Thank you, Mr. Chair.
Members of the House of Commons Standing Committee on Fisheries and Oceans, good morning.
Thank you for inviting me to take part in your study.
My name is Claudio Bernatchez, and I've been the general manager of the Association des capitaines-propriétaires de la Gaspésie since 2020. Our offices are in Rivière‑au‑Renard, the marine fisheries capital of Quebec.
There are several ways to approach the concept of foreign ownership. In terms of catches, business licences can be fully transferred from one province to another. They also have the distinction of being transferable to foreign interests up to 49% of the licences. For example, it would be easy to think that 51% of Canadian licence holders could be assisted or controlled by the foreign holders of 49% of the licences. At this time, we don't know if such transactions have taken place in our region.
With respect to processing plants, foreign ownership is already present in two shrimp processing plants in Eastern Quebec. This is obvious in the case of the first, since it flies the Danish flag, while it's more subtle in the case of the second, since it's a Newfoundland entrepreneur backed by an American investment fund. In addition, the first one has obtained a permit to process snow crab from Quebec and a permit to process lobster from outside Quebec. The second is trying to do the same. So we can see that when the door is ajar, a foreign-owned plant can expand its operations on Canadian soil, especially since processing is under provincial jurisdiction.
While I subscribe to the principles of free enterprise, I remain convinced that the fisheries resources of Canadian waters must serve Canadian interests first and foremost, especially those of the many coastal communities that have traditionally depended on the resources of the sea for their livelihood and development. Sometimes we have to wonder whether the fisheries resources really belong to all Canadians. Take, for example, the large proportion of commercial fishing quotas that belong to large corporations. Why is it that our decision makers ignore this reality when allocating new quotas?
As I was preparing to appear before you, I started thinking about some of the mechanisms that other countries have put in place to control fishing activities in Canada.
I'm thinking in particular of the restrictions imposed by our neighbours to the south on the protection of marine mammals, such as the North Atlantic right whale. There is also the mackerel fishery, which has been under moratorium since last year. How is it that the Americans can still fish it, when it is recognized that it is largely the same fish stock as that in the Gulf of St. Lawrence?
Furthermore, a French actress came to tell us that we shouldn't hunt seals anymore. We listened to her. Decades later, the Department of Fisheries and Oceans is beginning to pay lip service to the imbalance caused by the overabundance of seals. Meanwhile, the Canadian fishing industry is paying dearly for it.
Let's talk about the concentration of licences. It takes money to make money. We're seeing this more and more, with fishing licences being sold at exorbitant prices. Sellers know who to go to when they need to get rid of their licences. The average fisher simply cannot compete with those with greater financial capabilities. Those who do risk it sometimes find themselves in a vulnerable economic situation. Imagine the hurdle faced by aspiring owners who are tempted to take over an existing fishing business.
The concentration that develops will pose a risk when holders of large licence portfolios are ready to sell. Foreign interests may emerge to take control of these quotas. We can also expect purchasers obtaining financial support from a processor to acquire one or more licences, which in itself is a control agreement. It's still the case today that a fisherman entrusts the financial management of his business to the plant that buys his fish.
The concentration of licences may, in some cases, help keep the holder away from fishing activities, because the holder can't be everywhere at the same time. This can contribute to a results-oriented culture on board fishing vessels, which increases the risk of accidents.
In conclusion, several factors are perceived as threats to the Canadian commercial fishing industry. Foreign ownership and licence concentration are two examples, but there are others, and they’re closer to home. We need to start thinking about integrated management, which would simplify the various regulations in place, and more importantly, we need to start thinking about an ecosystem approach in collaboration with the Science Sector and resources of the Department of Fisheries and Oceans.
The government must stop announcing moratoriums just before the start of fishing seasons. These announcements have too many consequences for us not to be prepared for them. There have been several in recent years. We're concerned that the next moratorium will be on northern shrimp. However, redfish are consuming about 14 times the quota allowed this year.