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St. John’s – Today the federal and provincial governments announced
the outcome of the federal-provincial Fishing Industry Renewal Initiative by introducing
measures that will fundamentally change the Newfoundland and Labrador fishery.
Following an extensive consultation process, the Honourable Loyola Hearn, Minister
of Fisheries and Oceans, and the Honourable Tom Rideout, Minister of Fisheries and
Aquaculture for the Government of Newfoundland and Labrador, announced a number
of policy changes and new investments that will strengthen the province’s fishing
industry.
"When Canada’s new government started this process in 2006, we knew that fundamental
change was needed in the Fishery," said Minister Hearn. "Here in Newfoundland, we
completed one of the most thorough consultation processes we have ever undertaken.
We listened, and we are making changes in fisheries policy that will fundamentally
change the way the fishery in Newfoundland and Labrador operates at the same time
our government is making significant financial investments in the industry ." stated
Minister Hearn.
"This announcement is certainly a key one for our fishing industry, as it sets
out a new path toward a renewed, self-sustaining fishery for Newfoundland and Labrador,"
said Minister Rideout. "I am pleased to report that the provincial government is
moving forward with a three year investment of $15 million in direct funding,
bringing our total renewal undertaking to an estimated $140 million, to address
the challenges in the industry."
Elements of the joint Renewal Strategy will be implemented by the federal and
provincial governments according to their jurisdiction, however the initiatives
work together to make the industry more economically viable and internationally
competitive.
Federal Initiatives
The federal initiatives, including national policy changes, are
- fleet rationalization through new rules allowing combining of fishing
enterprises;
- flexibility on vessel size through creation of three new vessel classes;
- elimination of cubic number (volume) restrictions in the former vessel
replacement policy;
- conversion of temporary inshore shrimp permits to regular licences;
- changes to capital gains measures as announced in the federal budget
that will mean potential savings of up to $60 million in federal and provincial
taxes over 5 years;
- enhancement of the independence of the inshore fleet with measures to
eliminate trust agreements;
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- improving fishers’ ability to access financing through traditional lenders,
such as banks, by facilitating the use of licences as collateral;
- a reversal of the previous government’s decision to collect administration
costs for the at-sea-observer program;
- An additional $19.5M will be invested in federal fisheries science in
Newfoundland over the next three years, including $10.5M for research and
stock assessment from new funding announced in the recent federal budget;
and $9 million to keep the science vessel, the CCGS Wilfred Templeman,
in service until the new $75M Canadian Coast Guard offshore science vessel
comes on stream in Newfoundland and Labrador.
"This is about choice. These changes allow those who want to invest in their
enterprise an opportunity to grow and enable those who wish to leave the industry
an opportunity to leave on their own terms. Today, we have given fishers greater
flexibility than ever before in determining their future and the ability to make
decisions that allow them to adjust to ever changing market conditions" stated Minister
Hearn.
"Many of the changes announced today are complex and we will work with fishing
fleets and other stakeholders over the comings months and years to implement the
initiatives. This is part of our commitment to an Ocean to Plate approach to management
of the fishery and expansion of its economic value."
Provincial Initiatives
The seven provincial initiatives are:
- A Processing Policy Renewal Strategy that will allow the evolution of
the industry to be achieved in a regionally balanced manner;
- An enhanced fisheries loan guarantee program to facilitate bank financing
for those fishers wishing to take advantage of federal licensing policy
changes. The maximum loan guarantee will be increased from $1.3 million
to $2 million.
- $3,000,000 to enhance market research and promotion efforts over the
next three years, including the creation of a Newfoundland and Labrador
Seafood Marketing Council;
- $6 million for fishing industry research and development over the next
three years. This will include work associated with the development of new
species, new products, new markets and new techniques to harvest, handle,
process and market our marine fish resources;
- $1.5 million for a voluntary fish auction over three years;
- $2.5 million for Fishing Industry Workforce Adjustment; and
- $750,000 for Occupational Health and Safety initiatives over the next
three years.
"These investments demonstrate this government’s clear commitment to the provincial
fishery and to rural Newfoundland and Labrador," said Minister Rideout. "While we
are putting forward $15 million directly for these renewal initiatives, our government
is also funding 40 per cent of the new capital gains measures announced by the federal
government, to the tune of an estimated $25 million. In addition, the federal changes
to harvesting policy mean that the provincial government is assuming an estimated
$100 million in liability. These are very significant commitments and bring our
total exposure to $140 million."
"It is clear that we all envision a rational, self-sustaining and stable industry
that can engage and attract younger workers, but at the same time can allow those
having a long term attachment to the industry an opportunity to continue their careers
to the extent possible over the next five to ten years," continued Minister Rideout.
"We feel that the measures announced today will allow us to turn this vision into
a reality."
Ministers Hearn and Rideout also noted that the outcomes of the renewal process include initiatives aimed to strengthen the harvesting, processing
and marketing sectors. The ministers acknowledged that the implementation of these
measures will form the basis of an integrated "Ocean to Plate" policy framework.
For more information :
http://www.nfl.dfo-mpo.gc.ca/fir/index.html
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