Thank you very much, Mr. Chairman and members of the committee. It is a real pleasure for me to be here to talk a little bit about my experience as president of Wild Canadian Sablefish and executive director of the Canadian Sablefish Association, and about the issue that has seized the committee, which is aquaculture and aquaculture policy.
I will give you a brief overview so that you're all aware of why sablefish would be here. There are two finfish on the west coast of British Columbia that are farmed by aquaculture. One is salmon, which is much the subject of controversy and currently is the subject of a federal inquiry, and the other is sablefish.
Sablefish are often not really understood very well by consumers. They are also known as Alaskan black cod. In Canada we call them sablefish because, number one, it's the proper name, and number two, it helps denote the quality difference in the marketplace where we sell it.
There are about 47 licences in the fishery in British Columbia. The fishery has been operating for about 45 years. It was an experimental fishery initially. The Japanese had developed the fishery before the 200-mile economic limit; as a result of that, pretty much all of the market up until three years ago had been in Japan, so it's an export product primarily. People in Canada, even in Vancouver and Coquitlam, find it very difficult to find, except in five-star restaurants.
The fishery itself has over $350 million invested. We have over 300 people who are employed annually and we have a total allowable catch this year of 2,400 tons. Historically, it would be between 3,600 tons and 4,900 tons, but we've taken substantial cuts in our TAC over the last number of years out of concern for conservation. Indeed, we've been cited as one of the best-managed fisheries, not just in Canada but globally.
We were probably the first fishery, or maybe among the first one or two, that went into co-management agreements with the Department of Fisheries and Oceans. That has been very successful for us. We are partners in the management of the stock.
We invest anywhere from $750,000 to $1.5 million a year in doing surveys so that we understand the stock as well as we can. We make sure that we only take what can be sustained, and we work both with departmental scientists and our own scientists on staff.
All of the catch comes from either longline or trap. The trap fishery takes most of the TAC, and we're pretty proud of how clean this fishery is. The Bowie Seamount is, I think, a marine protected area in British Columbia--I think it was the first one--and it took a lot of years for the negotiation to get everybody on side about what the management plan would be for it. We were pretty pleased when we had an environmental group such as the Suzuki foundation agree that the trap fishery was so clean that even in a marine park or protected area we could still have a limited fishery. We have very little bycatch on the trap fishery and very little on the longline fishery as well.
We have issues. We have issues with the MPAs. There's one under way for Haida Gwaii, Queen Charlotte Island. Having these processes under way lends a lot of uncertainty for fishermen about their future access. We're impacted by treaty settlements that are very active in British Columbia, because in many cases the treaty settlements also take fish.
We have issues with integration. I should mention that the ground fishery in British Columbia is the first fully integrated ground fishery in the world. Sablefish is one of the six fisheries that are fully integrated. It's not really an issue, but it gives us some management problems because we're now fully accountable and responsible for every fish that's taken, so if we catch a rockfish, we have to make sure that we can lease quota from a quota holder. We're fully responsible and accountable for that fish.
Even DFO, on the licence transfer programs for the native or communal fisheries, is presenting us with some challenges. The reason is that all of our licence-holders pay a small fee for us to be able to have the association, to do the co-management agreements, and to undertake the surveys, but in terms of the quota that's bought and the licences for those programs, the department normally holds them, and they don't pay any fees.
As a result, we're not as pressured as some other fisheries, but over time, unless a solution is found at the legislative level to set conditions of licence, the federal department's ability to co-manage in a whole number of species is going to be undermined. Halibut would probably be before us, but it is still a problem.
These are long-lived fish in deep waters. The fish itself is reared in inlets. The fishermen, the licence holders, have voluntarily closed the inlets to fishing for a number of years, because we see those as the nursery and the incubator for the fish. The market is usually for three- to seven-pound fish.
We've undertaken a different approach to the development of this fishery over the last three years. We knew that the volume would have to go down, so we switched over to a value fishery. We switched over to creating new markets for this fish and diversifying beyond Japan. As a result, I can tell you that three years ago the fish was selling at the dock for about $4.23 per pound. Last week, on auction, it got $7.94 per pound, so even with a significantly reduced quota, the value is still there in this fishery, and will continue to be as we diversify into other product forms.
On the issue of aquaculture, our association has taken the position that we support aquaculture as long as it is properly regulated and as long as a precautionary approach is taken in establishing finfish farms, in particular when government decides that they can do it in open pens in the ocean.
We have concerns about the health of our stock. There are parasites, such as lice, that can be transferred from other species such as salmon. We are very concerned about some of the diseases. There's a weird disease called furunculosis and vibriosis, which can be deadly. When these outbreaks happen in a volume in a closed containment, they can kill the entire volume in that containment. Indeed, we've seen that happen in one of the few sablefish farms that are currently operating in British Columbia. It happened last year. There was an outbreak of furunculosis, and the entire brood stock was killed. We're concerned that those types of outbreaks not get into our wild stocks because, simply, we just don't have enough science to tell us what would happen if indeed there was a significant outbreak.
We've carefully watched the salmon situation evolve, and I think everybody around this table would say that if we could do it again, we certainly would do it differently. There is huge controversy out there about the open-penned salmon farms and their impact on wild salmon. You've heard from Dr. Alexandra Morton, with whom we work closely; she certainly has evidence and a view about how the open-penned system could have had an impact on some of the wild species, the stocks that are currently in decline and that are the subject of a judicial inquiry.
The issue we've had is that there is a need for a gap analysis on the science around sablefish, just as should have been done before there was widespread licensing of salmon farms. This is in its infancy. I think we have one hatchery, and probably three or four operations under way. We don't really have good information. When this industry was being regulated by the provincial government, it was very difficult to get our hands on numbers. We think there are between 40 and 50 licences out there. Three are operational; the others, to become operational, will have to be approved.
We quite simply don't know where this fishery is going. We do know we've built value in our fishery. We do know that parasitic transmission has happened in other species. It's happened in ours. We urged the provincial government, when they were still in charge of aquaculture licensing in the waters of British Columbia, to, number one, do a gap analysis; number two, not license any more open-penned farms for sablefish; and number three, do closed-containment studies. We offered to participate fully in the financing of it and to provide any data that were necessary so that we could build a database that would allow for the proper development of sablefish farming, if indeed the economics, the biology, and the science were all there for it.
I have a number of other things, but I'm really conscious of your time. If anybody has questions on them, there are some other areas I would like to get into. These include such things as the transfer and the court case of September 2, 2009, involving Justice Hinkson, which basically indicated that the 1988 agreement transferring licensing responsibility to the Province of British Columbia was not constitutional. The federal Department of Fisheries and Oceans is currently developing rules and regulations to take over the administration of aquaculture in Canada for our situation in British Columbia. There is also the potential impact that improper regulations could have on the future of the wild Canadian sablefish industry.