Mr. Chair, in this fiscal year, more than $28 million will be spent on small craft harbours in the province of New Brunswick alone due to the Conservative government's support of the fishing industry in New Brunswick.
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Business of Supply May 28th, 2009
Mr. Chair, in this fiscal year, more than $28 million will be spent on small craft harbours in the province of New Brunswick alone due to the Conservative government's support of the fishing industry in New Brunswick.
Business of Supply May 28th, 2009
Mr. Chair, I guess what the hon. member would like me to say is that we are upgrading a small craft harbour in his riding. I believe it is probably the most expensive one in the country, to the tune of some $5 million.
However, that member voted against the budget and I just cannot figure out why. I do not know how the member is going to tell his constituents about that.
Business of Supply May 28th, 2009
What I am saying, Mr. Chair, is that this is a market problem.
Yes, the federal Conservative government will help the lobster fishers. We have just helped them with a $10 million fund for marketing of their product, to try to get the price back up on their product so that they can have more money in their pockets.
It is the same federal Conservative government that delivered the capital gains exemption to the fishers that they have wanted for the last 10 years. So the member cannot stand there and say the federal Conservative government is not helping fishers, because we are.
Business of Supply May 28th, 2009
Mr. Chair, I have said to my department that if there is any kind of flexibility in any policy that we have that would help fishers, we are certainly willing to go down that road. If there is anything we can do at DFO to change the rules a little bit so that they can at least cut down on their input costs, we would be very willing to do that.
We have gone out and talked to the banks as a department. Our mandate is fish stocks and fish habitat, but we have gone and talked to the banks to tell them about the situation and that they may need to be flexible with the repayment terms in the upcoming year.
We have talked to the provinces. As I have said, there are other levels of government here, too. The provinces can be flexible with repayment terms. However, we cannot subsidize a pound of lobster.
Business of Supply May 28th, 2009
Mr. Chair, as I said, we do know that there is some real hardship out there within the lobster industry. There is hardship right across the country. People have lost jobs.
The hon. member talks about how it is not just the plants that need help. Well, it is because of the plants that the lobster is even being sold, and it is because of the plants that the people are working in the plants. So it is very important that those plants are operating. I am sure he will agree with me on that.
Business of Supply May 28th, 2009
Mr. Chair, that was an example that I used. There are plenty of fishers who do not get 30,000 pounds. There are plenty of fishers who get 8,000 or 10,000 pounds of lobsters.
I know in speaking to provincial governments that some of the provincial governments are coming to the aid of fishers. They are providing flexible, low-interest loans for fishermen so that they do not have that huge payment. They are being flexible in repayment terms to help them through this year.
However, if we do not do something to help the market recover and increase the demand for our lobster, then the price will be $3 a pound a lot longer.
Business of Supply May 28th, 2009
Mr. Chair, we know that fishers are having an extremely tough time, and I appreciate that the hon. member sees it every day, as I do.
The crisis that the lobster industry is facing, of course, is because of the market. That is why we have invested $10 million in marketing. If we, as an industry, land 100 million pounds of lobsters and they are down by $2 a pound, that is $200 million gone out of the economy. The only way we can recover that money is to help the markets recover. That is why it is important to put money into marketing.
As for the $4 a pound, which the hon. member has said is the break-even point, I just want to make this comment: That $4 a pound is break-even when we take into account the capitalization and a prolonged low price. I talked to a gentleman last week who was fortunate enough to land 30,000 pounds of lobsters, and 30,000 pounds of lobsters at $3 a pound is $90,000, so he will be fine. He is still making money at $3 a pound.
As to the $4 a pound, we have to look at it in context. That takes into account paying for the boat and everything over a number of years with prolonged low prices. I do believe we have the supply; we just have to increase the demand. That is why it is very important to put money into marketing.
Business of Supply May 28th, 2009
Mr. Chair, they are not telling us what to harvest. They are simply saying that is when the lobster reaches maturity. Probably 10 or 15 years ago the science told the fishers on P.E.I. that the lobsters reached maturity at 70 millimetres. We should leave the science to the scientists.
Business of Supply May 28th, 2009
Mr. Chair, the size of maturity is used to ensure that minimum sizes are appropriate for lobster conservation. I am told by DFO scientists that lobsters actually reach maturity at different sizes in different areas.
Business of Supply May 28th, 2009
Mr. Chair, the advisory committee is made up of industry people and that meeting will be convened probably within the next month.