Fisheries Committee on June 16th, 2020

[Maxime Blanchette-Joncas, Bloc, Rimouski-Neigette—Témiscouata—Les Basques, QC]

Thank you, Mr. Lanteigne.

You also mentioned the change in eligibility criteria for the employment insurance program. In your view, that is necessary in order to ensure that fishing industry workers are not left without income due to the delay in opening the fishing season, which will now be shorter.

Could you provide us with more details? Which eligibility criteria specifically do you feel need to be reviewed?

[Jean Lanteigne]

One of your colleagues said it earlier: the criteria have yet to be released. This is making fishers very uneasy, especially because we do not know whether this shrimp harvest will be abundant or not over the course of the year. We do not know what we can rely on.

Employment insurance really does provide very good support for the industry, and fishers appreciate it very much. However, fishing is still their main source of income, and they often cannot rely on employment insurance alone to meet all their financial obligations.

It might help, but we are waiting for details about the program, which remains unclear.

[Maxime Blanchette-Joncas, Bloc, Rimouski-Neigette—Témiscouata—Les Basques, QC]

Is there a date by which the federal government needs to clarify all the issues you mentioned?

[Jean Lanteigne]

The season is way behind schedule right now, at least for shrimping. There will be fishing for sure, provided the market opens up a little. That is the big unknown.

Obviously, the sooner the better. If we do fish, the season will certainly extend into the fall. September 1 would be an acceptable date.

[Maxime Blanchette-Joncas, Bloc, Rimouski-Neigette—Témiscouata—Les Basques, QC]

If fishing can continue until December, it could still be cancelled earlier due to weather conditions, for example. It's possible that more income will be lost.

Are you looking for more financial support, given that, even if we want to extend the fishing season, it will not necessarily always be possible to do so?

[Jean Lanteigne]

We are making two major requests of the government.

The first is to suspend the cost of licences. They cost from $15,000 to $25,000, and it is an expense that fishers have incurred so that they can go fishing. That being the case, we are asking that they be reimbursed for it.

The second involves the $40,000 financing program for businesses. When we made our request to the minister, we asked the federal government to triple that amount, to provide $120,000 in financial support to fishing enterprises. As we know, the significant financial obligations they face call for a subsidy program that is in proportion, around $120,000.

[Maxime Blanchette-Joncas, Bloc, Rimouski-Neigette—Témiscouata—Les Basques, QC]

With respect to that $120,000 in assistance—

[The Chair, Liberal, Ken McDonald]

Thank you, Mr. Blanchette-Joncas. The time is up.

We'll now go to Mr. Johns, for six minutes or less.

[Gord Johns, NDP, Courtenay—Alberni, BC]

Thank you, Mr. Chair.

Mr. Lanteigne, you just touched on something that I was going to ask about: the licensing fees.

Can you talk about how important that ask was? The government decided to go with the fish harvester benefit and the grant instead. I know on the west coast this was very important to fishers.

Can you speak about how significant that is? We know fishers are going to have a very difficult time coming out of this season.

[Jean Lanteigne]

As I just explained, it is a huge expense. For snow crab, the fee is $132.50 per tonne, and for shrimp it is $66.50 per tonne. We also have to factor in the 2% increase this year.

Since there were no funds from the federal government, we thought it was a very appropriate way to help fishers without the federal government having to dip into the public purse.

In this case, it is simply a matter of removing that expense, which would really help them. As you know, a fisher must produce a gross income of $40,000, $45,000, or even $50,000 to be able to pay that $25,000 bill.

In our opinion, that was a really easy support measure to implement. We still do not understand why the Department of Fisheries and Oceans refuses to proceed in this manner and instead went ahead with a $10,000 subsidy. Furthermore, shrimpers and crabbers are totally ineligible, given that they have already applied for the $40,000 subsidy.

[Gord Johns, NDP, Courtenay—Alberni, BC]

Thank you.

Mr. Lansbergen, you're welcomed to comment on that as well. Maybe you could also touch on the fish harvester benefit and fish harvester grant. Are they satisfactory to your members? What kinds of communications have you heard from the department in terms of the response to that? Do you have any idea how many fishers in your association will apply for either the fish harvester grant or fish harvester benefit?

[Paul Lansbergen]

Most of my members are not eligible for the fish harvester grant or benefit, but there are a few smaller members who could benefit from them. One of the issues that we flagged for the government, and that is addressed through the fish harvester grant, is that for a share persons crew that earn a variable compensation through a percentage of the catch, their payroll was not being captured in the right spot on the T4 slip. They're being captured by that and so are their employers, but as I said, that really doesn't help my larger members.

In terms of the fee relief—

[Gord Johns, NDP, Courtenay—Alberni, BC]

Sorry, could you speak a little about the conversation with the department in response to those concerns about those who are falling through the cracks?

[Paul Lansbergen]

Like everyone else in the sector, including many of the harvester groups, we all flagged that people were falling through the cracks from the economy-wide measures, like the business account and things like that. We said that the share persons crews were not being captured and that, therefore, that would deem their employer ineligible for the business account. The fish harvester grant and the fish harvester benefit were designed to fix those technical ineligibility things that—

[Gord Johns, NDP, Courtenay—Alberni, BC]

Can you also talk about the importance of the liquidity in terms of the cash flow situation, the $40,000? We heard from Mr. Lanteigne about how that's not even close to adequate. Can you speak about how significant it is that the government expand that?

[Paul Lansbergen]

I think that if they expand that.... As I said, my members are too large, so they're not eligible for that. Their payrolls go above $1.5 million, but Mr. Lanteigne did mention the fee relief. As this pandemic continues, if the market disruption continues longer than we originally anticipated, then I think everyone in this sector will be interested in fee relief and access relief. My members are paying into the millions of dollars for access fees, so there may be a time when we need to revisit that decision.

[Gord Johns, NDP, Courtenay—Alberni, BC]

Thank you.

Mr. Lanteigne, you were talking about Iceland and research, and how they have an excellent model there. Can you expand a little on that as well?

Could you touch on the Canada food purchase plan, if that's serving your members, this rollout of this program and the way the government's designed it?

[Jean Lanteigne]

Obviously, that measure only applies as a last resort, when our inventory is not moving. I hope that we will find solutions to sell our products before we get to that point.

At least, as Mr. Trudeau said, instead of us throwing food away and wasting it, the Canadian government can buy it and distribute it to people who need it. It is rather dreadful that it has come to this, and it shows how weak our current situation is because we have not done enough to develop other types of products. We are really stuck in what we have always done, and I would say we are victims of our own success to some extent. We have been asleep at the wheel for too long and that is a shame.

We are waking up today, and it is a rude awakening. In a way, I feel it was very much to be expected, because we have been working the same way for too long, without even wondering if there were other ways to do things.

[The Chair, Liberal, Ken McDonald]

Thank you, Mr. Johns. Your time has gone way over.

[Gord Johns, NDP, Courtenay—Alberni, BC]

Okay.

[The Chair, Liberal, Ken McDonald]

I want to say thank you, of course, to our guests today, Mr. Lanteigne and Mr. Lansbergen, for joining us here as we do this study on the effects of COVID-19 on the fishing industry and the people involved in it.

We're just going to suspend for a brief moment while we allow our two guests to sign off and we make sure we have the other guests signed up.

I will say that Mr. Duane Boudreau, president of the Gulf Nova Scotia Bonafide Fishermen's Association, will be joining us in the second hour.

[The Chair, Liberal, Ken McDonald]

We're good to go.

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For this portion of the meeting we're joined by Melanie Sonnenberg, president of the Canadian Independent Fish Harvesters Federation. As well, from the Gulf Nova Scotia Bonafide Fishermen's Association, we have president Duane Boudreau. From the Membertou Development Corporation, we have Chief Terrance Paul, chief executive officer.

Witnesses, thank you for joining.

We'll now go to Melanie Sonnenberg for six minutes or less, for her opening statement, please.

[Melanie Sonnenberg, President, Canadian Independent Fish Harvesters Federation]

Good afternoon, everyone.

Thank you, Mr. Chair, and thank you to the committee for inviting the federation to appear today.

The Canadian Independent Fish Harvesters Federation is the national advocacy voice for the over 12,000 independent harvesters who land most of Canada's seafood. Collectively we employ a crew of about 30,000.

We are the people who produce most of Canada’s lobster, crab, wild salmon, shrimp and groundfish. Our seafood landings put Canada among the top fishing nations in the world and make us the single largest private sector employer in the majority of our coastal communities across Canada.

Canada's fishery sector was hit particularly hard in January by COVID-19, which is earlier than other sectors. The seasonal nature of the fishery has left it exceptionally hard hit by the pandemic, with critical decisions centred around the ability of harvesters to survive the present market conditions and financial crisis that has impacted the industry. Canada's fish harvesters are facing very difficult times, and we hope that, by appearing today, we can identify some of the gaps and issues that have arisen as a result of the situation around COVID-19.

The federation has been closely following the various emergency support programs announced by the Government of Canada in response to the economic crisis caused by COVID-19. Of particular interest to our members has been the Canada emergency business account, the seafood stabilization fund, Farm Credit Canada, the Canadian emergency relief benefit, the Canada emergency wage subsidy, and just recently, the fish harvester benefit program.

Unfortunately, due to the nature of our industry as well as the various restrictions and the limitations on the programs, it is difficult, if not impossible, for some fish harvesters to access the programs as they are presently structured. More adjustments need to be made to assist harvesters, but there are, almost certainly, others who will fall between the cracks if we do not proactively take steps to prevent devastating losses to our independent harvester fleets across the country.

Considering the unique situation of our industry and our ability to provide a secure food source to Canadians, we wish to highlight the following concerns that exist for harvesters. The fish harvesters relief package that was announced May 14 was welcome news. Now harvesters urgently need details, eligibility requirements and when funds are going to be released.

We acknowledge there is considerable work to get the program going, but those in industry who are not eligible for other programs urgently require financial assistance. The new enterprise owner-operator who is just beginning a business in the fishery and has no financial history continues to be left out of most programs. Dedicated resources must be given to this important issue, and we need to collectively work together to find solutions for this segment of the industry.

The federation was formed over eight years ago as a need to protect the independent harvesters across Canada. Independent harvester fleets were highlighted in the legislation that was adopted last June by Parliament through Bill C-68. The bill identified the need to protect and promote this important part of our industry. Because of the financial crisis, large corporations, both inside the country and out, are in a position to acquire our enterprises. These acquisitions include the use of controlling agreements, which are under-the-table deals that give access to our public resources in a way that was never intended nor compliant with regulations and DFO policy. Most importantly, under COVID-19, we must not allow the erosion of this policy. The Canadian ownership in the fishery is important, and this erosion is happening now and will weaken our national food security.

Presently there is a regulatory package that is waiting to move from Canada Gazette part I to Canada Gazette part II. It is imperative that this is supported and completed, as it gives the department more strength to support the legislative piece on owner-operators that I previously mentioned. This is an urgent matter that is directly related to the pandemic in light of the financial vulnerability of the industry. We must not stand by and let owner-operators be further eroded in the face of the pandemic.

Innovative market solutions must be explored to support the industry both domestically and abroad. The situation in British Columbia is unique, given their vertically integrated, corporate-style fishery. As noted in FOPO's west coast benefits report last year, the need to protect B.C.'s independent harvesters is critical. COVID-19 has made the situation even worse, with last season's lease prices holding many harvesters hostage. Coastal communities will continue to decline if action is not taken to address the recommendations of the report.

With multiple fishery surveys cancelled, COVID-19 is directly in the way of collecting scientific information needed for the sustainable management of our fisheries. Independent harvesters stand willing to work with the department's scientists to ensure that critical data and information is collected. Additional resources are needed to support this important and necessary work. Presently, science is not deemed essential but it is supporting an industry that is essential. Therefore, we need science to be recognized as essential in support of the fishery as well. That would ensure that we have responsible management and continued industry access through strong science advice.

It is important to emphasize how urgently these issues and gaps need to be addressed on behalf of our industry. The seasonal nature of our fisheries makes recovery throughout the rest of the year extremely difficult. Without strong, comprehensive support, the future livelihood of many independent fish harvesters and, in turn, the economy of many of Canada's coastal communities are in doubt.

The challenge of this pandemic has demonstrated that now more than ever it's important to support domestic and international food supply chains, and that includes our seafood. We stand ready to assist your officials to ensure fish harvesters do not fall through the cracks. Please accept our offer of ongoing support and dialogue to protect the economic well-being of our vibrant coastal communities.

Thank you for your time and attention on this matter. By working together, we can ensure that our Atlantic and Pacific fisheries remain a viable renewable industry and that they support Canada's economic recovery.

In closing, I'd like to again thank the members of the committee for inviting us here today and for hosting the panel on the challenges facing the industry during the COVID-19 pandemic. We trust that through our work together we can ensure that our vital industry is not overlooked. I'm looking forward to your questions.

Thank you.

[The Chair, Liberal, Ken McDonald]

Thank you, Ms. Sonnenberg.

We'll now go to Mr. Duane Boudreau, president of the Gulf Nova Scotia Bonafide Fishermen's Association.

When you're ready, sir, go ahead for six minutes or less.

[Duane Boudreau, President, Gulf Nova Scotia Bonafide Fishermen's Association]

Thank you.

I won't repeat any of Melanie's comments.

As mentioned, I'm the president of the Gulf Nova Scotia Bonafide Fishermen's Association, representing roughly 100 of the 620 fishermen in the Gulf Nova Scotia region. I also sit as the vice-president of the fleet planning board, which represents the entirety of the Gulf of Nova Scotia.

Back in April, I participated in the process of trying to design the ask from the fishers in the gulf region to the government for financial assistance. Along with that, we sat in multiple meetings with the Department of Fisheries, with Serge Doucet and the management from the gulf area. In each of these meetings we were asked what we wanted and how we saw the season going forward, and in each of those meetings we said we really had two options. One was a financial package that would protect our enterprises, some of which are in multiple generations now, three or four generations. The second option was the ability to start our season on time.

When the decision was handed down from DFO, for some reason we were told in the gulf that we needed an additional two weeks to prepare for the COVID pandemic. Oddly enough, it was only Gulf Nova Scotia that needed this time. From a health standpoint, I personally have seen very little change in the fishing industry. I've not personally heard of a single case of a lobster fisher in my area contracting the virus. The biggest impact that COVID-19 has had on our season is obviously the loss of two weeks and 25% to 40% of our income, as well as the additional market volatility and overall price reduction.

In the lobster industry in the gulf, price typically follows a pretty predictable schedule. In mid-April, area 31B opens up and the price drops two dollars. At the end of April, the remainder of area 31, the entire eastern shore, opens up along with the gulf, and the price will drop another dollar. Mother's Day arrives, and we see another price drop. Then at the end of May, the south shore closes their season, and we see an additional drop. I've been in the industry for—not to date myself—over 50 years, and this price schedule has repeated year after year. By losing the first two weeks of our season, we had already suffered the first two price drops before we started.

To make matters worse in the gulf, we really only have the lobster season and the snow crab season as our main sources of income. Fishers in the south shore, the eastern shore, as well as Quebec and Newfoundland have multiple other fisheries that they participate in as income supplements, whereas most of our other fisheries are basically recreational. By depriving the fishers in my area of 40% of their income with, really, at this point, still no viable, economic assistance package, we've pushed a lot of fishers to the brink of financial ruin. We still haven't seen a package that will prevent that. A $40,000 line of credit, basically, does very little to help the majority of fishers. In my own personal instance, my payments alone to the bank are $75,000, so that $40,000 doesn't do a whole lot.

My other concern that's come out of this is that this is the first time in history that the department has made a decision on delaying a season based on economic reasons. The mandate of the department is conservation and protection, and that's how it should remain.

It's very difficult to refute the outcome of conservation and protection measures. It's very difficult to prove who the economic benefactor is in a decision like this when the majority of our lobsters are live-shipped and areas of the minister's backyard and eastern shore were allowed to fish while we sat on the shore.

That pretty much concludes my comments. Thank you for allowing me to speak here today.