Registration
SOR/98-410 7 August, 1998

COASTAL FISHERIES PROTECTION ACT

Regulations Amending the Coastal Fisheries Protection Regulations

P.C. 1998-1366 7 August, 1998

His Excellency the Governor General in Council, on the recommendation of the Minister of Fisheries and Oceans, pursuant to section 6 (see footnote a) of the Coastal Fisheries Protection Act, hereby makes the annexed Regulations Amending the Coastal Fisheries Protection Regulations.

REGULATIONS AMENDING THE COASTAL FISHERIES PROTECTION REGULATIONS

AMENDMENTS

1. Subsection 5(1.6) (see footnote 1) of the Coastal Fisheries Protection Regulations (see footnote 2) is replaced by the following:

(1.6) The Minister may, on receipt of an application for a licence, issue a licence authorizing a United States fishing vessel and its crew to enter Canadian fisheries waters to carry out any of the activities described in subparagraphs (1)(a)(vi) and (vii) if the vessel has not been used on the Pacific coast, in the two years before the application, for the fishing of salmon or Pacific hake.

2. Section 7 of the Regulations is amended by striking out the word "and" at the end of paragraph (f) and by adding the following after that paragraph:

(f.1) if the application is made under subsection 5(1.6), any document issued in the two years before the application is made by an authority in the United States authorizing the United States fishing vessel referred to in the application to be used for the fishing, generally or specifically, of salmon or Pacific hake; and

COMING INTO FORCE

3. These Regulations come into force on August 7, 1998.

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Description

These Regulations amend the Coastal Fisheries Protection Regulations (CFPR) to allow the Minister of Fisheries and Oceans (Minister) to issue licences to U.S. fishing vessels, other than fishing vessels involved in the Pacific hake or salmon fisheries, to enter Canadian ports for the purpose of effecting repairs and obtaining supplies.

The CFPR are an effective enforcement tool for the protection of Canadian fisheries resources subject to dispute with uncooperative foreign nations. The CFPR list 36 nations whose vessels may be granted a licence to enter Canadian fisheries waters/ports for a number of purposes, including the effecting of repairs and obtaining supplies. The countries listed cooperate with Canada on international fisheries conservation objectives including the sound conservation and management of fish stocks off Canada's coasts.

The United States is absent from the list of nations whose vessels may be granted licences to enter Canadian ports because the U.S. does not cooperate with Canada on a number of fishery issues. Some examples are the U.S. failure to reach long-term arrangements on Pacific salmon interceptions, its unwillingness to agree to catch allocations for the transboundary Pacific hake stocks, and its refusal to proceed in a timely manner to finalize arrangements for Yukon salmon. There are some exceptions in the CFPR which allow the Minister to issue licences to U.S. fishing vessels. Licences may be issued to albacore tuna and Pacific halibut fishing vessels as provided for in treaties with the U.S. which grant reciprocal port access for Canadian vessels. Licences may also be issued to U.S. fishing vessels that either unload salmon or herring at Canadian ports on the Pacific coast, or herring or menhaden on the Atlantic coast, in light of the historical trade in these species.

U.S. fishing vessels have requested and have been denied licences to effect ship repairs in Victoria, B.C. In 1998 alone, Point Hope Shipyards in Victoria claimed to have lost four contracts to repair U.S. fishing vessels that are used to fish for species other than salmon or Pacific hake. The shipyards claim that the denial of licences to U.S. vessels has resulted in lost contracts estimated at $10 million this year and adversely affected the employment of between 80 to 300 shipyard workers on a part-time basis.

The interim arrangements concluded with the United States on Pacific salmon for 1998 are a positive indication of cooperation towards fisheries conservation which should be encouraged. This, combined with the adverse economic effect of denying licences to U.S. fishing vessels to effect repairs in Canadian ports, led to a review of the port access policy. This amendment to the CFPR will provide benefits to Canadian shipyards while maintaining a strong position on fisheries under dispute with the United States. Only U.S. fishing vessels which have not been used in the Pacific hake or salmon fisheries in the two years prior to the application, are eligible to obtain licences for the purpose of effecting repairs or obtaining supplies at Canadian ports. The licence applicant would be required to provide documentation, such as fishing licences, to the Minister to this effect. As a number of fisheries conservation problems remain with the United States, the other elements of the port access policy towards the United States are retained.

Alternatives

The status quo has been criticized by the government of British Columbia, the ship repair industry and its workers, and sizeable segments of the public in that province. Canadian shipyards are economically attractive to U.S. fishing vessel owners. To continue to deny licences to these U.S. vessels wanting to have repairs done in Canadian ports hurts Canadian shipyards and the economy of the province.

An amendment to the CFPR to add the United States to the list of countries which cooperate with Canada on fisheries conservation, entitling it to full port privileges, is considered inappropriate for the reasons noted above. The U.S. cannot be considered to have a satisfactory relationship with Canada on fisheries conservation.

Benefits and Costs

There will be important economic benefits for Canadian shipyards in particular in British Columbia. Contracts with U.S. fishing vessel owners for repairs should stimulate employment in these shipyards. Atlantic Canada may also see economic benefits if U.S. vessels seek repair services in various ports.

There will be a minor administrative cost to the Department of Fisheries and Oceans to review the applications for and issue these new licences. This will not be offset by any revenue as no fees are attached to these licences.

Consultation

The Minister has received and reviewed the views of a large number of British Columbia stakeholders who are in favour of allowing U.S. fishing vessels to effect ship repairs in Canadian ports. The Ministry of Fisheries and Aquaculture in BritishColombia also supports the amendment.

Compliance and Enforcement

There are no new compliance and enforcement measures connected with this initiative. Where the Minister discovers that a U.S. fishing vessel has obtained a licence under false pretences, the licence can be suspended or cancelled.

Contact

A.J. Sarna, Director
Multilateral Relations Division
International Directorate
Department of Fisheries and Oceans
200 Kent Street
Ottawa, Ontario
K1A 0E6
Telephone: (613) 993-1897
FAX: (613) 993-5995
E-mail: sarnaa@dfo-mpo.gc.ca

Footnote a

S.C. 1994, c. 14, s. 3

Footnote 1

SOR/95-261

Footnote 2

C.R.C., c. 413

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