Thank you for the opportunity to appear before the Standing Committee on Fisheries and Oceans.
Ocean Choice is a family-owned and family-operated Newfoundland and Labrador company started over 20 years ago by brothers Martin and Blaine Sullivan from the southern shore, an area of the province with deep roots in the fishery. Our company employs nearly 1,500 people from over 300 communities throughout the province.
Over the past couple of decades, Ocean Choice has made major investments in our groundfish operations, including preparing for northern cod. Chief among those investments were the construction and introduction of the MV Calvert to the fleet in 2020. At a cost of more than $60 million, this is the most modern and innovative green-class groundfish vessel in the Canadian fleet, employing approximately 80 local crew members on a year-round basis.
A lot of opinions have been expressed on the topic of northern cod since the reopening decision in July. We are all entitled to our opinions but not our own facts. Here are the facts on northern cod from our standpoint.
Northern cod is the second-largest groundfish resource in Atlantic Canada and the third-largest cod fishery in the world, with a total biomass of more than 500,000 metric tons. DFO's 2024 stock assessment confirmed that the northern cod stock is approximately 24% above the limit reference point, the boundary between the cautious and critical zones of DFO's precautionary approach framework. To the best of my knowledge, every fish stock in Atlantic Canada that is in the cautious zone of the PA framework has a commercial fishery. Why should northern cod be treated any differently?
The FFAW has repeatedly referred to a 40-year policy commitment on the first 115,000 metric tons of northern cod. No such historical policy commitment exists. The participation of offshore harvesters in the northern cod fishery in the post-1977 era was deliberate and carefully considered by government. The long-standing government allocation policy is a commitment to priority for the inshore, not exclusivity. Key elements of that policy were adopted in 1979 by DFO at the Corner Brook conference, which defined priority to be two-thirds inshore and one-third offshore. This was reinforced in 1983, when the government adopted the Kirby task force report, and then reviewed and endorsed in 2004 when the government adopted a policy framework for the management of fisheries on Canada's Atlantic coast.
The 2024 allocation decision is one based on well-documented public policy that provides priority access to the inshore and indigenous groups in Newfoundland and Labrador but also respects the historical rights of the offshore sector. The misinformation regarding the Newfoundland and Labrador offshore sector is especially disappointing.
Some misconceptions about trawling linger from pre-moratorium fisheries, but others are perpetuated by groups attempting to advance their own agendas. The seafood industry has changed drastically over the past three decades. Today, the offshore sector adheres to rigorous standards, including independent observer coverage, spatial closures, vessel-monitoring systems and many other measures that minimize environmental impact for all species.
These measures are essential for preserving marine ecosystems while meeting global food demand responsibly. In Iceland, for example, more than 124,000 metric tons of cod were harvested by trawling in 2022, accounting for 52.4% of cod landings for that year. In fact, trawling has been the predominant gear used in Iceland to fish cod for more than a generation. We have knowledge that the Icelandic cod fishery is considered the most sustainable in the world, so it's illogical to reconcile that with the current debate here that 1,080 metric tons of northern cod harvested by the mobile gear sector will somehow do irreparable harm.
Offshore fishing vessels such as the ones operated by OCI employ Newfoundlanders and Labradorians. They operate year-round and land at local wharves and cold-storage facilities, where they off-load and are serviced, providing millions of dollars in direct and indirect wages and economic spinoffs in coastal communities. In the case of northern cod, virtually all of the quota harvested on our offshore vessels will be further processed at Icewater Seafoods in Arnold's Cove, creating local employment and extending operating seasons.
For those worried about repeating past mistakes, keep in mind that the 2024 decision established a very conservative exploitation rate of approximately 5%. Most cod fisheries today have exploitation rates in excess of 20%, and northern cod rates exceeded 50% leading up to the moratorium. Furthermore, northern cod is assessed annually, and exploitation rates can be adjusted accordingly based on survey results.
What should be most celebrated about the reopening decision is that domestic allocations were provided to Newfoundland and Labrador inshore, northern, indigenous and offshore interests for the sole benefit of this province. That's 18,000 metric tons of cod that will be harvested, processed and marketed in our province over longer operating seasons, making us far more competitive globally. This is a very good start to a reopened commercial cod fishery.
In closing—perhaps the best indicator of where the truth lies on this issue—the Federal Court ruled last week on the FFAW's injunction request to suspend the 2024 decision. In a forum that deals solely in facts, the court soundly rejected the FFAW, stating, among other things, that the court cannot issue an interlocutory injunction when the remedy the applicants seek is precluded by their own actions. That fish has swum.
Thank you for considering my input. I welcome any comments or questions.
