have gone from 20 to 9 fishing ports. That is the absolute bare minimum for the Magdalen Islands community. These ports have to be funded by Fisheries and Oceans. So, in terms of what the Department can do, that is clearly an important issue.

And, if I can just say one more thing in passing about operating costs, it is this. Whether we are talking about the cost of fishing licences or of certain control mechanisms, these are extremely important programs, but they are programs that are very expensive. I am thinking, in particular, of the control program for other fisheries. That is not the case for lobster, but it is for crab, where there are offshore observer programs in place, and so on. Fisheries and Oceans has an obligation to look at the operating costs that it passes on to the industry to see what can be done, within the Department, to reduce those costs for fishermen, given current economic conditions.

[Mike Allen, Conservative, Tobique—Mactaquac, NB]

Thank you.

[The Chair, Conservative, Rodney Weston]

Thank you very much.

I appreciate your coming today to meet with the committee and allowing the committee to receive your advice.

On behalf of the committee, I want to say once again how appreciative we are of the hospitality here in the Îles-de-la-Madeleine.

And I want to say merci to Monsieur Blais for inviting the committee to come.

Thank you very much, and have a good day.

The committee is adjourned.