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July, 2005 Edition
What's Happening at the FCC
Restructuring Continues
With a smaller staff, the FCC was able to re-locate from the suburbs to the Ottawa
downtown core, close to DFO, other government departments, and Parliament Hill. Not only
has the location improved but a considerable savings in rental costs were achieved.
Lobbying in Ottawa has changed in recent years. There is an increased need to interact with
parliamentary committees and members of Parliament dealing with issues that affect the
fisheries. We certainly found that in getting changes to the EI regulations to reduce the
pressure on the industry to “bank hours.” It was essential to work with both key officials
and key MPs on the file.
So, next time you are in Ottawa, drop in and check out the new FCC home.
United Nations Informal Consultation Process (ICP)
Patrick McGuinness, as Vice Chairman of the International Coalition of Fisheries Associations
(ICFA), represented the Coalition at the ICP meeting in New York. The ICP meeting
develops elements for the UN General Assembly to consider at its meeting in November on
“Oceans and the law of the sea. The main objectives of ICFA were to counter a movement to
ban longline tuna fishing in the Pacific and to rebuff any resurgence of last year’s call to ban
bottom trawling on the deep seas. Both objectives were accomplished.
R&D Tax Credits
FCC met with Revenue Canada’s Director of the R&D Tax Credit Incentive Program.
Associate member, Alastair O’Reilly, the Canadian Centre of Fisheries Innovation, also
participated. Revenue Canada is adopting a proactive approach to the program and
encourages fish and seafood industry participation.
The program allows:
- immediate write-offs of the current and capital expenditures incurred in the project
- investment tax credits from 20-35% on the current and capital expenditures. If no
tax is owed by the corporation, the credit is provided as a cash refund.
- co-ordination with provincial R&D programs. Revenue Canada processes the claim on
behalf of its program plus the credits/refunds on behalf of the provincial programs.
All provinces have comparable programs except PEI and Nunavut.
So, if you have a project that (i) leads to scientific/technical advancement; (ii) has some
scientific/technical uncertainty; and (iii) has scientific/technical content i.e. methodology
laid out, undertaken by qualified people; call your closest Revenue Canada office and get a
pre-claim project review. R& D revenue officials are based in all Revenue Canada Regional
Offices (Vancouver, Toronto, Montreal, Quebec City, Halifax) with R&D specialist also based
in Moncton and St. John’s.
July – Key Meetings
Endangered Species
FCC will participate at Minister Dion’s Species at Risk Advisory Committee meeting.
Third International Fisheries Forum, Yokohama, Japan
As Vice Chairman of ICFA, Patrick McGuinness has been invited to report on the results of
the FAO, COFI meeting held in Rome in March and the ICP meeting held in New York in June.
Trade Policy/Market Access
EU Expansion – The Baltics
With the recent expansion of the EU to include a number of new states, the tariff rates for
exports to these new EU members adopt the EU tariff schedule. The analysis for Canada’s
overall exports is the new EU tariff structure for these countries benefit Canada. However,
the FCC has advised International Trade Canada that this is not the case in fisheries,
particularly regarding herring exports to the Baltic states. The enlargement negotiation
between Canada and the EU regarding the Czech and Slovak Republics is now underway. The
FCC has requested International Trade Canada to pursue vigorously compensation for our
herring exports which previously entered duty free and are now subject to the EU regime
that includes a 15% tariff during certain parts of the year. Basically, unless we are able to
get a separate Canada quota, our current markets in these countries will be replaced by
Scandinavian suppliers that have preferential tariff access to the EU.
US Label Changes
On January 1, 2006, food labels will need to include declaration of allergens and trans fat
content. Seafood processors and packers of seafood will need to label food containing
allergens in eight major categories, including fish and crustacean shellfish. One means of
compliance is by adding a statement, adjacent to the ingredients declaration, indicating the
food “contains” and then the name of the food source associated with the allergen (i.e.
“contains shrimp”). Trans fat labelling is required on the Nutrition Facts Panel whether or
not the food contains significant amounts of (i.e. 0.5 g/serving). This can be accomplished by
declaring 0g trans fat where appropriate. Scientific experts have said that fish and
shellfish, without added ingredients that might contain trans fat, are essentially free of
trans fat.
Environmental Issues
Marine Protected Areas
DFO has published proposed regulations designating the areas, the prohibited activities, and
the exceptions for four marine protected areas –Basin Head (PEI); Musquash Estuary (NB);
Gilbert Bay (NL); and Eastport (NL). The proposed regulations are contained in the June 18th
edition of the Canada Gazette. – www.canadagazette.gc.ca.
Celebrating 60 Years
2005 AGM and Conference
September 27 – 29, 2005
Early Bird registration deadline is fast approaching for the 2005 AGM and Conference in
beautiful Old Montreal. The Marriot Spring Hill Suites Old Montreal which is hosting the
conference this year is a short stroll from many attractions in Old Montreal. Come take
advantage of the great program, ample networking opportunities, and exciting entertainment on
offer. Speakers include John Sackton, Larry Murray and Panel, John Connelly, Alastair O’Rielly
and Arthur May. As well, for golfers, the “4th Best Golf Course in Quebec” (Globe and Mail) has
been reserved.
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