Opening Statement to the Standing Committee on Fisheries and Oceans

Fisheries and Oceans—The Effects of Salmon Farming in British Columbia
(Chapter 30 - December 2000 Report of the Auditor General of Canada)

29 March 2001

Ron Thompson, CA
Assistant Auditor General

Thank you, Mr. Chairman, for the opportunity to discuss the results of our Fisheries and Oceans audit, presented in our December 2000 Report — The Effects of Salmon Farming in British Columbia on the Management of Wild Salmon Stocks.

I am sure you are aware, from your previous hearings how important salmon farming is to Canada as the fourth-largest producer of farmed salmon in the world. British Columbia accounts for nearly 70 percent of Canada's production: 17 salmon farming companies in the province were operating 105 farms when our audit ended. Their production has grown steadily in the last decade. Although there has been a moratorium since 1995 on expanding the salmon farming industry, there are indications that it may be lifted in the near future.

This was our third audit of the Department's Pacific salmon management programs since 1997. Our previous audit chapters had reported on habitat protection and the Department's management of the Pacific salmon fisheries. We had noted the continuing loss of salmon habitat and the decline of some wild salmon stocks.

The federal government and the province share responsibility for regulating aquaculture in British Columbia under a 1988 memorandum of understanding on aquaculture development. The province's responsibilities include managing and developing the salmon farming industry. Fisheries and Oceans is responsible for regulating a number of areas, including conservation and protection of fish and their habitat. Under its 1995 Federal Aquaculture Development Strategy, the Department must also ensure that its aquaculture development activities are consistent with sustainable development.

Our audit looked at whether the Department was meeting its legislative responsibilities to conserve and protect fish, specifically salmon stocks. I emphasize that we focussed on the Department's role as a regulator and not on the merits of the aquaculture industry.

We found that in regulating salmon farming in B.C. the Department is not fully meeting its obligations under the Fisheries Act. Mr. Chairman, I would like to go over our observations briefly.

Fisheries and Oceans is in the business of managing risks. Salmon farming poses risks that include the potential impact of harmful substances on fish habitat and the effects of possible interaction between farmed Atlantic salmon and wild stocks. The Department operates at present on the assumption that salmon farming represents a risk to wild salmon and fish habitat that is low, overall. But we are concerned that it is doing little to monitor and assess the actual and potential effects of salmon farming.

Specifically, we found that Fisheries and Oceans is not adequately monitoring the effects of salmon farms on surrounding fish and fish habitat. This is particularly troubling given its responsibility for enforcing the Fisheries Act — specifically, sections 35 and 36, which prohibit the harmful alteration, disruption or destruction of fish habitat and the deposit of deleterious substances into the water.

The Department has not determined how it will apply and enforce the Fisheries Act to protect fish habitat from the effects of salmon farming. This is a concern as regulations are being developed by the province that may conflict with federal legislation. We urge the Department to take immediate action to resolve this situation.

The Department has assumed that salmon farming poses a low risk on the basis of a 1997 provincial review of salmon aquaculture — a review that reflected existing production levels and practices. However, the Department has not assessed the potential risk should the industry expand, nor does it have a formal plan for managing that risk and assessing the environmental impacts.

There are conflicting scientific views about the effects of salmon farming on wild salmon stocks and the environment. Moreover, there are very few studies that apply directly to the situation in B.C.

To deal with the possible expansion of salmon farming, the Department will need good information about the potential effects on wild stocks. And good information comes from both good quality research and effective monitoring. The Department is doing some research, but we identified gaps in information — for example, on the risk that disease may be transferred from farmed salmon to wild stocks. We also identified gaps in monitoring — for example, the status of wild salmon stocks adjacent to existing and potential farm sites.

Further, the Department is not adequately monitoring the presence of escaped farm salmon. Our report questioned whether Atlantic salmon might adapt to local conditions and become established in B.C. coastal streams.

Finally, salmon farming has the potential to increase the stress on wild salmon stocks over time, especially if the industry expands. To ensure that sustainable salmon fishing can co-exist with the farming industry, it is urgent that the Department remedy these shortcomings in consultation with the province.

In its response to our chapter, the Department discussed the $75 million Program for Sustainable Aquaculture. Hopefully, this five-year program will address the recommendations we make in this chapter.

Mr. Chairman, that concludes my opening statement. We would be pleased to answer your Committee's questions.