Fisheries Committee on Nov. 25th, 2022

[Paul Lansbergen]

Well, I think there's always a challenge in what the harvesters see on the water and what the catch rates are versus what the scientific models say. On that one, there's a real debate on which one is more accurate. We just need to continue having a dialogue on that to make sure that future decisions are as well-informed as possible.

[Clifford Small, Conservative, Coast of Bays—Central—Notre Dame, NL]

Innovation funding programs are set to expire in the next year or two. These have helped the industry invest in clean technologies. Do you think these programs should be extended to help the industry better adapt?

[Paul Lansbergen]

Yes. In fact, that's one of our requests for the pre-budget consultations, not only for climate mitigation but just for innovation in general. We have a lot of opportunity in terms of growth. To achieve that growth, it's going to be by value, and that means investments in emerging technologies.

I think there's a legitimate role for government to help share the risk of that, whether it be through something like the Atlantic fisheries fund or the fisheries and aquaculture clean technology adoption program, because I think the broader adoption is going to be more of an issue than for the first movers.

[The Chair, Liberal, Ken McDonald]

Thank you, Mr. Small. You're a little bit over. I'll make note of that and take it back next time.

We'll now go to Mr. Morrissey for five minutes or less, please.

[Bobby Morrissey, Liberal, Egmont, PE]

Thank you, Chair.

This study is to look at the impact of climate change and directly the damage created by hurricane Fiona. As I indicated to an earlier panel, some of the damage is easy to quantify and easy to see, but I want to go to Dr. Ablett.

P.E.I. has an international reputation in blue mussels. I believe we're the dominant supplier of the market. It took years to create that market and sustain it. Am I correct in understanding that some 70% of that current crop wiped out?

[Dr. Richard Ablett]

It's in that magnitude, certainly, yes. The number that I have is 28 million dollars' worth of product. The three big processors lost most of it.

[Bobby Morrissey, Liberal, Egmont, PE]

The other part we don't see, as well, is the seed available for the crops. How does that impact the supply in the next couple of years, Dr. Ablett?

[Dr. Richard Ablett]

That's a worrying thing.

Again, what I'm being told is that it will take two to three years to try to put the biomass space back in place, so this is going to take time. It's real, and it hasn't really hit us yet, because obviously the hurricane occurred in September. That would be when the seed is positioned in its most delicate format. If it gets wiped out or beaten up essentially—as it has been in the hurricane—we're going to see the impact of that next summer, next fall and the following year, because there's a two-year grow-out cycle before you can harvest the mussels.

[Bobby Morrissey, Liberal, Egmont, PE]

Again, if P.E.I. mussels are out of the marketplace, what does that do to our brand reputation in the marketplace? I want you to expand or opine on the ability, as we rebuild the stock, to be able to market it.

[Dr. Richard Ablett]

I think that's a very good point.

This is the threat that worries everybody: the whole idea that you lose your Prince Edward Island authenticity and the provenance of the product in the North American market. This is what concerns, obviously, our company.

It could be devastating, because if the supply chain really is broken and cannot be met, the quality will also be down on what is being sent to the market as well. We're in poor shape, potentially, as this rolls forward over the next two years.

The live market sales are impacted, as well as the processing products.

[Bobby Morrissey, Liberal, Egmont, PE]

What would be the cost to P.E.I.? Could you expand on how it will impact your company? It took years to build these specialty brands, and the benefactor is the blue mussel fishery of Prince Edward Island.

[Dr. Richard Ablett]

I can't actually answer the total value, but I can speak about our company as an example. If we are reduced in our supply chain this year, the impact is around $4 million in lost sales and revenue associated just with not being able to achieve the usual number of mussels that we're consuming.

With the launch of new products on top, that actually doubles because we're projecting something like a loss of $8 million in revenue for our particular company. We would take something like 5% of the inventory supply from our supplier, which would sell most of its mussels in the live market. It's on a multi-million-dollar scale, no question, and it's obviously concerning for the future. However, it's going to take two or three years to reinstate.

[Bobby Morrissey, Liberal, Egmont, PE]

What do you recommend to the committee? The committee is analyzing this to identify costs in the various sectors. Our government has announced several funds. One is $300 million through ACOA to assist the industry in recovering or adapting to the damage from Fiona.

What would you recommend to the committee as some programming that would allow the industry to adapt to this and be there when the industry recovers from the hurricane?

[Dr. Richard Ablett]

I feel there's a need for what I would call a market loss or risk mitigation program specifically. Try to be very focused on the concepts that obviously people are losing market position and suffering brand damage, and that there are issues there from the processors to maintain and preserve their businesses during the recovery period.

This could run as a two-year to three-year program, essentially providing support to the industry and maybe representing about 10% or 15% of what is being allocated for the total recovery fund. It's not the main part, but it's one part, an important area. It's end-of-chain assistance, if you like, for market preservation and the maintenance of companies that have been damaged by the unfortunate loss of their raw material.

This might be a two-year renewable-type program, run through ACOA, in my mind, and not so much the DFO. The DFO is more on the infrastructure support end of it, but ACOA understands the downstream requirements, so it's essential to the maintenance of the value chain from raw material supply to finished goods and market distribution. That kind of program could be quite well defined, and I'm sure there would be a lot of uptake on it or requirement for it.

[Bobby Morrissey, Liberal, Egmont, PE]

Chair, how much time do I have left?

[The Chair, Liberal, Ken McDonald]

None.

[Bobby Morrissey, Liberal, Egmont, PE]

Thank you.

[The Chair, Liberal, Ken McDonald]

You have actually gone over about 40-odd seconds, but it was a nice try to even ask. I give you credit for that.

[Bobby Morrissey, Liberal, Egmont, PE]

I thought Madam Zarrillo would give me her time, but she didn't need.

[The Chair, Liberal, Ken McDonald]

Well, actually she doesn't have any to give you, Bobby. We're at the end of it, because it would be unfair to go to another two and a half minutes of questions and not get to the last two and a half. There is only about a minute and a half left of committee time as we have it now.

I'll say a huge thank you to our witnesses for this particular session. Mr. Ablett and Mr. Lansbergen, thank you for coming today and sharing your valuable knowledge with the committee as we try to get through this particular study and get a report done for the House of Commons.

Again, thank you to everyone.

I will remind everyone that our next meeting on Tuesday will be our fourth and final meeting for the study of the impacts of the climate crisis.

With that, the meeting is adjourned.