SPEAKING NOTES
HON. TREVOR TAYLOR
MINISTER OF FISHERIES AND AQUACULTURE
GOVERNMENT OF NEWFOUNDLAND AND LABRADOR


Banquet Address
Aquaculture Canada Conference 2005
�Navigating Forward: New Directions for Food Safety, Quality and Social Diversification�

Delta Hotel and Conference Centre
Tuesday July 5, 7 p.m.

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Contact: Tracy Barron, Director of Communications
(709) 729-3733 or 690-6157
tracy.barron@gov.nl.ca

INTRODUCTION
On behalf of the Government of Newfoundland and Labrador, it is my pleasure to welcome you to the province for the Aquaculture Canada Conference 2005. The Department of Fisheries and Aquaculture is proud to be a co-sponsor of this event together with our industry partners, the Newfoundland Aquaculture Industry Association and the Aquaculture Association of Canada.

We believe the province is a great location for the conference, as we are the last remaining area in Eastern Canada with quality, accessible aquaculture sites to develop. I appreciate the opportunity to speak tonight about our province�s commitment to the continued development and investment in our growing aquaculture industry.

Great potential exists for development and investment in aquaculture in this province. Aquaculture is the future of many of our rural communities struggling to pick up the pieces and diversify in the wake of the collapse of the wild fishery.

The theme of this year�s conference, �Navigating Forward: New Directions for Food Safety, Quality and Social Diversification� is appropriate at this stage of the development of the aquaculture industry. As a people whose history, culture and daily lives are influenced by the water, we, in this province, see aquaculture as the natural progression in our social and economic development. Through continued development of aquaculture, we are positioning ourselves to maintain our reputation in the world marketplace as a supplier of high quality seafood, as well as providing new opportunities for our coastal communities.

Earning a living from the sea is an integral part of our history in this province. The economic engine of the province has been the fishery for over 500 years. The ocean is and remains our greatest resource. We are now challenged to find a way to maintain economic development from the sea. Our coastal communities need new sources of raw material.

Aquaculture offers the main prospect of filling the market gap for seafood being experienced around the world by the decline of wild species, while at the same time being a significant contributor to the economy of coastal regions. As a government, we have taken the next logical step to actively promote environmentally-sustainable aquaculture as a real opportunity for economic diversification.

We have the site capacity to become the largest producer of aquaculture products in Canada, bringing related economic activity to dozens of communities along our coasts.

When we took over the provincial government in 2003, we committed to facilitating the expansion of profitable and sustainable aquaculture enterprises in the province. We committed to supporting scientific research to identify new locations, develop technologies and cultivate strong, healthy stocks so industry can produce better quality products and receive better market returns. We committed to programs to promote long-term capital venture investments in aquaculture enterprises, and to developing high levels of skills and knowledge in the technical, business and marketing aspects of the industry.

INVESTMENT AND INFRASTRUCTURE
We know the potential that exists for aquaculture. We are working with industry to identify the priority areas for investment and research and seeking ways to ensure what must be done is done to develop sustainable aquaculture industries in our rural communities.

We recognize that the greatest challenge facing the development of the industry is access to working capital. Feed comprises seventy per cent of the operating costs of finfish operations. That upfront long-term capital investment is required to grow the product and get it into the marketplace where that investment will ultimately pay off. Industry needs access to financing at reasonable rates. That�s why last fall we announced the Working Capital Loan Guarantee Initiative designed to enable industry to access quality feed at competitive prices.

We know that modern infrastructure is a vital component of any marine industry. If this sector is to expand, dedicated aquaculture infrastructure such as wharves is required. The Coast of Bays Corporation and the Newfoundland Salmonid Growers Association are working on developing an infrastructure study that will identify specific infrastructure needs in their region. Similar needs are being identified in our mussel sector. We are committed to working with industry, communities and the federal government to address the infrastructure needs of the industry.

ONE-STOP LICENSING PROCESS
Our one-stop licensing process is the envy of other jurisdictions. We have the most efficient process in the country to access aquaculture site approvals. We work with 18 federal and provincial agencies whose approvals are required to obtain an aquaculture site and license. The turnaround time from submission to finalization is six to 12 months, providing all the adequate information has been provided.
This system works because we have a well-developed working relationship with the other federal and provincial departments involved in the licensing and approval process. Our licensing system has the necessary flexibility to respond to the needs of the growing industry, while at the same time ensuring the detailed requirements of the review are met.

RESEARCH AND EXPERTISE
Our department is the lead agency for aquaculture in the province. Our mission is to support and promote the development of sustainable and viable fishing and aquaculture industries, and to ensure high quality and high value products. We do this by providing programs and services in the areas of fisheries and aquaculture development, quality assurance, processing, aquaculture capacity management and information services.

The Aquaculture Branch of the Department of Fisheries and Aquaculture provides technical scientific, policy and regulatory support to the provincial aquaculture industry. Satellite offices in St. Alban�s and Corner Brook provide departmental staff at the industry�s doorstep.

We work with the federal government and the scientific community to ensure the industry and the private sector has the research and expertise required to develop and grow a sustainable industry. We have some of the highest quality research capability in the world.

The Fisheries and Marine Institute of Newfoundland and Labrador, the Ocean Science Centre, the Canadian Centre for Fisheries Innovation and the Centre for Aquaculture and Seafood Development all provide invaluable research and skills training to our industry and they have been integral to the development of aquaculture in the province.

The researchers who work out of these facilities are internationally recognized.

THE PROVINCIAL EXPERIENCE
Aquaculture has been a commercial industry in this province since 1985. We focus predominantly on four commercial species that were identified in the 2000 Strategic Aquaculture Plan for Newfoundland and Labrador as having the best opportunity for commercial development � Blue Mussels, Atlantic Salmon, Steelhead Trout and Atlantic Cod. The plan, driven by the Newfoundland Aquaculture Industry Association in conjunction with both levels of government, remains the blueprint for the development of aquaculture in the province. This plan is now in its fifth year and we are in the process of consulting with industry on reviewing it to ensure it is still relevant to our evolving industry.

Aquaculture in this province is growing. The total industry value in 2004 was $22 million. This is an impressive increase of 38 per cent over the year before. Total industry production increased by 44 per cent, to just over 5,600 tonnes. Blue Mussel production increased by 77 per cent. Salmonid production increased by 28 per cent.

Our Investment Prospecting Initiative has been successful in raising the profile of our salmonid sector and attracting investment from outside the province.

We currently have two hatcheries producing fish for this sector. The department recently released an assessment report outlining the freshwater resources available for salmonid to assist investors to evaluate future sites.

We currently have 4,700 hectares of water licensed for aquaculture activity around our shores with Blue Mussel production accounting for 76 per cent of this area.

We are already producing a quality product with our Blue Mussels and this quality is recognized in the market place. Industry is working actively toward establishing European markets, which are predicted to stay strong over the next few years.

We have 35,000 hectares of water available for new aquaculture development. This area can produce over 70,000 tonnes of mussels and 50,000 tonnes of finfish.

Our government has funded a case analysis for cod aquaculture in the province with recommendations for the next stage of this industry�s development. The findings were released here yesterday during the International Cod Forum.

As a government, we have committed to moving forward on cod aquaculture development and we challenge the federal government to get involved by committing financial resources to moving the alternative species file forward, which, in our case, involves cod.

The development of alternative species is needed in order for Canada to broaden the species produced here and continue to compete in global markets. For example, the United States is about to review the international trade tariffs on Norwegian farmed salmon. If this tariff is lifted, it will be more difficult for Canadian products to compete unless we are able to make our production more cost-competitive and provide a wider range of aquaculture products.

We need the federal government to become proactive on this file to ensure we continue to be a player in the global market.

I believe I made it very clear that Government of Newfoundland and Labrador is committed to the development of aquaculture and that we are open for business. We want to see an Aquaculture Framework Agreement similar to what exists for the agriculture industry that will provide business risk management, technological and research supports to help the industry grow. This framework agreement is crucial to the future development of the industry and we will work with the Canadian Council of Fisheries and Aquaculture Ministers to ensure it becomes a reality as soon as possible.

Our department recently participated in a task force initiative on fostering a sustainable salmon farming industry in the Atlantic region with two other provinces. The task force put forth recommendations to the federal minister in April that were designed to deal with the broad issues impeding salmon aquaculture industry growth in Atlantic Canada.

We would hope that the federal government would implement all of the recommendations in this report for the benefit of this industry. The serious challenges faced by the salmonid industry in Atlantic Canada since 2002 have resulted in losses in the millions of dollars. The impact is similar in scope to the BSC crisis in Canada�s cattle industry in 2003, which resulted in the federal government committing over 1-billion dollars in aid to the cattle industry. We would be extremely concerned if the federal approach to the task force report was different than the approach to the cattle industry. Like land-based farmers, the salmonid industry has to contend with market conditions and losses caused by disease and adverse weather.

They should have access to the same safety-net programs to provide relief from losses to ensure the continued viability of the industry. We feel it would be unfair for the federal government to focus on only one of the issues identified in this industry and ignore the cumulative affect of all of the problems that have severely eroded the equity position of Atlantic Canada aquaculture companies.

We would certainly recommend that the federal minister implement all of the recommendations in the report. We will continue to work with the other regions, industry and the federal government on the continued development and sustainability of this industry for the benefit of our coastal communities and economies.

CONCLUSION
Since 2003, the Aquaculture Branch has been actively promoting this province at a variety of national and international trade shows through the Investment Prospecting Initiative.

This has resulted in new Canadian and Norwegian investment into this province. The development and implementation of sustainable aquaculture strategies, such as single year class and single species sites, will ensure an environmentally-sustainable industry for this province.

I have visited shellfish and finfish aquaculture sites in the province and met some of the people who are creating new economic and employment opportunities in rural communities. One of the hallmarks of the aquaculture industry is that these are young, innovative people employing others in their own region to ensure the future and sustainability of their communities. Creating jobs and new economic opportunities in our rural areas is what real economic development is all about.

We have the potential and the capacity to be a major player in domestic and international markets. As a government, we are supporting and promoting the opportunities in this industry.

I want to leave you with a clear overview of the aquaculture climate in this province. We have the last remaining available water space for new aquaculture development in Atlantic Canada. We have the most user-friendly licensing regime in the world. We are in close proximity to markets in the United States and Europe. We have the Working Capital Loan Guarantee Initiative to assist companies to access feed financing. We are committed to seeing cod aquaculture move forward. We have a completed study on the state of cod aquaculture in the province with recommendations for its development to assist industry and investors.

The potential and opportunities exist here for a viable and environmentally-sustainable industry. If you are in the aquaculture industry or the investment community and you want a place to do business, look no further than Newfoundland and Labrador. Thank you.