Above: Photo by David Greening
Testimony has concluded for a study being undertaken by the House of Commons Standing Committee on Fisheries and Oceans on the Foreign Ownership and Corporate Concentration of Fishing Licenses and Quota.
The committee heard testimony from 37 witnesses during meetings in May and June. Written briefs were also submitted for its consideration.
Among the witnesses was Colin Sproul, President of the Bay of Fundy Inshore Fishermen’s Association, who raised a number of issues that were echoed by others.
“Corporate concentration and foreign ownership are two sides of the same problem facing Canada’s coastal communities,” said Sproul.
“This is the clash between, on the one hand, medium-sized to large corporations that are solely focused on reaping ever-increasing profits from public resources and on the other hand, the duty of government to protect the interests of fishing families, families that are existentially dependent on those same resources.”
He added that “primary issues relating to this are the conglomeration of lobster processing capacity into fewer and fewer hands and the unlawful purchasing of lobster licences by corporations outside the owner-operator framework that our members abide by. The question that begs to be asked is why fishermen would be concerned about ownership changes in independent maritime lobster processors. The answer deserves attention by government for the benefit of fishing communities.”
“When fishermen sell their lobster catch tonight on the wharves of Nova Scotia, be it in Yarmouth, Sydney, Digby or Lunenburg, they can all expect to receive the same price, but in a free market situation, how can this be? Obviously, someone or some group is fixing that price. If not, fishermen would see variations in the price of their catch, based on normal supply and demand pressures from many different exporters. Instead, they face a concerted effort to control pricing at the dock.”
Sproul said fear is rising in communities that things could become even worse due to an onslaught of acquisitions in the processing sector by food distribution mega-corporations, both foreign and domestic.
“The second avenue whereby big business threatens the interests of fishing communities is through attempts to vertically integrate the lobster industry through the buying of lobster licences by unlawful means. These companies seek access to lobster at cheap prices and cut out fishing families in hopes of gaining an unfair and profitable advantage.”
Prince Edward Island Fishermen’s Association (PEIFA) executive director Molly Aylward said the topic of foreign ownership and corporate concentration of fishing licences and quota is one that impacts fisher livelihoods and futures.
“Ownership concentration can lead to reduced competition for products, fewer or eliminated jobs in coastal communities and a potential loss of food sovereignty in Canada,” said Aylward.
“In terms of corporate concentration, we are seeing more plants owned by the same ownership groups, in addition to refrigeration assets and other parts of the supply chain.”
Aylward added that ownership of offshore licences by corporations is also a concern. “This makes it difficult for independent operators to access supply chain resources at competitive prices. With a primary focus on shareholder value and growth, these can be elements that not only put pressure on ocean resources but also expedite the closure of many major employers in coastal communities.”
Ian MacPherson, senior advisor for PEIFA, proposed six potential solutions to the standing committee to ensure that food sovereignty and food security are maintained.
“Number one, declare Canadian seafood a critical resource. This designation will enhance current controls on concentration and foreign ownership. Number two, lower the Competition Bureau trigger threshold for all seafood company acquisitions, domestic and foreign. Right now, only large acquisitions are investigated by the bureau. Number three, make a concentrated effort to market seafood to Canadians, as we typically have one of the lowest seafood consumption rates in the world. Number four, work with fishing organizations to develop licence retirement plans that will increase the viability of current and future independent owner-operators. This will also lead to an increased diversification of catches and operating efficiency. Number five, re-evaluate the drive to be the top seafood exporter by volume. Focus more on value-added products. Number six, exempt seafood-related products that enter and leave Prince Edward Island from Confederation Bridge tolls,” said MacPherson.
“Canada is the envy of many countries in terms of our resources… Our current system is not problem-free, but we must look proactively down the road. Companies and countries are after our resources, and this pressure will only increase. As dead zones become larger in the oceans, the seafood that feeds the world will come from more concentrated areas. The Government of Canada must make food sovereignty and food security a top priority. Once we lose control of our resources, it will not easily be regained, if at all,” he said.
Greg Pretty, President of the Fish, Food and Allied Workers Union (FFAW) also expressed concerns with increasing foreign control of the processing and corporation sectors in Newfoundland and Labrador.
“Major control of our fishery being given to foreign governments not only has negative impacts on fishing licences and quotas; it also creates significant barriers to new entrants, thereby suppressing succession planning for the industry,” said Pretty.
When DFO’s owner-operator and fleet separation policies were strengthened in 2021, “as a regulatory body, DFO has proven to be unequipped to enforce this policy,” said Pretty.
“DFO has yet to move forward with any penalty in the over 30 files it has investigated since the policy became enshrined in 2021. Instead, the reaction has been to gently guide corporations back to compliance. That’s not working… Much to the significant disappointment of independent harvesters across Canada, the owner-operator policy has proved to be nothing more than a workshopping exercise for DFO, without any deterrents or consequences for violations.”
Pretty said it is incumbent upon every member of the committee and all Canadians who value our oceans, “to protect this public resource and ensure it is the people of Canada who enjoy the economic and societal benefits that come from our waters.”
The standing committee also heard witness testimony from officials from the Department of Fisheries and Oceans. A review of DFO transactional agreements and the process for allocating and transferring commercial fishing licenses and quota is also part of the study. The committee will report its conclusions and recommendations to the House of Commons.
