Good evening, and thank you Craig for that warm introduction.
Thanks also for this invitation to address your annual convention tonight. This kind of forum is important as it allows us to exchange ideas. It gives me a chance to highlight what our Government has done, what is in the works, and to hear from those of you who make your livings from the sea.
I would like to start this speech with a number: 4,930,352,507
(4 billion, 930 million, 352 thousand, 507 dollars)
This represents the value of Canadian fish and seafood exports all around the world in 2014. Compared to 2013, this is an 11.9% growth.
That is impressive and you can be proud of that: that’s the result of your hard work.
I firmly believe that we have an even brighter future ahead of us. One of our Government’s proudest accomplishments over the past two years has been the finalization of important trade deals with South Korea and the European Union.
On the first day of the Canada-EU agreement coming into force, your industry will see the elimination of 96 percent of tariffs on fish and seafood. In the first year alone, the lobster industry stands to save $6.7 million.
Our province is well positioned to benefit from increased export opportunities to the EU’s 500 million consumers and their $17 trillion annual economic activity.
Similarly, the Canada-Korea Free Trade Agreement, which came into force at the beginning of this year, will create important new opportunities for your industry.
The trade agreement with South Korea is a landmark agreement that represents Canada’s first free trade agreement in the Asia-Pacific region and provides new access for your industry. It is projected to boost Canada’s economy by $1.7 billion annually and increase Canadian exports to South Korea by 32 percent.
Under the Canada-Korea Free Trade Agreement, all South Korean tariffs on fish and seafood products will be eliminated. You may have seen in the media recently that a cargo flight takes an average of 40,000 kilograms of live lobster from Halifax to Seoul every week.
The agreement with Korea is already showing results for our lobster industry –Canada’s most lucrative fishery.
Statistics for 2014 also showed a 14.7% growth of Canadian fish and seafood to China. While this is very impressive, I cannot say that I was surprised to hear that. I traveled to China this past summer, and I heard the same message from the many players in the industry: the only issue they have in China with Canadian fish and seafood is that they never have enough of it!
Talking to people on the wharves, at the market and at embassies, they all shared the same view of our products: world-class quality and safety. One thing I also heard, though, is that with this reputation comes the importance of identifying our products as being Canadian.
China imported US$8.4 billion worth of fish and seafood from around the world in 2013, an increase of 8.9% from 2012. China's supply of fish and seafood is very diversified and is imported from 113 countries. Canada was China's sixth-ranked supplying country with 4.8% of the market in 2013. That gives you a sense of the potential market it is.
As you all know, I live in Tignish. We of course think that our products are unique; just as you do about your own catches. But the fact is when we’re competing on the world stage, trying to reach out to a Chinese chef at a market in Shanghai, there is no way we can work in silos.
As much as we love our provinces and our communities, there is no way Tignish, Grand Manan, Malpeque, Fogo Island or Yarmouth can build brands that are powerful enough. We need to work together. There is a need for strong Canadian branding. I know that discussions are going on at various levels, and I’m hopeful they will lead to positive results.
On that note, you have probably read this story in the Guardian this morning. I would like to clarify that since this issue has been flagged to us for the first time a year ago, lots of progress has been made. We have solved the problem with our biggest lobster importer, which is France, as well as with Holland, Spain, Croatia and a couple of other ones.
Progress is still ongoing with other countries such as Sweden, Belgium and Germany. We are hopeful that a positive outcome is close. We are facing more serious issues with a handful of countries that, not to minimize it, are less significant importers of our products.
Lobster is Canada’s most valuable seafood export and I can assure you that our Government will continue to strongly advocate at every level so our exporters can brand their products as Canadian. I’ve always championed for the development of strong Canadian branding and will continue to do so.
Speaking of results, I would like to share great news with you tonight: we have just finalized our planning for this year’s investments in small craft harbours, and I am pleased to announce $16,3 million for projects on PEI.
This will come from our regular small craft harbour budget, but there is much more. In last year’s budget we announced an additional $40 million over two years.
And in November, our Prime Minister announced an additional $288 million to accelerate repair and maintenance work at small craft harbours across Canada, in order to provide fishermen on Canada’s waterways and coasts with safe and accessible facilities.
This $16.3 million funding for PEI small craft harbours is the highest amount ever announced.
That’s a large number, but as your Minister, I want the harbours you work out of to be up to date and safe, whether you fish out of Tignish, North Lake, Seacow Pond, Woods Island, Skinners Pond or North Rustico.
I took time this winter to visit several harbours to meet with our harbour authorities. First of all, let me thank you for all your hard work and dedication. All these investments I just mentioned demonstrate our Government’s commitment to support our fishermen.
Since 2006-2007, including today’s announcement, PEI small craft harbours will have received $60,4 million in funding from our Government. This is an accomplishment I am really proud of, and I will continue to ensure our Government makes these important investments.
Another measure that had a tremendous impact for your industry was the Atlantic Lobster Sustainability Measures Program and the Short-Term Transitional Measures Program.
Our Government has invested more than $65 million in the Atlantic lobster industry through these programs, including more than $11 million to PEI lobster organizations. As a result, the number of traps being fished by active fishermen decreased by roughly 10,000 and 68 licences were retired across the province, representing an additional 18,500 traps.
Given the uncertainty of these last few years, I’m proud our Government has been there for lobster fishermen and their families. The Atlantic Lobster Sustainability Measures program has reduced pressure on stocks and improved the viability of the industry for our lobster fishermen in PEI and across the rest of Atlantic Canada.
I am equally proud that our Government adopted several other measures that benefit our fishermen.
For example the $500,000 lifetime capital gains exemption became available in 2006 for capital gains arising from dispositions of qualified fishing property.
Subsequently, budget 2007 increased the Lifetime Capital Gains Exemption to $750,000 from $500,000, the first increase in the exemption since 1988. Last year we increased it to $800,000 from $750,000 and announced it would be indexed going forward.
We have also reduced the tax burden for fishermen by eliminating the tax liabilities when transferring assets and licenses to family members.
These positive measures will increase the rewards of investing in small business, by making it easier for owners to transfer their family businesses to the next generation of Canadians, including the next generation of fishermen.
And speaking of this next generation of fishermen, I would like to reiterate my long held commitment an independent inshore fleet. You are no doubt familiar with the policy on Preserving the Independence of the Inshore Fleet in Canada's Atlantic Fisheries, or PIIFCAF as we call it.
Small scale fisheries are the backbone of our coastal communities and this policy is designed to strengthen and protect that critical industry.
Recognizing the problems with controlling agreements, our Government created the PIIFCAF policy to ensure that the hard-working men and women of the inshore fisheries could enjoy the economic benefits of their labour. I remain committed to owner operator and fleet separation policies.
I want to thank again the representative of the PEIFA for this invitation. We have a productive and fruitful working relationship, I believe. The discussions on several topics are ongoing, and have led to concrete results for your members.
For example we approved some plans brought forward with regards to stacking, that allow our fishermen who would like to retire the opportunity to do so with fair compensation for their fleets, and in return will help those fishing enterprises that remain to become more viable by being able to fish more traps.
I look forward to continuing to work closely with you to ensure that the fishing industry and our coastal communities have a bright and prosperous future.
Thank you and please enjoy the evening.
