Evidence of meeting #13 for Fisheries and Oceans in the 40th Parliament, 2nd session. (The original version is on Parliament’s site, as are the minutes.) The winning word was fishermen.
Liberal
Lawrence MacAulay Liberal Cardigan, PE
They're not given any because of that. Also, Maureen mentioned the realignment of the fishery. It would take three to five years. Could you elaborate on that a bit? I know you're on the processing end.
Everybody has to survive. If you're trying to pay bills, Mark, you need fishermen. I know you well understand that too. But if you don't have fishermen who are making a decent living, nothing can survive, including the stocks.
President, Mariner Seafoods
The fisherman has to make money. The processor has to make money. The guy I sell to has to make money. And the guy who's going to eat the lobster in the end has to make money to be able to buy it. Everybody has to make money. Right now, that's not happening. The people who were eating the lobster aren't making money.
People are out of work and they're losing their homes. People are out of work all over the U.S. This is where our market is, in the U.S. Are you going to go out to Red Lobster and spend $100, or are you going to keep that $100 and put it toward your mortgage payment to try to stay in your house for another month?
Lobster is a luxury item, whether we like it or not. People like to eat lobster in good times. In bad times they're more embarrassed to eat lobster, because they think they're celebrating and having a hell of a time, but they're actually losing their house. They're not going to eat lobster. They'd rather eat anything else but lobster right now.
Until people get back to work, it's going to be tough.
Conservative
Bloc
Yvon Lévesque Bloc Abitibi—Baie-James—Nunavik—Eeyou, QC
I will be sharing my time with my colleague. I have just one brief question.
Bloc
Yvon Lévesque Bloc Abitibi—Baie-James—Nunavik—Eeyou, QC
I am not as knowledgeable about the lobster fishery as some of the people here. On the Arctic coast, there are whales and arctic char, rather than lobster.
How many processing plants are there in Prince Edward Island?
Bloc
Yvon Lévesque Bloc Abitibi—Baie-James—Nunavik—Eeyou, QC
Are you the only plant having to keep an inventory because there is no demand for your product?
President, Mariner Seafoods
No. In previous years we didn't have this much problem with inventory. We've always moved our product. Until this recession, it hasn't been a problem.
It's the same with the other processors on P.E.I. They've moved their product and everything has gone along. Their industry has grown, and inventory hasn't been a problem. But because of the recession, it hasn't moved.
Bloc
Raynald Blais Bloc Gaspésie—Îles-de-la-Madeleine, QC
Thank you very much, Mr. Chairman.
First of all, I would like to say something, and it is personal. We are here today in Lawrence MacAulay's riding. This is not by chance either, but I nevertheless wanted to underscore it. I have gotten to know Lawrence quite well over the years. I would say that he works not only very hard, but also very well for the community. I can pay tribute to him today in this way, because we have over time developed a kind of friendship. We are not members of the same political party. I am a member of the Bloc Québecois and I represent the Gaspé and the Magdalen Islands, and Lawrence is from Prince Edward Island. He is a federalist; I am a sovereigntist, etc., but we have a common interest, that of helping our people with the various crises and challenges they face. His only fault is that he unfortunately does not know his hockey very well. He is a Boston Bruins' fan and I am a Montréal Habs fan. Apart from that, it is wonderful working with Lawrence.
I would like to hear what you have to say about ACOA. In Quebec, we have what is called Canada Economic Development, with offices spread around Canada. This organization's mandate is to assist businesses in financial difficulty when the regular financial system is not there. You stated very clearly that when you call upon a financial institution for help, it does not work. ACOA, a federal agency, is there to help businesses like yours that are facing difficulties.
What approaches were made to ACOA and what was the response? What recommendations could we make in order to improve things?
President, Mariner Seafoods
Personally, I've never had any success with ACOA. I've never been able to access any of their funds. I've been in business for 35 years, and I've never had any success in accessing any federal funds, nor provincial funds.
I can't see where ACOA has any program that's going to fit this type of problem. If they were given a mandate to do this, I'm sure they could do it, but at the present time I don't think they have a mandate to solve this problem.
Bloc
Raynald Blais Bloc Gaspésie—Îles-de-la-Madeleine, QC
This is quite surprising given that the agency, according to its general mandate, is there, with the funds at its disposal, to assist businesses in difficulty, particularly in the area of funding. It is one element, but there could be other avenues. I understand that your experience with this organization has been far from positive, but that does not mean that we could not recommend that this organization develop, if it has not yet done so, specific programs targeting your particular problems.
President, Mariner Seafoods
That would be very great if you could do that. We'd appreciate that.
Bloc
Raynald Blais Bloc Gaspésie—Îles-de-la-Madeleine, QC
We are familiar with your various problems relating to the resource, to conservation, etc. However, with regard to marketing the product, to the market, how do you envisage the coming weeks? Indeed, it is not a matter of months, but of weeks. In the Gaspé region, the season will be opening in two or three weeks' time, depending upon the ice, etc., and the 2009 season will be launched for good. How do you see it unfolding?
President, Mariner Seafoods
With regard to lobster, presently there's fishing going on in Southwest Nova. I believe the shore price this week is $6.50 or $6.75, but it's limited fishing, and there are very few fishermen fishing. In Southwest Nova, they usually return to the fishery after the weather warms up, and they put their traps back in the water. So as the fishermen down there are landing more lobsters, there's going to be more of a supply, and I think the price will decline.
How much they're going to catch will depend on how low the price will go. I'm not in the lobster business presently, but the people I talk to tell me that there's not a lot of demand for live lobsters. There is some movement. I talked to one fellow the other day who told me there were boats coming ashore but no buyers. Even though the price was $7 a pound, or $6.75, they weren't able to sell their catch when they came ashore.
I don't know what's going to happen when Quebec opens up, all of the gulf opens up, Newfoundland opens up, and in the Magdalens there's fishing, with everybody landing a lot of fish. What's going to happen? I can't see a big price. Customers aren't buying and they're not giving us orders for the new season.
NDP
Peter Stoffer NDP Sackville—Eastern Shore, NS
Thank you, Mr. Chairman.
Thank you, gentlemen, and the lady before you, for coming here today.
On February 27 it was announced by the federal government and the three maritime provinces that they were going to come up with a sort of marketing strategy. There was a combined half a million dollars from the federal government and the three provincial governments in order to do a variety of things: media campaigns, retail promotions, market research, and consumer promotion and all of that.
Were your agencies or companies involved in any of this? Was your advice sought, not just by the federal people, but by the provincial people as well, on how they should proceed?
President, Mariner Seafoods
The association met with some of the federal and provincial representatives, but I believe there was a time constraint on that. It had to be spent by March 31, and it was really too close a deadline to make any great suggestions as to what to do with this. Yes, we need marketing, we need market research, and we need product development. We need to develop our industry for the future.
NDP
Peter Stoffer NDP Sackville—Eastern Shore, NS
That leads to my next question.
There has been discussion about a so-called lobster marketing board or some sort of process of that nature. No one said they absolutely wanted to have this, but it's an idea that some people are looking into. Is it something that your businesses would be looking into in the future to sort of overcome some of the marketing challenges that we have collectively in the entire Atlantic region?
President, Mariner Seafoods
Yes, we have a major problem in marketing in lobsters. Yes, we need new products. We need new development. We need product research, development, whatever, to find a new product. We haven't had a new product go into the lobster industry in 25 years. We need some innovation, but half a million dollars is not going to touch it. Half a million dollars would buy a few advertisements saying how lobster's good to eat and here's how to open a shell. Half a million dollars is only a drop in the bucket to what's required for this industry.
NDP
Peter Stoffer NDP Sackville—Eastern Shore, NS
But as a New Democrat, I must say I'm pleased with the fact that the three provinces working with the federal government are at least working cooperatively on a particular plan, even if it may not be enough; it may fall short. At least it shows an indication of a willingness to, one, understand the problem, and two, try to find solutions within the three--with the federal government as well. I thought that was pretty good.
My colleague, Mr. Blais, came up with a good point on ACOA, though. We understand that if the provincial government gives you, say, x dollars, it has to give Ocean Choice three times the amount because of a previous contractual agreement they made in regard to Polar Foods. But ACOA may be--this sounds nefarious--a backdoor way of getting at some assistance, and it's something to look at. I can't, obviously, make any assurances on behalf of the committee, but it is one thing to look at. I can assure you, I know Mr. Blais and I and others will speak to the ACOA minister to see what assistance may be provided, because your Icelandic bank thing is not working; they are in serious trouble.
I have a last question for you.
She indicated before--although she didn't say it, since she didn't want her remarks to be misinterpreted--that it almost felt as though there was a tension between the harvesters, the processors, and various levels of government. There's always that sort of competitive tension there anyway.
Is there good dialogue between companies such as yours and the harvesters on a weekly or monthly basis to iron out some of the concerns and problems that you mutually face?
President, Mariner Seafoods
There is a dialogue, but I think more dialogue is needed. I think the fishermen need more information about what's going on. There are some who understand what's going on in the market, but others think the processors are just trying to rip us off, that the price is going to be down and they're going to make a big profit, that kind of thing.
If they go on the Internet or turn the television on and find out what's going on in the world, I think they'll realize this is a real situation and it needs a real solution.
NDP
