Evidence of meeting #106 for Fisheries and Oceans in the 42nd Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was funding.

A video is available from Parliament.

On the agenda

MPs speaking

Also speaking

Catherine Blewett  Deputy Minister, Department of Fisheries and Oceans
Jen O'Donoughue  Assistant Deputy Minister and Chief Financial Officer, Department of Fisheries and Oceans
Sylvie Lapointe  Assistant Deputy Minister, Fisheries and Harbour Management, Department of Fisheries and Oceans
Mario Pelletier  Deputy Commissioner, Operations, Canadian Coast Guard, Department of Fisheries and Oceans
Philippe Morel  Assistant Deputy Minister, Aquatic Ecosystems Sector, Department of Fisheries and Oceans
Kevin Stringer  Associate Deputy Minister, Department of Fisheries and Oceans
Jeffery Hutchinson  Commissioner of the Canadian Coast Guard, Department of Fisheries and Oceans

8:50 a.m.

Liberal

The Chair Liberal Bernadette Jordan

Good morning everyone. Welcome to meeting number 106 of the Standing Committee on Fisheries and Oceans, on Tuesday, June 5. Today we are going to be reviewing the main estimates, 2018-19, votes 1, 5, and 10 under the Department of Fisheries and Oceans.

I would like to welcome today a number of people who are no strangers to this committee. We have Catherine Blewett, Deputy Minister; Kevin Stringer, Associate Deputy Minister; Jen O'Donoughue, Assistant Deputy Minister and Chief Financial Officer; Jeffery Hutchinson, Commissioner of the Canadian Coast Guard; Sylvie Lapointe, Assistant Deputy Minister, Fisheries and Harbour Management; Philippe Morel, Assistant Deputy Minister, Aquatic Ecosystems Sector; Mario Pelletier, Deputy Commissioner, Operations, Canadian Coast Guard.

Thank you all for attending.

I understand that this morning instead of having two 10-minute opening remarks, we'd like one session of 20 minutes. Instead of doing a number of back and forth, we'll go with one.

I believe we also would like to welcome to the committee today Mr. Deltell from Louis-Saint-Laurent and Mr. Poilievre from Carleton.

Thank you so much for joining us today.

We will get started with you, Ms. Blewett, for your opening remarks. Please go ahead.

8:50 a.m.

Catherine Blewett Deputy Minister, Department of Fisheries and Oceans

Good morning, Madam Chair.

It's a real pleasure to be here with you to discuss the main estimates for 2018-19, which were tabled in mid-April.

Madam Chair, you have introduced our party, so I will skip that and save a little bit of time for the committee.

To begin with, I want to thank you for this opportunity to share the significant results we have achieved for Canadians. Through the main estimates for 2018-19, the department's total budget for this fiscal year amounts to $2.5 billion. This represents a net increase of $244.7 million over last year. This increase is due mainly to new funding for the oceans protection plan, for maintaining mission-critical services to Canadians, for the Atlantic fisheries fund, and for ongoing renewal and expansion of indigenous fisheries programs and initiatives.

I want to take this opportunity to provide some examples of how the Department of Fisheries and Oceans, or DFO, and the Coast Guard are using this funding to meet the needs and expectations of Canadians.

We're already seeing far-reaching benefits in coastal and indigenous communities on all three coasts from our oceans protection plan. For example, initial training has been completed for the crew of a new inshore rescue boat station in Rankin Inlet. Starting this summer, crew members will be able to provide assistance to mariners in local waters who are in distress or in need of help, and will also be able to share valuable information on boating safety when needed.

The Maritime Rescue Sub-Centre St. John's has been officially reopened. This sub-centre is being staffed around the clock by highly trained maritime search and rescue coordinators who coordinate the on-the-water responses to maritime rescue incidents in the unique, challenging, and often dangerous waters off Newfoundland and Labrador.

The oceans protection plan is also funding a unique training program on Vancouver Island that pairs traditional indigenous knowledge with the Coast Guard's search and rescue expertise. To date, 27 members of 20 first nations communities in B.C. have graduated from three coastal nations search and rescue courses that are helping to build on the role they already play in maritime safety in their communities.

The oceans protection plan's $75-million coastal restoration fund is also being implemented on all three coasts with the help of our many partners. Last year, Fisheries and Oceans received $167 million that was used to shore up a number of key program areas. They included Coast Guard assets and core activities; our science and fisheries management, including conservation and protection; as well as the physical infrastructure and information technology needed to carry out our mandate.

I'd like to give you a few very quick examples. Funding to operate and refurbish aging ships is helping us to ensure that the government will be able to provide reliable, essential marine services until new vessels from the national shipbuilding program are put into service. Commissioner Hutchinson and Mr. Pelletier will be able to provide to the committee any details on the Coast Guard's work.

As you know, budget 2018 provides $250 million over two years for improvements at small craft harbours across Canada. This is in line with the government's commitment to support harbours and local economies, and foster job creation. Members of this committee had expressed a desire to learn which of the projects will be going forward, including when engineering and construction work is to begin. I expect that the minister will very soon be in a position to share this information with you.

We're also working to ensure the sustainable use of the oceans' resources and improve how fisheries are managed on the high seas through monitoring, control, and surveillance, to curb incidents of illegal fishing and to improve international fisheries and oceans governance over the long term. Curbing IUU fishing is a priority for Canada. Actually, today Canada is joining the United Nations General Assembly and the global community in observing an official day, June 5, to promote awareness of the need to combat IUU fishing. Protecting species on the high seas and in our domestic waters is a priority.

As the North Atlantic right whale population returns, the government has put in place a number of measures to try and prevent any further deaths from occurring this summer.

I'll just let the committee know that late yesterday we received word that there are, in fact, 75 of the North Atlantic right whales in the gulf waters as of yesterday, so the population really is moving. It's quite a change.

Minister LeBlanc already announced several changes to the 2018 snow crab fishery in the southern Gulf of the St. Lawrence that will help protect right whales from getting tangled in fishing gear.

Important work is also happening on the west coast with respect to the recovery and the protection of the southern resident killer whales. We've actively been working to protect this endangered species by recently implementing closures to the chinook fishery in areas where those whales feed and forage, and by introducing new rules that prohibit vessels from approaching closer than 200 metres, which will help minimize noise disturbance and allow the whales to feed more easily. We also are continuing to work with our partners on issues related to critical habitat.

In addition to protecting mariners and the marine environment, federal funding for DFO is essential for achieving reconciliation with indigenous peoples, fostering trade, developing clean technologies, investing in coastal communities, and improving economic opportunities.

Thank you, Madam Chair.

I will now turn it over to Ms. O'Donoughue, before taking questions.

8:55 a.m.

Jen O'Donoughue Assistant Deputy Minister and Chief Financial Officer, Department of Fisheries and Oceans

Thank you. Good morning, Madam Chair and committee members.

As the deputy minister mentioned, my name is Jen O'Donoughue, and I am the Chief Financial Officer for DFO and the Canadian Coast Guard.

We are pleased to be here this morning to provide a brief overview of the main estimates for 2018-19.

The presentation will be brief. This will allow plenty of time to go through any questions the committee may have. I will invite you to follow along using the PowerPoint presentation, which I believe all of you have a copy of.

As outlined on slide 3 of the presentation, the timing of the estimates has changed in 2018-19. Minister Brison tabled interim estimates back in February to ensure departments were able to start the fiscal year. The key change is the timing of main estimates, which now follows the budget.

As with all supply bills, they are referred to committee, where the contents are studied before voting actually takes place, which is why we are here today. The government tabled main estimates after the budget to better reflect budget priorities. This provides greater clarity and transparency to Canadians, and makes it easier for you, as parliamentarians, to scrutinize the estimates as part of your oversight of government spending.

I would also quickly like to note that our resources are no longer presented using the program alignment architecture. We now present, for information purposes only, our resources using our new departmental results framework. In the main estimates, specifically on page II–94 of the English main estimates, or page II-197 of the French, our resources are broken down by core responsibility: marine operations and response, fisheries, marine navigation, and aquatic ecosystems.

The numbers are presented in a similar fashion in the table on page II-93, but we broke the information down further to give you more detail.

This is on page II-93 of the English version.

The main estimates for 2018-19 total $2.45 billion, which represents a net increase of $244.7 million over last year.

I will now outline some of the key adjustments. These items can also be found on page II-94 in the highlights section. Our largest increase is related to the oceans protection plan, at $275 million. In her opening remarks, the deputy provided some examples of what the OPP is allowing us to do.

The next increase, at $244.7 million, is funding stemming from the comprehensive review of our programs and services to ensure we are able to maintain mission-critical services to Canadians. There is also an increase of $58.6 million in the Atlantic fisheries fund, which is now included in main estimates. This seven-year initiative, which started in 2017-18, supports the fish and seafood sector in Atlantic Canada as it transitions through significant challenges facing the region.

The final increase I will highlight today is an additional $42.2 million for the ongoing renewal and expansion of our indigenous fisheries programs and initiatives, which support the commitment to promoting the economic resilience of indigenous communities.

There are two additional planned adjustments. They represent planned decreases to funding profiles as the initiatives are nearing successful completion and the funding is winding down. This funding was temporary in nature. The first is a funding profile change to our federal infrastructure investments. The majority of these initiatives have been successfully completed. The second relates to funding for the offshore fisheries science vessels as the vessels are approaching the completion stage.

On the last slide, we have outlined DFO's budget 2018 measures. This information is similar to the budget 2018 annex included in these main estimates, specifically page A1-4, or A1-6 in the French version. This is a key pillar to Minister Brison's estimates reform.

Please note that before DFO can access any of these amounts, all initiatives will require approval of Treasury Board ministers. The budget implementation vote sets clear parameters for the allocation of funds. We cannot seek additional funding nor can we reallocate towards other initiatives or other purposes. Treasury Board Secretariat will report the allocations by department and by measure to Parliament on a monthly basis.

Thank you for this opportunity to discuss our main estimates with you.

My colleagues and I would be pleased to answer any questions you have.

9 a.m.

Liberal

The Chair Liberal Bernadette Jordan

Thank you.

Mr. Hardie, go ahead.

9 a.m.

Liberal

Ken Hardie Liberal Fleetwood—Port Kells, BC

Madam Chair, before our questions begin, I'd like to take a moment to officially move a notice of motion that was made last month. The motion reads as follows:

That the Committee undertake a study to examine the regulation of the West Coast fisheries, specifically in relation to fishing licences, quotas, and owner operator and fleet separation policies, in order to evaluate the impact of the current regime on fisheries management outcomes, the distribution of economic benefits generated by the industry and the aspirations of fishers and their communities, and to provide the government with options and recommendations to improve those outcomes, and that the Chair shall be empowered to coordinate the necessary witnesses, resources and scheduling to complete this task.

9 a.m.

Liberal

The Chair Liberal Bernadette Jordan

Mr. Hardie, thank you.

Mr. Finnigan.

9 a.m.

Liberal

Pat Finnigan Liberal Miramichi—Grand Lake, NB

Chair, I would like to propose a short amendment to the motion.

We could add to the end, “starting no later than February 2019."

9 a.m.

Liberal

The Chair Liberal Bernadette Jordan

There was a notice of motion for this last month. Any discussion on the amendment?

(Amendment agreed to)

(Motion as amended agreed to)

Thank you very much.

We'll now go to our round of questioning. I believe we have Mr. Rogers for the first seven minutes.

9 a.m.

Liberal

Churence Rogers Liberal Bonavista—Burin—Trinity, NL

Thank you, Madam Chair.

I say welcome to our honourable officials, and thank you for being with us today.

I'm going to focus my questions on a couple of topics. First, small craft harbours are very important to my riding of Bonavista—Burin—Trinity, with over 100 harbours on the coastlines of my riding. Fishers and recreational boaters rely on them, both for their livelihoods and the enjoyment they get from recreational boating. On this note, I was pleased to see such significant investment of $250 million into maintaining our small craft harbours. It is clear that the government cares about investing in the coastal communities that we live in.

Could you please tell us if the department has finalized its investment plans for 2018-19, as it relates to small craft harbours? When will we know the plan for allocating this money?

9 a.m.

Deputy Minister, Department of Fisheries and Oceans

Catherine Blewett

Thank you very much for the question.

The allocation through the last budget was a tremendous investment, and the work is going on. I will turn to Sylvie Lapointe, our assistant deputy minister, who has that detail. I would say very soon. A lot of the initial work in potential project identification and looking at some of the requirements is under way to get to the final list. As well, the regular programming has already been moved under way.

I'll turn to Sylvie.

9:05 a.m.

Sylvie Lapointe Assistant Deputy Minister, Fisheries and Harbour Management, Department of Fisheries and Oceans

Thank you. Good morning everyone.

We did receive some substantial investments into the program. It's B-base funding of $250 million over a two-year period. We are currently moving the list of projects through approvals. The money we received is for maintenance, repairs, and dredging operations for our core fishing harbours. There's also a significant amount that will be going to divestiture of non-core fishing harbours, to reduce the department's risk in this regard.

As our deputy mentioned, the A-base funding that we have is about $100 million every year. Those projects are under way for this year. We're confident we'll be able to deliver on the program. We have a strong track record of doing that. Over the last three years, in addition to our A-base funding of $100 million, we've been able to spend over $400 million in additional funds. As soon as we have the list finalized, we'll be sharing it with the committee.

9:05 a.m.

Liberal

Churence Rogers Liberal Bonavista—Burin—Trinity, NL

How many small craft harbours are expected to benefit from the additional funding over the next two years? How is the allocation of funds decided upon for each individual small craft harbour?

9:05 a.m.

Assistant Deputy Minister, Fisheries and Harbour Management, Department of Fisheries and Oceans

Sylvie Lapointe

I don't yet have the breakdown of how many harbours will receive funding. The projects are selected, with respect to overall maintenance and repairs, based on consultations with our harbour authorities, as well as studies that are done on the ground by our engineers to determine the condition of the small craft harbour. The harbours that are placed on a priority basis will be the ones that are in a state of disrepair, that are at risk, where there are a lot of commercial harvesters accessing those harbours, and there are significant socio-economic impacts to the communities.

With respect to the ones that will be divested, it's very much dependent on the state of readiness, with respect to negotiations with municipalities, governments, and the third parties that are prepared to take on the small craft harbour.

9:05 a.m.

Liberal

Churence Rogers Liberal Bonavista—Burin—Trinity, NL

Thank you.

With regard to the oceans protection plan, we have a historic investment in protecting our oceans, which is the lifeblood of many of our communities, of course. I was proud that this plan provided for the reopening of the Coast Guard substation, which you referenced in your opening comments, and allowed for the building of two new lifeboat stations, one that is located in my riding in Old Perlican.

Could you please inform us how the funds for the oceans protection plan have been rolling out, and the progress we've made on the various pillars of the plan?

9:05 a.m.

Deputy Minister, Department of Fisheries and Oceans

Catherine Blewett

Thank you very much for the question.

This year, the rollout of the oceans protection plan is going to be a huge focus for the department. I also referenced in my opening remarks some of the contribution funding that will go to many of our third parties through restoration projects. Those are going to happen across the country, and they're going to be a tremendous advantage as we work to restore critical habitat across the country.

The commissioner of the Coast Guard, and actually assistant commissioner Mario Pelletier, can talk to you about some of the investments in the Coast Guard. These investments are in a couple of areas. They're in the people, building up the capacity that we'd frankly lost in terms of the men and women who serve Canadians in the Coast Guard. Also, they're in the physical assets that have been coming, the purchasing of vessels and situating search and rescue onshore. It's also working through a lot of the basic infrastructure: the radar, the ability to detect vessels and follow through.

Mario, do you have other comments?

9:10 a.m.

Mario Pelletier Deputy Commissioner, Operations, Canadian Coast Guard, Department of Fisheries and Oceans

Again, it's a lot about people, but a lot about equipment as well. The number of ships, radar sites, and emergency response equipment are key to our ability to respond on the water. We are renewing our entire suite of emergency response equipment and purchasing a mobile command post as well, so that we are ready to deploy people in the field, ready to take action, and do proper management. We're also—

9:10 a.m.

Liberal

The Chair Liberal Bernadette Jordan

Thank you, Mr. Pelletier. Those are your seven minutes. Maybe somebody else can finish that line of questioning if you'd like.

We're now going to Mr. Doherty, for seven minutes, please.

9:10 a.m.

Conservative

Todd Doherty Conservative Cariboo—Prince George, BC

Thank you to our witnesses for being here.

Ms. Blewett, how many Federal Court cases challenging the minister's decisions are you fighting right now?

9:10 a.m.

Deputy Minister, Department of Fisheries and Oceans

Catherine Blewett

Are you talking about the Arctic surf clam?

9:10 a.m.

Conservative

Todd Doherty Conservative Cariboo—Prince George, BC

How many Federal Court cases challenging the minister's decisions are you fighting right now?

9:10 a.m.

Deputy Minister, Department of Fisheries and Oceans

Catherine Blewett

Unfortunately I don't have a particular number. We'll get back to you if there's information.

9:10 a.m.

Conservative

Todd Doherty Conservative Cariboo—Prince George, BC

Ms. Blewett, you gave the minister seven options regarding the Arctic surf clam proposal.

Did you advise him that Five Nations was the best?

9:10 a.m.

Deputy Minister, Department of Fisheries and Oceans

Catherine Blewett

Thank you for the question.

Our job was to review all of the applications. We actually received nine. The department deemed that two were ineligible, so there were the remaining seven. We assessed those seven against criteria, direct benefits—

9:10 a.m.

Conservative

Todd Doherty Conservative Cariboo—Prince George, BC

I'm sorry to cut you off, but my time is short.

9:10 a.m.

Deputy Minister, Department of Fisheries and Oceans