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I would like to begin
by thanking the organizers of Aquavision 2006 for their kind invitation
to open the session on capital nourishment here today. I commend you for
putting together a world class event.
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I would also like to thank
the Canadian Embassy in Oslo for their support in arranging this.
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Finally, I would like to
extend my thanks to Fisheries and Oceans Canada and the Atlantic Canada
Opportunities Agency for working with my department in preparing for
this event.
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It is certainly a pleasure
to be back in Norway. I had the opportunity to visit Norway when I
served as Minister of Fisheries for the Government of Newfoundland and
Labrador in the 1980s.
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I have visited many
countries throughout the world during my time in public life. Norway is
certainly one of the most distinctive and beautiful places I have
visited, with its unique landscapes and breathtaking views.
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Indeed, Norway has much in
common with my own country of Canada � and particularly my own province
of Newfoundland and Labrador.
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Both Norway and Canada have
strong ties to the sea. We share a cultural heritage that is rooted in
the exploration and development of the rich resources of the ocean. This
is demonstrated through our respective development of sectors such as
offshore oil and gas, fisheries and, of course, aquaculture.
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This brings me to the reason
we are all here today. I have said many times when speaking in Canada
that aquaculture is an idea whose time has come.
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Most telling is the recent
report from the Food and Agriculture Organization of the United Nations.
This report indicates that aquaculture production, as percentage of all
fish and seafood destined for human consumption has increased from 8 to
43% over the last 25 years. In fact, aquaculture will soon overtake the
commercial fishing industry in this regard.
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Of course, aquaculture is an
idea which has flourished in Norway. Truly, Norway is a global leader in
this sector.
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I understand that Norway�s
Aquaculture industry produced over 650 thousand metric tones in 2005,
making your industry worth $2.1 billion US. I also understand there were
over 2300 active aquaculture licenses in your country during the same
period.
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Perhaps the most telling
thing about the Norwegian aquaculture sector is that it has been widely
supported by both government and the business community.
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In fact, the winning
conditions for sustainable aquaculture in Norway are something which the
rest of the world should aspire to.
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On behalf of the Canadian
aquaculture industry, I commend Minister Pedersen for launching a new
aquaculture registry earlier this year.
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It is absolutely critical
that we as governments track developments in the aquaculture industry in
order to provide access to information on licenses, financial
information and important decisions that are made in relation to the
industry.
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This is exactly the kind of
information that can help governments to ensure the right conditions for
a healthy aquaculture sector, leading to greater private investment.
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As Canada continues to
develop our aquaculture sector, we look to Norway for lessons learned.
There is much potential for further aquaculture development in Canada.
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Our country has many
positive attributes that can facilitate the development of aquaculture.
We are bordered by the Atlantic, Pacific and Artic Oceans, as well as
the Great Lakes and have an abundance of fresh water throughout our vast
nation.
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We have with us here today
some of my municipal level colleagues from the west coast of Canada
where the aquaculture sector has a strong presence.
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Canada is located next door
to one of the world�s largest seafood markets � the United States of
America. Eastern Canada is strategically located between the two major
markets of both the United States and Europe, while our western
provinces enjoy access to the Asian market.
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Preliminary figures indicate
that the total value of Canadian aquaculture exports in 2005 was $460
million US. This represents an increase of over 20% from 2004 when the
value of Canadian Aquaculture exports was $389 million US.
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I note that the theme of
this year�s conference is Oceans of opportunity � Strategies for
sustainable aquaculture.
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An important element of any
strategy is science. With Canada�s strong science capacity, we are
making important contributions to the understanding of
aquaculture-environment interactions. This informs our decision-making.
Science is also making important advances in cages, feeding, genomics,
and fish health technologies.
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In fact, in 2005, Canada
launched a new National Aquatic Animal Health Program which integrates
marine ecosystem science with veterinary practices.
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In June of this year, I had
the opportunity to visit the integrated aquaculture research facility at
St. Andrew�s Biological Station, in New Brunswick. It is truly a world
class research facility for aquaculture development and I strongly
encourage all of you to visit if you have the opportunity.
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Scientists at the station
have adopted a multi-disciplinary approach to aquaculture research that
is intended to enhance the economic and environmental sustainability of
the Canadian aquaculture industry.
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Also in St. Andrew�s,
government and academic institutions have come together to carry out a
$3.3 million program in Halibut aquaculture research.
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Canadian Halibut Inc., along
with its partners in government and academia will undertake a research
project to determine the viability of raising halibut in an aquaculture
environment in Canada.
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In my own province of
Newfoundland and Labrador, ninety percent of our potential aquaculture
sites are available for development. We are actively pursuing
aquaculture development as a key component of our economic plan for the
future of the province.
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To that end, we are becoming
competitive in the science of farming cod. Our government has committed
$2 million to take the next step to commercialize cod aquaculture
through the creation of a commercial-scale cod demonstration farm.
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Capital nourishment and
investment attraction are also key components of Canada�s renewed
commitment to aquaculture. In 2005, the Canadian Council of Fisheries
and Aquaculture Ministers committed to developing a harmonized,
streamlined and effective governance structure for aquaculture in
Canada.
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It is our hope that a
revitalized and effective regulatory structure will improve the access
to sites and see development of aquaculture in Canada, as well as
provide industry with a climate to attract new investment and expand
their business.
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In Newfoundland and
Labrador, our 2006 budget introduced a new Aquaculture Capital Incentive
Program. This program was designed to address the lack of investment
capital in the sector.
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The purpose of this fund
will be to attract new investment, expand existing operations and see
more rapid economic development benefits from aquaculture development.
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While the world demand for
seafood continues to rise, limits to the sustainable exploration of wild
stocks have been reached and exceeded.
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In some cases, we have
reached a point where once immense fisheries stocks have been brought to
the brink of extinction. In my own province, we have been dealing with
the impacts of a cod moratorium since 1992. It has been simply
devastating for our rural economies.
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In addition to the pressure
on wild stocks, many areas are facing overcapacity in the processing
sector. This is particularly true in the modern global environment as
seafood processing work shifts to low-cost producing regions.
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The additional seafood
products needed to best utilize these processing facilities can come
from aquaculture development.
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As the world continues to
urbanize and employment opportunities move to the cities, aquaculture
stands as a shining star among the sectors that can create year-round
employment in rural regions.
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Attracting investment is
critical to the development and expansion of the sector, and the future
of many coastal communities.
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The theme of this session
today is Capital Nourishment � Financing the world�s fastest growing
food sector.
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Aquaculture is expanding
every day in many regions throughout the world, providing year round
availability of high quality seafood to the plates of consumers across
the globe.
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But in a world where
business opportunities abound, how do governments and the aquaculture
sector attract capital? What conditions do we need to create in order to
attract investment? Furthermore, how do we address concerns regarding
farmed seafood products and the methods for producing them?
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These are the challenges we
all face as we move forward in this sector.
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The world is a smaller place
than ever before. The Internet provides instant access to information
and opportunities. Investors are more sophisticated and informed, and
capital is more mobile.
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People have the ability to
invest in countless companies across the globe, at any time, in any
industry.
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These modern global
realities make it all the more import to address the challenges if
aquaculture is going to be the industry of choice for investors.
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Therefore, we must work to
make it easier for capital to move across international lines swiftly,
with ease, both within and to the aquaculture sector.
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We must also ensure that
investors are achieving attractive returns so that aquaculture will be
the sector of choice for future investment decisions.
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Governments must create
smart regulatory environments that better integrate industry practices
and codes that respond appropriately to both good and poor industry
performance.
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Industry must continue to
invest in science and integrate that new knowledge into its operations.
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Everyone in this rooms knows
the potential that aquaculture holds for the future. Now we must
communicate that message to the world. Everyone working in aquaculture,
be they in industry or government, has a responsibility to be an
ambassador for this sector.
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Aquaculture has faced its
share of criticism, both fair and false. As a sector we have made
exceptional strides in addressing these issues.
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Yet we have not been very
good at getting this message out. On too many occasions we hear decades
old arguments against aquaculture but we do not hear about the solutions
which have been implemented to address those old problems.
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Working to inspire investor
confidence demands that we let the public know, on a proactive basis,
that solutions have been found. Together we need to make investors aware
that our industry and regulatory frameworks are effective, efficient,
stable and responsible.
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In truth, the world is
changing in terms of how people purchase and consume food. The global
demand for healthy, year round sources of protein is growing as the
world becomes more aware of the need for good nutrition.
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The demand for seafood
outstrips the ocean�s ability to meet this demand. We need both a
sustainable wild harvest and sustainable aquaculture to meet this
demand.
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As human beings, we mastered
the ability to farm beef, chicken, pork, vegetables and grains thousands
of years ago. Today, farming the seas is an idea whose time has come. Is
it not our responsibility to get this message out to potential
investors?
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And with that, I call upon
the first speaker.