Question Period Note: Foreign ownership

How is the Department addressing concerns of foreign ownership in commercial fisheries?

• I am aware of the concerns expressed about the degree of foreign ownership of Canadian fishing enterprises and the concentration of fisheries access.
• My department has launched a study to identify those benefitting from commercial fisheries access. This information will be used to develop a baseline understanding of the extent of foreign control and concentration in our fisheries.
• Careful consideration of the potential impacts on existing commercial licence holders are required before any policy changes can be considered.

• The issue of foreign ownership of Canadian enterprises, and Canadian fishing corporations specifically, was highlighted as part of the House of Commons Standing Committee on Fisheries and Oceans’ (FOPO) 2019 report “West Coast Fisheries: Sharing Risks and Benefits.” The report included 20 recommendations that called for significant changes to the current fisheries management and licensing regime, including a recommendation that “no future sales of fishing quota and/or licences be to non Canadian beneficial owners.” The Government Response was supportive of the report’s overall goal of economically viable and sustainable fisheries, and of considering social and cultural factors in their management. The Response also committed Fisheries and Oceans Canada (DFO) to further assess the recommendations, engage a broad range of stakeholders to support ongoing policy improvement efforts, and to undertake a comparative analysis of fisheries policies and regulations in effect on Canada’s East and West Coasts.
• In the spring of 2020, DFO launched an analysis of its existing foreign ownership policies and the impacts of any potential changes. During the preliminary stages of this analysis, the Department concluded that it lacks the information required to quantify the concerns put forth by the Standing Committee and some stakeholders. In February of 2021, the Department contracted the Forensic Accounting Management Group (FAMG), under Public Services and Procurement Canada, to develop a survey (the Beneficial Ownership Survey) that would identify who is benefitting from commercial fishing licences and quota, and validate the concerns identified by Parliamentarians.
• During the summer of 2021, the Department engaged key stakeholders from all regions to introduce them to the Beneficial Ownership Survey’s intent, objectives, and timelines. Feedback from key industry stakeholders was supportive of the Department’s desire to better understand its licence holders and industry participants.
• The Beneficial Ownership Survey opened on January 30, 2022 and was mandatory for most commercial licence holders and vessel owners, with the exclusion of Atlantic inshore and communal commercial harvesters. The Survey remained open for 90 days, after which time DFO undertook direct follow-up with licence holders/contact vessel owners for data verification and/or completion throughout Summer and Fall 2022. Late submissions stopped being accepted on November 21, 2022 after which, raw data was delivered to forensic accountants for review and analysis in December 2022.
• Following the public release of the survey’s findings by the end of June 2023, DFO will engage key stakeholders to discuss the findings’ impacts and any potential policy solutions, if required. Careful consideration of the potential impacts on existing licence holders across all commercial fisheries, as well as Canada’s international trade obligations, will be required before any policy changes could be introduced, or regulatory amendments considered.
• In February of 2021, DFO strengthened the application of its foreign ownership restrictions in Atlantic Canada. Under the “Enhanced Application of Foreign Ownership Restrictions”, the requirement to be at least 51 per cent Canadian is applied to the full corporate structure of prospective licence holders for all future licence re-issuances in the mid-shore, offshore, and exempted fleet fisheries in Atlantic Canada and Quebec, where this policy applies.
• There is no national standard for foreign ownership limits for commercial fisheries in Canada. The Department’s foreign ownership restrictions on commercial fisheries access are established through its regional licensing policies, which are designed to support the fishery’s unique management objectives.

If pressed on foreign ownership restrictions in Atlantic Canada
• On the East coast, Fisheries and Oceans Canada has long-standing policy that requires all Atlantic midshore and offshore licence holders be at least 51 per cent Canadian-owned.
• In early 2021, my department enhanced the application of this policy to ensure that prospective licence holders meet the 51 per cent requirement at all levels of their corporate structure.

If pressed on foreign ownership restrictions in Pacific Canada
• The Department’s foreign ownership restrictions on Pacific commercial fisheries access are established through its regional licensing policies, which require licence eligibility holders that are companies to be registered in Canada. The findings of the Department’s study on beneficial ownership of licence holders will be released by the end of June 2023. The findings will provide baseline information on foreign ownership and influence of Pacific licence holders and vessel owners.
• The Department will re-engage stakeholders to discuss the survey’s findings and whether potential policy changes are needed.