The Canada/Newfoundland Fishing Industry Renewal (FIR) Strategy was announced on April 12, 2007. The goal of the Fishing Industry Renewal initiative is to develop an integrated “Ocean to Plate” policy framework and industry restructuring strategy to support the industry “to adapt to changing resource and market conditions; extract optimal value from world markets; provide an economic driver for communities in vibrant rural regions; provide attractive incomes to industry participants; and attract and retain skilled workers.” Elements of the Renewal Strategy will be implemented by the federal and provincial governments according to their jurisdiction; however, the initiatives work together to make the industry more economically viable and internationally competitive.
The Government of Canada’s two major initiatives under the Fishing Industry Renewal Strategy include fleet self-rationalization and changes to Department of Fisheries and Oceans vessel replacement policy.
The Government of Newfoundland and Labrador committed $15 million in direct expenditures to the FIR Strategy. To date, the Department of Fisheries and Aquaculture has made significant progress on all Provincial elements. The Department is continuing to move forward and work with industry on initiatives to support a viable, internationally-competitive and regionally-balanced industry.
Provincial Elements of the Fishing Industry Renewal Strategy:
In July 2009, the Provincial Government reached an agreement with the Fish Food and Allied Workers (FFAW) and Association of Seafood Producers (ASP) regarding the long-term development of the fishing industry in the province. The parties have agreed to a memorandum of understanding (MOU) that provides a plan for addressing the long-term structural issues in the province’s fishing industry. This plan will also contribute to efforts in making the industry more economically viable and internationally competitive.
To address a number of challenges being facing the seafood processing sector, including seasonality and overcapacity, the Province has further strengthened its seafood processing policy framework. This work included changes to its fish processing policies and the role of the Fish Processing Licensing Board and will help reduce capacity and increase regional and corporate consolidation. Over the longer term, these measures should increase the industry’s viability and competitiveness by gradually reducing both the number of licenses and the amount of capacity.
The Newfoundland and Labrador fishing industry is faced with a number of marketing challenges, many of which are beyond the industry’s control. In recent years, the industry has had to contend with external factors such as a strong Canadian dollar, trade barriers, increased competition from low-cost producers in under-developed and developing countries, increased purchasing power of retail and food service buyers, and distress selling particularly by undercapitalized firms.
The competitive nature of the processing sector has been a limiting factor in marketing collaboration. To help increase the economic value of our fish resources to the province, there is a need to bring collaborative marketing to this industry. Seafood companies must work more closely together to market their products worldwide. Although a fair amount of cooperation already exists within the industry, there is considerable room for increased collaborative efforts in the marketing of Newfoundland and Labrador seafood.
A Seafood Marketing Review Panel was established in 2007 and carried out a comprehensive analysis of the options for establishing a Seafood Marketing Council. These included identifying key marketing challenges facing the seafood industry and recommending approaches for addressing these challenges, as well as determining the options for the mandate and administrative operation of the Council. Government accepted the Chair’s recommendations to establish the Marketing Council on a 3-year pilot trial provided that industry was supportive. Subsequently, a vote by members of the seafood processing industry resulted in the rejection of the formation of such a body.
The Province continues to assist the fishing industry in meeting current marketing challenges through the pursuit of initiatives to enhance market research and promotion efforts.
The primary objective of the Seafood Innovationand Transition Program is to provide support for our fishery and aquaculture industries to enable these industries to remain competitive. Particular emphasis will be placed on the transition from a predominately shellfish to a groundfish fishery. Key dimensions of this program will concentrate on advancements in harvesting and processing, while addressing research and development, and strategic market opportunities. This program will strategically focus on: Revitalization of the Groundfish fishery, Innovation and Technology, Aquaculture and Fisheries Research and Development, and Strategic Market Initiatives.
Emphasis will be placed on supporting the fishing industry to make the transition from shellfish to groundfish, throughout all sections of the value chain. This program will also support research initiatives to assist our province’s seafood industry in remaining sustainable and viable in the context of a changing ocean regime. Specifically, the program will support strategic, innovative, and collaborative research that enhances knowledge of both traditional and emerging species, while informing sustainable fisheries decision-making processes. The program will support the fishing and aquaculture industries in adopting efficient harvesting, processing, and handling technology to ensure increased utilization and higher returns.
These initiatives will help ensure the Newfoundland and Labrador fishing and aquaculture industries continue to be major economic contributors to the provincial economy. Information on the program, such as the application and brochure, are available on our website.
The province’s fishing industry, like those in many other jurisdictions, is experiencing occupational health and safety issues in both the harvesting and processing sectors. To enable both sectors to address these issues, Government has approved funding for the establishment and operation of a fishing industry safety council. The structure of this council will be guided by consultations with the Workplace Health Safety & Compensation Commission and industry. It is intended that a safety council will provide advice to Government on health and safety issues and promote safety in the workplace, as well as conduct occupational and health-related research associated with the fishing industry.
FIR initiatives include fleet rationalization through new rules allowing combining of fishing enterprises and the introduction of three new vessel classes. These new rules necessitate the need for harvesters to access capital for self-rationalization. The Province has implemented enhancements to the Fisheries Loan Guarantee Program.
The Fisheries Loan Guarantee Program provides a provincial guarantee on loans from participating commercial banks to harvesters. To keep pace with inflation and new vessel design and enhancement, Government has introduced a number of changes including an increase in the maximum loan guarantee limit. In addition, loans obtained by harvesters from fish processors are now eligible for refinancing through bank loans under the program.
Rationalization in the processing sector is expected to be a gradual reduction in processing capacity in response to regulatory measures and business decisions. While there will be no active measures by the Province to close processing plants (e.g., processing license buy-out), some plants may close on a permanent basis resulting from corporate decisions or regulatory measures (e.g., the withdrawal of licenses from inactive plants.)
Workforce adjustment supports will be positioned to assist with industry renewal and to facilitate transition out of the industry where necessary. The Province will provide adjustment support measures should a fish plant close permanently. This will include a comprehensive suite of measures to assist during the transition period which will include:
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