Vol. 132, No. 46— November 14, 1998

Regulations Amending the Pacific Fishery Regulations, 1993

Statutory Authority

Fisheries Act

Sponsoring Department

Department of Fisheries and Oceans

REGULATORY IMPACT
ANALYSIS STATEMENT

Description

This amendment completes the implementation of a new fee schedule for commercial geoduck, sablefish and halibut fishing licences issued under the Pacific Fishery Regulations, 1993.

The previous fees for these licences came into effect on January 1, 1996. The intention had been to base the fees on 5 percent of the quota holding, using 1990-93 average prices. However, fees were set at a lower level in recognition of the contributions that these fisheries already made towards fisheries management costs.

The objective of this amendment is to provide for national consistency with the departmental position that licence holders who benefit from preferred access to a public resource should reasonably expect to pay a fee that reflects the earning potential of that privilege.

To meet this objective, the proposed fees reflect a removal of the above-mentioned adjustments and the insertion of a progressive formula in place of the flat 5 percent formula previously used in the Pacific. The progressive formula is based on 3 percent for the first $50,000 in quota holdings, using 1990-93 average prices, and 5 percent for the amount over $50,000. This formula is designed to reduce the disincentive for a fleet sector to adopt the individual quota system, and to be fairer to fleet sectors with smaller quota holdings. The proposed licence fee increase for geoduck, sablefish and halibut is making licence fee calculation consistent on a national basis. The new structure is fair, equitable and progressive.

Alternatives

In the interest of fairness to all commercial fishers, the status quo was not considered to be an option as fishers licensed for the geoduck, sablefish and halibut fisheries were contributing less of their share to the Government's general revenue account than other participants for the privilege of access to the resource.

Benefits and Costs

Number Affected

These amendments are expected to affect 48 sablefish, 55 geoduck and 435 halibut fishers.

Impact on Fishers

Geoduck and sablefish fishers will be paying significantly higher licence fees. On average, the 1999 licence fee for a geoduck licence will be $8,240 and for a sablefish licence, $17,678. These fees compare to $3,532 and $9,843, respectively, in 1998. The overall economic impact is not expected to be significant since these are relatively profitable and stable fisheries.

There will be some redistribution of the cost of a licence amongst halibut fishers. This will range from an 8 percent decrease ($100) to a 19 percent increase ($3,800) in licence fees. Some 232 fishers will be paying more for a licence while 203 fishers will be paying less for a licence. As result of this redistribution, the average increase to licence fees for halibut fishers will be 4 percent ($220).

Additional Revenues

Additional revenues of about $733,000 will be generated in 1999 from the higher licence fees for the sablefish and geoduck fisheries (assuming 1998 total allowable catch levels).

Due to the number of small quota holders in the halibut fishery and the progressive fee formula, the new licence fee for halibut will not result in a significant increase in overall revenue.

Impact of Potential Contribution Loss

Participants in these fisheries provide funding for stock assessment and management activities in addition to licence fees. Some of this funding could be withdrawn by the licence holders in response to higher licence fees. If so, these assessment and management activities would either need to be eliminated or be funded by the Department.

Consultation

In 1997, industry advisory boards for these fisheries were informed of the decision to remove the adjustment to licence fees for management costs and to move to a more progressive fee formula. Fishers are opposed to these changes. They view the licence fee increases as an unnecessary cash grab from their fishery, especially in light of their contributions made to management of the fishery.

Thus, fishers do not support the decision to increase licence fees and can be expected to protest their implementation. Further consultations would be unlikely to result in any change to their position.

Contact

Russell Mylchreest, Program Planning and Economics Branch, Department of Fisheries and Oceans, 555 West Hastings Street, Room 400, Vancouver, British Columbia V6B 5G3, (604) 666-3869.

PROPOSED REGULATORY TEXT

Notice is hereby given that the Governor in Council, pursuant to section 43 (see footnote a) of the Fisheries Act, proposes to make the annexed Regulations Amending the Pacific Fishery Regulations, 1993.

Any interested persons may make representations concerning the proposed Regulations within 30 days after the date of publication of this notice. All such representations must be addressed to Sylvia Robichaud, Department of Fisheries and Oceans, 200 Kent Street, Ottawa, Ontario K1A 0E6, and cite the Canada Gazette, Part I, and the date of this notice.

November 5, 1998

MARC O'SULLIVAN
Assistant Clerk of the Privy Council

REGULATIONS AMENDING THE PACIFIC FISHERY REGULATIONS, 1993

AMENDMENTS

1. (1) Subitem 3(8) of Part I of Schedule II to the Pacific Fishery Regulations, 1993 (see footnote 1) is replaced by the following:

Item	Column I Registration or Licence	Column II Fee ($)
3.	Commercial Fishing Licences — annual
(8)	Category G — Geoduck and Horse Clam	$252.00 multiplied by the number of tonnes of geoduck authorized to be taken under the licence, minus 40% of that product where the product is less than $2,500.00, or minus $1,000.00 where the product is $2,500.00 or more.

(2) Subitems 3(12) and (13) of Part I of Schedule II to the Regulations is replaced by the following:

Item	Column I Registration or Licence	Column II Fee ($)
3.	Commercial Fishing Licences — annual
(12)	Category K — Sablefish	$241.00 multiplied by the number of tonnes of sablefish authorized to be taken under the licence, minus 40% of that product where the product is less than $2,500.00, or minus $1,000.00 where the product is $2,500.00 or more
(13)	Category L — Halibut	$310.00 multiplied by the number of tonnes of halibut authorized to be taken under the licence, minus 40% of that product where the product is less than $2,500.00, or minus $1,000.00 where the product is $2,500.00 or more, plus $250.00, plus $144.70 multiplied by the number of tonnes of halibut authorized to be taken under the licence.

COMING INTO FORCE

2. These Regulations come into force on the day on which they are registered.

[46-1-o]

Footnote a

S.C., 1991, c. 1, s. 12

Footnote 1

SOR/93-54

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