Mr. Speaker, it is my pleasure to dip my toe into this debate for a few moments. It is an important issue. I also want to commend the mover of the motion, the MP for St. John's South—Mount Pearl.
As members are aware, the motion calls on the federal government to respect its promise to Newfoundland and Labrador of $400 million for development and renewal, based on a 70/30 split, through the province's fishery investment fund in exchange for lifting minimum processing requirements as part of the Canada-European Union comprehensive economic and trade agreement.
Why this is so important and was brought forward by the member is that the Province of Nova Scotia, under the undertaking of the federal government, has a piece of legislation within its provincial jurisdiction with respect to mandatory minimum processing requirements that has some influence over the processing of fish, as in Newfoundland and Labrador, so that the fish are not scooped out of the ocean and then processed either on these factory freezer trawlers or shipped over to Europe or somewhere else. Newfoundland and Labrador have held onto this legislation because it does create jobs in many communities, outports and otherwise, throughout Newfoundland and Labrador. It is an important economic driver in that province, and it is probably unique. Quebec also has a similar requirement, but it is not as closely adhered to in that province as it is in Newfoundland and Labrador.
When CETA was being negotiated, the European community demanded that Canada get rid of this particular legislation in Newfoundland and Labrador, which would somehow give a province within our jurisdiction preference. Of course, the Europeans wanted the product that was caught on our shores, if they could manage it, to simply go to Europe and be processed there. That was what the thinking was.
However, it is curious that when the European community began to engage with Canada in negotiation of this trade deal, it knew how Canada was set up and that it was a federation. The Europeans knew how many powers Canada's provinces had and they wanted to have the provinces at the table, or at least close enough to the table that if they signed off on various provisions with the federal government they would also have the agreement of the provinces. This was one of the issues.
There were matters with respect to the dairy industry and supply management, which affected the provinces, and there was the European community's attempt to extend patent protection by another number of years, which would have added a billion dollars in costs to this country and many hundreds of millions of dollars to some provinces. Just on those three items alone, it was important for the European community to have the provinces at the table.
However, in some of these instances, the populations in those provinces were concerned. They were concerned about the impact of giving up minimum processing requirements in Newfoundland and Labrador. Many provinces became increasingly concerned about the impact on their health budgets as a result of the extension of the patent legislation. The dairy industry in some provinces, particularly in Quebec as it related to cheese and other milk products, was also concerned and began to pressure the government.
I certainly have had the opportunity to talk to a number of provincial officials about these very items and we have heard these issues talked about in the House. In order for the federal government to tie down this deal on those issues, it gave assurances to the provinces. In the case of extending the patent legislation—which would potentially increase the cost of pharmaceuticals—it said to the provinces, “Don't worry, we don't believe that to be the case, but if it is the case, we've got your back. We'll backstop you. if there are increased costs due to the impact of extending the patent legislation, we will make sure we cover that off”. For some provinces, Nova Scotia was one, Ontario and Quebec were two others, they got those assurances from the federal government and agreed that they would allow this to go forward.
In the dairy industry assurances were also given. I have spoken to people in the dairy industry and various officials in the provinces, and again the federal government gave assurances to the industry and the provinces that they would be compensated. In the case of Newfoundland and Labrador, the policy of having minimum processing requirements have been around for maybe 30 years or more. Those exist in an industry that generated $1.1 billion in production value in 2013 and provided direct employment to more than 18,000 people, mainly in rural parts of the province.
The restrictions on minimum processing requirements are extremely important to the province and are held to by people in the industry, municipal officials, and others in various communities throughout Newfoundland and Labrador. When the Province of Newfoundland and Labrador understood this was on the table, that the federal government was going to be negotiating it away, there was quite an outcry. There was quite an outcry because it is fair to say that the fishing industry in Newfoundland and Labrador, particularly as it relates to the cod fishery, has been experiencing some problems. The stocks have been rebounding, but people are concerned that if the government gives away those rights and abolishes that legislation now, when stocks return and greater processing is required, there will no longer be any requirement that fishing companies bring their products onshore to be processed.
There was quite an uproar about it and the government said very clearly to provincial officials, “Don't worry, we are going to contribute to a $400 million fund to the tune of 70% in order to make sure that you are properly compensated for any impacts that may arise as a result of losing that legislation with respect to minimum processing”. That was the deal. I heard it. I was part of the trade committee that was in Halifax and heard witnesses from Atlantic Canada, and that was the understanding that people in the industry had. It was very clearly communicated by the government and provincial officials that this was negotiated on behalf of the Conservative government of Newfoundland and Labrador to make sure that part of the deal was checked off with respect to CETA. It was understood that the federal government would kick 70% of $400 million into a fund to make sure that it dealt with the adjustment caused by losing this legislation.
That is the issue. That is why the motion is so important. We call on the government to stand by its promises and to stand by its provinces.