Fisheries Committee on Nov. 29th, 2022

[Bobby Morrissey, Liberal, Egmont, PE]

Thank you, Mr. Chair.

For the record, because we have a number of people appearing before this committee on small craft harbours and the need to urgently put money in—and do a statement about politicians coming in and out—the recent fall economic statement from the government provided $1 billion dollars—a billion dollars—for emergency...and $300 million for small craft harbours. The official opposition voted against both, so there goes the concern for the importance of rebuilding after Fiona.

Now I will go to Mr. Warris.

You made a statement, and I would like for you to expand on it to the committee. P.E.I. is unique on the mussel side. We can see the immediate damage to infrastructure, small craft harbours and around there. We've had ample witness testimony on that.

The mussel industry is under water, so we don't see it. I want the committee to get a full appreciation for the damage, which will carry forward for a couple of years. Could you explain to the committee why it will take a number of years for this industry to recover and what steps we have to take to assist it over those several years?

[Peter Warris]

Thank you for the question.

In the immediate sense, with lost product, market-ready product, obviously that's gone. That's therefore going to impact the markets. The majority of the shellfish produced on P.E.I. is exported, certainly from the province and in a lot of cases from the country. It's a good economic driver for the province. That has an immediate impact.

The infrastructure that's been damaged to the point of no longer being usable, or basically being completely destroyed, is going to limit the ability for product to be grown. Those areas can no longer be farmed as they stand right now, so they need to be rebuilt. In many cases, the growers are going to need the financial support to do that, and that's going to have to happen over the winter.

[Bobby Morrissey, Liberal, Egmont, PE]

We still don't know the full impact, until fisheries reopen—and we'll see in Nova Scotia in the coming days that fishery open—of hurricane Fiona on lobster and crab and some of the pelagic species

However, on mussels, it's not something that will be there in a month or so. Am I correct? For that biomass that was lost, it will take some period of time to recover to that stage.

[Peter Warris]

Yes, in terms of the seed or spat for the mussel and oyster industry....

For those who are unfamiliar, juveniles are collected from the open water for shellfish aquaculture. There are hatcheries, but they're certainly a very small proportion of the seed that is collected. Those collectors are out in the open water. It happens on an annual basis. There is a season where the seed is running, and then it's collected and grown on the collectors. It's harvested and then put into either socks or cages for the following years.

The seed that was lost because of the storm is gone. The seed that would have been growing in socks and bags through next year and in the following year is not there. It's not going to be grown. In the case of the oyster side of things, it's going to be two to three years further down the line.

[Bobby Morrissey, Liberal, Egmont, PE]

Okay, thank you.

You referenced earlier about the market share. Could you give some testimony to the committee on the negative impact it could have on P.E.I.'s mussel industry market share?

[Peter Warris]

The potential exists for there to be product shortages, as I said. P.E.I. is the largest producer of mussels in North America. We farm approximately 80% of the mussels produced in North America. Both mussels and oysters are very popular. They are very widely known as quality products, and there are very strong markets for those products. Restaurants across the country and across North America and in other parts of the world are still going to want to have those products on their menus. If we're not providing them or are unable to provide them for a few years or at least fully provide to the level that we have before, the potential exists for them to go elsewhere for that product. There are other producers in the world. The concern is that we could lose that share of the market, which is why supports need to continue into the future, not just in the immediate sense. The industry is going to need to be supported so that if that does happen, we can regain that pre-eminence.

[The Chair, Liberal, Ken McDonald]

Thank you, Mr. Morrissey. That clears up our first hour of committee testimony and questions. I want to say a big thank you to Mr. Warris, Ms. Glynn and Mr. Arseneau for joining us—albeit late, but he did join—and for sharing their knowledge with the committee today on this very important study.

We'll suspend for a couple of minutes now while we switch out the panels.

[The Chair, Liberal, Ken McDonald]

I'd like to make a few comments for the benefit of the new witnesses.

Please wait until I recognize you by name before speaking. For those participating by video conference, click on the microphone icon to activate your mike, and please mute yourself when you are not speaking.

There is interpretation for those on Zoom. You have the choice at the bottom of your screen of either “floor“, “English” or “French”. For those in the room, of course—you will be well used to it—you can use the earpiece and select the right channel. I remind everyone that all comments should be addressed through the chair.

I would now like to welcome our witnesses.

From the department, of course, we have Mr. Adam Burns, acting assistant deputy minister, fisheries and harbour management; Chris Henderson, deputy commissioner, operations; Stephanie Hopper, director general, small craft harbours program; Gary Ivany, assistant commissioner, Atlantic region, Canadian Coast Guard; Ms. Lori Cuddy, area director, Prince Edward Island, by video conference; and Mr. Doug Wentzell, regional director general, Maritimes region, by video conference.

Thank you, all, for taking the time to appear before committee today.

You now have five minutes or less for an opening statement.

I believe, Mr. Burns, you're at least starting it off. I don't know if you're giving the full five minutes or not, but you're up.

[Adam Burns, Acting Assistant Deputy Minister, Fisheries and Harbour Management, Department of Fisheries and Oceans]

I'll see what I can do. Thanks, Chair.

Hi, members.

Fisheries and Oceans Canada is responsible for sustainably managing Canada's fisheries and oceans resources and safeguarding our waters, while supporting economic growth in the marine and fisheries sectors. With the longest coastline in the world, Canada's marine and coastal areas are an essential part of our country, our economy and our livelihoods.

However, as our climate continues to change, so do our waters. Rising sea levels, reduced sea ice and increased frequency and severity of storms and storm surges are damaging our shorelines and coastal infrastructure, particularly Canada's small craft harbours.

The Small Craft Harbours Program is responsible for approximately 1,000 harbours. Together, these harbours represent more than 10,000 structures with a total value of over $7 billion. More than 5,000 volunteers participate in the program each year through local harbour authorities who help keep harbours essential to the fishing industry open so that they can provide safe and accessible facilities for commercial fishers and other users.

The impacts of hurricane Fiona were immense, including significant fishing gear loss from various active fisheries and aquaculture operations and damage to over 140 small craft harbours across Atlantic Canada and eastern Quebec.

To help address some of the devastation caused by this storm, a $300-million hurricane Fiona recovery fund was announced in early October. From that fund, $100 million has been allocated to support the immediate and urgent work to recover lost fishing gear and to address repairs to many of our small craft harbours.

Since this record-breaking storm, our small craft harbours program staff have been diligently working with local harbour authorities to ensure that harbours are cleaned up and urgent repairs are addressed.

Hurricane Fiona also created the need for increased dredging at a number of harbours because of the significant coastal erosion. Dredging operations continue at impacted harbours as we speak.

Our small craft harbours program has been working and will continue to work and carry out in-depth assessments of damage in order to address longer-term repairs. We are confident that the vast majority of impacted harbours will be operational come this spring.

Further to the damage caused to our small craft harbours, hurricane Fiona significantly impacted a large amount of fishing gear. To date, harvesters estimate that tens of thousands of units of various fishing gear have been lost due to gear drift and infrastructure damage. Funding was provided to boost Fisheries and Oceans Canada's ghost gear fund, which supports concrete actions to prevent, retrieve and responsibly dispose of lost fishing gear. At present, $1.5 million in additional funds has been made available to the ghost gear fund to undertake immediate critical gear cleanup activities, with $28.4 million allocated for proposals going forward. The call for proposals is now open and will be accepting applications until December 28 of this year.

Thank you for the opportunity to join you today. We're happy to take your questions.

[The Chair, Liberal, Ken McDonald]

Thank you for that. That was a little bit under time. We always like to save a bit of time for the questions.

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

Go ahead, please.

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

Thank you, Mr. Chair.

My question is for Mr. Burns.

You just said that you have $100 million to support fishing gear recovery and repair of small craft harbours. Earlier in this same meeting, Mr. Morrissey said that $300 million would be provided for this initiative.

What is the right figure?

[Adam Burns]

The $300 million is the total amount announced by the Government of Canada for the Fiona recovery measures. Some of that is with ACOA, so they could speak to the specific investments they are making. I was referring specifically to the $100 million that's been particularly earmarked to address small craft harbours and ghost gear.

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

One-third of that $300 million is for fishing industry purposes.

[Adam Burns]

Specifically small craft harbours and ghost gear, yes.

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

Okay.

What's the dollar value that your department has assessed for the damaged and destroyed small craft harbour infrastructure? Do you have a dollar value on that yet?

[Adam Burns]

One of the tasks we'll be doing, supported through the initial funding we've received, is the necessary engineering work to complete a full assessment to know the exact answer to that question. We don't have a precise number to give you today.

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

We had some disputed testimony earlier in the week. Stakeholders said that there's not a chance small craft harbour infrastructure would be ready for this upcoming season.

You've just said that we'd be ready. What's the plan to expedite that?

[Adam Burns]

We've been working very diligently to undertake the immediate dredging needs and the primary repair activities. As a result of that, the vast majority of the impacted harbours will be operational come spring.

There's a very small number of harbours, somewhere between two and ten, that may not be operational. We are already working on plans to accommodate the impacted harvesters so that their operations will be able to continue.

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

Thank you.

Mr. Perkins, can you take over from here?

[Rick Perkins, Conservative, South Shore—St. Margarets, NS]

Thank you, Mr. Chair.

Thank you, witnesses.

If I could follow up on that, Mr. Burns, my understanding from testimony we've heard is that no engineering contracts have been let for the design of some of these wharves that need repair, especially the ones that have been demolished. I think an earlier DFO estimate was that 20 or so have been demolished.

Also, obviously there's a question of whether or not there are the materials and the labour out there to perform the work within that time. Can you maybe shed a little more light on how that will happen by the spring?

[Stephanie Hopper, Director General, Small Craft Harbours Program, Department of Fisheries and Oceans]

If I may, most of the cleanup, early assessment and repairs have already been done at most of the harbours. We're currently under way for planning in terms of the longer-term repairs that will need to be occurring over the coming months and, being mindful as well of the weather, the season we're entering into as well, that planning is happening. However, repairs and planning are under way.

[Rick Perkins, Conservative, South Shore—St. Margarets, NS]

On the $100 million, I have wharves in my riding. For a recent one in Lunenburg, the estimate is $25 million to replace it. When you have a number of demolished wharves, which you have, how is it possible that $100 million is adequate to deal with the wharves and, in the case of what we heard in testimony just before yours, also with the $70 million plus in damage to the aquaculture industry in P.E.I.?

[Adam Burns]

In terms of funding the support for disaster recovery for other aspects, like what you're referring to there with aquaculture, that would be separate from the $100 million that's been announced to date related to small craft harbours.

The money is meant to do the short-term repairs, to support the engineering assessments of the wharves that are severely damaged, and to get us to a point where we understand more completely what the overall impacts have been. Then we can start to make a plan for the full repair and obviously assess what the full cost of that repair would be.

[Rick Perkins, Conservative, South Shore—St. Margarets, NS]

Okay. So the full repair won't be done by the spring...?

[Adam Burns]

No. As I mentioned, there are somewhere between two and ten harbours that we believe will not be operational in the spring.