Strategic overview

Fisheries and Oceans Canada (DFO)

Canadian Coast Guard (CCG)

July 2018

Objective/overview

1. Overview of the department and its responsibilities
   • Legislative framework
   • Departmental overview
   • Links to government agenda
2. Key priorities and opportunities for 2018 to 2019
   • Progress on mandate commitments
   • Ongoing and emerging priorities
3. Fall agenda and early decisions
   • Fall agenda and considerations
   • Key upcoming meetings

Departmental responsibilities

DFO/CCG's core business is…

Legislative framework

Key ministerial authorities derive from core legislation:

Oceans Act

Management of estuary, coastal, and marine waters; marine science services (e.g., nautical charts); and Coast Guard Services (e.g., icebreaking, support of OGDs).

Fisheries Act

Management of commercial, Aboriginal, and recreational fisheries as well as aquaculture operations.

Canada Shipping Act

Coast Guard services including aids to navigation, search and rescue, pollution response, and vessel traffic services.

Species at Risk Act

Protection and recovery of aquatic species at risk, in ocean and freshwater environments

There is other legislation that is also important to the Department’s mandate: Coastal Fisheries Protection Act, Fishing and Recreational Harbours Act, Fisheries Development Act, Canadian Environmental Assessment Act (Impact Assessment), Freshwater Fish Marketing Act.

Departmental overview

DFO/CCG is composed of almost 12,000 public servants across the country in support of your priorities and government agenda.

• Budget: approximately $2.4 billion, including $1.1 billion for CCG, in 2018 to 19 (Main Estimates). Regional spending accounts for 89% of CCG, and 81% of DFO including 89% for Real Property.
• Workforce: 11,775 projected FTEs for 2018-2019 (including over 5,100 Coast Guard) with over 77% of FTEs located outside of the National Capital Region.
• Asset Base: valued at approximately $44.6 billion, is the second largest capital asset base of any federal department.
• Coast Guard: a Special Operating Agency with a fleet of 114 vessels, 1000 small crafts and 22 helicopters.
• Regional Presence: DFO/CCG has over 350 work locations and one of the largest federal government property portfolios.

Link to government agenda

DFO/CCG is central to the delivery of the Government agenda.

By June 2019, the Government aims to address 10 priority issues including:

1. Clean environment: Marine Protected Areas make up a significant portion of the 10% goal for marine conservation targets; and fisheries authorization / project reviews support natural resources sector contributing $220 billion to GDP
2. Jobs and growth: The fisheries sector supports more than $3.3 billion in landed value and aquaculture production represents $1.3 billion, with more than 76,000 jobs across both sectors and processing
3. Advancing reconciliation: DFO active at more than 60 negotiating tables; and departmental programs support 2,800 jobs in Indigenous Fisheries valued at $202 million
4. International / trade / Canada – US: The total annual value of marine trade is $200 billion, supported by CCG; the US is Canada’s main market for fish and seafood exports accounting for $4.3 billion of $6.9 billion of exports; and Oceans is a key theme of Canada’s G7 Presidency

Major investments

$5.5 billion in investments since Budget 2016, despite a tight fiscal framework, including:

• $1.4 billion under Comprehensive Review, to address critical operating risks including refurbishment of aging assets
• $1.2 billion under Oceans Protection Plan, to protect Canada’s coasts
• $433 million in federal infrastructure investments
• $250 million to renew/expand Indigenous commercial fisheries programs
• $197 million for ocean and freshwater science activities

Key priorities and opportunities for 2018 to 2019

Progress on mandate commitments

• Marine conservation targets — Canada is well on its way to achieve the global target of at least 10% coastal and marine protection by 2020.
  • Amendments to the Oceans Act through Bill C-55 will help Canada achieve this goal [Information was severed in accordance with the Access to Information Act.]
• Oceans agenda and policy — During the previous two decades, Canada reduced its leadership role on ocean issues, and Canada’s “Oceans Strategy” has not been renewed since 2002.
  • However, in more recent years, Canada is re-engaging both domestically and internationally. Oceans is a key theme of Canada’s G7 Presidency [Information was severed in accordance with the Access to Information Act.]
• Fisheries Act implementation — The Standing Committee on Fisheries and Oceans made a number of recommendations on improving lost protections as a result of changes to the Fisheries Act in 2012.
  • Once amendments to the Fisheries Act are implemented, they will restore lost protections and incorporate modern safeguards; introduce new, fair environmental assessment processes; and better co-manage our three oceans.
• Fleet renewal — New CCG Vessels are part of the National Shipbuilding Strategy (NSS) with Budget 2018 investments to maintain existing CCG fleet capabilities and enable forward planning.
  • [Information was severed in accordance with the Access to Information Act.]
  • [Information was severed] a contract award for 3 [Info was severed] icebreakers is imminent.
• Indigenous reconciliation — For Indigenous groups, fishing is an important focus at treaty tables and the recent Ahousaht decision has significant implications for the sector.
  • DFO is committed to reconciliation and recognition of Indigenous Rights [Information was severed in accordance with the Access to Information Act.], various negotiating treaty mandates and broader reconciliation issues on the BC coast.

Ongoing and emerging priorities

• Oceans Protection Plan — The $1.5 billion total government investment is the largest investment ever made to protect Canada’s coasts and waterways to bolster Canada’s marine safety and response regime.
  • Work is underway to implement the OPP, supported by Indigenous partnership, environmental protections, science-based decision-making and improved response capability.
• Comprehensive Review / Integrity Investments — Pursuant to Budget 2016, DFO / CCG undertook a review of all programs and services to identify program integrity gaps.
  • Department is using this $1.4 billion investment to improve asset condition, address core program integrity and service reliability issues.
• Whales Protection and Recovery — Urgent action is being taken to protect the endangered North Atlantic Right Whales and endangered St. Lawrence Estuary Beluga.
  • This action is being continued / expanded this fishing season. [Information was severed in accordance with the Access to Information Act.]
• Aquaculture Renewal — Aquaculture is facing increasing public and Indigenous concerns over open-pen salmon farming; the core issue is whether there exists a risk to wild salmon on which there is no scientific consensus.
  • [Information was severed in accordance with the Access to Information Act.]
• Arctic Policy Framework — DFO/CCG Arctic strategy includes the creation of a new Arctic Region, [Information was severed in accordance with the Access to Information Act.]
  • DFO/CCG is committed to establishing a new Arctic Region as part of a renewed nation-to-nation relationship with Indigenous governments and to improve service delivery for Northerners.

Fall agenda and early decisions

Fall agenda

There are several areas with potential to advance the Government Agenda and provide significant and lasting results.

• Oceans agenda
  Continue advancing to 10% target of marine and coastal areas. The sunset of the National Conservation Plan this year provides an opportunity to renew Canada’s Ocean Strategy.
• Reconciliation
  Indigenous peoples continue to seek increased fisheries; greater autonomy; and equal participation in decision-making. Following the Ahousaht decision, these pressures are expected to increase; [Information was severed.]
• Aquaculture renewal
  DFO is renewing its Aquaculture program suite amidst heightened scrutiny from the public, Centre and Parliament
• Whales
  Canadians see endangered whales as a barometer of the Government’s commitment to protect marine ecosystems.
• CCG Fleet
  [Information was severed in accordance with the Access to Information Act.]
• Arctic policy/region
  DFO/CCG launching a new Arctic region and CIRNA continues to develop the Arctic Policy Framework.
• NAFTA/Canada-US
  Fisheries Fund investments can support industry adjustments, market diversification and innovation, should market access challenges arise.

Fall agenda considerations

• [Information was severed in accordance with the Access to Information Act.]
• [Information was severed in accordance with the Access to Information Act.]
• [Information was severed in accordance with the Access to Information Act.]
• High stakeholder expectations and concerns (ENGO, industry). Extensive consultations, G7 commitments, and environmental assessment overhaul have strong reactions on balancing environment and economy.
• [Information was severed in accordance with the Access to Information Act.]
• [Information was severed in accordance with the Access to Information Act.]

Collaboration with your Ministerial Colleagues will be critical on key files including whales protections, Oceans, Arctic, and Reconciliation.

Key upcoming events/dates

Key events/meetings will require Ministerial engagement:

• Announcement of the new Arctic Region — July/August (TBC)
• Youth, Women and Ocean Round Table (Halifax) — Sept. 18 to 19 (TBC)
• [Information was severed in accordance with the Access to Information Act.]
• Cabinet Retreat (TBC) — week of Aug. 21
• North Atlantic Fisheries Ministers’ Conference (Faroe Islands) – Aug. 26 to 28
• G7 Ministerial Meetings (Halifax) — Sept. 19 to 21
• Independent Expert Panel on Aquaculture Science – Chief Science Advisor Mona Nemer — Sept. 2018
• National Advisory Panel on Protection Standards in Marine Protected Areas — Sept. 2018
• Canadian Council of Fisheries and Aquaculture Ministers Meeting (St. John's) — week of Sept. 9 or week of Oct. 7 (TBC)
• Arctic High Seas Fisheries Agreement Signing (Greenland) — Oct. 2 to 4
• [Information was severed in accordance with the Access to Information Act.]
• Our Ocean Conference (Bali) — Oct. 29 to 30
• China Ministerial Mission/Fish and Seafood Expo (Qingdao, Beijing, Shanghai) — Nov. 7 to 13
• Conference of the Parties, Convention on Biological Diversity (Sharm El-Sheikh, Egypt) — Nov. 17 to 29
• The Sustainable Blue Economy Conference (Nairobi) — Nov. 26 to 28
• Atlantic Growth Strategy Leadership Committee — Early Dec.

Annex: achieved and outstanding

Substantial progress has been made to implement the Government’s agenda and your Department has completed or is on track for 12 of the 14 current mandate commitments.

• MCTs
  on track
• Oceans Co-Management
  ongoing
• Oil Tanker Moratorium
  on track
• Fisheries Act
  on track
• Environmental Assessment
  on track
• Freshwater & Oceans Science
  completed
• Science-Based & Precautionary
  on track
• Arctic Climate Change Impacts
  on track
• Great Lakes Protection
  ongoing
• Cohen Commission
  on track
• CCG Vessels under NSS
  challenges
• St. John’s & Kitsilano
  completed
• Improve Marine Safety
  on track

Annex: Strategic environment

Global trends and initiatives affect DFO/CCG’s mandate and Canada’s broader policy agenda in many ways…

International economic pressures combine with domestic challenges of ageing workforce and limited profitability.
Climate change is driving ecosystem shifts that impact industry and infrastructure and 121 aquatic species are listed as “at-risk.”

Industry and Government must adapt operations and management (e.g., gear, TAC levels), and transition the sector to a model of higher economic productivity and greater environmental sustainability.

Seaborne traffic is increasing, including in key areas (e.g. fast-opening Arctic, and along the BC Coast given the Trans-Mountain Pipeline)

Increasing demand for CCG services will result across the board.

Oceans issues are transboundary in nature and spillovers to Canadian waters from other jurisdictions can have significant impacts.

International coordination is vital to address transboundary issues from IUU fishing to ocean governance writ large.

Canada’s Fish, Seafood and Oceans Sector

Canada has one of the world's most valuable commercial fishing industries:

• directly contributes $3.6 billion to GDP
• employs approximately 76,045 people
• exports from the fish and seafood sector are valued at $6.6 billion

The aquaculture sector generates close to $1.3 billion in production value and 15,000 jobs.

Coast Guard keeps Canada’s waterways open to an estimated $200 billion in annual, year-round marine trade.

Canada’s broader ‘Oceans Sector’ adds over $35 billion in value to GDP, employs 350,000, with activities occurring on all three coasts.

Annex: Partners and stakeholders

There is a broad set of engaged stakeholders.

Harvesters

Ensuring access to the resource; oversight of licensing; and the impacts of sustainability measures on economic viability and incomes.
Example: Total Allowable Catch (TAC) decisions impact incomes and communities’ economic viability.

Indigenous Groups

Increasing their access to the resource; autonomy in their own fisheries activities; and increase partnerships in the management and protection of marine environments.
Example: Increasing access to fisheries resources for Indigenous groups reduces access for others.

ENGOs

Ecosystem sustainability and conservation, from strengthening protections for species at risk to enhancing sustainability requirements for fisheries.
Example: Measures impacting harvesters (e.g. temporary fishery closures) are vital to protecting at-risk species.

Marine Industry

Supporting economic activity through maritime trade and transport; ensuring marine safety by enabling navigation; as well as a stable trade regime for fish and seafood.
Example: CCG ensures the safe, economical and efficient movement of ships in Canadian waters.

P/Ts

Jointly manage fisheries resources as P/Ts have key role over property and civil rights, public lands, licensing of businesses, and other matters of a local or private nature.
Example: Aquaculture is jointly managed among F-PTs, e.g. pesticide approvals are a shared responsibility.