Evidence of meeting #14 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.

On the agenda

MPs speaking

Also speaking

Bobby Jenkins  Southern Kings and Queens Fishermen's Association
Donald Johnston  President, Southern Kings and Queens Fishermen's Association
Jim Jenkins  Southern Kings and Queens Fishermen's Association
Linus Bungay  Operation Manager, Ocean Choice PEI Inc.
Danny Arsenault  Vice-President, Prince County Fishermen's Association

2:30 p.m.

Operation Manager, Ocean Choice PEI Inc.

2:30 p.m.

NDP

Peter Stoffer NDP Sackville—Eastern Shore, NS

I know that Clearwater had a concern like that as well.

2:30 p.m.

Operation Manager, Ocean Choice PEI Inc.

Linus Bungay

It interrupted our flow for a period of time at the beginning. We've weathered that storm and we have our lines of credit in place for 2009. However, the question is whether they are as favourable as we'd like.

2:30 p.m.

NDP

Peter Stoffer NDP Sackville—Eastern Shore, NS

That's understandable.

We heard evidence this morning that if a processor or someone wants to get assistance from the provincial government, the provincial government is restricted. If, for example, they gave Company A $100,000 to renovate or rebuild or do something in their plant, they would in turn have to give either three or four times that amount to your company as well, even though you didn't ask for it. Apparently there is some sort of contractual agreement with the province on this, such that if they give one dollar here, they have to give three or four dollars to Ocean Choice.

Is that a correct statement?

2:35 p.m.

Operation Manager, Ocean Choice PEI Inc.

Linus Bungay

I think the OCI agreement is in place and is an agreement between the provincial government and Ocean Choice. The answer is that if there were any assistance given to the industry, it would be done on a pro rata basis; I think that's a fair statement.

2:35 p.m.

NDP

Peter Stoffer NDP Sackville—Eastern Shore, NS

Even if your company doesn't ask for it, you would receive those sorts of moneys anyway. Is that correct?

2:35 p.m.

Operation Manager, Ocean Choice PEI Inc.

Linus Bungay

You'd have to look at the actual agreement itself.

2:35 p.m.

NDP

Peter Stoffer NDP Sackville—Eastern Shore, NS

And how long is that agreement in place for, sir?

2:35 p.m.

Operation Manager, Ocean Choice PEI Inc.

Linus Bungay

It was made five years ago when the purchase of the Polar assets took place.

2:35 p.m.

NDP

Peter Stoffer NDP Sackville—Eastern Shore, NS

And does it have a shelf life? Is there an end date on that agreement, do you know?

2:35 p.m.

Operation Manager, Ocean Choice PEI Inc.

Linus Bungay

I'm not quite sure of that.

2:35 p.m.

NDP

Peter Stoffer NDP Sackville—Eastern Shore, NS

As you know, sir, earlier in February the federal Minister of Fisheries, along with the federal Minister of Agriculture got together with the three provincial ministers of the Maritimes region and came up with close to half a million dollars for a marketing strategy. We know that those funds had to be expended by the end of this month, before April 1. Was your organization in any way invited to participate in some of that marketing strategy? You're such a large operator that I would think they would come to you for at least some sort of advice or direction on what to do. Were you able to be part of this, or was your advice asked for?

2:35 p.m.

Operation Manager, Ocean Choice PEI Inc.

Linus Bungay

We would have had input on that issue based on the fact that we're members of the Seafood Processors Association of Prince Edward Island. We would also have had input into it based on the fact that we're sitting around the table at the Atlantic industry round table.

2:35 p.m.

NDP

Peter Stoffer NDP Sackville—Eastern Shore, NS

Sure.

One of the obvious concerns that a company like yours would have to have is access to supply in order to keep the plant going and the workers going and to keep your promises to your customers going as well. Does your company involve itself in any kind of trust agreements at all with lobster fishermen? Does your company own any licences or have trust agreements?

2:35 p.m.

Operation Manager, Ocean Choice PEI Inc.

2:35 p.m.

NDP

Peter Stoffer NDP Sackville—Eastern Shore, NS

Very good.

My last question for you is, how was the Boston Seafood Show?

2:35 p.m.

Operation Manager, Ocean Choice PEI Inc.

Linus Bungay

At the Boston Seafood Show, I would suggest as my opinion that traffic was down about 20%. I would suggest that there were very limited commitments made at the Boston Seafood Show. I think there were a lot of tire kickers at the Boston Seafood Show. I believe it is a kind of situation in which people are looking at what's coming up this season and are assuming that prices will be lower, so they're playing a wait-and-see game.

2:35 p.m.

NDP

Peter Stoffer NDP Sackville—Eastern Shore, NS

Are the lobsters that you get from Maine usually tails and meat?

2:35 p.m.

Operation Manager, Ocean Choice PEI Inc.

2:35 p.m.

NDP

Peter Stoffer NDP Sackville—Eastern Shore, NS

And it that because of the quality of the lobster itself?

2:35 p.m.

Operation Manager, Ocean Choice PEI Inc.

Linus Bungay

That's correct, yes.

2:35 p.m.

NDP

Peter Stoffer NDP Sackville—Eastern Shore, NS

Thank you, sir, and thank you for coming.

2:35 p.m.

Conservative

The Chair Conservative Rodney Weston

Thank you very much.

Mr. Kamp.

March 31st, 2009 / 2:35 p.m.

Conservative

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

Thank you, Mr. Chair.

Thank you, Mr. Bungay, for being with us today and helping us to understand a little more about this issue.

Let me start, and if we have some extra time, my colleagues may have some questions as well.

Let me begin with one or two points of clarification. I'm the Parliamentary Secretary to the Minister of Fisheries and Oceans, and she would probably want me to clarify that the decision regarding funding for the Canadian Centre for Fisheries Innovation was not made by the Department of Fisheries and Oceans; it was made by ACOA. I'm not sure of their reasons for thinking the program no longer meets their criteria, but it wasn't our decision.

I also want to say on her behalf that she takes this lobster issue very seriously. She is concerned about what's happening not just here in P.E.I., but throughout Atlantic Canada. It's one of her most important files.

You said in your comments that your volume has dwindled—I think that is the word you used—and you mentioned 50%; then you commented that you don't know what you're going to buy from year to year. I'm not sure I understand why it has dwindled. Is it just because it's unavailable to buy, or what?

2:35 p.m.

Operation Manager, Ocean Choice PEI Inc.

Linus Bungay

The dwindling is based on the direct buy. We also buy from commission buyers, but the dwindling has been in our direct buy.