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Good evening members of NAIA,
officials representing the Government of Canada, ladies and gentlemen,
invited guests from around the globe.
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I would like to begin by
extending my sincere appreciation to NAIA�s Executive Director, Mr. Mike
Rose, for your kind invitation to attend this very important banquet and
speak to you on behalf of the Government of Newfoundland and Labrador.
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I would also like to take
this opportunity to congratulate the outgoing President, Joan
Strickland, and welcome the incoming President, Cyr Cotourier. And
congratulations to all other members of the outgoing and incoming Board
of Directors.
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This represents my first
opportunity to provide a keynote address to the aquaculture industry
since returning to my current portfolio five months ago and it is truly
a pleasure to be here.
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In fact, it is always a
pleasure to have the opportunity to interact with members of the
aquaculture industry in Newfoundland and Labrador, and particularly with
the members of NAIA. Your organization does a tremendous job in
representing the provincial aquaculture sector and our government
applauds your efforts.
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Your association made a
tremendous contribution to this province�s presence at the International
Boston Seafood Show a couple of weeks ago. We all know how important
global trade shows are in raising the profile of our province�s
aquaculture products in the global marketplace and my department was
pleased that many of your members were able to participate in those
events.
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Some even donated seafood
products that were featured at our provincial reception. These included
Ocean Choice International Inc., Badger Bay Mussel Farms Limited and
Marine Farms Marketing Limited.
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As I am sure you know, the
provincial government�s reception is a highlight of the show every year
and it would not be possible without the contribution made by our
province�s seafood producers.
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Unfortunately, the Premier
could not be here this evening. On his behalf, I wish to extend the best
wishes of the Government of Newfoundland and Labrador and extend our
congratulations to NAIA on organizing another successful AGM.
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As you are all aware, our
government has faced a number of challenges since taking office over two
years ago, and many of those challenges have been in the seafood sector.
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However, as the Premier
pointed out in his response to this year�s Speech from the Throne, our
government has been addressing the challenges we face by developing good
strategy and that is what we will do in addressing the current
challenges we face in the fishery.
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I am pleased to tell you
here tonight that aquaculture development will be a key component of
that strategic approach.
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Other areas where government
has taken this type of strategic approach have yielded very significant
results.
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An additional $2 billion has
been added to the provincial treasury through the Atlantic Accord
agreement that our Premier and government worked so strategically to
attain.
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Our government has also made
great progress on the development of the Lower Churchill and now we have
a number of options available to us for the development of that
incredible resource.
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Now our government will use
good strategy to ensure this resource is developed in a manner that will
be most beneficial to Newfoundlanders and Labradorians.
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Other important achievements
include the start of the construction of a cancer clinic at Grand
Falls-Windsor and long-term care facilities at Corner Brook and
Clarenville.
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Government�s new commitment
to Education, as indicated in the Speech from the Throne, is certainly
something that we are extremely proud of. As part of Budget 2006, $5.6
million will be put toward education initiatives to keep teachers in the
system and ensure a bright future for our province through a well
educated workforce.
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Our government has made
tremendous progress on finishing the Trans Labrador Highway. And this
highway, along with many others in the province, has been added to the
National Highway System. In fact, while I was Minister of Transportation
and Works, we more than doubled the amount of highway included in this
system, which qualifies these roads for access to federal funding for
repairs and upgrades.
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An improved roads network
will be particularly beneficial for the fisheries and aquaculture
sectors, as much of our province�s seafood products and supplies
frequently travel these roads.
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In the Department of
Fisheries and Aquaculture, our government has implemented many of the
recommendations of the Dunne Report. This has made tremendous
improvements to our fish licensing policies and enforcement measures. It
will also help to ensure that all regulations are adhered to and will go
a long way toward stabilizing the industry.
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Our government also took the
initiative to implement a Fish Processing Licensing Board. The need for
this board has been identified for decades, and it was this government
that brought it to fruition.
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Our government has made
substantial improvements to our fishery quality assurance program. This
will go a long way in cementing this province�s reputation in the global
marketplace as a producer of quality seafood. This should facilitate the
sale of our product in the future and ensure we get the best price
possible for those products.
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Following the Cashin Report,
our government made changes to the Fishing Industry Collective
Bargaining Act that will provide the industry with a much needed
legislative framework and bring stability to the industry by
facilitating a timely start to annual fisheries.
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Key among the changes in
that legislation was the implementation of a special fish price setting
panel. Members of the panel have been appointed and are in place to
provide support to the industry leading into the 2006 fishing season.
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In this year�s Budget, an
additional $100,000 has been allocated for the marketing of this
province�s seafood products through further participation in
international trade shows. This will build on our efforts to ensure that
our seafood products are at the forefront of the global marketplace,
including aquaculture products. Effectively promoting our province�s
seafood products is a critical component of obtaining the best price
possible for our province�s seafood products in the global marketplace.
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Now to the specific business
of the aquaculture sector.
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Recognizing the potential
aquaculture has in this province, our government has increased the
support for aquaculture development over the past two years,
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In Budget 2005, our
government invested $130,000 in the Aquaculture Technology Program. This
program has been very successful in assisting companies to evaluate,
develop and adopt new technologies that reduce production costs, improve
efficiencies and increase product quality.
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Also in Budget 2005, we
invested $25,000 in the Human Resource Development Program, which
assists companies in upgrading the knowledge and skills base of
employees.
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In Budget 2005, our
government invested $25,000 in the Marketing and Intelligence Program,
which assists aquaculture companies with investigating specific areas of
opportunity for aquaculture products or can assist a company to develop
products and the marketing approach to explore the opportunities.
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One accomplishment that we
are particularly proud of is the establishment of the Aquaculture
Working Capital Loan Guarantee Initiative for the salmonid sector in
2004. Everyone recognizes that capital is required to get businesses
moving, and if we are to further promote this industry, new investment
is required.
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With this in mind, we
implemented this program to improve the salmonid aquaculture industry�s
ability to engage financial institutions in providing working capital
for investment. This has enabled us to make great strides in attracting
new investment.
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The importance of
aquaculture to the future of the fishery and the future of rural
Newfoundland and Labrador is one aspect of my department that has
certainly changed since I last served as Minister of Fisheries. It has
increased considerably in the past twenty years and I anticipate it will
continue to grow in the future.
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Even the name of the
department has changed. When I was minister in the 1980s, my official
title was Minister of Fisheries. Now I am Minister of Fisheries and
Aquaculture. This demonstrates the recognition that has come to the
aquaculture sector and I anticipate that its recognition will continue
to grow as well.
� I was minister when the aquaculture branch was established within the
Department of Fisheries and Aquaculture. Furthermore, I was the minister
who introduced the Aquaculture Act into the House of Assembly in 1987.
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Unfortunately, however, I
don�t think it�s any secret that since the last time I served in this
capacity our fishery has fallen on hard times, and rural Newfoundland
and Labrador is certainly facing a number of challenges. But our
government has no intention of throwing up our hands on either the
fishery or rural Newfoundland and Labrador.
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This is not a time for
people who say no solutions can be found. This is a turning point in our
history as a people and it is a time for people who know that solutions
can be found and people who will go out and find them.
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Solutions will be found
because Newfoundlanders and Labradorians are a resilient people who have
always found a way to persevere.
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Since returning to the
department, I have said many times that the fishery is in crisis.
However, did you know that in Chinese, the word for crisis and the word
for opportunity are the same word?
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You have probably heard me
say by now that in this province we have enough processing capacity to
process four to five times the total world crab landings. It doesn�t
take a genius to determine that this is not a sustainable situation.
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You have to ask the
question, where is the raw material going to come from to keep these
fish processing facilities going? Well, can�t more of it come from
aquaculture?
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The sustainability of the
aquaculture sector has certainly been demonstrated in Newfoundland and
Labrador. For instance, the St. Alban�s region has become a major centre
for aquaculture, with facilities that have produced aquaculture products
year round.
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Some might say that it is in
this region where fish growing began provincially. Aquaculture activity
in this community has kept over 200 individuals employed. Without
question, the success story of St. Alban�s illustrates the true
potential of this industry in our province, and bodes well for other
areas of rural Newfoundland and Labrador.
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Indeed, many of rural
Newfoundland and Labrador�s opportunities lie in aquaculture
development. As you in the sector know, it is almost impossible to put
into words how much potential aquaculture development holds in this
province.
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As this audience knows,
aquaculture is the best kept secret in this province. It represents the
most under-utilized of opportunities for rural Newfoundland and
Labrador. Did you know that our province has the capacity to become the
largest producer of aquaculture products in Canada?
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Newfoundland and Labrador
has some of the only remaining sites suitable for aquaculture
development in Eastern Canada. Less than 10 per cent of our province�s
aquaculture space is currently being utilized.
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Aquaculture development
represents numerous employment opportunities. In fact, it has been
determined that, in other jurisdictions, each job on a fish farm
provides an additional 4 to 5 jobs in aquaculture processing, supply and
service sectors.
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Aquaculture has been a key
part of government�s strategy in stabilizing areas of the province that
are currently facing difficult circumstances in the fishery. For
example, we have engaged in discussions with Cooke Aquaculture of New
Brunswick which has shown much interest in using the facility in Fortune
for aquaculture purposes. And I am sure you have all heard that the
Barry Group has great plans for the Connaigre Peninsula and a major part
of that plan involves aquaculture.
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Our government will support
this development in every way we can.
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Our government places
particular emphasis on the aquaculture industry and the potential it has
to become the flagship growth sector in this province.
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And since returning to the
Fisheries and Aquaculture portfolio, I personally have placed particular
emphasis on it.
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I am extremely pleased to
tell you here this evening on Budget day, that our government will be
investing greatly in the aquaculture sector as we move forward in our
mandate.
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I am pleased to say that my
department�s budget sees a very significant increase in the funding that
is allocated for the aquaculture sector.
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In fact, Budget 2006
allocates a full $5.94 million for aquaculture. This represents an
increase of approximately 230 per cent over Budget 2005. Let me repeat
that. Budget 2006 will see a 230 per cent in the budget for aquaculture.
This is by all measures a significantly increased investment.
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Investment in aquaculture is
certainly one of the highlights of this year�s Budget.
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Our government wanted to
ensure that this sector is given the support it needs to effectively
mature.
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The three key elements of
the aquaculture growth strategy are a new Aquaculture Capital Investment
Program, an enhanced aquaculture industry support initiative, and
establishment of a cod aquaculture demonstration farm.
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While the Budget speech was
presented today, I am pleased to announce for the first time here
tonight that a grand total of $180,000 in new funding has been allocated
in Budget 2006 for our Aquaculture Technology Program, Human Resource
Development Program, Marketing and Intelligence Program and for
Investment Prospecting.
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As well, all monies
allocated under each program in 2005-06 by our government will be
continued, which provides a total of $410,000 for these programs in the
coming fiscal year.
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Our government recognizes
that cod is developing as a major farm species in the North Atlantic. It
is a high priority in Newfoundland and Labrador and has a significant
level of potential for rural communities in this province. We have the
technology, expertise and the right biophysical conditions to take
advantage of this opportunity, and government will do everything
possible to assist in furthering its development.
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To that end, we have already
provided funding to your association for a review of the
commercialization of cod aquaculture and to develop a business plan for
a commercial-scale cod aquaculture demonstration farm.
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And as I mentioned
previously, we all believe that Newfoundland and Labrador has many
competitive advantages to make us an international leader in cod
aquaculture. This is the time now when we must take the next step to
commercialize the industry through the establishment of a demonstration
farm.
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As you may have already
heard, government is investing $500,000 in Budget 2006 to help further
the progression of this initiative.
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However, I am here to tell
you that in addition to this $500,000 in Budget 2006, government will
match this investment over the next three years, for a total of $2
million toward this initiative. And you can be assured that we will be
pursuing the federal government as well as industry in securing a
commitment from each of those parties.
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This is your opportunity as
an industry to participate in the growth of the aquaculture sector and
our government is very hopeful that you will take us up on this
incredible opportunity.
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And I am sure that your
association will be very enthusiastic about taking this potential and
turning it into reality.
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As well, the need to proceed
with the establishment of an Aquaculture Framework Agreement was
addressed. This shows the importance that our government has placed on
cod aquaculture and the aquaculture industry in general.
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This was also discussed by
the Atlantic Council of Fisheries and Aquaculture Ministers during
meetings in St. John�s last week.
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Furthermore, the Premier has
promoted this initiative at the national level by including it as a high
priority in his letter to the three federal party leaders prior to the
election.
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I am also pleased to
announce for the first time that government, through the Department of
Innovation, Trade and Rural Development, is supporting the Cod Genomics
Program, with a $500,000 investment. While this is not specifically
coming out of Budget 2006, it is a component of government�s new
innovation strategy for the province.
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This program will establish
Atlantic Canada as a world leader in cod genomics, and the application
of genomics technologies to aquaculture. It will bring about very
significant economic benefits to the entire region, including the
province the Newfoundland and Labrador.
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I am particularly pleased to
say that in recognition of the fact that new capital investment is
required to further progress the aquaculture industry, the Department of
Fisheries and Aquaculture is establishing an Aquaculture Capital Equity
Investment Program in Budget 2006 to encourage the development of
aquaculture in Newfoundland and Labrador.
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Under this program, a grand
total of $10 million, which includes $3.5 million in Budget 2006, will
be provided over three years and will be provided to aquaculture
companies farming mussels and/or finfish species.
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This program will assist in
increasing production of commercial aquaculture products in the
province, thereby increasing employment and spin-off opportunities in
the processing, manufacturing, supply and service sectors. Indeed, it
will generate employment opportunities in rural Newfoundland and
Labrador.
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In fact, the program will
add approximately 150 full-time jobs to the industry within the next two
years.
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The program will provide a
matching equity investment in new and existing farm operations. This
will increase existing production and support the establishment of new
operations.
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This equity investment will
enable the purchase of equipment and other capital assets to boost
production capacity and enable rapid expansion of the industry.
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Government committed in our
Bluebook that we would implement incentives to promote long-term venture
capital investments in aquaculture enterprises. This program certainly
meets that commitment.
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Our government understands
that capital investment is required, and we are here to work with NAIA
to further the development of the industry.
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To that end, based on the
tremendous efforts of your association, I am very pleased to announce
that of the $180,000 in new funding for aquaculture programs in Budget
2006, $25,000 has been allocated for NAIA to further your efforts and
develop any new initiatives you wish to pursue.
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I said earlier that less
than 10 per cent of our province�s aquaculture space is currently being
utilized. I am here to tell you tonight that we want to see all of it
being utilized, and our government will work with you all to take full
advantage of the opportunity that lies before us.
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We will do this by
effectively promoting what makes Newfoundland and Labrador a good place
for aquaculture development and showing the aquaculture sector
throughout the world that we have the cleanest waters in the world for
engaging in aquaculture activities.
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And together, we will make
the right choices for the betterment of this industry and the future of
Newfoundland and Labrador.
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This is my department�s plan
for the future of the aquaculture sector in the province. We believe it
is a good plan and an important plan. We look forward to working with
industry and our federal partners to implement it.
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I again thank Mr. Mike Rose
and all members of NAIA for the invitation to speak here this evening. I
look forward to further interactions with you all as the conference
proceeds and as we proceed to maximize this industry�s full potential.
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And I would be remiss if I
didn�t recognize the officials in the aquaculture branch of my
department for their efforts. Some of them are here this evening. They
all work very diligently and are very much passionate about the
aquaculture sector.
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And I look forward to
presenting the Aquaculturist of the Year Award a little later this
evening. And I commend NAIA for sponsoring this award to honour those
who have committed so much to this industry that is so vital to the
future of Newfoundland and Labrador.
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Congratulations on another
successful Annual General Meeting and I wish you all the best in 2006
and beyond.
