Ottawa Update May, 2005 Edition

Building a Fishery That Works

What's Happening at the FCC

Oil & Gas

Exploratory Drilling

In 2003, the Minister of the Environment decided to make exploratory drilling subject to a comprehensive study environmental assessment (EA). Previously, it was subject to a screening EA. In response to presentations by the oil and gas industry, the Minister now proposes that exploratory drilling would need only a screening environmental assessment. The Canadian Environmental Assessment Agency (CEAA) has determined that exploratory drilling is not likely to have significant adverse environmental effects.

The FCC has advised CEAA that it is premature to remove the comprehensive study EA requirement. The fishing industry is now in the midst of the first comprehensive study EA with respect to the BEPco project. We want to complete the process and make an evaluation whether the comprehensive study regime does add important value to the process.

In addition, the FCC argued that whether exploratory drilling is likely or not likely to have significant adverse environmental effects is dependent on the location of the proposed project. As such, there will be instances where it will be uncertain whether the proposed project is likely to cause significant adverse effects.

In conclusion, if CEAA wants to remove exploratory drilling from the mandatory comprehensive study list, we recommended that the Minister of the Environment make a decision from the outset whether the proposed exploratory drilling project be subject to a screening assessment or a panel review. This allows exploratory drilling to be delisted from the Comprehensive Study List while providing for a more thorough assessment where fishing interests and public concern warrant.

Seismic Surveys

DFO along with the provinces of BC, NL, and NS developed a proposed minimum standard for seismic surveys. The standard would be used by the oil and gas regulators regarding mitigation measures for seismic survey projects. The FCC met with DFO, Oceans to voice the following main concerns:

  • The document was not stringent enough regarding the required mitigation measures – there were too many caveats “to the extent reasonably practical”, etc. FCC reminded DFO that the standards will be implemented by regulators that are basically pro oil and gas development. As such, any seasoned regulator could use the various caveats in the document to escape applying the mitigation measures.
  • In view of the uncertainty in the science, the document was too dismissive with respect to the possible impact of seismic surveys beyond the impact of dispersion of spawning aggregations and defection from migratory paths.
  • Need to better articulate “population-scale impacts” and provide more guidance to the regulators on this issue. The current state of the stock (red, yellow, green zone) has to be taken into account when applying the measure.
  • The use of “peak spawning times” is not sufficient to address the concern, particularly where there is so much uncertainty regarding spawning activity of various stocks.

    Health Protection Act

    Health Canada is proposing to repeal the existing Food and Drugs Act and replace it with new legislation called the Health Protection Act. In response, the FCC has entered discussions with other Canadian food associations about the possibility of having the government establish a separate Foods Act; leaving drugs, medical devices, and natural health products to be governed by its own separate legislation. With the current focus on drugs, their impact, etc., the FCC is concerned that including food in the proposed new legislation has significant potential to increase regulatory burden, cost of compliance, and food processing costs. In summary, the concern is that the increased regulatory regime for drugs will migrate onto food if drugs and food remain in the same legislation.

    NAFO / St.John’s High Seas Fisheries Governance Conference

    Further consultations were held in Halifax and Ottawa regarding Canada’s objectives and strategies for the St. John’s Conference in May and the 2005 NAFO meeting in September.

    BottomTrawling

    The first meeting of the DFO/stakeholders working group on bottom trawling was held in Ottawa.

    Trade Policy/Market Access

    Surtax on the Import of US Oysters and Certain Frozen, Dressed Fish Now in Effect

    As of May 1, the15% Byrd surtax on US oysters and certain US frozen, dressed, h&g fish is in effect. The surtax applies to US harvested oysters (Canadian tariff # 0307.10.10 and 0307.10.20) and certain, frozen US harvested fish (Canadian tariff # 0303.79.00).

    With respect to the frozen fish item, it does not include fillets, portions, or any value-added products. The main items imported under the tariff item have been Pacific perch, sablefish, scorpion, and monkfish. Patagonian tooth fish (Chilean sea bass) is included in the tariff item. However, unless it is harvested by a US vessel, it is not affected. All other sea bass species should be entered under Canadian tariff # 0303.77.00.

    When importing an affected product, importers are required to quote the Order in Council (OIC) number 2005-615 in Field 26 “Special Authority” on Form B3 of the Canada Customs Coding Form.

    Market Issues

    Traceability

    In December 2004, Can – Trace, an initiative funded by Agriculture and Agri-Food Canada, issued its first versions of the Can - Trace traceability models for Canada’s food sectors including a model for seafood in which the FCC and its Technological Committee provided input. Can -Trace has received comments/questions, etc. on the models, including comments from FCC members.

    Can-Trace is about to launch its updated models based on the comments and will be holding consultation meetings across Canada on the updated models. Dates/Cities/Locations for the meetings are;

    Halifax – June 8, Radisson Suite Hotel Vancouver –June 16, Hilton Vancouver Metrotown Toronto –June 6, Delta Meadowvale Montreal – June 2, Delta Montreal Winnipeg –June 14, Delta Winnipeg Calgary- June 15, Delta Calgary Airport

    If interested, mark your calendar, the FCC will be sending invitations to members when details are finalized.

    Redfish

    With the quota of the Irminger redfish fishery down 37% this year, reports out of Japan indicate that buyers are scrambling for supply and prices will be about 30% higher than last year. The European market remains strong with Chinese processors supplying skinless fillets. As such, Japanese buyers are concerned that the days of redfish being a “cheap and abundant” fish are fading and redfish may join sablefish and mero on the Japanese luxury fish menu list.

    FCC

    2005 AGM and Conference

    September 27 – 29, 2005

    Plans are progressing for the 2005 AGM and Conference in beautiful Old Montreal. The Marriot Spring Hill Suites Old Montreal will host the event. The opening night Chairman’s reception will be at the adjoining historic Auberge Le Saint Gabriel and the gala dinner/entertainment evening will be held at the Restaurant du Vieux Port.

    The plenary sessions are close to being finalized. At this point there is the DFO Deputy Minister’s panel with the Deputy Minister and selected assistant Deputy Ministers. John Connelly, President, the National Fisheries Institute (NFI), will report on the NFI’s commissioned focus group survey and the strategies the NFI is implementing based on the study’s findings. Alastair O’Rielly, President, the Canadian Centre for Fisheries Innovation will present the Centre’s ground breaking results on fish processing in China and India and our need to develop strategies in response to these developments. John Sackton, President, Seafood. Com, will analyze what happened and is happening in the US seafood market and what he thinks is going to happen in 2006. Further key note speakers are being lined –up as well as one of Montreal’s top golf courses for golf on the afternoon of the 29th.

    Mark your calendars, registration forms will be mailed and up on our web-site shortly.
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