Question Period Note: Fish Harvester Benefit and Grant Program

What is Fisheries and Oceans Canada doing to help the fishing sector through COVID-19?

• In 2020 we launched the Fish Harvester Benefit and Grant Program, to support self- employed fish harvesters and self-employed crew.
• To date, the Program has issued about $162 million to help the fishing sector through COVID-19.
• DFO, assisted by Employment and Social Development Canada, recently launched an outreach effort to remind individuals who have overpayment obligations about repayment.

• The Fish Harvester Benefit and Grant (FHBG) Program was part of the Government of Canada’s COVID response strategy. Since its launch in 2020, it has provided support for non-deferrable business expenses and income support to self-employed fish harvesters and self-employed crew.
• The FHBG Program has been delivered in two-phases:
o Phase One (2020) involved the issuance of: 1) one-time grant payments to provide emergency business expense support to address the non-deferrable business costs of self- employed fish harvesters; and 2) the first part of the benefit payment (60 per cent) to provide income assistance to eligible self-employed fish harvesters and self-employed crew.
o Phase Two (2021) involved confirming that the applicant-attested information provided in phase one aligned with Canada Revenue Agency (CRA) data. A phase-two application was required by all applicants who received payment in phase one. If eligible, and with the successful submission of the phase two application, the Program issued the second part of the benefit payment (the remaining 40 per cent).
• The benefit payment covered up to 75 per cent of income losses beyond a 25 per cent threshold for the 2020 tax year when compared to 2018 or 2019. The maximum benefit is $10,164.
• During phase one, applicants attested to their income, estimated losses, and employment status. The Program issued payments in phase one based on the attested information from applicants.
• Prior to the launch of phase two, the Program received Canada Revenue Agency (CRA) data and was able to compare attested information with tax filing information that applicants had provided to CRA. The Program deferred to information filed with CRA.
• During this validation process, in some cases it was found that attested information did not align with the information that applicants had previously filed with CRA, meaning that in some cases individuals had received FHBG funds for which they were not eligible
• For example, individuals who attested to being self-employed, but who had filed information with CRA indicating that they were employees, received overpayment letters pertaining to for their phase-one payment, since wage-earning employees were not eligible for the Program.
• Sometimes applicants’ income losses as reflected in CRA data were found not meet the minimum loss threshold required for the benefit. Other times individual income losses reflected in CRA data were simply less than forecast in an applicant’s attestation.
• In all cases, there was a right to appeal overpayment findings.
• In February 2022, the Program waived interest charges on overpayment amounts owing until January 1, 2023. The Program extended the waiver period by a further three months. The revised interest waiver period will end on March 31, 2023.
• At the end of January, the Program launched a reminder outreach effort to recipients of Program funds who have repayment obligations.
• This effort has involved DFO sending reminder emails, letters, and account statements to individuals. In February, Service Canada started making reminder telephone calls to individuals with overpayments amounts owing. Individuals are encouraged to make repayment before March 31 to avoid interest charges.
• This follow-up work to make reasonable efforts to recover Program overpayments is a requirement under the Directive on Public Money and Receivables.
• Approximately 6,600 individuals have some level of overpayment owing. The total overpayment amount owing is approximately $33.6 million.

If pressed on reminder outreach
• Over the course of the Program, some individuals received funds in excess of their entitlements, and will have to repay their overpayment amounts.
• Some had losses less than they had forecast; others were ineligible for the Program. All had a right to appeal their overpayments.
• The Program has extended the waiver period on interest charges a further three months, until March 31, 2023, to assist individuals with overpayment obligations.

If pressed on overpayments
• Over the course of the Program, some individuals received funds in excess of their entitlements, and will have to repay their overpayment amounts.
• Some had losses less than they had forecast; others were ineligible for the Program. All had a right to appeal their overpayments.
• The Program has extended the waiver period on interest charges a further three months, until March 31, 2023 to assist individuals with overpayment obligations.