Question Period Note: DFO Maritimes Region Administrative Review

Based on the results of a recent licence review, why is the Minister not upholding the regulations that aim to strengthen the independence of inshore harvesters while ensuring the economic benefits of fishing stay with them and their communities?

• Fisheries and Oceans Canada (DFO) is taking steps to implement the inshore regulations, which were introduced to help ensure that inshore licences remain in the hands of independent fish harvesters in Atlantic Canada.
• DFO Maritimes Region recently completed a targeted administrative review of 18 inshore licence holders.
o This review provided an opportunity for DFO to identify any areas where changes may have been needed for a licence holder to come into compliance with the new inshore regulations.
• The main objective of an administrative review is to bring inshore fishing licence holders into compliance with new regulatory requirements.

• DFO amended the Atlantic Fishery Regulations, 1985 and the Maritime Provinces Fishery Regulations to clarify the rules governing inshore licences and provide new enforceable requirements.
• Two key objectives of the inshore regulatory amendments were to ensure that the Minister’s licensing decisions are not undermined, while preserving the independence of licence holders in commercial inshore fisheries. When the Minister issues a licence to an eligible applicant, it is expected that the same individual will carry out the activities authorized under the licence, and that they benefit personally from the fishing activity.
• Some provisions in the amended regulations came into force on December 9, 2020, and others came into force on April 1, 2021 (e.g., declaration of eligibility compliance through the National Online Licensing System at time of applying for a licence fee).
• These amendments directly address instances when another person or entity (that is typically not eligible to hold that licence, such as certain types of corporations) receives some or all of the rights and privileges associated with that licence via an agreement or arrangement with the licence holder.
• In fiscal year 2022-23, the Maritimes Region launched administrative reviews of 19 licence holders (applicants) to assess their eligibility to continue to be issued their inshore commercial fishing licences.
• Eighteen applicants were associated with a common third party, and all of these individuals are issued a lobster fishing area 34 licence, with the 2023 fishing season set to open on November 28, 2022.
• Eleven of these applicants were either in non-compliant agreements or demonstrated behaviours that were inconsistent with the compliant agreements that they were in; it should be noted that prior to April 1, 2021, the types of agreements these applicants were in were not illegal.
• All 19 applicants under administrative reviews this year have received confirmation of their eligibility to be issued inshore fishing licences.
• To address concerns noted through the reviews, DFO has committed to an on-going evaluation of applicants before the next renewal or re-issuance of the inshore licences by seeking assurance that loan payments have been made and that applicants are administering their accounts and business in a manner that is consistent with the objectives of the inshore regulations.
• Any complaints received by Conservation & Protection are subject to investigation and subject to prosecution should the evidence warrant. Any “person” found guilty by the court are subject to penalties under s. 78 of the Fisheries Act in addition to any administrative penalties deemed appropriate post-conviction.

How will DFO ensure ongoing compliance with the regulations?

• DFO conducted a number of administrative reviews in Eastern Canada that have resulted in individual licence holders choosing to amend or exit agreements to come into compliance with inshore regulations.
• DFO has committed to on-going evaluation of these licence holders to ensure that they act in a manner consistent with the objectives of the inshore regulations. Enforcement of regulations continues to be conducted by Fishery Officers in DFO.
• All licensing requests are evaluated on a case-by-case basis, at the time of application, to ensure the applicant will maintain independent control of the use of and decisions on their licences.