Thank you very much.
Good afternoon, committee members.
Once again, the Prince Edward Island Fishermen's Association appreciates the opportunity to present to the Standing Committee on Fisheries and Oceans during this busy time for all.
As a representative organization for over 1,260 captains, our harvesters have experienced many changes in the past few years related to on-board equipment, regulations and export markets, but the fact that our members participate in a profession that contributes directly to the local economy has not changed.
Fishing has been a cornerstone of local coastal economies for many years, and if we play our cards right, it will be for many more, but there are storm clouds on the horizon that are cause for concern. We should all be concerned about the risk of moving from having independent owner-operators supporting our local communities to a consolidation of the industry around big corporations that have too much control over the fishery and who may export significant profits.
The concept of independent owner-operators managing their own businesses has been key for the survival of coastal communities since the start of the commercial fishery. Captains and crews that live in these communities buy their food, pickup trucks and supplies locally so that local businesses can continue to survive.
On P.E.I., most fleets employ three to four crew members with the 1,260 core licence fleets. This represents wages for between 3,700 and 5,000 individuals and their families on the harvester side alone. This is an example of how our independent small businesses contribute to and impact local economies. Our sector was one of the few industries that started last spring and generated much needed jobs and business revenue for Canada when most of the country and world was shutting down due to the COVID-19 virus.
Much of what I've outlined is at risk if we allow corporate interests to gain control and have power over the fishery. The recent sale of Clearwater Seafoods of Nova Scotia to Premium Brands of Vancouver and FNC Holdings Limited Partnership is of great concern. The issue is about the consolidation of power and corporate interests in the fishery, regardless of who owns the corporation.
There are many unanswered questions surrounding that deal that need to be answered by the federal government. The largest corporate sale in Canadian seafood history was announced on November 9, 2020, and approved less than 60 days later, on January 6, 2021, with much of the review time taking place over the traditional holiday season. The December 23 letter expressing concerns and questions by the PEIFA to Minister Freeland was not replied to until May 7, 2021.
Here are some of the key questions and concerns we have:
One, it is unclear why the existing grandfathered midshore and offshore licences are being transferred to one part of the ownership group.
Two, since the conclusion of the sale, the new entity has purchased more assets in the seafood and cold storage sectors, which speaks to a target model of full vertical integration. This model typically lessens competition on the wharf.
Three, if either the new entity or one of the shareholder groups becomes insolvent or bankrupt, will section 15 of the DFO licensing policy, regarding licences held by a corporation in receivership, still apply?
Four, will the existing midshore and offshore licences be granted any additional provisions? We are still awaiting a reply from the Department of Finance on what tax changes may occur under the new ownership group.
The issuing of licences to midshore and offshore fleets has always been contentious as the focus first and foremost is shareholder return.
Our ocean resources are collectively owned for the benefit of all Canadians. Our concern is that there may be unintended consequences to all harvesters and their communities if the requested licence transfers proceed without full disclosure and transparency and preferential corporate access to a Canadian resource is permitted.
At the very least, all potential negative impacts need to be assessed.
Food security for all Canadians is of primary importance. Transactions of this magnitude must be scrutinized in their entirety and all impacts, positive or negative, assessed. We believe independent local owner-operators, whether they be indigenous or non-indigenous fishers, not big corporations, are the best way to keep the fishery and our communities strong and our resource sustainable.
Thank you.