July 27, 1998
(Fisheries and Aquaculture)

Efford responds to Crosbie's remarks

Minister of Fisheries and Aquaculture John Efford is angered by recent remarks made by John Crosbie regarding the fishing industry of this province. Mr. Crosbie has publicly stated on a number of occasions that the Government of Newfoundland and Labrador has done nothing to change its approach to this province's fishing industry, especially its processing capacity.

Mr. Efford counters Crosbie's remark. "John Crosbie is wrong when he states that we have not changed our approach to this province's fishery industry. He is correct when he says that the fish processing capacity in this province is greater than it needs to be, but he is wrong when he says that the present government has done nothing to change it. His statement ignores all the work and the consultation that has occurred over the past two years. I remind Mr. Crosbie that it was during the period of the provincial and federal Conservative administrations that the number of fish processing plants increased dramatically. In 1975, there were only 95 licenced fish plants in Newfoundland and Labrador, which jumped to 145 plants in 1977."

Mr. Efford says that his department implemented new licencing policies last year to promote greater viability in the fish processing sector. "We changed the province's licencing policies in 1997, in order to focus on core, multi-species plants," says Mr. Efford. "This means that companies have a greater capacity to process a wider variety of species, and can be more viable and competitive in the marketplace," he explains. "These licencing policies also allow for greater stability in the industry and a regional balance in processing capability throughout the province."

Since 1991, the number of plants has been reduced from 238 to 188 of which 152 are actually licenced to process fish in 1998. Furthermore, the new licencing policy stipulates that if a processing plant does not process any fish over a two-year period, the licence can be revoked, which could have a significant impact on reducing the number of processing plants in this province. The number of fish buyers' licences issued has also been dramatically reduced. Mr. Efford said: "In 1996, when I came into office, there where 135 buyers licences issued. There are now only 55 licences issued - a reduction of 60 per cent."

Mr. Efford points out that the Conservative government at both the provincial and federal levels, spent millions of dollars of tax payers in building fish plants around this province. "Since the present government has been in power, we have stopped government subsidization of the fishing industry and focussed our spending on fisheries development and diversification opportunities," says Mr. Efford. "The fishing industry of Newfoundland and Labrador is now a private sector-driven industry." He added that this government has privatized many of its fisheries-related assets such as ice-making facilities, marine service centres, and community fisheries infrastructure.

Rather than force plants to close, government has worked with their owners to make the best use of their capacity to make them more viable. There has been much fisheries development work done to diversify the fishing industry including work with shrimp, sea urchins, seals, whelk, Icelandic scallops, and seaweed.

"The value of the fishery has increased dramatically since the cod moratorium from $400 million in 1992 to more than $575 million last year, and is still growing," Mr. Efford says. "Last year, the fishing industry employed approximately 20,800 people in this province."

Mr. Efford says that since he has been minister, his department is leading the way in quality enhancement initiatives. "We have expanded our inspection capability, and we have put new regulations in place for proper fish handling, storage, and transportation. This will help ensure that we are world leaders in the production of top quality seafood products," Mr. Efford says. He also indicates that Newfoundland and Labrador is the first province in Canada to recognize fishing as a profession and set up the Fish Harvesters' Certification Board, where to date, approximately 16,000 harvesters have been certified.

"Government is working to change the province's approach to the industry," Mr. Efford says. "We want to increase the viability of the industry and to maximize its contribution to the provincial economy. This means cooperating with the federal government and industry to make the necessary adjustments in harvesting and processing capacity," Efford says. "At the same time, we will continue to make investments in developing new species, new products (increased value-added products), and new markets. Change does not happen overnight, but significant progress has been made."

Contact: Josephine Cheeseman, Communications, (709) 729-3733.

1998 07 27                   3:10 p.m.