International Trade Committee on Nov. 26th, 2013

[Jerry Staples]

We have land that is earmarked for development in an airside subdivision that currently has cargo operations. Gateway Facilities is the largest, which I referenced in my remarks. The highest and best use for those lands will be further cargo development.

As we see Gateway go to capacity, that will precipitate us moving to develop the other land. It will not necessarily be the airport authority developing them; we'd like to see the private sector do it. There are countless cases in Europe in particular where airports and/or community partners have had to step forward and do the development first, as was the classic case in Belgium.

[Devinder Shory, Conservative, Calgary Northeast, AB]

There is certainly potential, and I noticed the excitement with the majority of the witnesses.

Is the airport authority working with industry stakeholders to discuss their needs in these areas, and what could potentially be required to handle all the business potentials we expect once CETA is implemented?

[Jerry Staples]

Yes, on several fronts. We work one on one with particular companies that are exporting and/or importing. We are members of the Lobster Council of Canada. We host what I call a “focus on freight” forum, and it usually meets three times a year. They are freight forwarders and shippers, the players in the industry that have a need for air cargo. We're using them as a resource for building and aligning our strategies.

[Devinder Shory, Conservative, Calgary Northeast, AB]

What are the challenges that you foresee, if there are any—and I'm sure there will be some challenges in your plans—that you would like to address?

[Jerry Staples]

I think there are two.

One, quickly, would be building the markets in Europe and having the financial resources to do that in a unified way as a community of various stakeholders.

The second would be to attract that capacity to actually move the product. The second one is probably less than the first, because if the demand is there to move the goods—as you know, airplanes are very mobile assets—they will move into the markets to do that.

[Devinder Shory, Conservative, Calgary Northeast, AB]

We had Mr. Malec from the Halifax Port Authority here, and he was talking about some supply chain efficiencies, basically trade both ways.

Do you see that opportunity, and has the airport authority considered marketing in a way that you can arrange all the freights from both sides?

[Jerry Staples]

We do that. Quickly, we have a costing model we can show people who are moving goods how they'll save money by bringing it through Halifax instead of Logan and New York.

There is also the fact that one of the really simple things here is that you're hitting land in North America sooner. By putting the aircraft on the ground, you're saving a couple of hours of flying time into other major markets, say Chicago even, and in both directions. If you multiply that by $15,000 to $20,000 an hour to operate that aircraft—each flight costs money—plus the environmental emissions, since you're not flying aircraft half full...you're going to bring a full load into Halifax and you're always going to leave with a full load out, primarily because of the imbalance that we enjoy here in terms of lobster exports.

[Devinder Shory, Conservative, Calgary Northeast, AB]

Based upon the information you have now about the CETA agreement, do you see any downside to this agreement?

[Jerry Staples]

I guess there are still a lot of unknowns at this point. We see the timing issue as being important, and the fact that we need government departments to align what they need to do to remove the barriers. If there's activity, the growth potential can be achieved.

[Devinder Shory, Conservative, Calgary Northeast, AB]

How much time do I have, Mr. Chair?

[The Chair, Conservative, Rob Merrifield]

You're pretty well done. Maybe one more quick question.

[Devinder Shory, Conservative, Calgary Northeast, AB]

I'm done, Mr. Chair.

[The Chair, Conservative, Rob Merrifield]

I would like to take that question before we get into the second round.

Mr. Connors, you represent the small fishers on the east shore. Is that right?

[Peter Connors]

Yes, east of Halifax.

[The Chair, Conservative, Rob Merrifield]

Right. What percentage of those small fishers does your organization represent? Is it all of them?

[Peter Connors]

We represent all of the fishermen from Halifax down to approximately Marie Joseph, and from there down there's the Guysborough County Inshore Fishermen's Association. They have over 100 members, maybe 125 or 150 members.

[The Chair, Conservative, Rob Merrifield]

There's a question that begs asking. You're saying that what you would recommend is to cease the ability to be able to sell a quota so that you can retain ownership of the quota. Is that right?

[Peter Connors]

The quota system is in place.

[The Chair, Conservative, Rob Merrifield]

That's right. But if you couldn't sell it, you would be giving up, as you said, $2 million for that one quota. Is that what you're advocating?

[Peter Connors]

We're at that crossroads now. The question of financing comes up, and that's a big question right now because a lot of the fishermen who have to hold that licence are going to corporations that can afford to finance that licence for them. So then they get into a controlling agreement.

[The Chair, Conservative, Rob Merrifield]

The only question is, are you advocating not to have that ability to sell?

[Peter Connors]

No.

[The Chair, Conservative, Rob Merrifield]

Okay.

[Peter Connors]

No, we're not suggesting that that be given up to the community or anything. There has to be some provision made so that those quotas can transfer and yet stay in the community. But the community has this open question of how we find financing for the community so that it can stay there, whoever owns it.

[The Chair, Conservative, Rob Merrifield]

It sounds like you want to sell it, but you want to sell to certain people.