Evidence of meeting #73 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 board.

A recording is available from Parliament.

On the agenda

MPs speaking

Also speaking

Clyde MacLellan  Assistant Auditor General, Office of the Auditor General
Heather McManaman  Principal, Office of the Auditor General
David Bevan  Chairperson, Board of Directors, Freshwater Fish Marketing Corporation
Stan Lazar  Interim President, Freshwater Fish Marketing Corporation

9:50 a.m.

Interim President, Freshwater Fish Marketing Corporation

Stan Lazar

As I said two weeks ago at the public accounts committee, we are looking at alternatives for some of our other species. I talked about things like carp. We've done a really good job of marketing carp. We have 12 other species that we manage, and we are developing new products and markets for those species.

9:50 a.m.

Conservative

Todd Doherty Conservative Cariboo—Prince George, BC

It's safe to say today that your primary source is walleye from Lake Winnipeg.

9:50 a.m.

Interim President, Freshwater Fish Marketing Corporation

Stan Lazar

That's correct.

9:50 a.m.

Conservative

Todd Doherty Conservative Cariboo—Prince George, BC

Right.

9:50 a.m.

Interim President, Freshwater Fish Marketing Corporation

Stan Lazar

Well, as far as value, as far as volume are concerned, it's not.

9:50 a.m.

Conservative

Todd Doherty Conservative Cariboo—Prince George, BC

If that fishery collapsed, you would have no other source at this point for that.

9:50 a.m.

Interim President, Freshwater Fish Marketing Corporation

Stan Lazar

I think you're right. The whole fishery is at risk to the corporation's mandate.

9:50 a.m.

Conservative

Todd Doherty Conservative Cariboo—Prince George, BC

Again, I'm looking at your numbers, and I think I'm going to follow up on Ms. Jordan's question.

We've seen since 1969, and indeed 2005, 2010, 2015, and 2017, some serious deficiencies. You are now losing a whole host of your guaranteed source.

There are some challenging times ahead for this corporation. Is that correct?

9:55 a.m.

Chairperson, Board of Directors, Freshwater Fish Marketing Corporation

David Bevan

That is correct.

That's why we have informed the Government of Canada exactly what kind of steps we're going to take to maintain the value, maintain our fish supply, pending a decision on the long-term future of the corporation.

9:55 a.m.

Conservative

Todd Doherty Conservative Cariboo—Prince George, BC

Have you asked for funding from the government?

9:55 a.m.

Chairperson, Board of Directors, Freshwater Fish Marketing Corporation

David Bevan

No, we don't need the funding at the current time. We're making a profit. We have retained earnings, and our debt load is less than our retained earnings.

We've not asked that over the course of the history of the corporation, which has been making money to one extent or the other, with a few minor glitches along the way. We aren't living off appropriations.

9:55 a.m.

Conservative

Todd Doherty Conservative Cariboo—Prince George, BC

With the signing of the Canada-European trade agreement, that would open up more of a market. It is the largest fish importer market in the world. That would open up a greater market for your independent fishers. Is that correct?

9:55 a.m.

Chairperson, Board of Directors, Freshwater Fish Marketing Corporation

David Bevan

That's correct. It is going to provide us with an alternative. Obviously, as you can see from the pie chart, we're highly reliant on domestic and North American markets right now, but free trade with Europe will provide us with more alternatives.

9:55 a.m.

Conservative

Todd Doherty Conservative Cariboo—Prince George, BC

What risk mitigation strategies have you put in place for when Manitoba pulls out? It is my understanding that they're at third reading.

9:55 a.m.

Chairperson, Board of Directors, Freshwater Fish Marketing Corporation

David Bevan

That's correct. I don't know the exact date, but it's imminent. They were aiming for December of this year.

The risk mitigation was to sign contracts with the suppliers to maintain the sales volume. That's going quite well.

9:55 a.m.

Conservative

Todd Doherty Conservative Cariboo—Prince George, BC

Can you table with this committee, either today or at a later date, what your risk mitigation strategy is for that?

9:55 a.m.

Chairperson, Board of Directors, Freshwater Fish Marketing Corporation

David Bevan

I don't know about today, but we can certainly table that with the committee.

9:55 a.m.

Conservative

Todd Doherty Conservative Cariboo—Prince George, BC

Thank you.

9:55 a.m.

Liberal

The Chair Liberal Scott Simms

Thank you, Mr. Doherty.

The document should be in both official languages, please, if possible.

Now, Mr. Donnelly, for seven minutes.

9:55 a.m.

NDP

Fin Donnelly NDP Port Moody—Coquitlam, BC

Thank you, Mr. Chair.

Thank you, witnesses, for being here today and providing your testimony.

The Auditor General's report has identified significant deficiencies. In fact, it concluded with an adverse opinion, and we've been talking about that.

Given that they've identified these deficiencies, and you referenced this in your report, can you expand on how you've addressed some of those serious concerns on strategic planning; on management controls, so job descriptions, equipment purchasing; and on worker safety issues?

9:55 a.m.

Chairperson, Board of Directors, Freshwater Fish Marketing Corporation

David Bevan

Certainly. Job descriptions and HR practices were in place but not followed, and it's the same on the purchasing of equipment. Any purchase is supposed to come to the board for consideration. That did not take place, but it is taking place at this time.

Perhaps you're all aware that we don't get to hire the president, nor do we get to discipline or dismiss the president. That's the Government of Canada. It's the same thing with board members. We don't have direct influence. We have implemented a new risk framework that will be provided to the committee. We have looked at our strategic plan and our corporate plan.

In the context of strategic direction, obviously we're going to be a taker on that one from the Government of Canada. Clearly the consideration is, should a crown corporation in an open market persist? It did, for example, when Air Canada was functioning in that context because it had a commitment to make sure the routes to more isolated communities were maintained. That's what we're going to be doing after the Manitoba legislation.

I think you'll see, when you take a look at all the documentation.... The corporate plan, once it's tabled in Parliament will be available to you as well. You'll see our long-term proposals. In the risk profile you'll see what was done to manage risks.

10 a.m.

NDP

Fin Donnelly NDP Port Moody—Coquitlam, BC

You covered strategic planning, management controls. What about worker safety?

10 a.m.

Chairperson, Board of Directors, Freshwater Fish Marketing Corporation

David Bevan

Worker safety is part of the recommendations we're still working on until the end of this year. That's where all the procedures are going to be communicated to our employees.

Stan, do you have more to add on that?

10 a.m.

Interim President, Freshwater Fish Marketing Corporation

Stan Lazar

Yes, that's right. In our detailed action plan we list the policies and procedures we need to work on. Today was our commitment to have all of those done. I can report that they are done. The communication with employees is going to take place over the next two months. We'll have those done by the end of this calendar year.

10 a.m.

NDP

Fin Donnelly NDP Port Moody—Coquitlam, BC

Okay, so essentially you're coming to our standing committee today to report, to say, “Yes, we recognize the deficiencies outlined by the Auditor General. We recognize this scathing report. In the last year or so since then, we've turned it around. We feel it's a profitable situation. This is a positive situation moving forward.” You're characterizing this that the government should continue to invest in and work with this crown corporation. Is that a fair characterization?