Chapter three - General policy guidelines

(1) The requirements to be licensed to fish for different species of fish are found in the Fisheries Act and the regulations made under the Act.

(2) Except where a fishery is closed for conservation purposes, licence renewal and payment of fees is mandatory on a yearly basis in order to retain the privilege to be issued the licence.

(3) Subject to any sanction applied against a licence or a licence holder, a licence may only be issued to a person who:

1. (a) held such a licence for a given species in the preceding calendar year and a replacement licence was not issued for that licence to another person; or
2. (b) who is issued such a licence as a replacement; or
3. (c) who obtains a new licence through the procedures outlined in section 21or 22, or
4. (d) who meets the eligibility criteria set out in Annexes III and/or IV.

(4) When a species is deemed to have been over-fished, one or more of the following restrictions may be imposed:

1. (a) restriction on the issuance of replacement licences to other persons,
2. (b) restriction on the issuance of additional licences,
3. (c) stricter vessel replacement rules,
4. (d) a licence moratorium,
5. (e) non-renewal of licences, or
6. (f) other appropriate measures.

(5) A bait-fishing licence may only be issued to the head of an enterprise who holds a licence to fish commercially by a method which traditionally includes the use of bait in such a fishery, (i.e., lobster, crab, groundfish hook and line, tuna, swordfish longline, shark).

(6) For fisheries restricted to using vessels less than 19.8m (65') LOA, a licence will be issued in the name of an individual fisher. Where such a licence has previously been issued in the name of a corporation, the licence may continue to be issued in the name of that corporation under a Grandfather clause.

(7) Licence holders restricted to using vessels less than 19.8m (65') LOA will be required to fish their licences personally. Licence holders who have previously designated an operator for one or more of their vessels may continue to do so under a Grandfather clause.

(8) Licence holders restricted to using vessels less than 19.8m (65') LOA will be permitted to hold only one licence for a given species. Those licences may be validated for more than one gear type (e.g., otter trawl and gillnet) (Grandfather clause provided for those fishers who already hold more than one licence for the same species.). This restriction does not apply to Aboriginal organizations.

(9) In the Maritimes Region, partnerships in the lobster fishery may be created where both enterprises hold category A lobster fishing licences for the same Lobster Fishing Area. Under such a partnership arrangement, the following conditions apply:

1. (a) Both licence holders must be present on the boat during lobster fishing operations; and
2. (b) The number of lobster traps permitted to be fished by the partnership cannot be greater than the legal number of traps authorized for one licence in that Lobster Fishing Area plus 50 percent of that number.

(10) As provided under the Fishery (General) Regulations, where, because of circumstances beyond his control, the holder of a licence or the operator named in a licence is unable to engage in the activity authorized by the licence or is unable to use the vessel specified in the licence, a fishery officer or other authorized employee of the Department may, on the request of the licence holder or his agent, authorize in writing another person to carry out the activity under the licence or authorize the use of another vessel under the licence.

(11) Where the holder of a licence is affected by an illness which prevents him from operating a fishing vessel, upon request and upon provision of acceptable medical documentation to support his request, he may be permitted to designate a substitute operator for the term of the licence. Such designation may not exceed a total period of five years.

(12) For the purpose of renewing a licence or for the issuance of a replacement licence to a new licence holder, the eligible licence holder must personally sign any related documents. In the case of an estate, the executor or the legally appointed administrator must sign the documents. As provided under the Fishery (General) Regulations, in the case of corporation-held licences, only an officer of the corporation may sign on behalf of that corporation.

(13) Unless provided otherwise in a species management plan, licences will not be issued as replacements for non-renewed licences.

(14) In the Maritimes Region, the downgrading of lobster category "A" licences or the upgrading of lobster category "B" licences is not permitted.

(15) The splitting of either the gear types (e.g. groundfish longline and otter trawl) or the amount of fishing gear listed on a single vessel-based licence is not permitted.

(1) Unless provided otherwise under the Atlantic Fishery Regulations, 1985 and the Maritime Provinces Fishery Regulations and subject to section 33, every vessel used in a commercial fishery must be registered in the name of the licence holder using the vessel or for whom the vessel is being used.

(2) A vessel can only be registered in the name of one licence holder at a given time.

(3) In the Newfoundland Region, a replacement for a vessel registration held by a non-core fisher may only be issued to a core fisher.

(4) A vessel may be registered by the Department on application, the payment of the proper fee and the provision of the required data on the vessel characteristics by the applicant, except in the Newfoundland Region where no additional vessel registrations are issued.

(5) Notwithstanding subsection (4), additional vessel registrations are available in the Newfoundland Region, but only to heads of core enterprises who hold licences in addition to groundfish or a groundfish licence which is validated for cod traps. These heads of core enterprises may register "one" additional vessel no longer than 7.6m (25') LOA on a one time basis only, if these fishers are now the registered operators of only one vessel and that the vessel is longer than 7.6 m (25') LOA.

(6) Only Canadian vessels may be registered with the Department of Fisheries and Oceans.

(7) The licence holder is responsible to ensure that the vessel he intends to operate meets approved vessel replacement rules.

(8) A survey or measurement of the vessel may be required from the licence holder at his expense prior to registration.

(9) Vessel Registrations may only be issued to persons who hold at least one commercial fishing licence.

(10) Registered vessels may be specified as a condition of a licence and registered in a licence holder's name for a minimum period of one (1) month except in the Newfoundland Region where the minimum is twelve (12) months.

(1) This policy applies when Canadian vessels are permanently removed, or rendered unserviceable (e.g., sinking, fire, collision, stranding) for a minimum period of four months within the preceding 12-month period. The chartering of a foreign vessel is not permitted for the purpose of replacing a Canadian vessel which has been removed from the fishery for financial or commercial reasons (e.g., bankruptcy or sheriff's seizure).

(2) A maximum period of two years duration (from the date of vessel removal) may be allowed for the lease of a foreign vessel.

(3) The leased foreign vessel must be crewed by either Canadian citizens or permanent residents, except where the Minister approves a specified number of non-Canadian crew members.

(4) The leased vessel is to be of similar catching capacity and must operate in accordance with the same fishing plan, and the catch must be delivered to the same plant or plants.

(5) Freezer trawlers may be leased to replace wetfish trawlers, but the processing (filleting) of traditional groundfish species at sea will not be permitted.

(6) All foreign vessels will be required to carry an observer approved by the Department at the expense of the licence holder.

(7) The leasing of foreign vessels requires Ministerial approval.

(1) Subject to subsection (2), if foreign interests acquire over 49 percent of the common (voting) shares of a Canadian owned corporation which holds fishing licences, the licences will not be reissued to that corporation upon expiry of the licences.

(2) If such a foreign corporation having a subsidiary in Canada which holds fishing licences is taken over by another foreign-owned corporation from the same country, the licences may be reissued to that corporation as part of its continuing Canadian operation (i.e. no net increase in foreign ownership).

(3) If a foreign interest purchases a minority ownership interest in a Canadian corporation or establishes a jointly-owned subsidiary with a Canadian corporation in which the Canadian corporation owns more than half the voting shares, licence eligibility will not be affected.

(1) One of the objectives of the licensing policy is to separate the harvesting and processing sectors of the industry, particularly in the fisheries where licence holders are restricted to using vessels less than 19.8m (65') LOA. This is known as the Fleet Separation Policy.

(2) Under this policy, new fishing licences for fisheries where only vessels less than 19.8m (65') LOA are permitted to be used may not be issued to corporations, including those involved in the processing sector of the industry.

(3) Subject to subsection (4), corporations, including those involved in the processing sector, presently holding licences in this fleet sector may continue to do so, but they may not be issued additional licences.

(4) Notwithstanding section 16(5), fishing licences for vessels less than 19.8m (65') LOA currently held by corporations that existed and held fishing licences for vessels less than 19.8 m (65') LOA prior to 1979 (referred to as pre-79 corporations) may be issued as replacement licences to another pre-79 corporation who still hold fishing licences for vessels less than 19.8m (65') LOA or to an eligible recipient under section (16). Corporations eligible to be issued replacement licences under this provision are listed in Annex VII.

(5) When all licences held by a pre-79 corporation on the same vessel are issued as replacement licences to a qualified new entrant as per section (16), the new licence holder will be given core status.

(1) Current legislation provides that licences are not transferable. However, the Minister in "his absolute discretion" may for administrative efficiency prescribe in policy those conditions or requirements under which he will issue a licence to a new licence holder as a "replacement" for an existing licence being relinquished. These prescribed conditions or requirements are specified in this document.

(2) Subject to subsection (5), a replacement licence may be issued upon request by the current licence holder to an eligible fisher recommended by the current licence holder.

(3) Nothing in this Policy, except residency requirements, precludes the issuance of a licence to an Aboriginal Organization as a replacement for a reissuable licence.

(4) A licence may only be issued as a replacement licence once in every twelve (12) month period.

(5) Subject to subsection (6), reissuable vessel-based licences for fisheries where only vessels less than 19.8m (65') are permitted to be used may only be issued as a replacement to the head of a core enterprise or to an Aboriginal organization.

(6) All vessel-based licences held by the head of a core enterprise may be issued as replacement licences only as a package to a qualified new entrant. The core status is transferred to the new licence holder upon issuance of the replacement licences.

(7) To qualify as a new entrant into the core group, an individual must be certified as a professional fisher. However, for 1996, new entrants must meet the criteria to be categorized as a full-time fisher or as a new entrant under the Bonafide policy as specified in the previous Licensing Policy except in the Newfoundland Region where the proposed Professional Level II grandfathering criteria have to be met. Aboriginal individuals qualify as new entrants without having to meet the criteria specified above in this subsection.

(8) The head of a core enterprise will lose his core status immediately upon relinquishing his last key licence except in Scotia-Fundy Sector where the criteria is the last vessel-based licence. For the purpose of this policy, licences listed in Annex I are designated as key licences.

(9) Subject to section (14), where there is a change in the controlling interest of a corporation that holds a licence, Ministerial approval will be required for renewal of the licences upon their expiry. Except for pre-1979 corporations, where a fisher previously owned the controlling interest in that corporation, inshore licences held by that corporation will not be renewed upon expiry.

(10) Licences for non-vessel based fisheries may be issued as replacement licences to any individual unless provided otherwise in a species management plan. Until 1997, or earlier where management plans have been approved, eligibility rules that existed in 1995 will apply. Fisheries deemed either vessel-based or non-vessel based for the purpose of this licensing policy are listed in Annex II.

(11) The following licences may not be issued as replacement licences to another fisher:

1. (a) category B lobster licences;
2. (b) exploratory licences;
3. (c) herring fixed gear licences where vessels 15.2m (50') LOA and over are used (Gulf Sector of the Maritimes Region);
4. (d) salmon;
5. (e) groundfish licences (including handlines) held by heads of non-core enterprises that are not pre-79 corporations;
6. (f) special groundfish gillnet licences for Canso Area;
7. (g) temporary tuna licences in the Newfoundland Region;
8. (h) bait-fishing licences;
9. (i) mackerel handline licences;
10. (j) scallop licences for Areas 12, 13 and 14 which are held by the head of a non-core enterprise.

(12) All conditions specified in a licence (i.e. area, gear type etc.) will be maintained upon the issuance of a replacement licence with the exception of the following:

• (a) Authorized overlaps will, under the Sector Management Policy, expire when
• a replacement groundfish licence is issued to an individual residing in an alternate home port division (e.g. 4Vn to 4X); or
• the present groundfish licence holder takes up residence in an alternate home port division.
• (b) Subject to paragraph (c), historical overlap privileges under the Sector Management Policy will expire when:
  • a replacement groundfish licence is issued to another individual;
  • the vessel is lost through repossession by a lending authority; or
  • the vessel is replaced.
• (c) Historical overlap privileges will not expire when a vessel is lost through fire, sinking, through circumstances beyond the licence holder's control. etc.