House of Commons Standing Committee on Fisheries and Oceans (FOPO) Minister's Appearance on Supplementary Estimates C

Background

These Supplementary Estimates (C) are presenting a total increase of $104.2 million, which is comprised of $102.6 million and $1.7 million in voted and statutory appropriations respectively.

• The $102.6 million increase in voted authorities is mainly attributed to:
  • $52.2 million - Funding for increased marine and aviation fuel costs;
  • $22.6 million - Funding for a litigation settlement;
  • $9.7 million - Funding for the initial recovery efforts following Hurricane Fiona; and
  • $8.7 million - Funding to support the work of the Great Lakes Fishery Commission.

In addition to those main increases, these Supplementary Estimates include another seven items valued at $9.3 million for other initiatives with lower funding requirements and technical adjustments such as transfers to other government departments.

In all, the sum of all items represents an increase to our spending levels, over and above what was approved in the Main Estimates.

Background

The Canadian Coast Guard (CCG) owns and operates the federal government’s civilian fleet and provides key maritime services to Canadians. The total maritime area of responsibility is nearly 5.3 million square kilometers of ocean and inland waters and along 243,000 kilometers of coastline, the longest of any country in the world.

As a Special Operating Agency within Fisheries and Oceans Canada (DFO), the CCG ensures the safety of all mariners on our waters, protects the marine environment and supports economic growth through the safe and efficient movement of maritime trade in and out of Canada’s waters.

The fleet delivers critical programs and services to Canadian communities and businesses year-round. Many of these services are mandated through various legislation/Acts such as the Canada Shipping Act, 2001; the Oceans Act; and, the Wrecked, Abandoned or Hazardous Vessels Act. Fuel is required for these operations, such as search and rescue; community resupply for the North; on-water conservation and protection activities; science programming; buoy tending to ensure safe navigation and icebreaking as a critical activity to enable the economy. These activities are often fuel-intensive; the consumption of fuel and the paid price can vary from year to year due to factors such as ice conditions and crude oil market fluctuations.

Fuel prices have been steadily climbing due to post-pandemic recovery, inflation, and the war in Ukraine. As pandemic restrictions ease, more people are travelling, more goods are being transported, and more construction is underway - these activities create greater demand for fuel. Inflation is also a factor in that retailers raise prices, which leads to suppliers and transportation companies doing the same. Sanctions against Russia have also contributed to higher prices on the global market. Between April 1, 2021, and March 31, 2022, the cost of marine fuel increased from $0.86 to $1.58 per litre and from $1.36 to $1.67 per litre for aviation fuel. Since April 2022, the Department has paid $1.75 per litre for diesel fuel and $2.10 per litre for aviation fuel.

DFO/CCG have sought a fuel cost top-up five times between 2008 and 2015. In 2016, the Comprehensive Review exercise sought to stabilize the funding to maintain CCG operations and was tagged for an increase of $16 million annually in addition to the previously allocated fuel budget.

The cost of fuel has increased dramatically over the last year, affecting the CCG’s ability to meet its operational requirements. In the past, the fleet was able to operate within the allocated fuel budget; however, with growing fuel costs, it is now unable to do so without significant program impacts.

The 2022-23 Fleet Fuel Operating Budget (including Emergency Towing Vessels and Helicopters) was $62.9 million. However, based on current and projected market costs, as well as forecasted climate conditions (e.g., ice conditions), the 2022-23 Fleet Fuel forecast is $111.1 million for marine fuel and $4.0 million for aviation fuel. As a result of the increase in fuel prices, the budget was exhausted in November 2022. Internal reallocation was not feasible; these costs are in excess of what DFO could absorb without impacting operations elsewhere in the Department. To calculate the shortfall, a number of factors were considered. For instance, current and projected fuel costs were balanced with weather predictions which anticipate challenging ice conditions and additional pressures for icebreaking activities.

The Department requested an additional $52.2 million in funding in 2022-23 to supplement the fixed fuel budget to ensure that the fleet can operate at capacity and maintain continuity of vital services, particularly in the latter part of the fiscal year. The additional funding enables the Department to continue delivering essential services and meet its obligations to ensure safe and accessible waterways and the sustainable use and development of Canada’s oceans and waterways. The Department will continue to monitor the impact of fluctuations in fuel costs to determine a plan for next fiscal year and going forward.

Background

In court, the Crown was found liable and appeals have been exhausted. A settlement has been negotiated and settlement amounts have been paid to the Plaintiffs. The entirety of this funding is for the settlement payment with no funding being retained for internal Departmental use.

Further details on this settlement cannot be disclosed due to a non-disclosure clause in the settlement.

Background

On September 24, Hurricane Fiona hit Atlantic Canada and eastern Quebec, impacting various types of infrastructure including DFO-owned Small Craft Harbours, and producing substantial fishing gear-related debris, not only from fisheries and aquaculture operations that were active during the storm, but also as a result of heavy damage to harbour storage facilities, with gear and structures being swept into the ocean.

On October 17, Ministers Murray and Petitpas Taylor announced that $100 million from the new Hurricane Fiona Recovery Fund (HFRF) will be used to repair SCH infrastructure and to retrieve lost fishing and aquaculture gear. Specifically, $70 million to supplement the Small Craft Harbour Program to support recovery efforts at Small Craft Harbours damaged by Hurricane Fiona. Another $30 million was allocated to support retrieval and responsible disposal of lost fishing gear through the Ghost Gear Fund (GGF).

DFO’s Small Craft Harbours program has worked diligently to determine the impacts Fiona had on the Program’s infrastructure. Clean up activities have taken place and, for the most part, initial repairs have been completed. DFO staff are now working with Harbour Authorities and others to plan and execute and necessary longer term repairs at impacted harbours.

With respect to ghost gear, $1.5 million has already been allocated to support 11 partners for emergency clean-up and recovery efforts of the hardest hit areas, currently underway. Other projects are expected to be announced in the coming weeks.

Background

The Great Lakes Fishery Commission (GLFC) was established by the 1954 Convention on Great Lakes Fisheries between Canada and the United States of America, with the objective of protecting and sustaining the Great Lakes fishery.

Pursuant to the 1954 Convention, the GLFC is funded by both the Canadian and U.S. federal governments, with Canada contributing 31 per cent towards the transboundary sea lamprey control work and 50 per cent of the Commission’s overall operations, with the U.S. funding the balance.

As part of Budget 2022, the Government invested incremental funding of $44.9 million over five years and $9 million ongoing, to fulfill Canada’s international treaty obligations under the Commission. This will ensure that Canada is able to meet its funding share under the bilateral treaty with the US - bringing Canada’s contribution up to over $19 million in 2022 and moving forward. This funding will help to augment Canadian sea lamprey control activities (primarily consisting of DFO’s Sea Lamprey Control Program), and support the GLFC’s scientific research and coordination of binational fisheries management across the Great Lakes.

In recent years, the GLFC secretariat, including its Executive Secretary, has been lobbying key stakeholders in the U.S. and Canada, including Members of Parliament, and U.S. Senators and Representatives, with their request for federal leadership and responsibility for the Commission to be moved from DFO to Global Affairs Canada (GAC). Such decisions are the prerogative of the Prime Minister.

On October 20, 2022, two new Commissioners, nominated by the Government of Ontario, were approved by the Governor in Council to represent Canada at the GLFC.

The funding announced in Budget 2022 was accessed through the Supplementary Estimates C process. The first payment of new funding (~$9.5 million) was made to the Commission in February 2023.

The GFLC’s 2022 Interim Meeting, originally scheduled for November 30, was postponed. The GLFC Secretariat now has the information it required to set the budget for the upcoming year and is actively working with Canadian and American Commissioners to schedule the interim meeting.

Discussion with the Secretariat continues regarding 2023 transfers (which comes from our 23-24 FY) to determine what funding is required for the Sea Lamprey Control Program and to deliver on other important aspects of the GLFC’s mandate.

Of note, the House of Commons Standing Committee on Fisheries and Oceans (FOPO) adopted a motion on March 9th, 2023 as follows:

That, given the factual inaccuracy provided by Mr. Richard Goodyear, the Department of Fisheries and Oceans Chief Financial Officer and Assistant Deputy Minister, in his testimony to the committee on December 2, 2022, and raised in correspondence to the committee dated December 14, 2022, from Mr. Gregory McClinchey, Policy and Legislative Affairs Director of the Great Lakes Fisheries Commission, and considering the harm done to Canada's relationship with the United States through Canada’s continued lack of fiscal accountability towards the Great Lakes Fishery Commission and the numerous bi-lateral initiatives that would be jeopardized by the termination of the Great Lakes Fisheries Convention, the committee report to the House on this inaccuracy and recall Mr. Goodyear to the committee to rectify his testimony.

Consequently, the committee has invited Mr. Richard Goodyear to appear on Monday, March 27, during its study of the Supp C and Main Estimates. The Department welcomes the opportunity to provide Committee members with an update of its progress on this file.

Background

The Trans Mountain Expansion Project (TMX) expands the existing pipeline system between Edmonton, Alberta, and Burnaby, British Columbia. It includes approximately 987 km of new pipeline; the reactivation of 193 km of existing pipeline; and an expansion of the Westridge Marine Terminal to accommodate 29 additional tankers per month (34 total).

In Budget 2022, Natural Resources Canada received $27.9 million over two years to support the TMX and Line 3 Indigenous Advisory and Monitoring Committees (IAMC). DFO received $17 million over three years to fulfill commitments enshrined in the 2019 approval of TMX.

DFO-CCG funding includes: $4.43 million to DFO and $2.88 million to CCG over three years to support capacity and administration functions including DFO’s regulatory role and whole of government coordination (2022-23 - 2024-25); to continue to deliver accommodation measures for an additional year through fiscal year 2024-25, $3 million for the Salish Sea Initiative, $2.32 million for the Aquatic Habitat Restoration Fund and $0.17 million for the Terrestrial Cumulative Effects Initiative; $1.1 million in funding to support DFO-CCG participation in the TMX IAMC for two additional years to fiscal year 2023-24; and $3.14 million in funding to support one year (bridge funding) in fiscal year 2022-23 for the CCG Marine Traffic and Communication Services Marine Mammal Desk.

Trans Mountain Corporation indicates that the project will be operational in the third quarter of 2023, and that additional permits may be required in advance of line-fill and operation.

DFO has regulatory responsibilities under the Fisheries Act and Species at Risk Act for the protection of fish and fish habitat, including marine mammals. In collaboration with the proponent and Canada Energy Regulator (CER), DFO delivers regulatory review services for pipeline watercourse crossings.

DFO issued a Fisheries Act authorization for the expansion of the Westridge Marine Terminal on September 12, 2019. In January 2020, and again in November 2022, DFO issued an amended Fisheries Act authorization.

[Information was severed in accordance with the Access to Information Act.] the Government to implement a series of Indigenous accommodation measures and responses to recommendations from the CER.

DFO manages three accommodation measures: the Salish Sea Initiative, the Aquatic Habitat Restoration Fund, and the Terrestrial Cumulative Effects Initiative (co-managed with Environment and Climate Change Canada and Natural Resources Canada); these are currently funded to March 2025. CCG manages the Co-Developing Community Response Initiative.

During CER’s review of the project, they found that there would be significant adverse effects to the Southern Resident killer whale (SRKW), Indigenous cultural use associated with the SRKW, and direct greenhouse gas emissions related to increases in marine shipping.

The CER made 16 recommendations to the [Information was severed in accordance with the Access to Information Act.] to avoid, mitigate, or lessen effects of project-related marine shipping.

Recommendation 5, call for an offset to the additional underwater noise and strike risk created by project-related marine vessels. The CER found that the offset approach could bring the adverse effects finding on SRKW to non-significant if and when project-related shipping effects have been effectively reduced to net-zero in each section of the shipping route.

The IAMC, established in 2017 when the project was first approved, provides advice to federal regulators and monitors project construction and operations. It includes 13 Indigenous members from the 129 communities impacted by the project (Indigenous Caucus) and six federal representatives.

Background

Aquatic invasive species (AIS) are non-native organisms that pose a serious and growing threat to Canada’s freshwater and marine ecosystems, economy, and society. Preventing the introduction, establishment, and spread of AIS, including early detection and response activities, is the most effective and cost-efficient strategy for limiting their harm.

The Aquatic Invasive Species Regulations came into force in 2015 under the Fisheries Act to provide tools for federal action and partnerships with provincial and territorial governments, setting significant expectations regarding Canada’s collective ability to manage AIS. Six species are subject to prohibitions against their importation under the Aquatic Invasive Species Regulations: Zebra and Quagga mussels and the four Asian carp species.

Budget 2017 provided $43.8 million in funding over five years and $10.8 million ongoing (i.e., permanent A-base funding) for national AIS management to: establish an AIS National Core Program; expand and make permanent the Department’s Asian Carp Program; and, expand the Sea Lamprey Control Program and increase Canada’s commitment to the Great Lakes Fisheries Commission from $8.1 million to $10.6 million ongoing.

The Commissioner of the Environment and Sustainable Development conducted an audit of DFO’s AIS efforts and released its findings on April 2, 2019. The report cited insufficient efforts from DFO and the Canada Border Services Agency (CBSA) in enforcing the Aquatic Invasive Species Regulations at the international border, and preventing the introduction or spread of AIS (e.g., zebra mussels, tunicates, European Green Crab). In response, DFO, the CBSA, and other partners have developed new protocols, tools, and procedures to improve enforcement of the Aquatic Invasive Species Regulations at international borders, among other initiatives undertaken under DFO’s management action plan related to the audit.

The new funding (i.e., B-base) announced in the Fall Economic Statement (2022) will give DFO flexibility in addressing short-term emergencies and for long-term monitoring and prevention, and strengthen relationships with provinces and territories, Indigenous peoples, and key stakeholders by addressing priorities in a collaborative fashion.

This funding is to be allocated to multiple DFO sectors including Aquatic Ecosystems (AIS National Core Program), Fisheries and Harbour Management (Conservation and Protection), Ecosystems and Oceans Science, and Strategic Policy; it expires in 2026-27 unless renewed.

Background

The Impact Assessment Agency of Canada and 12 partner departments and agencies, including DFO, sought $1,281.9 million over six years, starting in 2022-23, to continue implementing the IAA and complete assessments started under the Canadian Environmental Assessment Act, 2012.

Funding will enable the Department to ensure that the environmental, health, social, and economic implications of major development projects are rigorously assessed and that they meet Canadians’ standards and expectations for responsible development.

The funding will support staffing of 98 Full Time Equivalent’s over six years to support four different program areas (Ecosystems and Ocean Science, Fish and Fish Habitat Protection, Fisheries Management, and Environmental Response (Canadian Coast Guard), with 77 percent of positions in the regions.

Background

The Government of Canada developed eight accommodation measures to address the concerns of Indigenous groups potentially impacted by the Trans Mountain Expansion Project (TMX). Of these eight, Fisheries and Oceans Canada (DFO) is responsible for the Aquatic Habitat Restoration Fund (AHRF), the Salish Sea Initiative (SSI), and works with other federal partners on the Terrestrial Cumulative Effects Initiative (TCEI).

The AHRF is part of the Government of Canada’s commitment to restore freshwater and marine ecosystems and to contribute to the sustainability of fish and fish habitat. Through AHRF the Government intends to build capacity in Indigenous communities to enable habitat restoration; to rehabilitate aquatic habitats and contribute to the mitigation of stressors; contribute to the long-term sustainability of aquatic ecosystems.

Through the AHRF, DFO is collaborating with 129 Indigenous groups in BC and Alberta to develop an initiative that will provide funding for community capacity and Indigenous-led aquatic habitat restoration activities in freshwater and marine ecosystems.

A total of $75 million is available between 2019 and 2025. Activities will occur in the Fraser River Watershed and inland watersheds along the Trans Mountain pipeline corridor in British Columbia and Alberta, as well as along the shipping corridor and the Salish Sea.

The first few years of AHRF have focused on providing capacity funding to Indigenous communities to develop restoration priorities within their traditional territories and participate in the collaborative development of a delivery model for the project implementation, or restoration, phase of the initiative. At the onset of the program in 2019, $10 million was available, in part to support the collaborative development of the AHRF. Phase II (project funding) proposal intake opened in December 2021. A total of $65 million in G&C funding is available to communities for this phase.

To enable Indigenous communities continued participation in TMX initiatives, $16.2 million in funding for the Aquatic Habitat Restoration Fund was re-profiled to fiscal year 2022-23. This funding supported capacity building and project implementation for these Indigenous accommodation programs.

Once agreements with Indigenous communities have been approved and signed by the end of March 2023, an accurate amount to be reprofiled to next year 2023-24 will be calculated. At this time, it is anticipated that approximately $15 million will be reprofiled.

To allow Indigenous communities to build capacity and develop restoration projects, [Information was severed in accordance with the Access to Information Act.]

Background

The Department of Crown-Indigenous Relations and Northern Affairs is leading on this potential settlement and has asked several Departments to share the cost. Fisheries and Oceans Canada’s share is $400,000.

Further details on this item cannot be disclosed as discussions are ongoing with implicated parties and a settlement has not yet been reached.

Background

The Canadian Coast Guard (CCG) has authority, pursuant to section 180 of the Canada Shipping Act, 2001 (CSA) to take appropriate measures in relation to a vessel that has, is, or may discharge a pollutant. These measures include taking charge of a response, monitoring the response activities of another party, and/or directing another person or vessel to respond or refrain from responding.

Canada’s compensation regime is based on the fundamental principle that the shipowner is primarily liable for oil pollution damage caused by the ship: the polluter pays principle. Established in 1989 under Part 7 of the Marine Liability Act, the Ship-Source Oil Pollution Fund (SOPF) facilitates the indemnification of claims for ship-source pollution in Canadian waters while protecting the taxpayer.

The SOPF covers all classes of ships that discharge persistent and non-persistent oil, including oil spills from unknown sources which are commonly referred to as “mystery spills”. The SOPF is notably available to pay compensation for reasonable claims for oil pollution response costs, or preventive measures taken to minimize damage caused by the discharge - or the risk of a discharge - of oil from any class of ship in Canadian waters.

Where a shipowner is not identified or able to pay, the CCG has the ability to submit a claim to the SOPF in order to recover reasonable expenses incurred by the department in responding to incidents of oil pollution in Canadian waters. As a Special Operating Agency within Fisheries and Oceans Canada, the CCG may request authority to spend revenue received from polluters and the SOPF. As part of Supplementary Estimates process, CCG is seeking authority to access the following revenues:

• MV Comanche ($1,798,523)
• Federal Leda ($1,030)
• Scotia River ($95,844)
• Tecumseh ($5,176)
• MV Go Getter ($2,284)
• Michael Marie III ($17,027)

The funds received as part of this process are reinvested in the CCG’s Environmental Response program whose mandate is to ensure appropriate response to all reports of ship-source pollution and mystery-source spills.

Background

The Small Craft Harbours (SCH) program owns a total of 973 harbours throughout Canada. Of these, 298 are considered non-core harbours because, while some fishing may take place from these locations, they are focused more on recreational and other users not linked to the commercial fishery. Thus, these non-core harbours are candidates for divestiture.

One of the main objectives of the SCH program is to divest of harbours that are considered non-essential to the commercial fishing industry. Since 1995, the program has divested more than 1,100 non-core fishing harbours.

In the Supplementary Estimates C, resources are being reallocated to support the divestiture of two harbours currently owned by the SCH program.

The Grant funding will go towards the disposal of a small craft harbour to the municipality of Mattawa (Ontario) and another to the City of Cold Lake (Alberta).

The Mattawa project, initially planned in Vote 1, has now been identified as part of the SCH Grant program for divestiture. The total funding requirement is $690,400 in Vote 10, necessitating the vote conversion.

The Cold Lake divestiture was originally planned at $350,000 as negotiated in 2011 but has now increased due to deterioration over the years, as well as the region requesting an additional $150,000 through these Supplementary Estimates to complete divestiture.

These divestitures provide economic stimulus and opportunities for communities, while also removing non-core infrastructure from the Department's portfolio and reducing liability.

The funds identified in the Supplementary Estimates C will allow the Department to provide funding to the Town of Mattawa and the City of Cold Lake. These funds are for repairs and upkeep of the harbours so that they remain safe and accessible for users.

Background

The Freshwater Fish Marketing Corporation (FFMC) was established under the Freshwater Fish Marketing Act (FFMA) in 1969 and was designed with exclusive monopoly right to purchase, process, and market freshwater fish inter-provincially and internationally. It is a self-sustaining Crown corporation and does not receive Parliamentary appropriations. It finances its operations and capital expenditure requirements from its revenues and borrowings, in accordance with its borrowing plan.

To provide the FFMC with authority to borrow from creditors other than the Crown, the Appropriation Act for the 2022-23 Supplementary Estimates C includes a Vote for FFMC. Passage of the Appropriation Act will satisfy the requirements of 101(1)(b) of the FAA, permitting the FFMC to borrow under its line of credit. The technical process for including this FFMC Vote in an Appropriation Act requires that the Vote be provided with a token amount of $1.

Background

Zim Kingston

October 21, 2021, the ZIM KINGSTON reported having lost 40 containers when encountering adverse weather and heavy swells, approximately 38 nautical miles west of the entrance to the Juan de Fuca Strait, off the coast of Vancouver Island, BC. The ship later reported that 109 containers had been lost; two of which contained hazardous chemicals that were prone to combustion when exposed to water.

On October 23, 2021, damaged cargo still on board the ship caught fire. Sixteen (16) crew members were evacuated by the Canadian Coast Guard (CCG) and 5 crew members stayed aboard to fight the fire. The owner of the vessel contracted two commercial tugs to assist in firefighting activities. Since it was known that two more containers containing hazardous chemicals that were prone to combustion remained in the damaged cargo, fire suppression and cooling of the remaining cargo tactics were used to reduce the risk of fire or explosion. The CCG’s Atlantic Raven was tasked to support fire suppression and towing operations.

The 109 containers went overboard in Cape Flattery. Containers drifted north and 4 containers beached at 4 locations on the northwest tip of Vancouver Island.

The containers were mostly general cargo (toys, games, sports equipment, furniture, electrical machinery, general household goods, footwear/clothing, photography/optical equipment and vehicle parts).

Two of the containers that fell overboard were known to contain hazardous materials - non marine polluting.

While the CCCG managed the overall response to the Zim Kingston incident, including the cargo debris cleanup, the owner of the vessel took a proactive role throughout the response and hired a salvage contractor to track and remove the beached containers. They also hired private industry, non-profit organizations and First Nations to support beach cleanup operations.

Sonar scans to locate the sunken containers have been conducted by the ship owner at Constance Bank anchorage and at Cape Flattery. No containers were found at Constance Bank. Results were inconclusive in identifying container-sized objects at Cape Flattery. The CCG continues to work with the ship’s representative to remediate reports of possible Zim Kingston debris.

Standing Committee on Fisheries and Oceans Report on Marine Cargo Container Spills

The Committee on Fisheries and Oceans (the committee) agreed to undertake a study of the effects of “cargo container spills on Canada’s marine environment with regard to:

1. the environmental impacts of cargo container spills;
2. improving response times and efficacy to cargo spills;
3. addressing jurisdictional gaps to improve collaboration with volunteer, charitable organizations, provincial and territorial agencies, municipalities, and Indigenous communities during spill responses;
4. improving polluter responsibility and financial accountability.”

From March 2022 to June 2022, the Committee held six meetings on the subject of Marine Cargo Container Spills with government officials and industry, Indigenous community, and non-profit organizations representatives.

As a result of those meetings, the Committee has made twenty-nine (29) recommendations directed at the Government of Canada, Fisheries and Oceans Canada (DFO), and Transport Canada.

The scope of recommendations encompasses establishing marine debris monitoring and cleanup capacity; investing in research and monitoring to understand the impacts of polystyrene and other plastics; establishing marine cargo spill response capacity; expanding container ship regulations; building regulations for ships’ manifest information; establishing Hazardous and Noxious Substance spill response; establishing marine firefighting capacity; expanding emergency towing capacity; examining alternate funding mechanisms beyond the polluter-pays mechanism; championing the ban on the use of polystyrene foam in international fora; and collaborating with Indigenous communities to ensure they are active partners in marine cargo clean-up efforts.

The 29 recommendations include 5 on environmental impacts; 15 on incident response; 8 on cross jurisdiction collaboration; and, 1 on polluter responsibility and financial accountability.

The majority of recommendations were directed to DFO and Transport Canada. Input on a number of recommendations was also required from Environment and Climate Change Canada, Canada Border Services Agency (manifests) and Innovation Science and Economic Development (cellular and broadband for coastal communities).

Budget 2022 announced the intention to propose amendments to the Canada Shipping Act 2001 to enable the proactive management of marine emergencies and to cover more types of pollution.

Amendments to Canada Shipping Act 2001 would address a number of the Standing Committee’s recommendations.

Oceans Protection Plan renewal, launched in 2022, also includes new funding to enhance Hazardous and Noxious Substances preparedness and response and improving overall coordination for all marine spills.

The Government of Canada submitted its responses to the 29 recommendations to the Standing Committee on Fisheries and Oceans on February 1, 2023.

The Government’s Response can be found at the following link on the House of Commons website.

Background

On March 6, 2023, [to be confirmed] the Standing House Committee on Fisheries and Oceans (FOPO) tabled its report on Science at the Department of Fisheries and Oceans.

Departmental staff are reviewing the report and will be preparing a government response to the recommendations in the report.

The report follows 14 meetings of the Committee between April 26, 2022 and February 13, 2023.

The committee heard from 57 witnesses, including Departmental officials, the Office of the Chief Science Advisor, Indigenous organizations, academics and fisheries scientists, fisheries and aquaculture organizations, conservation organizations, and others.

DFO officials were invited to appear before the Committee on two occasions, on April 26, 2022, (the first meeting of the study) and on October 7, 2022.

Background

As a science-based department, scientific integrity is essential to the work at DFO and of its employees. Scientific integrity is critical to the decision-making process, from the planning and conduct of research to the production of advice and the application of advice to the departmental decision-making processes.

This Scientific Integrity Policy recognizes the importance of high quality science, free from political, commercial and client interference and the importance of this in the decision-making processes utilized by the Department. The policy applies to all who plan, produce, support or utilize science to make well-informed decisions.

The Canadian Science Advisory Secretariat (CSAS) coordinates the production of peer-reviewed science advice for DFO. Science advice is prepared both nationally and through DFO’s regional offices.

The CSAS provides a systematic process for the delivery of science advice to the department’s decision makers. Advice might relate to the state of an ecosystem, the impacts of a human activity, the effectiveness of a mitigation strategy or another subject related to DFO’s mandate.

Background

Status of Rebuilding Plans and Critical Zone Stocks

The Department of Fisheries and Oceans Canada (DFO) annually surveys 192 key harvested stocks in its Sustainability Survey for Fisheries.

Currently, 22 stocks of the 192 are in the critical zone, which means these stocks are below their limit reference point (LRP), which is the point at which serious harm is occurring to the stock. Stocks in the critical zone are considered depleted.

Under DFO's 2009 Precautionary Approach Policy, stocks in the critical zone require rebuilding plans.

DFO is working to ensure there are complete rebuilding plans for all priority stocks, in accordance with the Sustainable Fisheries Framework Work Plan that DFO publishes on its website annually.

DFO has completed rebuilding plans for six of the 22 stocks, and a further 11 plans are under development. One of the stocks (Northern shrimp SFA 7) in the critical zone is managed by the Northwest Atlantic Fisheries Organization (NAFO) and is subject to moratorium and thus DFO will not be developing a rebuilding plan.

Fish Stocks Provisions

Amendments made to the Fisheries Act in 2019 include the Fish Stocks provisions which require the Minister of DFO and the Canadian Coast Guard to implement management measures to maintain major stocks listed in regulation at levels necessary to promote sustainability and to develop and implement rebuilding plans for depleted major fish stocks.

These provisions came into effect on April 4, 2022, when amendments to the Fishery (General) Regulations (FGR) were finalized which prescribed the first batch of major fish stocks to be subject to the provisions.

Schedule IX of the FGR sets out the first batch of 30 major stocks subject to the Fish Stocks provisions, of which 14 stocks are in the critical zone and will require rebuilding plans. These stocks were selected from the 180 key harvested stocks included in DFO's 2020 Sustainability Survey for Fisheries, with the exception of two Pacific salmon stocks (Chinook salmon - Okanagan and Coho Salmon - Interior Fraser) which were not on the survey at the time of prescription.

The FGR set out the required contents (e.g., stock status and trends, probable causes for the stock’s decline, measurable objectives aimed at rebuilding the stock) of rebuilding plans as well as timelines to develop rebuilding plans for stocks subject to the Fish Stocks provisions.

DFO is currently working on a section batch of 62 proposed major fish stocks to be prescribed under the Fish stocks provisions. Of these, three stocks are in the critical zone and would require rebuilding plans and 10 do not currently have Limit Reference Points. DFO is working to establish these reference points before the stocks would be prescribed. Once they are established, DFO can then determine whether they require rebuilding plans.

Investments for Rebuilding Plans

To support the development of rebuilding plans, the Government of Canada invested $940,000 over four years, starting in 2017-18. This funding was provided in response to the 2016 report “Sustaining Canada’s Major Fish Stocks—Fisheries and Oceans Canada” by the Commissioner of the Environment and Sustainable Development.

The Government of Canada also invested an additional $107.4 million over five years, starting in 2019 and $17.6 million ongoing to support the implementation of the Fish Stocks provisions of the amended Fisheries Act. A large portion these resources are being used to increase scientific capacity for stock assessment of Canada's fish stocks, including the development of reference points (like the limit reference point) to identify stock status and to inform the development of rebuilding plans.

Oceana 2022 Fishery Audit

On November 22, 2022, Oceana Canada released its sixth annual Fishery Audit assessing the health of fish stocks and fisheries management. The audit recommended DFO list all remaining Critical and Cautious zone stocks under the Fish Stocks provisions and complete rebuilding plans in a timely manner. As described above, DFO is on track to complete rebuilding plans for fish stocks subject to the Fish Stocks provisions and is working to prescribe an additional 62 stocks.

Background

The Government of Canada has federal jurisdiction over coastal and inland fisheries, and the Fisheries Act gives the Minister of Fisheries, Oceans and the Canadian Coast Guard authority over fish harvesting decisions. The Minister has the authority to determine: how much is fished, who gets to fish, when and how stocks can be fished.

The Department also has international fisheries responsibilities with more than 20 per cent of Canada’s fish stocks managed in cooperation with international counterparts.

Fisheries management decisions have a range of impacts on coastal communities and Canadians as a whole. These include:

• Commercial: Enabling continued prosperity from fish and seafood while supporting a stable and sustainable fishing industry;
• Environmental: Ensuring sustainable resource management and conservation objectives grounded in science;
• Indigenous and Cultural: Advancing reconciliation, supporting Indigenous and Treaty Rights, and working towards collaborative management; and
• Recreational: Promoting stewardship, public awareness about conservation, and generating important socio-economic benefits for coastal communities.

Decision(s) must adhere to the following key principles: 1.Conservation, 2. Legally-binding agreements, 3. Indigenous and Treaty rights, and 4. Orderly management.

Decision-making is informed by:

• Science advice: Peer reviewed science advice on stock status, total allowable catch (TAC), and other conservation measures;
• Socio-economic considerations: Analysis of short- and long-term impacts of fisheries decisions on the fishing industry and reliant communities;
• Fishery policies: such as the Sustainable Fisheries Framework which includes the precautionary approach; and
• Indigenous and cultural considerations: through formal consultation and less formal engagement processes, including the consideration of Indigenous knowledge offered voluntarily; and Consultations with Indigenous Partners, and Relevant Stakeholders: A broad set of advisory processes involving, Indigenous partners (co-managers), fishing industry participants, the provinces, and relationships with commercial, recreational, and environmental groups.

The Sustainable Fisheries Framework (SFF) is the foundation for an ecosystem approach to fisheries, which aims to consider the impacts of fishing on all components of the aquatic environment. The SFF continues to evolve as new legislation, policies, and tools are created. The SFF consists of various policies and tools: Precautionary Approach Framework (includes the development of Rebuilding Plans), Specific Policies (e.g., sensitive benthic areas; new fisheries for forage species; by-catch), Sustainable Fisheries Survey and Integrated Fisheries Management Plans (IFMPs).

The Precautionary Approach involves taking cautious decisions to avoid serious harm to the resource in the absence of scientific information or when scientific information is uncertain, unreliable or inadequate. This approach is widely accepted as an essential part of sustainable fisheries management. Applying the precautionary approach to fisheries management decisions entails establishing a harvest strategy that:

• identifies three stock status zones - healthy, cautious, and critical - according to upper stock and limit reference points;
• sets the removal rate at which fish may be harvested within each stock status zone; and
• adjusts the removal rate according to fish stock status variations, based on pre-agreed decision rules.

Fisheries management decisions and harvest strategies are designed to promote and maintain fish stocks within the healthy zone. In the cautious zone, decisions and strategies promote stock rebuilding to the healthy zone. In the critical zone, stock growth is promoted and removals are kept to the lowest possible level.

Background

The Fish Harvester Benefit and Grant (FHBG) Program was part of the Government of Canada’s COVID response strategy. Since its launch in 2020, it has provided support for non-deferrable business expenses and income support to self-employed fish harvesters and self-employed crew.

The FHBG Program has been delivered in two-phases:

• Phase One (2020) involved the issuance of: 1) one-time grant payments to provide emergency business expense support to address the non-deferrable business costs of self- employed fish harvesters; and 2) the first part of the benefit payment (60 per cent) to provide income assistance to eligible self-employed fish harvesters and self-employed crew.
• Phase Two (2021) involved confirming that the applicant-attested information provided in phase one aligned with Canada Revenue Agency (CRA) data. A phase-two application was required by all applicants who received payment in phase one. If eligible, and with the successful submission of the phase two application, the Program issued the second part of the benefit payment (the remaining 40 per cent).

The benefit payment covered up to 75 per cent of income losses beyond a 25 per cent threshold for the 2020 tax year when compared to 2018 or 2019. The maximum benefit is $10,164.

During phase one, applicants attested to their income, estimated losses, and employment status. The Program issued payments in phase one based on the attested information from applicants.

Prior to the launch of phase two, the Program received Canada Revenue Agency (CRA) data and was able to compare attested information with tax filing information that applicants had provided to CRA. The Program deferred to information filed with CRA.

During this validation process, in some cases it was found that attested information did not align with the information that applicants had previously filed with CRA, meaning that in some cases individuals had received FHBG funds for which they were not eligible

For example, individuals who attested to being self-employed, but who had filed information with CRA indicating that they were employees, received overpayment letters pertaining to for their phase-one payment, since wage-earning employees were not eligible for the Program.

Sometimes applicants’ income losses as reflected in CRA data were found not meet the minimum loss threshold required for the benefit. Other times individual income losses reflected in CRA data were simply less than forecast in an applicant’s attestation.

In all cases, there was a right to appeal overpayment findings.

In February 2022, the Program waived interest charges on overpayment amounts owing until January 1, 2023. The Program extended the waiver period by a further three months. The revised interest waiver period will end on March 31, 2023.

At the end of January, the Program launched a reminder outreach effort to recipients of Program funds who have repayment obligations.

This effort has involved DFO sending reminder emails, letters, and account statements to individuals. In February, Service Canada started making reminder telephone calls to individuals with overpayments amounts owing. Individuals are encouraged to make repayment before March 31 to avoid interest charges.

This follow-up work to make reasonable efforts to recover Program overpayments is a requirement under the Directive on Public Money and Receivables.

Approximately 6,600 individuals have some level of overpayment owing. The total overpayment amount owing is approximately $33.6 million.

Background

Yellowtail and winter flounder harvested in NAFO Division 4T are primarily used as bait in the lobster fishery ensuring a fresh bait source for the lobster fishing industry that operates in the Magdalen Islands.

Winter and yellowtail flounder have remained in the critical zone of the Precautionary Approach Framework since 2004 and 2009 respectively; their spawning biomasses were at 24 per cent and 39 percent of its limit reference point in 2020, No signs of recovery have been observed in the most recent scientific assessments.

While the commercial fishery accounts only for a small proportion of the stock’s total mortality, it is important to limit and maintain fishing removals at the lowest possible level as this is one of the only controllable factors to ensure the species conservation.

Fisheries and Oceans Canada (DFO) recognizes the importance of these fisheries to coastal communities, and therefore makes the conservation of these stocks a priority. Hence the Department’s to significantly reduce the TAC from 300 t to 150 t for winter flounder in 2022 and from 225 to 150 t for yellowtail flounder in 2021.

A rebuilding plan for winter flounder, that is consistent with the Fisheries Act’s new fish stock provisions (FSP’s), is being finalized and will be delivered this coming spring (2023).

The yellowtail flounder was recently proposed for a listing under “Batch 2” of the Fisheries Act’s FSP’s. The FSP’s came into force on April 4, 2022, which requires DFO, according to section 6.2 (1), to develop and implement a rebuilding within 24 months when a stock has fell below its limit reference point (i.e., critical zone) to promote the growth of this stock.

DFO plans to develop and implement a rebuilding plan for yellowtail flounder.

The affected harvesters (8) have proposed a number of options to help supplement the loss of this quota, including access to other fishing opportunities in the area. The Department is reviewing their request.

Background

Budget 2021 provided a transformational investment starting in 2021-22, to Fisheries and Oceans Canada (DFO) to stabilize and conserve wild Pacific salmon populations as part of the Pacific Salmon Strategy Initiative (PSSI).

The PSSI was launched by the Minister of Fisheries, Oceans and the Canadian Coast Guard in June 2021, with the goal of stemming the severe and ongoing decline of key Pacific salmon stocks on Canada’s West Coast and restoring them to a sustainable level for future generations of Canadians. The long-term initiative is unprecedented in both value and scope, and the work will require the efforts of not only the Department, but of those whose lives and interests are affected by the state of Pacific salmon.

This investment is to implement initiatives over the next five years (2021/22 - 2025/26) organized under four pillars: Conservation and Stewardship (habitat and rebuilding-related work); Salmon Enhancement (hatcheries-related work); Harvest Transformation (harvest-related work); and, Integration and Coordination (internal and external integration of planning and collaboration with others).  

Under the Conservation and Stewardship pillar, recent work underway includes BC Flood Recovery and the renewal of the British Columbia Salmon Restoration and Innovation Fund, Pacific high seas inspection for illegal, unreported and unregulated fishing, and Pacific salmon rebuilding planning.

Through the Salmon Enhancement pillar, the Department has focused on development and engagement on a new policy framework for salmon enhancement, which will guide DFO’s work on hatchery investments to support conservation priorities.

The Harvest Transformation pillar’s activities include recent longer-term conservation-based closures for commercial fisheries, preparations of the Pacific Salmon Commercial Licence Retirement Program, and engagement on the mass marking and mark selective fisheries.

Lastly, work advancing under the Integration and Collaboration pillar is intended to advance integration and collaboration with Indigenous peoples, harvest groups, environmental groups and others to support Pacific salmon conservation. This included the creation of the PSSI Secretariat and ongoing engagement with First Nations, as well as BC, Yukon, and other stakeholders, on approaches for collaborative processes moving forward.

The 2018 Fall Economic Statement reiterated the Government’s commitment to the sustainability of wild Pacific salmon, supporting stock assessment and rebuilding efforts through a renewed Fisheries Act for priority fish stocks, and announcing the launch of the first iteration of the British Columbia Salmon Restoration and Innovation Fund (BCSRIF).

The federal-provincial joint BCSRIF was officially launched on March 15, 2019 originally allocating $142.85 million over five years: $100 million from Canada and $42.85 million from BC. The second phase of the BCSRIF was announced in August 2022, with an additional $100M funded via PSSI. This brings the total funding of BCSRIF to $285 million ($85 million from BC), with an extended program end date of March 31, 2026.

As part of the Government’s commitment to protecting wild Pacific salmon, on February 17, 2023, the Minister announced that licenses for Atlantic salmon farms in the Discovery Islands would not be reissued as an enhanced precautionary approach.

Background

Context

The rebound in pinniped populations to historic levels has coincided with the recent decline in salmon populations, leading several First Nations groups to request management action to address the large numbers of pinnipeds and their perceived impacts on salmon populations.

Attention to this issue has grown significantly in recent years among these groups. This has included calls for increased harvests, culls, and/or sterilization to reduce the size of pinniped populations. The issue is divisive; there has also been vocal opposition to pinniped removals from environmental groups and animal rights advocacy groups.

There are concerns among numerous commercial and recreational fishing groups and numerous Indigenous groups in Pacific Region that pinnipeds, particularly Steller and California sea lions, and harbour seals, are impacting economically valuable and culturally important fish stocks.

There is a high degree of scientific uncertainty regarding the extent of pinniped predation on wild salmon stocks, including Steelhead. While seals and sea lions do eat salmon, salmon represent a small proportion on average of their diet. Seals and sea lions also eat predators of salmon and herring, such as hake.

Seals and sea lions are an important food source for Transient killer whales, also known as Biggs killer whales, whose numbers have been increasing in inshore waters along the British Columbia (BC) Coast in recent years. This population of killer whale has been listed as Threatened under the Species at Risk Act (SARA) since 2003.

In Canada, Steller sea lions are listed under SARA as a species of special concern based on its sensitivity to human disturbance while on land and vulnerability to catastrophic events (such as major oil spills) due to its highly concentrated breeding aggregations.

Management Approach

Government of Canada’s approach to the management of the harvest of pinnipeds (i.e. seals and sea lions) on the west coast focuses on a sustainable and humane Indigenous harvest for food, social, and ceremonial purposes and continuing ongoing scientific research to further Fisheries and Oceans Canada’s (DFO) understanding of the salmon-pinniped interaction. DFO does not undertake any active management of pinnipeds beyond this in the Pacific region.

DFO is not considering a cull at this time and commercial fisheries are not a tool to manage population levels.

There continues to be a wide variation amongst technical experts on the interpretation of scientific results, the potential efficacy of potential mitigation actions (such as lethal removals), and the level of acceptable risk associated with possible actions.

Commercial Pinniped Fishery Interests

There are currently no commercial fisheries for pinnipeds on the west coast. Any proposals for a potential commercial pinniped fishery are assessed under the New Emerging Fishery Policy (NEFP). Over the past three years, DFO has received three proposals for a commercial pinniped fishery with the objective to reduce pinniped population levels. All proposals were assessed under the NEFP and remain unapproved.

As a proponent driven process, additional information is required to consider further assessment against the NEFP and address the feedback provided by DFO. The objective of such proposals should focus on commercial benefits and should not be linked to salmon conservation. None of the proposals were submitted by a First Nation.

Science

DFO is working to evaluate seal and sea lion diets in Pacific Region. Estimating the amount of prey consumed by seals requires a number of different types of data that are difficult to obtain given that marine mammals are a wide ranging, diving predator and distributed in remote locations.

DFO Science is conducting research on the population dynamics and diets of pinnipeds to better understand pinniped-salmon interaction. This work includes updating assessments (including trends and current status) for Pacific harbour seal, Steller sea lion, and overwintering California sea lion populations, based on aerial survey data. DFO Science is also analyzing data collected from scat samples to better understand the diet composition for these three species. Research indicates that there is a large degree of uncertainty about the role of pinnipeds in salmon abundance trends.

Private Members Bill C-251 “An Act respecting the development of a federal framework on the conservation of fish stocks and management of pinnipeds”, was introduced in the House of Commons on February 9, 2022. Following a vote on June 15, the bill was defeated and will not be referred to the House of Commons FOPO; accordingly, the bill will not proceed for further consideration.

The Government of Canada opposed Bill C-251 for several reasons, including that the Bill lacked a scientific basis for the requirement of the proposed measures and their efficacy; the Bill duplicates existing authorities under the Fisheries Act and Marine Mammal Regulations, and finally the Bill could have threatened the Canadian fish and seafood industry’s access to key export markets.

DFO’s fish and seafood trade with key partners, including the United States (US), needs to be supported by management decisions that are based on the best available scientific evidence and internationally recognized practices and provisions aimed at ensuring the sustainable use and conservation of marine species.

If enacted, Bill C-251 would have risked violation of international legal obligations under the US Marine Mammal Protection Act import provisions, the Canada-US-Mexico Agreement, and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.

Background

Currently, DFO manages commercial harvests for grey, hooded, and harp seals in the Atlantic region; there are currently no fisheries for seals or sea lions in the Pacific region.

There is concern from the fishing industry on both the east and west coast regarding the potential impacts of seal and sea lion predation on commercially valuable fish stocks. There are currently active DFO research projects in Maritimes, Quebec, Newfoundland and Pacific regions to look at diet of key seal and/or sea lion species. The Department is also investing in a new research program on the West Coast and is working with partners on the potential impacts of seals and sea lions on fish populations.

Scientific evidence to date suggests that grey seals are having an impact on the recovery of cod and other groundfish in the Southern Gulf of St Lawrence. Conversely, there is no scientific evidence to date to demonstrate that harp seals are significantly impacting commercially valuable fish stock off the coast of Newfoundland. The impact of Pacific seals or sea lions on commercially important fish stocks on the west coast of Canada has not been evaluated and is currently unknown. 

The Department uses the best available scientific information to make appropriate seal related management decisions.

Background

On June 22, 2022, the Minister announced next steps towards development of a plan for transitioning from open-net pen salmon aquaculture in coastal British Columbia.

The Government of Canada previously undertook engagement in 2020 and 2021 and collected views on transitioning the salmon aquaculture sector in British Columbia.

On July 29, 2022, Fisheries and Oceans Canada (DFO) released a discussion framework which outlines a proposed vision for transitioning from open-net pen salmon aquaculture in British Columbia. The framework will help guide engagement with the Government of British Columbia, First Nations, industry, local governments, stakeholders, and British Columbians.

Engagement on the discussion framework will run until early 2023. A “what we heard” report on phase two of engagement, which comprised intensive engagement and the development of plan elements, will be circulated in February 2023 to inform and guide continued engagement through the spring of 2023.

The feedback and input received during this engagement will be instrumental in the development of the final transition plan, expected to be completed in the spring of 2023.

Background

In November 2009, Canada established the Commission of Inquiry into the Decline of Sockeye Salmon in the Fraser River to investigate the decline of Sockeye salmon stocks and to provide recommendations (the Cohen Commission).

The final report of the Cohen Commission was released October 2012. The report did not find any single factor leading to decreased Sockeye salmon stocks.

The report made 75 recommendations, the majority of which focused on Pacific salmon fisheries management, fisheries science, salmon habitat protection, and the implementation of the Wild Salmon Policy. Action has been taken to address all 75 of the recommendations.

In response to the Cohen Commission’s Recommendation 19, DFO considered the risk to Fraser River Sockeye salmon from diseases that occur in Atlantic salmon farms. The scientific risk assessments focused on farms located in the Discovery Islands area.

The nine peer-reviewed, scientific risk assessments concluded that the transfer of these pathogens pose, at most, a minimal risk to migrating Fraser River Sockeye salmon in the area.

The risk assessments were published in November 2019, which was linked to the expiration date of the annual licences in the Discovery Islands.

On December 17, 2020, then Minister Bernadette Jordan announced her intention to phase out existing salmon farming licences in the Discovery Islands by June 30, 2022.

In January 2021, Mowi, Cermaq, and Grieg Seafood each filed an application for judicial review of the decision in the Federal Court.

On April 22, 2022, the Federal Court released its decision on judicial review applications, deeming the December 2020 policy decision to be a licensing decision and quashing it because it failed to comply with procedural fairness requirements.

The Federal Court decision meant that individualized decisions had to be made on whether to renew salmon aquaculture licences in the Discovery Islands, which were all due to expire on June 30, 2022.

On June 22, 2022, Minister Murray announced next steps towards development of a plan for transitioning from open-net pen salmon aquaculture in coastal British Columbia. At the same time, the Minister made a decision to approve a two-year reissuance of marine finfish licences across British Columbia, with the exception of the Discovery Islands. Following the Federal Court’s decision, the Minister directed the Department not to reissue licences for 15 Atlantic salmon facilities in the Discovery Islands, and to issue six-month licences for two remaining chinook facilities.

Consultations with five licence holders and seven First Nations in the area were subsequently conducted to inform a decision on reissuance or non-reissuance for all 17 licences, which the Minister intended to make in January 2023.

In January 2023, the Minister granted a one-month licence renewal to a small chinook salmon facility whose licence would have expired otherwise, with fish present in the water. In February 2023, the chinook facility was a granted a six-month licence renewal. Another facility no longer required a licence as it was being decommissioned.

On February 17, 2023, the Minister announced her decision to not renew licences for 15 open-net pen Atlantic salmon aquaculture sites in the Discovery Islands.

On March 20, 2023, Mowi, Cermaq, Grieg, as well as the We Wai Kai and Wei Wei Kum First Nations filed an application for a judicial review of the decision. Grieg Seafood has also filed a second separate motion.

Background

Sea lice are naturally occurring parasites in Canada’s coastal waters. While sea lice generally do not harm adult fish, they can harm small juvenile salmon as they emerge from river systems when they are quite small and without complete scale development for protection.

Farmed fish are free of sea lice when they enter the ocean, but can pick them up in the marine environment. If not properly managed, sea lice levels can become elevated and wild juvenile salmon can be exposed to higher than natural levels during the spring out-migration period.

Over the last couple of decades, Fisheries and Oceans Canada (DFO) scientists have worked to build understanding and knowledge about sea lice, their relationship to the marine environment and fish, along with improved understanding of treatments and methods used to reduce their abundance on farmed fish, to inform improvements in management measures.

One of the methods used to control sea lice is a Health Canada approved drug called SLICE. Due to some localized resistance to this drug, there is a push for the use of alternative methods to manage sea lice, including mechanical, thermal, freshwater, and other non-chemical treatments.

DFO is exploring options to encourage innovation, including in non-chemical options to treat sea lice.

In British Columbia (BC), the Department requires sea lice management, treatment, and mitigation measures at farms when sea lice levels are high. These measures have been very effective; most years, more than 90 per cent of sites are below the regulatory thresholds for sea lice during the out-migration period (March 1 to June 30). Any evidence of population-level harm to wild salmon resulting from salmon farms would prompt the immediate revision of aquaculture licences to ensure the conservation of wild salmon stocks.

On the east coast, where the provinces are the lead regulators, information on sea lice management practices is not readily available to DFO, as sea lice monitoring is provincially mandated. Each province regulates the industry differently and relies on individual companies to submit management plans, which are not made public.

In January 2023, DFO Science published new Science Advice on the association between sea lice from Atlantic salmon farms and sea lice infestations on juvenile wild Pacific salmon in BC.

The Science Response Report revealed a statistically nonsignificant association between sea lice infestation on Atlantic salmon farms and sea lice levels on wild juvenile Pacific salmon populations in BC.

The study used data from multiple Atlantic salmon farms, reported to DFO by industry and subject to DFO auditing, and sea lice counts on wild fish collected and publicly available by a third party company for the industry sampled at specific distances from nearby farms in the four study areas.

Analyses undertaken as part of the study include varying degrees of uncertainty and were limited by not taking into account certain factors, such as the influence of hydrodynamic processes in the vicinity of salmon farms and alternative sources of sea lice, which could potentially influence sea lice counts.

Although concerns raised in media articles allege that industry under reports sea lice counts, DFO undertakes audits of the reported sea lice counts.

DFO Science intends to continue to assess risks associated with farmed sea lice, which will continue to inform DFO’s approach to managing sea lice on farmed salmon in BC.

The have been several recent media reports from some Canadian university academics critiquing the interim science advice provided in the CSAS Science Response on sea lice.

Following-up on this interim science advice, a more comprehensive sea lice risk assessment that focuses on the impacts of sea lice on both coasts is planned for 2024.

Background

In January 2023, two North Atlantic Right Whales were successfully disentangled by marine mammal response experts in the United States.

• Gear removed from EG 1218 (Argo) originated from Lobster Fishing Area 33 off the southern coast of Nova Scotia. This is the first North Atlantic right whale entanglement confirmed to be connected to Canada’s lobster fishery in over five years.
• In this particular case, the harvester had reported their lost fishing gear to DFO as is required by their conditions of licence.
• Officials are still examining the gear removed from EG 3812 (Nimbus). The origin of gear has not yet been determined. Prior to entanglement, Nimbus was last seen swimming gear-free in August 2022 in the Gulf of St. Lawrence.

There were no reported NARW mortalities and 4 new entanglements (first sighting and gear present) in Canadian waters in 2022.

The Annual NARW Advisory Committee meeting was held on November 22, 2022 followed by a targeted meeting with Indigenous groups on November 25, 2022.

Closure statistics from 2022, as of November 15, 2022:

• 55,229 km² total cumulative closure area
• 29,267 km² in total seasonal closures

As of November 15, 2022, there were 1,173 recorded detections of right whales in Canadian waters. Of these detections 136 individual whales have been identified.

On October 25, 2022 the North Atlantic Right Whale Consortium released the most recent population estimate of 340 whales, which indicates a slowing in decline.

The first North Atlantic right whale of 2022 was detected on May 3. The single right whale was sighted by surveillance aircraft in the Gulf of St. Lawrence, north of the Magdalen Islands. The detection triggered a 15-day fishing closure in crab fishing area 12.

In February 2022, the Minister announced the 2022 NARW fisheries management measures. DFO’s measures remain unchanged from 2021. The measures for 2022 will take effect in the Gulf of St. Lawrence as soon as the Gulf crab fisheries open this year (as early as April 1).

In 2022 DFO continued to apply adaptive measures to preventing fishing gear entanglements, such as:

• Changes to the open and closure dates of fisheries.
• Season-long closure protocol (Nov 15) in the Gulf of St. Lawrence;
• Dynamic closure protocol in the Gulf of St. Lawrence, Bay of Fundy, and critical habitat areas (Grand Manan Basin and Roseway Basin);
• Case by case measures to address sightings of 3 whale or more aggregations or a mother and calf anywhere in Atlantic Canada and Quebec that is not subject to temporary closure areas and critical habitat;
• Maintaining targeted provisions for waters shallower than 20 fathoms (36.5 metres or 120 feet); and
• Focused surveillance using acoustic underwater technology (hydrophones), aircraft and vessels to confirm the presence of whales.

The Department is working with partners and industry in Atlantic Canada and Quebec to identify gear solutions for preventing injury to right whales, including implementing requirements for lower breaking strength gear modifications in non-tended fixed gear fisheries and supporting more widespread use of on-demand gear. The Department is finalizing the approach for 2024 and beyond, to ensure that gear modification requirements are implemented in a way that considers fishery-specific conditions, and is safe, effective and adaptive to new information as it becomes available.

In 2021, the Department launched the Whalesafe Gear Adoption Fund, a two-year $20 million contribution program to support the purchase, adoption, testing and manufacture of whalesafe fishing gear, including lower breaking strength modifications and ropeless/rope on demand systems. This program supports 34 projects across Quebec and Atlantic Canada.

The 2021 Action Plan for the NARW was finalized and published on the Public Registry in spring 2021. The Action Plan addresses aII threats identified in the species’ Recovery Strategy, incIuding vessel collisions, entanglement in fishing gear, disturbance from vessel presence, noise, contaminants, habitat degradation, and changes in food supply.

• Since 2018, DFO has invested over $5.7 million to further enhance the Marine Mammal Response Program, which responds to marine mammals in distress, including disentanglement of NARWs. This funding is part of the $167.4 million Whales Initiative in Budget 2018.
• The NARW was listed as Endangered in the Species at Risk Act (SARA) in 2005. It is predicted the species could become extinct in 30 years if the mortality rate is not significantly reduced. The population is in decline with an estimated 340 individuals, including less than 80 fertile females.

Background

Renewal of the Canadian Coast Guard (CCG) fleet is underway. Funded replacement plans are currently in place for the large vessel fleet, including:

• Three Offshore Fisheries Science Vessels, which were all delivered in 2019 and 2020;
• One Offshore Oceanographic Science Vessel (OOSV);
• Two Polar Icebreakers;
• Up to 16 Multi-Purpose Vessels (MPV);
• Two Arctic and Offshore Patrol Ships (AOPS) (CCG variants of ships currently in construction for the Department of National Defence); and
• Up to six Program Icebreakers (PIB).

Construction work is currently underway on the OOSV following cut steel in March 2021. Ancillary contract work is ongoing on the MPV project at Vancouver Shipyards (VSY) following the August 2020 contract award. Additionally, pre-construction work is advancing on the Polar Icebreaker at VSY, following the awarding of the Construction Engineering (CE) and Long Lead Items (LLI) contracts in December 2022. Work on the Program Icebreakers and the other Polar Icebreaker is expected to begin following the addition of Chantier Davie to the National Shipbuilding Strategy (NSS), which is expected by spring 2023. Detailed costing for these projects will be released once negotiations and contract awards for engineering and construction have occurred with the shipyard.

Media attention has occurred over the last several years detailing the increasing costs and ongoing delays with the procurement of CCG’s large vessel fleet. CCG has been working closely with shipyards and internal stakeholders to manage and address ongoing issues.

CCG is also renewing its small fleet. 19 new small vessels have already been delivered under the NSS, including two new Channel Survey and Sounding Vessels and 14 new Search and Rescue Lifeboats that have joined the fleet in the past few years. An additional three Search and Rescue Lifeboats will be constructed at Hike Metal Products, in Wheatley, Ontario and three in Chantier Naval Forillon, in Gaspé, Quebec. In addition, design work is ongoing on a new Near-Shore Fishery Research Vessel.

CCG has completed the renewal of its helicopter fleet with delivery of sixteen new light-lift helicopters and seven new medium-lift helicopters.

The CCG is putting in place interim measures and investing in vessel life extension work to ensure continued delivery of critical services until new ships are delivered. This includes:

• A comprehensive Vessel Life Extension program to maintain the current fleet operational as new ships are being built;
• Acquisition of three interim icebreakers- the first, CCGS Captain Molly Kool, came into service December 2018. The second, CCGS Jean Goodwill, joined the CCG fleet in late 2020. The third ship, CCGS Vincent Massey, was delivered in October 2022; and,
• Acquisition of one light icebreaker. The contract to procure the light icebreaker was awarded to Atlantic Towing Ltd. on September 22, 2021. The icebreaker arrived in Canada in January 2022 and the contract for its conversion work is expected to be competitively awarded in spring 2023.

Announcements:

• On May 22nd, 2019, the Prime Minister announced a renewal of the CCG fleet with up to 18 new large ships built in Canadian shipyards, helping the CCG continue to deliver its important services, and creating good, middle class jobs across the country.
• Total funding for the 18 large ships is $15.7 billion, which represents early estimates of project budgets including construction, logistics and support, contingency, project management and infrastructure costs. The costs of each ship class will be announced following contract negotiations.
• Irving Shipbuilding will build two non-combat AOPS, which will be adapted for the CCG to perform a range of critical mission, including Northwest Atlantic Fisheries Organizational patrols.
• Vancouver Shipyards will build up to 16 MPV to support a variety of missions, including light icebreaking, aids to navigation, environmental response, and offshore search and rescue.
• Canada will also proceed through a competitive process with the design of a new class of smaller ships, the new Mid-Shore Multi-Mission ship, which would complement the work of the large fleet in shallow areas and deliver mid-shore science activities.
• On August 2, 2019, the Government of Canada announced that six new PIB would be constructed for the CCG. The Government also announced its intention to expand the NSS with the addition of the third Canadian Shipyard to build the PIB.
• The Request for Proposal was released to Chantier Davie in late July 2020 and concluded in July 2021. Canada announced the commencement of Umbrella Agreement (UA) negotiations on June 8, 2022. It is expected that the UA will be finalized by the end of 2022.
• On May 6, 2021, Canada announced the procurement of two Polar Icebreakers for the CCG. One will be built at Vancouver Shipyards (the Polar Icebreaker had previously been removed from VSY’s UA and replaced with the 16 MPV) and the other is expected to be constructed at Chantier Davie, once it qualifies to become the third shipyard under the NSS.

Background

General DFO Role and Authorities

The Fish and Fish Habitat Protection Program administers and ensures compliance with the fish and fish habitat protection provisions of the Fisheries Act and certain relevant provisions under the Species at Risk Act for development projects taking place in and around fish habitat.

The Minister may issue authorizations under paragraphs 34.4(2)(b) and/or 35(2)(b) of the Fisheries Act following a site-specific review for works, undertakings, or activities that pose, respectively, a risk of death of fish by means other than fishing or the harmful alteration, disruption, or destruction of fish habitat. The authorization, when appropriate, may contain conditions for offsetting, monitoring, and reporting.

The Program is also responsible for meeting the duty to consult, and when appropriate, accommodate, in relation to potential impacts on Aboriginal and Treaty rights related to authorizations or permits that may be issued under the Fisheries Act or the Species at Risk Act.

The Department also has specific legislative responsibilities in relation to federal environmental assessment regimes including, among others, the Impact Assessment Act, and regimes in the territories and under land claims agreements.

As a federal authority for impact assessments, Fisheries and Oceans Canada (DFO) provides expert information or knowledge in relation to its mandate. Under regimes in the territories and under land claims agreements DFO may also be a decision maker for a project.

Mary River Project

Mary River Iron Ore Project is an approved iron ore mine operated by Baffinland Iron Mines Corporation (the Proponent). The project has been subject to several environmental assessment processes as development plans at the site have evolved.

A recent project expansion proposal was rejected by the Government in November 2022. The proponent has since applied for a permanent ability to ship at 6 million tonnes per annum (mtpa), which they are calling the sustaining operations proposal.

On February 9, 2023, the proponent also announced that it would be moving to develop the southern rail line and port at Steensby Inlet. This proposal received an environmental assessment approval in December 2012 but was never constructed. Additional regulatory approvals, including under the Fisheries Act, are expected to be required prior to construction.

A joint workshop between the North Atlantic Marine Mammal Commission Scientific Committee Working Group on the Population Status of Narwhal and Beluga in the North Atlantic and the Canada Greenland Joint Commission on Conservation and Management of Narwhal and Beluga Scientific Working Group was held in December 2022. DFO was represented at the meeting by DFO science sector. The report produced at the conclusion of the workshop suggests that increased ship traffic, the majority of which is attributable to the Mary River project, is by far the most likely cause for the large, population displacement of narwhals that has been observed and that the model predicts there will be almost no narwhal left in Eclipse Sound in 2023.

Roberts Bank Terminal 2

The Roberts Bank Terminal 2 Project includes the construction and operation of a new three-berth marine container terminal located at Roberts Bank in Delta, British Columbia, approximately 35 km south of Vancouver.

The project has been subject to a lengthy environmental assessment process undertaken by an independent review panel. The project is expected to have a number of significant adverse environmental effects on matters pertaining to DFO’s mandate including on, Southern Resident killer whales, juvenile Chinook salmon, Dungeness crab, eulachon, orange sea pen and forage fish.

The project is also expected to have significant adverse effects on the rights of, and current use of lands and resources by a number of First Nations. Under the current legislative timeline, an environmental assessment decision on the project is required no later than April 23, 2023. If the project is allowed to proceed, DFO would then be required to consider issuing an authorization under the Fisheries Act. This authorization, if issued, would concurrently need to meet the requirements of the Species at Risk Act.

Background

Impacts of Ghost Gear

The term 'ghost gear' refers to any fishing gear that has been abandoned, lost or otherwise discarded (for example nets, line, rope, traps, pots, and floats). Other common terms include abandoned, lost or otherwise discarded fishing gear or ‘ALDFG’ and derelict fishing gear or ‘DFG’. It is a form of marine pollution that can be fatal to fish, marine mammals and other marine life, poses a navigation hazard, and may break down into other forms of pollution such as microplastics.

The UN Food and Agriculture Organization (FAO) estimates that ghost gear represents approximately 10 percent of marine debris by volume. There is growing international attention on the problem of ghost gear, as well as other forms of marine litter. For example, the FAO has recognized ghost gear as a major global problem since the 1980s. The 1995 FAO code of conduct for responsible fisheries and related technical guidelines include advice to minimize ghost gear and the responsibility to recover lost gear.

Ghost fishing gear can cause large-scale damage to marine ecosystems through habitat disturbance and causes direct harm to the welfare and conservation of marine animals via entanglement and/or ingestion.

Canadian Context

The Canadian code of conduct for responsible fishing operations includes an expectation (guideline 2.8) for fish harvesters to “make every effort to retrieve lost fishing gear, reporting all lost gear.” The Department collaborates with conservation groups and partners to rescue sea life that has been entangled by sea-based marine debris, and with the fishing industry to retrieve gear on an ad hoc basis. The Ghost Gear Program allows for a dedicated program to tackle the issue of ghost gear domestically and abroad.

The current regulatory/licensing regime is prescriptive in terms of types, quantities and identification of fishing gear that a harvester can have on board their vessel and/or fish. Additionally, the location where a harvester can fish is very prescriptive. While these measures were intended to ensure compliance with quotas and allocations, they impede the ability of a harvester to retrieve gear which they are not permitted to use and/or is located in areas they are not authorized to fish. An assessment of DFO legislation is currently underway to ensure that any potential impediments to addressing and reducing ghost gear domestically are identified and addressed.

Canada has been pushing to strengthen measures in internationally managed fisheries. There is support for this but also recognition that for small island developing states and other developing states that the measures need to also come with increased capacity domestically - both policy, social and operational (e.g. reception centres, reporting, etc.).

New requirements will be in place in 2023 for low breaking strength gear to be used in some fisheries in Atlantic Canada and Quebec. This gear is designed to operate safely and effectively under normal fishing conditions, and the implementation of these gear modifications during adverse weather and extreme sea conditions may result in gear loss. Industry members have highlighted concerns about the cost of lost gear, as well as the bycatch risks associated with additional ghost gear.

Mandatory lost gear reporting has been a requirement in all commercial conditions of licence in Canada since 2020. All incidents of gear being lost as a result of the new gear requirements will be recorded by the Department. While DFO's Ghost Gear Program is not funded or designed to manage the implications of lower breaking strength gear modifications, it is positioned to help inform retrieval efforts as the need may arise resulting from low breaking strength gear implementation.

Sustainable Fisheries Solutions and Retrieval Support Contribution Program (Ghost Gear Fund):

Through Budget 2022 under the Zero Plastic Waste agenda, the Ghost Gear Fund received $10 million to continue retrieval activities and the testing of fishing gear to reduce gear loss for fiscal year 2022-2023.

A call for proposals was issued on May 4, 2022 for this round of funding and closed on June 6, 2022. Contribution agreements were negotiated with the 42 successful applicants, and projects are currently underway.

All applications for funding were assessed based on the eligibility criteria provided on the Ghost Gear Fund website, using an assessment grid that enabled reviewers to prioritize projects whose applications best address priority pillars of action. Projects were selected based on the rank using the assessment grid, as well as ensuring there was a national distribution of efforts. High scoring criteria included harvester participation, Indigenous participation, level of experience, and removal of ghost gear within the first year.

All successful projects fall into at least one of four eligible categories: gear retrieval, responsible disposal, acquisition and piloting of available gear technology, and international leadership.

Hurricane Fiona Response

Hurricane Fiona impacted infrastructure and communities across Atlantic Canada and Eastern Quebec, including DFO-owned fishing harbours managed by the Small Craft Harbours Program (SCH), and produced substantial fishing gear-related debris from fisheries and aquaculture operations that were active during the storm and as a result of heavy damage to harbour storage facilities.

The $300M Hurricane Fiona Relief Fund (HFRF) was announced October 4, 2022 and will be administered by the Atlantic Canada Opportunities Agency (ACOA) to fund losses not covered under other government and private sector measures, with $30M going towards ghost gear clean up and retrieval.

• In 2022-23, $1.5M in additional funds was made available to the Ghost Gear Fund to undertake immediate critical gear clean-up activities in the fall of 2022 through 11 Ghost Gear Fund projects.
• A call for proposals to support ghost gear efforts to reduce the impacts from Hurricane Fiona in 2023-2024, with DFO providing up to $28.4M in funding, closed on January 6, 2023. Proposals are currently being evaluated, and the results will be communicated by the end of February 2023.

Background

As of February 2023, the Small Craft Harbours (SCH) program was responsible for 973 harbours:

• 675 core fishing harbours; and
• 298 non-core fishing harbours.

Small craft harbours provide key support to the commercial fishing industry. The SCH program keeps the harbours that are critical to the fishing industry open and in good repair.

In Budget 2021, the Government announced it would provide $300 million over two years to repair, renew, and replace small craft harbours.

Hurricane Fiona impacted 142 of the 184 small craft harbours that were in its path. Since the passing of Fiona, the Prime Minister announced the $300 million Hurricane Fiona Recovery Fund, on October 4, 2022.

On October 17, 2022, The DFO and ACOA Ministers announced that to support immediate recovery efforts, $100 million from the fund had been set aside to repair essential infrastructure at harbours and to retrieve lost fishing gear.

Approximately 90 per cent of the Canadian fish harvest is landed at harbours operated through the SCH program.

For SCH, climate change has meant reduced formation of shore ice and more coastal erosion and flooding. Main impacts for SCH network are on harbour infrastructure and sedimentation within harbours.

For the program, this creates an increased need to address repairs at harbours in a timely manner as well as increased dredging pressures.

The SCH Program has already begun to adapt its conception standards to this reality, as well as to enhance its regional dredging program.

The SCH Program is delivered in cooperation with Harbour Authorities, local non-profit organizations representing the interests of local commercial fishers and the broader community.

Each year, more than 5,000 volunteers assist the SCH Program.

The SCH Program's annual regular budget has been stable at about $90 million (includes salaries and administrative costs) since 2007-08. Since 2008-09, the Government of Canada has provided the SCH Program with more than $1.3 billion in temporary funding.

Background

On September 24, 2022, Hurricane Fiona hit Atlantic Canada and eastern Quebec, impacting various types of infrastructure including DFO-owned small craft harbours, and producing substantial fishing gear-related debris, not only from fisheries and aquaculture operations that were active during the storm, but also as a result of heavy damage to harbour storage facilities, with gear and structures being swept into the ocean.

On October 17, 2022, Ministers Murray and Petitpas Taylor announced that $100 million from the new Hurricane Fiona Recovery Fund will be used to repair SCH infrastructure and to retrieve lost fishing and aquaculture gear. Specifically, $70M to supplement the SCH Program to support recovery efforts at small craft harbours damaged by Hurricane Fiona. Another $30M was allocated to support retrieval and responsible disposal of lost fishing gear through the Ghost Gear Fund.

The SCH Program has worked diligently to determine the impacts Fiona had on the Program's infrastructure. Clean up activities have taken place and, for the most part, initial repairs have been completed. DFO staff are now working with Harbour Authorities and others to plan and execute and necessary longer term repairs at impacted harbours.

With respect to ghost gear, $1.5 million has already been allocated to support 11 partners for emergency clean-up and recovery efforts of the hardest hit areas, currently underway. Other projects are expected to be announced in the coming weeks.

Background

The Supreme Court of Canada formally recognized a Right of Indigenous people in Atlantic Canada to hunt and fish for a moderate livelihood in 1999. This Treaty Right touches 35 Indigenous communities (Mi’kmaq and Wolastoqiyik First Nations in New Brunswick, Prince Edward Island, Nova Scotia, and the Gaspé, Region of Quebec) as well as the Peskotomuhkati Nation at Skutik in New Brunswick.

Over the past 23 years, DFO has provided over $630 million in fishing licences, vessels, gear and training to help increase and diversify participation in commercial fisheries, and to advance the implementation of the right to fish in pursuit of a moderate livelihood, for the 35 rights-holding Mi'kmaq, Wolastoqey First Nations and the Peskotomuhkati Nation at Skutik (total of 35 Treaty Nations).

Since 2000, these investments have resulted in meaningful economic benefits which continue to increase year over year. The cumulative revenue (landed value and diversification) for Treaty Nations’ commercial fishing enterprises is now over $2 billion.

DFO has been negotiating Rights Reconciliation Agreements (RRA) with Treaty Nations, with the objective of addressing and recognizing their historic treaty right (affirmed by the Marshall decisions) and to ensure a stable and predictable fishery for the benefit of all Canadians.

The RRA process was launched in 2017 and provided a mandate to negotiate enhanced fisheries collaborative management, fisheries governance and increased fisheries access, all while recognizing but not defining the Moderate Livelihood right.

To date, there are three RRAs with four First Nations (25 per cent of the total Treaty communities' population) and the potential for more RRAs before the mandate expires in April 2023.

In 2021, a new pathway to rights implementation was announced through the development of Moderate Livelihood Fishing Plans (MLFPs).

MLFPs are conducted within established commercial seasons, include other restrictions similar to those of regular commercial licences, and are harvested exclusively by community members for their own benefit. Of note, these are understandings, not agreements. Treaty Nations produce a community-based fishing plan and DFO produces an authorization parallel to the plan.

To date, since 2021, 10 understandings with 15 Treaty communities have been reached for lobster and/or elver, and there is an interest in continuing these understandings for the 2023 fishing seasons.

DFO is currently planning for the next phase of moderate livelihood implementation, which will involve working collaboratively with Treaty Nations to determine the new path forward.

There are several active litigations related to the Treaty right, including a claim by a Treaty community challenging DFO's implementation of the right, and a judicial review by an industry group challenging the legality of one of the RRAs.

In October 2020, the Minister of Fisheries, Oceans and the Canadian Coast Guard and the Minister of Crown-Indigenous Relations appointed Allister Surette as Federal Special Representative, as a neutral third party to: gather the different perspectives on the issues contributing to the Indigenous-Industry conflict; seek to build understanding and find common ground in order to reduce tensions between Treaty Nations and industry; and identify opportunities to improve relationships. Mr. Surette submitted his final report and recommendations in March 2021. DFO has made progress in implementing some of the recommendations.

The Department continues to have regular and frequent meetings at various levels with non-Indigenous fishing industry stakeholders to answer questions about moderate livelihood fishing and provide industry an opportunity to share its views. However, non-indigenous industry remains critical of being excluded from discussions with Treaty Nations and lack of transparency regarding Canada’s long-term approach to rights-based fishing.

The Standing Senate Committee on Fisheries and Oceans released the report entitled “Peace on the Water: Advancing the Full Implementation of Mi’kmaq, Wolastoqiyik and Peskotomuhkati Rights-Based Fisheries” on July 12, 2022. A Government Response will be publicly provided in February, 2023.

Background

With regards to employee education and training, the Canada School of Public Service has prepared an anti-racism event series to facilitate discussions within the public service around issues of racist practices and systemic barriers that exist for marginalized and racialized groups in Canada.

Regular events and discussions are facilitated and are open to public servants at all levels, as well as events designed specifically for managers and executives. Other learning products, such as orientation kits and job aids, have also been made available to support this learning series.

The reconciliation curriculum offered by the Canadian School of Public Service also provides public servants access to resources, self-directed and classroom courses, workshops, and events on the history, culture, rights, and perspectives of Indigenous peoples in Canada.

At DFO, employees in program areas involved in working with Indigenous partners are encouraged to participate in various opportunities to increase cultural awareness, such as through relationship competency development training, Indigenous perception training, and Blanket Exercise Workshops to ensure its members understand treaty rights and appreciate the perspectives of Indigenous peoples. DFO regularly promotes new learning activities and tools to facilitate ongoing education and training for the Government of Canada workforce.

The Department also recognizes the importance of making information on rights-based fisheries easily accessible to stakeholders and the general public. DFO launched a public webpage entitled “Fishing in pursuit of a moderate livelihood”, which includes historical information on the Peace and Friendship Treaties in the Maritimes and Gaspé, as well as on the Marshall decisions, which affirmed the rights originating from these treaties.

In September 2022, DFO also launched a public webpage entitled “Food, social and ceremonial fisheries” detailing the right through which Indigenous harvesters may fish for food, social, and ceremonial purposes as protected under Section 35 of the Constitution Act, 1982. These webpages will be maintained and kept up to-date to inform Canadians and Government of Canada employees of important context related to rights-based fisheries.

DFO has also completed an employment systems review, which identified systemic and attitudinal barriers to employment opportunities for designated Employment Equity groups, including Indigenous peoples. The Department has begun to address some of the identified barriers with the development of the 2022-2027 Employment Equity, Diversity and Inclusion Action Plan.

Background

The Minister of Fisheries, Oceans and the Canadian Coast Guard’s mandate letter was published December 16, 2021. It included a commitment to work to support sustainable, stable, prosperous fisheries through the continued implementation of the modernized Fisheries Act, which restores lost protections, rebuilds fish populations, and incorporates modern safeguards so that fish and fish habitats are protected for future generations and Canada’s fisheries can continue to grow the economy and sustain coastal communities.

To support ongoing implementation of the modernized Fisheries Act, important engagement activities continue into their second year with Indigenous peoples, partners, stakeholders, and the public on development of policies, frameworks, instruments, and guidance. These include:

• a proposed regulation, which would streamline the approval process for prescribed classes of works and waters to enhance regulatory efficiency while improving protection of fish and fish habitat;
• a framework for the establishment of Ecologically Significant Areas which, if implemented through regulation, would provide long-term protection and conservation for key areas of fish and fish habitat that are sensitive, highly productive, rare, or unique;
• an update of the position statement explaining how the Department would interpret the prohibition in the Act against causing the death of fish by means other than fishing;
• a position statement explaining how the Department would interpret the fish and fish habitat protection provisions with respect to existing facilities and structures;
• a draft guidance document for the consideration of cumulative effects on fish and fish habitat, providing clarity on how cumulative effects will be considered by the Fish and Fish Habitat Protection Program in the project authorization decision process;
• a draft framework for identifying fish habitat restoration priorities to select and target restoration activities more effectively, to optimize restoration resources, and improve outcomes for fish and fish habitat; and
• a new set of interim Codes of Practice specifying procedures, practices, or standards for avoiding the death of fish or the harmful alteration, disruption, or destruction of fish habitat. The first six interim Codes of Practice are being finalized through the Canada Gazette process.

Additional future rounds of engagement will be undertaken on implementation of the fish and fish habitat protection provisions of the Fisheries Act, including: the Department’s approach to engagement, consideration of cumulative effects in decision making, and additional codes of practice aimed at avoiding impacts to fish and fish habitat.

In 2018, the Government allocated $284.2 million over five years (2018-19 to 2022-23) to implement the changes to the Fisheries Act. Part of this allocation includes a new $50 million grants and contributions program also covering the period 2018-19 to 2022-23 that will provide for increased participation of Indigenous peoples in the conservation and protection of fish and fish habitat. The Indigenous Habitat Participation Program supports Indigenous participation in consultation on project authorization decisions under the Fisheries Act, participation in the development of policy and regulatory initiatives, and collaborative projects and capacity building for communities.

Background

In 2021, the Minister of Fisheries, Oceans and the Canadian Coast Guard was mandated to renew and expand the Coastal Restoration Fund (CRF), a $75 million five-year program launched in 2017 as part of the Oceans Protection Plan (OPP) to preserve and restore marine ecosystems. The CRF provided funding for over 60 projects on all coasts and sunsetted in March 2022.

The renewal of the program was made possible through Budget 2022, where the Government announced $2 billion in funding over nine years for the renewal of the OPP (2.0); this includes $75 million over five years for the Aquatic Ecosystems Restoration Fund (AERF).

Through contribution funding, AERF projects will address impacts on Canadian coastal aquatic environments (e.g. climate change, new contaminants, algae bloom, agricultural runoff).

This new program supports DFO’s commitment to continue to protect and restore our oceans and coasts by:

• contributing to strategic planning and addressing restoration priorities;
• supporting restoration and rehabilitation of aquatic habitats and their long-term sustainability;
• educating the public on the impacts of human behaviour on aquatic habitats;
• supporting co-benefits of aquatic restoration activities (such as nature based solutions to climate change);
• encouraging and building local community capacity; and,
• supporting Indigenous groups through strategic partnerships.

The program supports projects on all of Canada’s coasts, with an expanded geographic scope to include upstream inland aquatic restoration.

To meet its objectives, the program engaged Indigenous organizations, non-profit and community-based organizations, as well academic researchers and institutions to support coordinated approaches for projects.

Given the success of the CRF program, the AERF has been built on the existing framework and has expanded its approach to help address impacts to coastal and marine environments on Canada’s coasts.

The program will focus on priority areas that have the greatest strategic value, prioritizing activities with the greatest benefit to specific coastal ecosystems threats, and activities that address the root causes of impacts on coastal areas.

The AERF is continuing to engage with Indigenous groups in the protection of Canada's coastal areas.

As part of its call for proposal, the program received 130 applications for a total of $263 million. Funding decisions are expected by end of March 2023.

Background

Aquatic Invasive Species

The Canadian portion of the Sea Lamprey Control Program (SLCP) was established through the Department in 1954, following ratification of the Convention on Great Lakes Fisheries. The Convention established the Great Lakes Fishery Commission (GLFC) as part of a binational commitment to control Sea Lamprey for the protection of Great Lakes fish and fisheries.

The Aquatic Invasive Species Regulations came into force in 2015 under the Fisheries Act to provide tools for federal action and partnerships with provincial and territorial governments, setting significant expectations regarding Canada's collective ability to manage Aquatic Invasive Species (AIS).

Budget 2017 provided $43.8 million in funding over five years and $10.8 million ongoing for national AIS management to: establish a national core program; expand and make permanent the Department's Asian Carp Program; and, expand the SLCP and increase Canada's commitment to the GLFC. Budget 2017 increased Canada's commitment to the GLFC, the coordinating body for the SLCP, from $8.1 million to $10.6 million ongoing.

The Commissioner of the Environment and Sustainable Development conducted an audit of DFO’s AIS efforts to date and released its findings on April 2, 2019. In response, DFO, the Canada Border Services Agency (CBSA), and other partners have developed new protocols, tools, and procedures to improve enforcement of the Aquatic Invasive Species Regulations at international borders.

Budget 2022 identifies an additional $45 million over five years, and $9 million ongoing to enable DFO and the GLFC to increase efforts to control Sea Lamprey, further facilitate collaborative fishery management, and provide additional support to Great Lakes research.

The 2022 Fall Economic Statement identified $36.6 million in funding over five years from 2022-23 to 2026-27 for DFO for the expansion of the Aquatic Invasive Species Program.

Zebra and Quagga Mussels

Zebra and Quagga mussels can have significant economic impacts on recreational boaters, municipal and industrial water supplies, and power generation infrastructure. Both species are subject to import prohibitions under the Aquatic Invasive Species Regulations.

Since the 1980s, Zebra mussels have spread as far as Lake Manitoba, while Quagga mussels are found in the southern Great Lakes. They are found in certain areas of the St. Lawrence River, and were recently detected in Lake Memphremagog (2020), Lake Massawippi (2021), and Lake Temiscouata (2022), the latter being located in the headwaters of the St. John's River watershed.

In March 2021, prohibited invasive Zebra mussels were found in moss ball products, a type of aquarium plant product made of green algae. DFO led national emergency response activities with the CBSA and provincial and territorial partners to stop the import and distribution of infested moss ball products across Canada. DFO collaborated with e-commerce platforms to block the sale of moss balls by third party sellers on their platforms.

DFO provides funding for a number of initiatives focusing on invasive mussels:

• DFO contributed $500,000 over four years in 2018 to invasive mussel prevention.
• DFO contributed $1,300,000 over four years starting in 2019 through the Canada Nature Fund for Aquatic Species at Risk
• DFO has committed over $475,000 to BC’s invasive mussel defense program in 2022-23 through a Memorandum of Understanding with the Province of BC.

Miramichi Lake and River

Smallmouth bass is a predator and competitor of Atlantic salmon discovered in 2008 in the area.

DFO maintains barriers to prevent Smallmouth bass from escaping Miramichi Lake and annually invests approximately $50,000 on different physical methods for capturing Smallmouth bass.

DFO authorised the chemical eradication project in 2021; however, the proponent was met with opposition from community groups and cottage owners throughout 2021 and 2022.

On September 8, 2022, the proponent completed the first phase of the chemical eradication project by applying rotenone in the Southwest Miramichi River, downstream from Lake Miramichi. However, the second phase of the project was postponed indefinitely because of sustained opposition from the public.

DFO continues to operate a fish barrier at the Miramichi lake discharge to prevent the spread of Smallmouth bass into the Miramichi River system, and will review other proposals that may be submitted to control smallmouth bass in Miramichi lake using pesticides.

European Green Crab

European Green Crab (EGC) consumes and/or competes with indigenous species such as shellfish, crab, and lobster and disrupts estuarine habitats such as eelgrass and saltmarsh.

DFO continues to provide funding and works with multiple partners in Newfoundland and Labrador (NL) to control EGC, including the Fish, Food and Allied Workers Union, the Marine Institute, the Three Rivers Mi’kmaq band, and the Mi’kmaq Alsumk Mowimsikik Koqoey Association to control EGC.

In BC, EGC were first discovered in 1998. DFO has partnered with multiple Indigenous and stewardship groups and others to determine the extent of the invasion, seek evidence of establishment, and develop and implement management and response plans, including providing subject matter expertise, and funding from the BC Salmon Restoration and Innovation Fund to the Coastal Restoration Society ($2.0 million) and Council of the Haida Nation ($1.2 million).

AIS as Bait

Although it may appear desirable to use AIS for bait, food, or other purposes, it also means increased risks of introduction into new areas, and risks propagating the species, leading to unintended, negative consequences on native fish and fish habitat.

Background

Illegal, unreported, and unregulated (IUU) fishing is estimated to account for up to 30 per cent of fish landings worldwide and removes as much as $30 billion from the world's economy annually. It is increasingly linked to crimes of convergence such as drug trafficking and human slavery, and therefore poses a serious risk to global security, in addition to contributing to the decline of marine habitat.

Much of the high seas beyond national jurisdiction are under- or un-monitored. These areas are particularly susceptible to activities of IUU fishing.

Canada's economy (75,000 jobs in the primary fishing and aquaculture sector) and natural resources (especially straddling and highly migratory fish stocks) are put at serious risk by IUU fishing.

Canada is a member of seven regional fisheries management organizations (RFMOs), where Fisheries and Oceans Canada (DFO) is the Government's engagement lead. Beyond securing Canada's access to fish stocks managed by these organizations, DFO officials also work to ensure strong and effective management measures, based on the best available science, are adopted. Overall, Canada's objective is to prevent overfishing and activities that could undermine the sustainability of those internationally managed species (including those caught incidentally). A fundamental component of RFMOs' work to improve compliance with adopted management measures is the implementation of a robust monitoring, control and surveillance scheme, including high seas boarding and inspection regime.

The High Level Panel for a Sustainable Ocean Economy has agreed to a headline commitment of 100 per cent sustainable management of ocean under national jurisdiction, by 2025. For Canada, this will be pursued through the development of a national blue economy strategy. A key pillar of a sustainable ocean economy revolves around Ocean Wealth, of which sustainable ocean food to support global food security, is a key component. From a fisheries perspective, the goal of eliminating IUU fishing is integral to achieving the overall objectives of sustainable ocean food, and therefore a sustainable ocean economy. Canada has been involved in negotiations at the World Trade Organization (WTO) to achieve the UN Sustainable Development Goal (SDG) 14.6 of eliminating subsidies that contribute to IUU fishing and prohibit certain forms of fisheries subsidies which contribute to overcapacity and overfishing, while recognizing the need for appropriate and effective special and differential treatment (S&DT) for developing and least developed countries. In June of 2022, these efforts culminated with the adoption of the landmark WTO Agreement on Fisheries Subsidies, which prohibits subsidies that contribute to IUU fishing and subsidies for fishing or fishing-related activities on the high seas and outside the competence of a relevant RFMO, and disciplines subsidies for fishing on overfished stocks.

DFO is continuing to implement the commitments outlined in the G7 Charlevoix Blueprint for Healthy Oceans, which included $11.6M in funding for developing new satellite based technologies to track illegal fishing, funding to develop an intelligence sharing network, and work with non-governmental organisations to combat IUU fishing around the world.

Canada's surveillance and inspection presence is robust and IUU fishing is mitigated through international cooperation and joint enforcement missions. Canada is active in multilateral operations to combat IUU fishing and protect migratory fish stocks in the Atlantic and Pacific, including the deployment of aircraft and inspection personnel to international waters.

Canada ratified the Port State Measures Agreement in 2019, which has as its objective, preventing IUU fishing vessels from landing their catches in the ports of member states.

In June of 2022, at the UN Oceans Conference in Lisbon, Portugal, Canada, along with the United States and the United Kingdom, launched the IUU Fishing Action Alliance to drive global efforts at addressing IUU fishing through greater transparency, the use of technology, and supporting State and non-State partnerships.

Background

The issue of foreign ownership of Canadian enterprises, and Canadian fishing corporations specifically, was highlighted as part of the House of Commons Standing Committee on Fisheries and Oceans’ (FOPO) report “West Coast Fisheries: Sharing Risks and Benefits.” The report included 20 recommendations that called for significant changes to the current fisheries management and licensing regime, including a recommendation that “no future sales of fishing quota and/or licences be to non-Canadian beneficial owners.” The Government Response was supportive of the report’s overall goal of economically viable and sustainable fisheries, and of considering social and cultural factors in their management. The Response also committed Fisheries and Oceans Canada (DFO) to further assess the recommendations, engage a broad range of stakeholders to support ongoing policy improvement efforts, and to undertake a comparative analysis of fisheries policies and regulations in effect on Canada’s East and West Coasts.

In the spring of 2020, DFO launched an analysis of its existing foreign ownership policies and the impacts of any potential changes. During the preliminary stages of this analysis, the Department concluded that it lacks the information required to quantify the concerns put forth by the Standing Committee and some stakeholders. In February of 2021, the Department contracted the Forensic Accounting Management Group (FAMG), under Public Services and Procurement Canada, to develop a survey (the Beneficial Ownership Survey) that would identify who is benefitting from commercial fishing licences and quota, and validate the concerns identified by Parliamentarians.

During the summer of 2021, the Department engaged key stakeholders from all regions to introduce them to the Beneficial Ownership Survey’s intent, objectives, and timelines. Feedback from key industry stakeholders was supportive of the Department’s desire to better understand its licence holders and industry participants.

The Beneficial Ownership Survey opened on January 30, 2022 and was mandatory for most commercial licence holders and vessel owners, with the exclusion of Atlantic inshore and communal commercial harvesters. The Survey closed on April 30, 2022 and DFO is now contacting all participants that have not yet submitted to ensure any outstanding surveys are promptly submitted.

Analysis will take place through summer and fall of 2022, at which point the findings will be published on DFO’s website and shared with key stakeholders. Following the public release of the survey’s findings, DFO will engage key stakeholders, including the Canadian Independent Fish Harvesters Federation, to discuss the findings’ impacts and any potential policy solutions, if required. Careful consideration of the potential impacts on existing licence holders across all commercial fisheries, as well as Canada’s international trade obligations, will be required before any policy changes could be introduced, or regulatory amendments considered.

In February of 2021, DFO strengthened the application of its foreign ownership restrictions in Atlantic Canada. Under the “Enhanced Application of Foreign Ownership Restrictions”, the requirement to be at least 51 per cent Canadian is applied to the full corporate structure of prospective licence holders for all future licence re-issuances in the mid-shore, offshore, and exempted fleet fisheries in Atlantic Canada and Quebec, where this policy applies.

Background

Marine traffic continues to increase in support of Canada’s growing economy, and the Government is taking additional steps to strengthen marine safety, protect marine ecosystems, and create stronger partnerships with Indigenous and coastal communities.

The renewal of the Oceans Protection Plan (OPP) was announced by the Prime Minister on July 19, 2022.

Budget 2022 announced an additional $2 billion to protect Canada’s coasts and waterways during our economic recovery and beyond. This new funding is in addition to the $1.5 billion initially announced in 2016 and brings the total invested in support of the plan to $3.5 billion. The OPP is the largest investment ever made to protect Canada’s coasts and waterways, while also growing our economy.

Critical new investments for the Department of Fisheries and Oceans (DFO) and the Canadian Coast Guard (CCG) in the renewal of OPP include $1.1 billion over nine years, starting in 2022-23, and $68 million ongoing.

The renewed and expanded plan will help make further progress to:

• Enhance the protection and restoration of vulnerable marine ecosystems and wildlife;
• Improve the efficiency, safety, and sustainability of Canada’s marine supply chains and mitigate their impacts on the environment, including by advancing research on marine pollution, ecosystems, and wildlife;
• Better manage marine traffic navigation off our coasts and marine incidents of all types; and
• Advance partnerships and training opportunities for Indigenous and coastal communities to incorporate their expertise and experiences in various aspects of marine safety and ecosystem protection.

The implementation of the OPP is a whole-of-government effort, with responsibilities shared across Transport Canada, DFO, CCG, Environment and Climate Change Canada, Natural Resources Canada, and Health Canada.

Since the last appearance of DFO senior officials and Minister Murray before the Standing Committee on Fisheries and Oceans to discuss 2022-23 Supplementary Estimates (B) on December 2, 2022, two important DFO announcements related to OPP Renewal were made:

• On February 6, 2023, Minister Murray announced $46.5 million in funding over five years to Ocean Networks Canada, an initiative of the University of Victoria, to enhance their world-class ocean monitoring system. Ocean Networks Canada’s research helps to provide real-time, open data to better understand our changing oceans.
• On December 17, 2022, Minister Murray announced an investment of $75 million over the next five years for the Aquatic Ecosystems Restoration Fund to support projects that conserve and restore priority coastal and upstream aquatic areas.

Under the first phase of OPP (2017-2022), DFO and the CCG had the following accomplishments:

• Improved access to high-quality, real-time or near real-time data on our marine environment.
• Funded oil spill research, especially on Canadian oil products, to better understand how oil behaves and breaks down in different marine conditions.
• Funded over 60 projects to restore coastal aquatic habitats through the Coastal Restoration Fund.
• Funded 154 projects as part of the Small Craft Harbours Abandoned and Wrecked Vessels Removal Program to help protect Canada’s marine environment and improve marine safety in Canada’s small craft harbours.
• Established 24/7 Regional Operations Centers in the Coast Guard’s Western, Atlantic and Central and Arctic regions to enhance marine awareness, environmental response and search and rescue capacity.
• Opened five new CCG search and rescue stations in Victoria, and Tahsis (British Columbia), and St. Anthony, Old Perlican and Twillingate (Newfoundland and Labrador).
• Increased the presence of CCG icebreakers in the north during the Arctic season.
• Provided more than $12 million in funding to over 40 Indigenous communities to buy search and rescue boats and equipment, improving their ability to participate in marine emergency response as members of the CCG Guard Auxiliary.
• Co-launched the Coastal Nations CCG Auxiliary, the first Indigenous led CCG Auxiliary organisation, who now have units in eight First Nations communities along the British Columbia coast.

Since the launch of the OPP in 2016, the COVID-19 pandemic and climate change have impacted our economy, our marine environment, and the resiliency of our supply chain.

As risks associated with marine traffic and impacts to marine ecosystems evolve, further strengthening and expanding OPP implementation across the country is required to ensure Canada’s marine safety and environmental protection system is able to withstand disruption and to adapt to changes in the sector.

Background

The Great Lakes Fishery Commission (GLFC) was established by the 1954 Convention on Great Lakes Fisheries between Canada and the United States of America, with the objective of protecting and sustaining the Great Lakes fishery.

The 1954 Convention charges the commission with five major duties:

• develop a binational research program aimed at sustaining Great Lakes fish stocks;
• coordinate or conduct research consistent with that program;
• recommend measures to governments that protect and improve the fishery;
• formulate and implement a comprehensive sea lamprey control program; and
• publish or authorize publication of scientific and other information critical to sustaining the fishery.

The GLFC is made up of eight Commissioners (four each from Canada and the United States) and one US Alternate Commissioner. The GLFC operates under the direction of the Commissioners, and functionally operates independently from government.

Canada and the US government support the Commission through a cost-sharing arrangement that reflects the distribution of territorial waters and the value of each nation’s fishery. Canada agreed at the inaugural meeting under the 1954 Convention to contribute 31 per cent of funding for the transboundary sea lamprey control work, and 50 per cent of other research and administrative costs (e.g. secretariat/salaries). The US provides the remaining funding.

As part of Budget 2022, the Department successfully brought forward a proposal seeking additional incremental funding of $44.9 million over five years and $9 million ongoing for the GLFC, to ensure that Canada meets its bilateral treaty requirement with the US - bringing Canada’s contribution up to over $19 million in 2022 and moving forward. This funding will help to augment Canadian sea lamprey control activities, and support the GLFC’s scientific research and binational fisheries management coordination across the Great Lakes.

In recent years, the GLFC has been lobbying key stakeholders in the US and Canada, including Members of Parliament (MPs), and US Senators and Representatives, with their request for federal a leadership and responsibility for the GLFC to be moved from Fisheries and Oceans Canada (DFO) to Global Affairs Canada (GAC).

DFO and GAC, with support from the Privy Council Office and the Department of Justice, have been assessing the implications of a possible change in federal leadership and fiscal responsibility for the GLFC. The deployment of the sea lamprey control program would presumably remain with DFO, though how it would receive its funding, now and into the future, is less clear. There is complexity to what the GLFC is proposing, splitting functions and authorities related to the GLFC between two portfolios, and also lack of clarity on what it would accomplish.

On October 20, 2022, two new Commissioners, nominated by the Government of Ontario, were approved by the Governor in Council to represent Canada at the GLFC.

[Information was severed in accordance with the Access to Information Act.] The first payment of new funding (~$9.5 million) was made to the Commission in February 2023.

The GFLC’s 2022 Interim Meeting, originally scheduled for November 30, was postponed as the US Section did not have all of their four Commissioners in place and since Canada’s funding level to the Commission for the upcoming 2023 fiscal year had not been finalized.

The GLFC Secretariat now has the information it requires to set the budget for the upcoming year and is actively working with Canadian and American Commissioners to schedule the interim meeting.

Discussions with the Secretariat continue regarding 2023 transfers (which comes from our 23-24 FY) to determine what funding is required for the Sea Lamprey Control Program and to deliver on other important aspects of the GLFC’s mandate.

On February 22, 2023, the Minister of Transport, the Honourable Omar Alghabra, announced $12.5 million in funding to launch the Ballast Water Innovation Program as part of Canada’s Oceans Protection Plan. The program, which is a central component of the Government of Canada’s efforts to advance the implementation and enforcement of the 2021 Ballast Water Regulations, will play an important role in further reducing the spread of aquatic invasive species in the Great Lakes and St. Lawrence River region by investing in innovative solutions to ballast water management and ensuring these management systems are optimized for unique water environments in the Great Lakes and St. Lawrence River region.

On September 23, 2022, Terry Duguid, Parliamentary Secretary to the Minister of Environment and Climate Change, announced an investment of more than $3.9 million over three years in thirty-nine new projects in Ontario through the Great Lakes Protection Initiative, part of the Government of Canada’s Freshwater Action Plan. Through the Great Lakes Protection Initiative, the Government of Canada takes action to address the most significant environmental challenges affecting Great Lakes water quality and ecosystem health by delivering on Canada’s commitments under the Canada-United States Great Lakes Water Quality Agreement.

Background

Headquartered in Winnipeg, Manitoba, the Freshwater Fish Marketing Corporation (FFMC) is a federal Crown Corporation established in 1969.

Enabled under the Freshwater Fish Marketing Act (FFMA), the FFMC has the exclusive right to market and trade freshwater fish in interprovincial and export markets in designated products supplied by commercial fishers in participating jurisdictions. The FFMC was established to operate on a self-sustaining basis without government appropriations.

Over the past 12 years, the FFMC operating environment has experienced significant change. Ontario, Saskatchewan, and Manitoba withdrew from the Act in favour of an open market in 2011, 2012 and 2017 respectively, while Alberta closed its commercial in-land fishery in 2014. The Northwest Territories is the only remaining participating jurisdiction under the Act. However, many harvesters from Manitoba and Saskatchewan continue to sell their fish to the FFMC through contracts.

In order to remain competitive in the open market, FFMC has developed strategies to operate more effectively, including by shifting from a supply-driven marketing model, to one that is driven by customer demand; diversifying revenue; and, aggressively targeting new sales markets.

Recognizing the need to adapt to the new operating environment, in 2018, a ministerial advisory panel was established to explore ways to transform FFMC to remain modern and competitive in the open market.

Based on the Ministerial Advisory Panel’s advice, an Interlocutor was appointed to engage with harvesters and other stakeholders in the freshwater fishery as part of the transformation process. In March of 2020, the Interlocutor convened the Interim Committee of Inland Fish Harvesters to advise him in his recommendation to the Minister of Fisheries, Oceans, and the Canadian Coast Guard.

In September of 2020, the Interlocutor submitted a report of findings and recommendations for the Minister’s consideration. The report recommended that Fisheries and Oceans Canada (DFO) commit to continue working with the Interim Committee to explore transformation of the FFMC to a harvester-led governance and ownership model, and to provide support to the Interim Committee to secure administrative and technical expertise to allow it to formalize its role in representing fish harvesters in Manitoba, Saskatchewan, and the Northwest Territories. On January 21, 2021, the former Minister announced receipt of the Interlocutor’s report.

Throughout 2021, DFO worked with the Interim Committee to secure administrative and technical expertise to formalize its role in representing fish harvesters in Manitoba, Saskatchewan, and the Northwest Territories.

In August of 2021, the Interim Committee established itself as the Freshwater Fish Harvesters Association, Inc. (FFHAI), a not-for-profit corporation.

In November 2021, DFO concluded negotiations with the FFHAI to provide financial support for it to secure secretarial support and technical expertise, research potential co-operative governance models, gather information on the FFMC’s activities, begin to assess the FFMC’s assets and liabilities, and engage freshwater harvesters. In March 2022, the FFHAI submitted a proposal to DFO on its vision to transform the FFMC into a harvester-led entity.

A number of other parties have also expressed interest in being involved in the future of the FFMC.

Background

The world’s oceans are facing increasing impacts from climate change, species decline and loss, ecosystem degradation and loss, aquatic invasive species, and harmful effects from waste and other pollutants. Canada collaborates nationally with federal, provincial, territorial, and Indigenous partners, and with other maritime nations in international fora to conserve marine ecosystem functions and protect the biodiversity of our oceans.

Canada is a member of seven regional fisheries management organizations (RFMOs), where Fisheries and Oceans Canada (DFO) works to secure Canada’s access to fish stocks managed by these organizations and to ensure strong and effective management measures, based on the best available science, are adopted. Overall Canada’s objective is to prevent overfishing and other activities that could undermine the long-term sustainability of those internationally managed species.

In July of 2020, Canada joined the Global Ocean Alliance (GOA), a coalition of countries led by the United Kingdom that committed to the ambitious global target to protect at least 30 per cent of the world’s oceans by 2030 through the establishment and effective management of marine protected areas (MPAs) and other effective area-based conservation measures (OECMs). Including Canada, to date, 75 countries have now joined the Alliance. Membership in this alliance is a key part of Canada’s advocacy for international action to increase conservation and protection of the world’s oceans by 2030. In addition to supporting the implementation of the 30by30 target, the Alliance aims to maintain a spotlight on ocean issues within the Convention on Biological Diversity and other international fora.

The Prime Minister is a member of the High Level Panel for a Sustainable Ocean Economy, where Canada works with international partners to set an ambitious agenda on protection and sustainable use of our oceans. On December 2, 2020, the Prime Minister endorsed the High Level Panel for a Sustainable Ocean Economy’s Transformations for a Sustainable Ocean Economy: A Vision for Protection, Production and Prosperity, which included support for a global target to protect 30 per cent of the ocean by 2030. This endorsement affirms the Government of Canada’s support towards sustainably managing 100 per cent of Canada’s ocean area by 2025. Canada is currently developing its Blue Economy Strategy to fulfill this commitment.

On June 9, 2022, Canada and Chile co-sponsored the launch of the Americas for the Protection of the Ocean Declaration at the Summit of the Americas. The Declaration established a regional coalition for collaboration, cooperation and coordination of marine protected areas and other marine conservation measures in the Pacific. This regional collaboration instrument provides an opportunity for Canada to work with Chile and other partners in the region (the United States, Mexico, Costa Rica, Panama, Colombia, Ecuador, and Peru) to advance the global 30by30 target. Canada is collaborating with Chile to finalize the development of the workplan and to guide he implementation of the Declaration’s objectives.

The 15th Conference of the Parties (COP15) to the UN Convention on Biological Diversity (CBD) that took place in Montreal from December 7 to 19, 2022, successfully adopted the Kunming-Montreal Global Biodiversity Framework (GBF) including four goals and 23 new targets, replacing the Aichi targets and setting out a new plan to transform society's relationship with biodiversity and ensure the 2050 vision of living in harmony with nature is fulfilled. COP15 in Montreal provided a unique opportunity to showcase Canada's commitment to an ambitious GBF and biodiversity targets, in alignment with its domestic nature conservation and recovery commitments, such as the target to conserve 30 per cent of its land and waters by 2030.

Following CBD COP15, Canada successfully co-hosted the Fifth International Marine Protected Areas Congress (IMPAC5) with host First Nations - Musqueam, Squamish, and Tsleil-Waututh - as well as, the International Union for Conservation of Nature, the Canadian Parks and Wilderness Society and the Province of British Columbia from February 3 to 9, 2023. Throughout IMPAC5, the Government of Canada and partners announced several important initiatives, including the unveiling of Canada’s proposed pathway to 2025 (17 marine areas) being considered for the path towards conserving 25 per cent of our oceans by 2025. IMPAC5 culminated with the Leadership Forum which convened ministers and senior officials of national and sub-national governments and international organizations, Indigenous leaders, young professionals, civil society, philanthropic foundations, academia, and industry who share Canada’s ambition for ocean conservation. IMPAC5 and the Leadership Forum provided an opportunity for Canada to showcase its journey to achieve the 10 per cent Aichi target for marine conservation and share the lessons learned with countries striving to increase their level of ocean protection.

Canada actively participated in the negotiations of a new legally-binding treaty under the United Nations Convention on the Law of the Sea (UNCLOS) for the conservation and sustainable use of marine biodiversity of areas beyond national jurisdiction (BBNJ), which concluded on March 4th, 2023. The treaty establishes the governance structure and management mechanisms to implement the environmental and conservation objectives of UNCLOS through area-based conservation and management, environmental impact assessments, and capacity-building. The treaty provisions respect the competence of the global and regional frameworks and instruments such as RFMOs and aim to strengthen cooperation among them, including via sharing scientific information and technical expertise. Following the legal technical review of the final text, delegations will reconvene in New York for a half-day to formally adopt the treaty in its six official languages (likely in June 2023 around the same time as the 33rd Meeting of States Parties to UNCLOS). Following the adoption, the treaty will be open for signature. Sixty ratifications will be required before the treaty comes into force. The BBNJ treaty will be integral to achieving global marine conservation goals while complementing Canada’s domestic conservation action.

Canada is a member of the International Seabed Authority Council and is actively engaged in the negotiations on seabed mineral exploitation regulations to ensure effective protection of the marine environment. At IMPAC5 on February 8, 2023, Canada reiterated its position on domestic seabed mining, stating that Canada does not current have a domestic legal framework that would permit seabed mining and will not authorize seabed mining in areas under our jurisdiction in the absence of a rigorous regulatory regime.

As part of the Indo-Pacific Strategy, Canada will lead the Shared Ocean Fund ($84.3M over 5 years), which will increase maritime cooperation and create a healthy marine environment in the Indo-Pacific while supporting measures against illegal, unreported, and unregulated (IUU) fishing. This new initiative will help support ocean management, reinforce a healthy marine environment in the Indo-Pacific region through Canadian government support for a range of enhanced measures against illegal, unreported, and unregulated (IUU) fishing.

After more than 20 years of negotiations, the WTO Agreement on Fisheries Subsidies was adopted at the 12th Ministerial Conference (MC12) on June 17, 2022. The agreement partially addresses the requirements of United Nations (UN) Sustainable Development Goal (SDG) 14.6 that aims to address harmful fisheries subsidies, such as those contributing to IUU fishing. Although further negotiations are required to achieve all aspects of UN SDG 14.6, this agreement is a major step forward for ocean sustainability as it targets harmful subsidies that contribute to the unsustainable harvesting of global fish stocks. Canada was a key participant throughout these negotiations and was able to advance exclusively Canadian policies within the agreed-upon text (i.e., subsidy prohibitions in unregulated areas and for unregulated species on the high seas). Canada is currently undergoing domestic ratification processes related to the agreement.

Background

In May 2022, Fisheries and Oceans Canada (DFO) received an application from Sustainable Marine Energy Canada Ltd. (SMEC), for a Fisheries Act authorization and Species at Risk Act (SARA) permit in relation to a proposed in-stream tidal energy project.

SMEC is proposing to deploy and operate a floating tidal energy device (i.e. platform) with six 3-bladed turbines at the Fundy Ocean Research Center for Energy (FORCE) test site in the Minas Passage, approximately 7 km west of Parrsboro in Cumberland county, Nova Scotia.

In 2020, Natural Resources Canada provided SMEC $28.5 million to advance tidal energy technology. It is DFO’s understanding that the funding was approved based on the deployment of 9 Megawatt (MW) or approximately twenty-one (21) platforms.

The current proposed deployment is separate from an earlier deployment of a test platform in Grand Passage, which was authorized by the Department to test and develop the company’s Environmental Effects Monitoring Program (EEMP). In addition, DFO has issued several Fisheries Act authorizations related to tidal power projects over the past five years.

Grand Passage differs from the Minas Passage because Grand Passage is not a major migratory corridor for fish and the flow speeds are considerably lower than in the Minas Passage.

The Minas Passage and Minas Basin are part of an ecologically and biologically significant area, characterized by the world’s highest tides. There are currently 85 different fish species, multiple species of marine mammals, and marine invertebrates known to use this area. The Minas Passage acts as a major migratory corridor for many of these species, including numerous species of economic and cultural significance.

SMEC has communicated a plan for a 5 MW deployment to install three, six, and eventually 12 floating platforms in the Minas Passage. Each platform would have six tidal turbines as a minimum pathway in order to receive funding from their investors.

DFO continues to communicate a clear regulatory path with projected timelines to support a staged approach to tidal energy development. This means installing only one platform with an acceptable monitoring program first. Under this staged approach to in-stream tidal energy development, the Department has authorized the test platform in Grand Passage.

This staged approach is important before a project that has a higher risk of impacts to fish can proceed to the next stage of development (i.e. large or high-risk tidal array).

At this time there is no environmental effects monitoring equipment that is capable of collecting information and data to inform the risk mortality, injury, or behavioral disturbance.

Where the proponent has communicated that they have withdrawn their application DFO’s review of the project is currently paused. Should SMEC propose and alternative approach DFO staff will continue our review.

DFO considers a variety of factors when reviewing in-stream tidal energy projects, including turbine specifications and project design, project location, avoidance and mitigation measures, relevant scientific literature, and the ability to monitor for potential effects.

Decisions on whether or not to issue a Fisheries Act authorization are guided by the best available scientific information and departmental objectives, and decisions are made in consultation with Indigenous partners. The precautionary principle is followed when there are uncertainties.