Senate Committee on Fisheries
PROFILE OF THE ATLANTIC FISHERY
A. The Objectives of Fisheries Policy
B. The Professionalization of Fishing
CONCLUSION AND RECOMMENDATIONS
The fishing industry on the East Coast has been the object of a parade of inquiries and
reports that stretches back into the last century. The Task Force on Atlantic Fisheries
-known also as the Kirby Task Force - remarked a decade ago that, counting official
commissions alone, there had been over 100 in the past 100 years. No other industry in
Canada, it seems, has so confounded policymakers.
The successes of the fishery during the mid-1980s were to some extent due to factors
beyond its control: seafood enjoyed a period of unprecedented demand in world markets,
particularly in the United States, where, for reasons of health and nutrition, or as a
sophisticated gourmet item, fish was eaten more than ever before. Whereas in the past fish
was associated in some religions with fasting and often was regarded as a poor product
sold to poor people, during the mid-1980s the North American consumer finally learned its
true worth.
By 1988, however, growing resistance to higher priced species of groundfish, especially
cod, led to a precipitous decline in the prices for seafood products. A tainted mussels
incident undermined the popularity of shellfish, as did publicity on marine pollution. A
rise in interest rates and the resurgence of the Canadian dollar in relation to the U.S.
dollar reduced profit margins across the entire industry. The harvesting sector had to
catch more and fish plants to process more in order to earn the same amount as in previous
years. Not until 1989 did the matter of diminishing stocks begin to receive much
attention. That year, scientific studies pointed to a serious decline in northern cod and
a further decline in groundfish stocks off Nova Scotia, leading to subsequent quota
reductions, plant shutdowns and layoffs.
In December, 1989, the Standing Senate Committee on Fisheries tabled a report addressing
what the Committee considered to be the key elements affecting the marketing of East Coast
fishery products. The report largely reflected the concerns and ideas brought forward at
public hearings held in cities and towns throughout the five Atlantic provinces in 1988.
At that time, groups and individuals repeatedly warned the Committee that the Atlandc
fishery was at a crossroads, and that, unless fisheries management issues were addressed
more comprehensively and intensively, the industry would soon have fewer fish to market. A
subsequent report by the Committee pointed out that the Canadian industry had been slow in
changing from a traditional volume orientation - fishing whatever could be caught and then
trying to sell it - to a "market-driven"approach, which took into account the
needs of specific market segments as well as availability of resource.
This report on Canada's Atlantic commercial inshore fishery and related matters is, in
many respocts, very much a continuation of the Committee's 1988-89 study.
The East Coast fishery has a long history of undergoing downturns every six to seven
years, partly because of variations in resource and partly because of markets. However,
the region now faces a penod of unprecedented transformation and adjustment caused by
severe declines in myor gnondfisb stocks. Thousands of inshore and offshore fishermen and
fish-plant workers already have lost their jobs, and for those still active in the fishery
the future is uncertain. A major downsizing of the industry is anticipated; the fishery is
unlikely in future to employ the same number of poople, vessels, and fish plants as in the
past. Circumstances like these stir up strong regional emotions, and understandably so,
since, for generations fishing has been the economic and social foundation of the East
Coast.
Many reasons arc given for thc depressed state of the Atlantic groundfish resource: quotas
set too high because of poor stock assessment ot to accommodate social or other concerns;
environmental factors such as unusually cold water temperatures; overfishing by foreign
flects outside Canada's 200 mile limit; seal predation; domestic overfishing; and wasteful
fishing practices such as dumping and discarding, etc. To determine how to weigh one
factor against another is a knotty problem.
The crisis developed over a long period of time and under successive federal and
provincia1 governments; some would say it began as early as 1977 when Canada extended its
jurisdiction to 200 miles. Its effects will likely have major socio-conomic implications
over the next decade or more. In northern waters, a codfish tales about seven years before
it can reproduce even once. Whether there will be a northern cod fishery in the years to
comeÑwhat has been the North Atlantic's largest groundfish stock - is at the moment
anybody's guess. When mercilessly overfished, fish stocks do become commercially extinct.
The reasons for undertaking a study on the inshore sector are compelling. We are told that
about 995 of all fishing vessels in the region are inshore boats (i.e., under 65 feet in
length). The inshore normally provides 95 % of fishing employment and roughly two-thirds
of fish plant work on the East Coast. The sector supports hundreds of small, rural
communities throughout the five eastern provinces.
The industry's last major downturn, in the early 1980s, was essentially financial; that
is, there were depressod markets and large inventories of frozen groundfish, as well as
high interest rates. That crisis was centred on the offshore. What followed was a
restructuring of the industry involving public money to amalgamate a number of firms
operating offshore fleets. The industry will likely soon again undergo profound and
perhaps irreversible change. The time seems right for a careful re-examination of the
approaches to fishery management and, it is hoped, to learn from past mistakes in order to
avoid repeating them in the future. Building a stable, lasting and viable industry will
require tough and pragmatic decisions about its structure, as well as measures based on
what can be termed "a new conservation ethic."
The first section of this report sketches briefly the industry and outlines some of the
basic differences between the so-called "inshore" and "offshore"
sectors. The second section highlights what the Committee considers to be the more
important issues conceming the inshore that arose during the course of its study. The
breadth of those issues, the complex nature of the industry and time constraints in
carrying out its work, forced the Committee to focus on only some of the more important
concerns of those who contributed to the inquiry. The Committee recognizes also that most
of the matters discussod are related, though each is sufficiently perplexing to warrant
more detailed special consideration. Finally, the keen interest shown by those who
appeared before us is very much appreciated.
The Committee acknowledges the assistance received from its support staff: John Desmarais
and Jill Anne Pichard, Clerks of the Committee, and Claude Emery, Research Officer,
Library of Parliament.
Senator Eileen Rossiter
Chair
