Thank you very much, Mr. Chair, and thank you for the invitation to appear before the committee on Fisheries and Oceans main estimates. Before getting started I want to say it's great to be working as the Minister of Fisheries and Oceans in this important portfolio, and I'm delighted to have the chance to work with all of you.
Joining me are members of our DFO senior management team.
We have David Gillis, acting assistant deputy minister of ecosystems and oceans science sector. Next to David is the chief financial officer and assistant deputy minister, Marty Muldoon. Then we have associate deputy minister David Bevan. We have the Deputy Minister, Matthew King, as well as the Canadian Coast Guard Commissioner, Marc Grégoire. Next to Marc is assistant deputy minister of ecosystems and fisheries management, operations, Trevor Swerdfager. And last but not least is the senior assistant deputy minister of ecosystems and fisheries management, Kevin Stringer.
The department's 2014-15 main estimates total $1.6 billion. The key elements include increases in funding for science vessels, oil spills, and aquaculture regulation, along with decreases in funding related to ongoing vessel projects and recent spending reviews. The CFO will provide the committee with an overview of these shortly.
My remarks will focus on our priorities for the upcoming year.
I want to begin by highlighting our investments in our country's fisheries and oceans that support job growth, competitiveness, and quality of life for fishing families and the communities that rely on them.
For example, our economic action plan 2014 includes $15 million over two years for the recreational fisheries conservation partnership program. It also includes $40 million over two years to accelerate repair and maintenance work at small-craft harbours across the country. It includes important investments for the national conservation plan and the health of the oceans program. It includes, Mr. Chair, a tax credit for search and rescue volunteers who perform at least 200 hours of service a year. It also includes $66.1 million to renew the Atlantic integrated commercial fisheries initiative and the Pacific integrated commercial fisheries initiative. The latter investment will allow increased participation of first nations fishing enterprises in Canada's integrated fishery.
All budgetary measures will support economic growth and create jobs in Canada, especially in rural, coastal, and aboriginal communities.
For 2014-15 our focus will be on improving fisheries management practices, giving the coast guard the tools they need, ensuring responsible resource development, and pursuing operational excellence.
Our first order of business will be improving the way in which we manage our fisheries. Domestically the department is working with fishermen to strengthen the competitiveness of the fish and seafood sector. Abroad, we continue to strengthen Canadian access to export markets for fish and seafood products, while also promoting and protecting our traditional industries.
Our efforts to expand markets have paid off. Recently the Government of Canada and the Republic of Korea concluded negotiations for a bilateral free trade agreement. The trade agreement is Canada's first with an Asian market. Phasing out high tariffs on fish and seafood products will create new opportunities for Canadian exporters and put them on a level playing field with U.S. producers.
Another excellent example is the Canada-EU comprehensive economic and trade agreement announced last October. The EU is the world's largest importer of fish and seafood products, importing over $25 billion annually, and our second-largest trading and investment partner. When this agreement comes into effect, it will give the industry preferential access to the EU's 500 million consumers and their $17 trillion in annual economic activity.
I'd like to briefly mention the challenges highlighted by the Maritime Lobster Panel report and the “Independent Review of the Prince Edward Island Lobster Industry”. I reviewed these reports with great interest and have given much consideration to the recommendations directed at DFO, in particular those that were outlined in the report of the Maritime Lobster Panel.
It called on us to continue rationalization of the lobster fleet, to improve how we work with harvester organizations, and to develop an electronic data collection system for catch and effort. The success of our response to help the lobster industry, however, relies on the support, consent, and cooperation of industry groups and the provinces to successfully carry out each of these initiatives.
We're committed to the future of the lobster industry and small-scale fisheries. That's why we have a policy in place called preserving the independence of the inshore fleet in Canada's Atlantic fisheries. This is known as PIIFCAF for short. Introduced in April 2007 the purpose of this policy is to ensure that the benefits of fishing licences flow to harvesters in the rural coastal communities in which they live. As of April 12, after a seven-year grace period PIIFCAF will be fully implemented. This policy reiterates my department's ongoing commitment to owner-operator and fleet separation policies and to support the independence of the inshore fleet in Atlantic Canada.
Our next priority in 2014-15 is giving the Canadian Coast Guard the tools they need for their important tasks of ensuring safe and efficient navigation for all Canadians. We are also taking steps to establish an incident command system to improve the coast guard's ability to manage responses to marine pollution incidents. We will continue to work in collaboration with our key emergency response partners to protect our oceans.
The next order of business will be implementing the fisheries protection provisions contained in the new Fisheries Act and will concentrate on a modernized aquaculture regulatory framework. As you know, aquaculture is the fastest-growing food production sector worldwide, now supplying over 50% of the global demand for fish and seafood. Canada generates 174,000 tonnes of aquaculture product. This is worth over $2 billion annually and translates into 14,000 jobs in rural, coastal, and aboriginal communities. That's why the government is proud to invest $54 million over five years for the renewal of the sustainable aquaculture program. Renewing the sustainable aquaculture program will help to support the sector's challenges to grow by streamlining regulations, by improving the regulatory management, providing transparency, as well as by increasing scientific knowledge and supporting science-based decision-making.
As indicated in budget 2013, the department was asked to contribute to the government's fiscal balance. To achieve the targeted savings we have focused on improving how we use technology, in particular video conferencing, simplifying the management structure in the organization, reducing some administrative overhead, and strengthening the department's decision-making processes. We now have in place a leaner department, better integrated, and with a results-based approach to our work.
That said, DFO continues to maintain a significant presence in all regions of the country. The fishing industry will continue to be able to count on the support of people with local knowledge and sensitivity to local issues. We continue to focus on eliminating the deficit and balancing the budget by 2015. This year's estimates continue to steadily decrease in the amount of voted spending. This reduction reflects the ongoing success of the cost-cutting measures the government has put in place and our unwavering resolve to cut unnecessary spending and balance the budget. With these investments and changes to how we do business, my department and this government will continue to modernize how we deliver results for fishermen across the country. We will continue ensuring safe and efficient marine navigation for all Canadians, as well as the long-term sustainability of essential coast guard assets in support of safe and secure waters.
Let me close by saying a few words on the seafood expo that took place mid-March in Boston. As you probably know, this is North America's largest and most important seafood expo and it has been an outstanding success. This was an excellent opportunity to showcase our Canadian products. It was extremely gratifying for me to visit one of the world's leading seafood expos and witness first-hand the positive reception to Canadian seafood products and to Canadian industry practices. That interest in and support for our products should make every Canadian proud. It also gave members of our seafood industry a chance to meet with potential buyers from a huge American market and to establish contacts with some European buyers as well. Our trade agreements with the EU and the Republic of Korea represent huge opportunities for Canada's fish and seafood sector. While these agreements are not fully implemented yet, I can tell you there was a lot of optimism at the seafood show.
In 2013 we saw the largest annual growth in seafood export values since 2010 and I'm certainly optimistic that this upward trend will continue thanks to this very ambitious trade agenda.
Thank you very much. Marty Muldoon has a short presentation on the estimates as well.