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FISH Committee Report

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Committee Report

INTRODUCTION

1. The Standing Committee on Fisheries and Oceans visited British Columbia from January 19 to January 25, 1998 and held public meetings in Prince Rupert, Sechelt, Steveston, Sydney, Ucluelet, Port Alberni, Sointula, Alert Bay, Port Hardy and Campbell River. All meetings were well attended and the Committee was presented with many diverse points of view and well prepared submissions. The Committee appreciated the warm reception and excellent attendance at all meetings.

2. The timing of the Committee meetings in British Columbia was opportune in that most of the fisheries were not taking place at that time, and the returns from 1997 were already known. British Columbia's fishing industry is undergoing rapid restructuring, much of it attributable to the Pacific Salmon Revitalization Strategy, commonly known as the `Mifflin Plan', 1 but also to the relatively recent movement toward individual quota fisheries and to a growing number of multi-licence holders.

3. Continuing depressed prices for salmon, competition from farmed salmon, the ongoing dispute with the United States over the Pacific Salmon Treaty, poor incomes being earned by traditional salmon licence holders, and effects on salmon migration by El Niño have all combined to negatively impact fishermen and coastal communities.

4. There is a coast-wide interest in developing new fisheries but progress is slower than people believe should be the case. Along the coast, there were some common themes in the presentations but there were strong regional and local differences as well. In rural communities, the Standing Committee encountered a very strong sense that the Department of Fisheries and Oceans (DFO) does not care about these communities and that it has centralized its decision-making in regional offices and/or DFO headquarters.

5. Due to the complexity and breadth of the West Coast issues, the Committee decided to issue two reports: An interim report to deal with a number of immediate issues and a main report to deal with the broader issues. This is the first of these two reports.

TRANSITION PROGRAM ELIGIBILITY

6. The Committee heard from organizations and individuals involved in job training for fishermen displaced as a consequence of fleet restructuring. Witnesses said current rules under the Transitional Jobs Fund Strategy, that disqualify individuals who do not have a record of employment insurance (EI) benefits in the last 36 months, are discriminatory.

7. Witnesses said that previous attachment to the fishing industry should be the main requirement. They pointed out that there are many individuals who, for personal or other reasons, did not seek or require employment insurance assistance but were nevertheless displaced as a consequence of the Mifflin Plan.

Recommendation 1

The Committee urges the federal government to ensure that all job transition funding be allocated in a way that does not discriminate against those who have not claimed employment insurance benefits, but who were attached to the fishery and who were displaced by the Mifflin Plan.

TRANSITION FUND TERMS OF REFERENCE

8. The Committee heard testimony that the Transitional Jobs Fund guidelines state clearly that funds are to be used only for long-term, stable employment. However, new and emerging industries cannot always meet the burden of proof of that requirement. For example, new fisheries and eco-tourism offer compatible employment opportunities to displaced fishermen, but it is difficult to prove that the jobs created are sustainable. In addition, there is potential for major stream restoration and enhancement projects that would increase fish productivity, leading to an increase in sustainable jobs in the fishery.

Recommendation 2

The Committee recommends that the Terms of Reference for eligibility for Transitional Jobs Fund funding should be expanded to include such projects as those involving new fisheries, eco-tourism, stream mapping, enhancement and restoration.

RETIREMENT FOR FISHERMEN

9. In January 1997, the Minister of Fisheries and Oceans announced a $7.7 million retirement plan for fishermen displaced as a consequence of the Mifflin Plan. The Committee received considerable input from fishermen about the lack of follow-through from either the provincial or federal governments. The federal government raised expectations among members of the commercial fishing sector. The plan was conceived simply as a program whereby licence holders may retire on time payments. This would allow the government to further reduce the fleet without having a large one-time expenditure.

10. In addition, the Committee heard from many who complained that when they sold their boats and licences, capital gains taxation took far too much of the money they had planned for retirement. Currently, the only way for participants to avoid the capital gains tax is to reinvest in the fishing industry, which is contrary to the objective of getting people out of the fishery.

Recommendation 3

The Committee urges the federal government to eliminate the capital gains tax for future licence buybacks by government for fishermen wanting to retire from the industry and to implement the $7.7 million Voluntary Retirement Plan.

SALMON LICENCE HOLIDAY

11. The 1998 and 1999 salmon seasons are predicted to be low salmon-run years for the major fisheries of the Fraser and Skeena systems. In addition, it is the third year of the Mifflin Plan, and many operators are dealing with the consequences of area licensing and continued low salmon prices. The Committee heard a considerable amount of testimony from individuals who recommended the option of a licence holiday for 1998 and 1999. Precedent for this comes from a previous salmon licence holiday in 1996 and it would offer relief without penalty to many individuals who may choose not to fish.

Recommendation 4

The Committee urges the federal government to immediately announce that any salmon licence holder may opt not to fish in 1998 and/or 1999 and waive the licence fee, while retaining their licence privileges for subsequent years.

GEAR BUYBACK

12. As part of the Mifflin Plan's downsizing and restructuring of the B.C. fleet, the Minister announced a gear buyback program. Troll and gillnet gear from combination boats which was made redundant upon required designation of the boat as either one or the other but not a combination, was purchased as part of this program. No allowance was made for the seine fleet.

13. The Committee heard testimony that skippers on company boats were required to own their own nets and when they were displaced from the fishery by the stacking of seine licences they were left with nets which are now surplus and unmarketable. In addition, many of these net owners now have to pay monthly loft fees to keep their nets. This has created personal financial hardships.

14. The Committee has looked into this situation and agrees that to be fair, the gear buyback should be extended to include this circumstance. It is estimated that no more than 30 individuals still retain seine nets valued between $10,000 and $30,000 each.

Recommendation 5

The Committee urges the Minister to implement a seine net buyback option as soon as possible for company boat skippers displaced as a result of fleet downsizing.

NEW FISHERIES ACT

15. The Committee heard from various sectors of the fishing community on the West Coast. Witnesses expressed opposition to the partnership provisions contained in the new Fisheries Act, which was tabled in the last Parliament as Bill C-62. Witnesses said that sections 17 to 22 of the Bill would limit the public right of access to the fishery. (The Committee also heard opposition to this aspect of the Bill on the East Coast). The Committee heard widespread opposition to the aboriginal only commercial fishery which the Department of Fisheries and Oceans has implemented under its Aboriginal Fisheries Strategy Pilot Sales Program.

Recommendation 6

The Committee urges the federal government to revise the partnership provisions contained in the new Fisheries Act, tabled as Bill C-62 in the previous Parliament, to address the concerns of fishermen before the Bill is reintroduced.

NEW FISHERIES

16. The Committee heard widespread criticism of DFO regarding the lack of resources allocated to new fishery opportunities. Most proponents of new fishery opportunities were not looking for government money but rather for the assignment of DFO biologists to investigate new fisheries and for someone in the department to act as an advocate. The Committee heard of significant missed opportunities for investors and job creation as a result of this inadequacy.

17. DFO downsizing has reduced the number of personnel available to assist in the developing of new fisheries at the very time when more personnel are needed. For example, there is currently only one shellfish co-ordinator and an associated biologist with DFO in Nanaimo. They are stretched to the limit and cannot begin to meet all of the requests to deal with new shellfish fisheries.

Recommendation 7

The Committee urges the federal government to ensure that adequate numbers of new personnel, and adequate operating funds for new fishery development and advocacy, be established immediately on the West Coast.

GROUNDFISH TRAWL OBSERVER AND MONITORING PROGRAM

18. The At Sea Observer Program (ASOP) was introduced to the trawl fleet in 1996 with a DFO certified observer placed on every trawler engaged in bottom fishing.

19. The Committee heard testimony from ground trawl fishermen, the Deep Sea Trawlers Association, and the West Coast Trawlers Association, that the 100% observer program has put virtually all of the small boats out of the fishery, and is making it increasingly difficult for medium and large-sized boats to operate economically. The 100% observer requirement resulted in comprehensive statistics for 1996 and 1997. Given the observer requirements for other domestic fisheries in Canada, the Committee finds requirements for more than a 10% to 15% range excessive and punitive.

Recommendation 8

The Committee urges the Department of Fisheries and Oceans to immediately reduce the At Sea Observer requirement for the groundfish trawl industry on the West Coast to a practical level.

BEAM TRAWLER OBSERVERS PROGRAM

20. There are approximately 200 shrimp beam trawl fishermen on the West Coast using low horsepower vessels of less than 45 feet in length. The beam trawl fleet produces high quality shrimp which is hand-processed in Canada.

21. The shrimp beam trawl fishery has been in existence in British Columbia for over 100 years and has demonstrated its sustainability.

22. Prior to 1997, catches were regulated by a catch per unit effort index, which allowed DFO managers to close the shrimp fishery when the catch rates dropped to an unsustainable level.

23. One of the concerns expressed about the impact of shrimp fishing has been its effects on eulachon. However, during the 1997 fishing season, beam trawling had a less than 2% eulachon * bycatch.

24. Before 1997, DFO had a part-time employee attached to the shrimp fishery and a $10,000 shrimp management budget. After 1997, DFO increased the $100 licence fee to $1,100 or $1,600, depending on boat size, to pay for a full-time DFO manager/biologist, an onboard independent observer program, a 1-800 "hail in and out" line, and a data collection service.

25. The net impact of the costs of observer coverage and licence fees has been detrimental to the economics of the industry. As a result of this cost burden, a number of fishermen have been forced out of the industry, thereby reducing the catch by 75% in 1997.

Recommendation 9

The Committee believes that fisheries officers can successfully manage the shrimp beam trawl fleet with random checks. The Committee urges the Department of Fisheries and Oceans to devise a cost-effective monitoring program for beam trawlers and also urges the Department to reduce the fee structure imposed on the fishermen.

SHELLFISH AQUACULTURE INDUSTRY RED TAPE

26. Oyster and clam growers claim that their business success is being frustrated by DFO.

27. Witnesses said that DFO is the lead department for the shellfish farmer but is viewed as having no interest in fostering shellfish farming. DFO is also the lead department responsible for closing shellfish harvest areas due to contamination but has assigned this task to Environment Canada.

28. In December 1997, Environment Canada requested $80,000 from the shellfish industry to offset federal government reductions in its shellfish program operating budget. Environment Canada claimed it would have to close shellfish farming on the South Coast effective April 1, 1998 unless the money was received from the industry itself. The industry argues it is not a tax collector and that it is up to the government to determine who should pay for services and who should collect the money. The industry claims that Environment Canada is offloading its responsibilities.

29. The Committee concurs that the request for money and the threat to close the South Coast shellfish industry on April 1, 1998 is unjust.

Recommendation 10

The Committee urges the federal government to immediately cancel the cost-sharing directive of December 4, 1997 from Environment Canada and to nominate a senior person within the Department of Fisheries and Oceans to be a British Columbia-based advocate for shellfish aquaculture.

INVESTOR PLANNING (HAKE FISHERY)

30. In Ucluelet, the Committee heard from the Village Council, the United Fishermen and Allied Workers Union (UFAWU), and from hake processors who have invested funds to upgrade facilities for hake processing. The small community spent $7 million on a water supply upgrade as hake processing requires large amounts of water (equal to that consumed by the City of Nanaimo). Ucluelet is the major hake processing centre in British Columbia and processors have made major investments.

31. Every participant was extremely concerned about the fact that, without consulting the community, DFO announced unexpectedly in December 1997 that it planned to review its hake policy. As a result, the processors are reconsidering their investment strategies and the community is left wondering what detrimental effects these policy changes will have on them.

Recommendation 11

The Committee urges the Department of Fisheries and Oceans to reconsider its announced hake policy review and to consult with the village of Ucluelet prior to announcing any further policy reviews or changes.

ENVIRONMENTAL CONCERNS

32. The issue of maintaining adequate drainage for farmlands and residential areas is a constant frustration in the flood plain areas of the Lower Mainland as well as in other parts of British Columbia. DFO has imposed complex and costly ditch-cleaning requirements upon local governments in the Fraser Valley. The Committee heard of unsuccessful negotiations between DFO and local governments in the Cowichan area of British Columbia.

33. Witnesses told the Committee that DFO is dictating expensive options to local governments and landowners and that there is no accountability or any contribution from DFO for imposed costs. Witnesses also said that in many cases the consequence over time of not doing ditch-cleaning or drainage restoration is to reduce salmon habitat.

Recommendation 12

The Committee recommends that the Department of Fisheries and Oceans immediately return to the pre-1997 drainage policy in the Lower Mainland of British Columbia and recognize that ditch cleaning is an essential activity carried out by local and provincial authorities, with federal government approval. The Committee also recommends that the Department of Fisheries and Oceans develop a dispute-resolution protocol and pro-active policies in this area so that local governments and landowners can have meaningful input and resolve conflicts with the Department of Fisheries and Oceans.

PRAWN FISHERY

34. Members of the commercial prawn industry expressed concern to the Committee regarding the sustainability of their resource and pointed out that on their own initiative they have limited the number of licences and traps. Trap mesh size and prawn size have also increased. Management fees for enforcement and stock assessments have increased from $50 to $1,900.

35. While the commercial fishery has undergone these changes, the sports fishery has grown rapidly. The sports fishery allows four traps per licence holder (all of the 400,000 sports fishing licences are eligible) and there are no prawn or mesh size requirements. The Committee heard representation that the sport fishery is now a major activity and there are concerns that unregulated prawn sales are taking place. Witnesses told the Committee that some fishing areas previously used by commercial fishermen are now closed for conservation reasons, but are still fished by the sports sector and consequently are not recovering.

Recommendation 13

The Committee urges the Department of Fisheries and Oceans to implement prawn size and trap mesh size requirements for the sports sector comparable to that of the commercial sector. These requirements should include a sport fishing trap tag similar to the commercial tags to help pay for stock monitoring and assessments. The Committee also urges the Department of Fisheries and Oceans to work with the Sports Fishing Advisory Board to monitor prawn spawning grounds.

CRAB AREA LICENSING

36. DFO conservation concerns about crab led to the implementation of a limited entry and area-based fishery in 1991. This was based on historical catch and reduced the number of licences coast-wide from 497 to 223.

37. Along with this change, crab fishermen could opt to transfer from one area to another on an annual basis. The net impact of this change was to increase the number of boats fishing in area A of the Queen Charlotte Islands from 18 to over 50. (The number of traps increased from 10,000 to approximately 50,000.)

38. Prior to the limited entry and area-based fishery, the crab from each area tended to be caught and processed locally. In the Queen Charlotte Islands fishing area A, however, local crab processing has dropped to 30% of the catch and there are major concerns about the deterioration of the crab stocks.

39. DFO has changed the regulations so that crab licence holders can now opt to fish in a different area every three years. Witnesses said that by continuing to allow the option to move to other areas, crab fishermen will fish where the resource is most abundant, overwhelm it, and move on. Witnesses said that this could harm the resource and the communities that depend upon it.

Recommendation 14

The Committee recommends that area movement be reduced to promote the crab resource's sustainability and urges the Department of Fisheries and Oceans to allow only the currently announced year-2000 area movement for each crab licence holder.

The Committee further urges the Department of Fisheries and Oceans to consider a reduction in the number of licence holders focused on the areas of current stock concern.

LIGHTSTATIONS

40. The Committee heard widespread concerns expressed for maintaining staffed lightstations on the West Coast. While travelling from community to community, Committee members flew over Carmanah Point, Pachena Point, Cape Mudge, Chatham Point, and Pulteney Point lightstations and heard expressions of strong support for maintaining the staff at these isolated posts.

41. The 1995 Ad Hoc Parliamentary Committee Report on Lightstations, 2 which recommended continued staffing, was tabled with the Committee. British Columbia polls indicate that over 80% of British Columbians want the lightstations to remain staffed, primarily for safety reasons.

Recommendation 15

The Committee urges the Minister to end the continuing uncertainty over British Columbia lightstations by maintaining staffing at these vital installations.

DFO ENFORCEMENT

42. The Committee heard testimony concerning the lack of enforcement personnel on the British Columbia coast. The department has been downsizing for the past four years, during which time there were many calls for increased enforcement activity. It was pointed out to the Committee that the Underwater Harvesters Association hires private detectives to help DFO and that clam and oyster growers receive no assistance from DFO to enforce their leases. The Vancouver Island Highway Project is affecting coho rivers and streams and there are inadequate DFO personnel available to protect these stocks.

Recommendation 16

The Committee urges the federal government to immediately increase the budget for enforcement officers on the British Columbia coast.

TERMS OF REFERENCE FOR STAKEHOLDER VOTES

43. The Committee heard many complaints about the Terms of Reference for the vote on continuation of licence stacking. The vote was authorized by DFO and managed by Price Waterhouse. The voting instructions included a provision whereby any licence holder who did not vote was to be considered a yes vote - in favour of licence stacking.

44. The witnesses considered this action to be undemocratic, which added to their general suspicions of the motives of DFO.

Recommendation 17

The Committee urges the Minister to immediately ensure that uncast ballots at all future voting are not credited to the results one way or the other, consistent with Canadian election and referendum laws.

1 The Pacific Revitalization Strategy is referred to as the Mifflin Plan throughout the rest of this report.

* Often spelled "oolichan".

2 Lightstations: People want People on the Lights, The Ad Hoc Parliamentary Committee on Lightstations, June 1995.