Registration
SOR/98-237 2 April, 1998

FISHERIES ACT

Regulations Amending the Pacific Fishery Regulations, 1993

P.C. 1998-559 2 April, 1998

His Excellency the Governor General in Council, on the recommendation of the Minister of Fisheries and Oceans, pursuant to sections 8 and 43 (see footnote a) of the Fisheries Act, hereby makes the annexed Regulations Amending the Pacific Fishery Regulations, 1993.

REGULATIONS AMENDING THE PACIFIC FISHERY REGULATIONS, 1993

AMENDMENTS

1. (1) Subitem 3(16) (see footnote 1) of Part I of Schedule II to the Pacific Fishery Regulations, 1993 (see footnote 2) is replaced by the following:

Item	Column I Registration or Licence	Column II Fee ($)
3.	Commercial Fishing Licences — annual
(16)	Category S — Shrimp Trawl
	(a) a vessel that is less than 11.69 m in overall length	1,100.00
	(b) a vessel that is 11.69 m or more but less than 13.85 m in overall length	1,600.00
	(c) a vessel that is 13.85 m or more but less than 16.92 m in overall length	2,100.00
	(d) a vessel that is 16.92 m or more but less than 23.1 m in overall length	3,100.00
	(e) a vessel that is 23.1 m or more in overall length	4,100.00

(2) Subitem 3(18) (see footnote 3) 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
(18)	Category W — Shrimp by means of trap	1,790.00

(3) Item 3 of Part I of Schedule II to the Regulations is amended by adding the following after subitem (23):

Item	Column I Registration or Licence	Column II Fee ($)
3.	Commercial Fishing Licences — annual
(23.1)	Category ZU — Eulachon	30.00
(23.2)	Category Z2 — Butter, Littleneck, Manila and Razor clams	30.00

2. Item 9 of Part II of Schedule II to the Regulations is repealed.

COMING INTO FORCE

3. These Regulations come into force on April 2, 1998.

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Description

These amendments to the Pacific Fishery Regulations, 1993 create categories of commercial fishing licences for eulachon and clams, and increase licence fees for two existing commercial licences, shrimp trawl and shrimp by means of trap.

Eulachon and Clams

Category Z2, Butter, Littleneck, Manila and Razor clams (clams) and Category ZU, Eulachon, are being added to the list of required commercial fishing licences. The annual licence fee for each of these licences will be $30.00. Eligibility for a clam or eulachon licence will be subject to entry criteria that have been jointly developed by the Department of Fisheries and Oceans (DFO) and industry stakeholders.

As a consequence of creating a category of licence for eulachon, only those Category C licensed vessels that meet the entry criteria for an eulachon licence will be eligible for a Category ZU licence in the future. Further, other commercial fishing vessels which in the past have been permitted to fish eulachon as a matter of policy under other licence categories, will be subject to the same entry criteria as Category C licensed vessels.

Both the clam and eulachon fisheries have been subject to intense exploitation in recent years by an increasing number of participants. The move to limited entry in these fisheries will provide for more effective management of the resource. Without a limited entry program, the continuing potential for new entrants would make it impossible for the DFO to reliably predict how many fishers would partake in a given opening, resulting in openings that are short, intensely monitored, and subject to quota overages.

Shrimp Trawl

The licence fee increases range from $1,000.00 to $4,000.00 depending on vessel length. The revenue generated by the increased shrimp trawl licence fee will form the basis for an increase to DFO's reference level which will be used to pay costs for a shrimp trawl management program. Prior to 1996, fishing plans did not include in-season monitoring or significant gear, time and area closures. Development of an active in-season fishing management strategy is considered necessary as a result of changes in fishing patterns, gear, technology and target species. Stock assessment indications are that the fishery is affecting indices of stock biomass and population age structure and that overfishing is occurring in some areas. This program will ensure the long term sustainability of the resource while maintaining an active fishery and market for the product and focus DFO's limited resources on its principle mandate - conservation of the resource.

Shrimp by means of Trap

The licence fee will no longer be based upon the number of traps used by fishers. As a result, those fishers who were using more than 300 traps will pay $960.00 less for a licence. The 1998 increase of $335.00 in the shrimp trap licence fee for fishers using up to 300 traps will cover the incremental costs in managing the trap limitation program begun in 1995, expansion of the charter vessel patrol program to provide monitoring in the Queen Charlotte Islands and offshore fishing grounds, and an increase in costs for existing south coast charter vessel operations.

Alternatives

Eulachon and Clams

The status quo is not acceptable as it does not meet conservation objectives in this fishery.

The option of maintaining a permanent closure in the commercial eulachon fishery and allowing only sport and native fisheries was rejected because there is a specialty market niche for eulachon. Provided that a controlled fishery can be conducted, there is no reason why this market should not be satisfied.

Another option considered is a lottery for a pre-determined number of licences with individual quotas prescribed for each licence. This option is not supported by industry as it is seen to be discriminatory against long time participants who may have been excluded under such a scheme.

Shrimp Trawl

The status quo was rejected due to concern with significant increases in landings in some coastal areas in the past two years, changes in the distribution of the fishing fleet, evidence of overfishing in some inshore areas, and indications of inadequate data quality from existing fish slip and logbook reporting programs.

The option of implementing an active in-season management system without increasing licence fees was considered but rejected because DFO does not have the resources to cover the incremental costs which would be incurred by this program.

Industry was opposed to the option of limiting fishing opportunity on shrimp species which are developing new markets, and was also opposed to establishing absolute upper limits on total allowable catches.

The option of voluntary participation and contribution of management funds to the Pacific Coast Shrimper's Co-operative Association (PCSCA) was tested in 1997. As not all fishers chose to join the PCSCA, industry was concerned that a fair and equitable contribution to the program by all fishers may not otherwise be achieved. As a result, the PCSCA and Shrimp Trawl Sectoral Committee, which was established by DFO, requested the licence fee increases starting with the 1998 fishery.

Shrimp by means of Trap

The status quo was rejected since program capability would be eroded by increasing costs until the length of the fishing season would be dictated by available management funds rather than sustainable fishing opportunities. This is unacceptable to fishers and buyers.

Consideration was given to requiring industry to collect the additional fees to fund the increased costs of this program. Industry however has requested that DFO facilitate program changes through mutually negotiated licence fee increases because of the difficulty in forming a single, comprehensive shrimp trap association which would be responsible for the collection and control of money.

Benefits and Costs

Eulachon and Clams

It is expected that licence limitation in these fisheries will improve the economic return to fishers, provide a means for more effective consultation, improve monitoring of and compliance with licence conditions, and provide more complete, timely and reliable data for stock management purposes. Overall it will enhance the ability of DFO to meet conservation and management objectives through proper control and management of the fishery.

Shrimp Trawl

There will be an annual increased cost to the shrimp trawl fishers of a minimum of $1,000.00 for vessels less than 11.69 m to a maximum of $4,000.00 for vessels longer than 23.1 m.

The additional cost to government in collecting this licence fee, and implementing the active management program will be paid by the shrimp trawl fishers through the revenues generated by the increased licence fee. The net result will be that the foreseeable associated increased program costs will be born by the shrimp trawl fishers.

Shrimp by means of Trap

The increase of $335.00 in shrimp trap licence fees for those fishers using up to 300 traps will support continued development of fishing opportunities which is expected to improve the economic return to fishers. The ability of DFO to meet conservation objectives through proper management and control of the fishery will also be enhanced. Those fishers who are using greater than 300 traps will see a decrease of $960.00 for a licence.

Consultation

This regulation was prepublished in the Canada Gazette Part I on February 14, 1998 and no comments were received.

Eulachon and Clams

The only commercial fishery for eulachon is in the Fraser River. Licence limitation in the eulachon fishery has been discussed with the Fraser River Eulachon Management Committee since 1994. This Committee includes representatives of the commercial fishers, Native fishers and DFO. The Committee and all lower Fraser River First Nations support licence limitation and agree that creating a separate licence is required.

The Intertidal Sectoral Committee has endorsed limited entry in the clam fishery since 1991. DFO and the Ministry of Agriculture, Fisheries and Food, Province of British Columbia, have been engaged in consultation with the public, both by open meetings and invitations for written submissions, since 1992. A written summary of the results of this consultative process was distributed to participants in 1994. The culmination of this process was an announcement by the Minister of Fisheries and Oceans in April 1997 of implementation of clam reform, including licence limitation and community management initiatives.

Shrimp Trawl

Discussions with the Shrimp Trawl Advisory Committee in the fall of 1995 led to the first winter season spawning closure. An interim fishing plan was produced to allow shrimp trawl fishing to continue in the first three months of 1997. The need for change in management of the fishery was identified in the fishing plan which is distributed to all owners of shrimp trawl licensed vessels and in mail outs to these persons. The interim fishing plan was extended until the end of May 1997, to provide additional time for industry representatives to discuss and develop the details of the program in consultation with DFO.

During the first five months of 1997, the Ministry of Agriculture, Fisheries and Food worked with the shrimp trawl industry to establish the PCSCA. In order to ensure that the program costs and benefits are shared equitably by all owners, the PCSCA and the Shrimp Trawl Sectoral Committee asked DFO to increase licence fees, with a Treasury Board offset to ensure that the increased fees will be directed to management of the Pacific coast shrimp trawl fishery. The fee structure was set by industry representatives, on the basis of a ballot of all 249 owners of shrimp trawl vessels. The ballot was organized and sponsored by the PCSCA. 106 of the ballots were returned. Of those, 65.6% chose a fee option based on vessel length.

Shrimp by means of Trap

The costs of program delivery and the incremental impact of inflation on costs of goods and services was discussed with the Prawn Sectoral Committee (PSC) in October 1996. Industry was made aware that without some means of increasing program revenue a reduction of the industry funded program components would be necessary. Industry strongly supported the existing system of in-season assessment and management, and expressed concern for any reduction in program delivery.

In March and August 1997 the PSC was provided with cost estimates to continue these programs and the resultant licence fee increases which would be required. The PSC is in support of an increase in licence fees to cover these programs.

Contacts

Bruce Adkins
Shellfish Coordinator, Fisheries Management
Department of Fisheries and Oceans
Pacific Biological Station
Hammond Bay Road
Nanaimo, British Columbia
V9R 5K6
Telephone: (250) 756-7285
FAX: (250) 756-7053

(Eulachon)
Frances Dickson
Area Chief, Fisheries Management
Fraser River Division
Department of Fisheries and Oceans
610 Derwent Way
Annacis Island
New Westminster, British Columbia
V3M 5P8
Telephone: (604) 666-6509
FAX: (604) 666-7112

Footnote a

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

Footnote 1

SOR/96-2

Footnote 2

SOR/93-54

Footnote 3

SOR/96-2

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