Question Period Note: Discovery Islands Area Announcement

Discovery Islands Area Announcement

My department is committed to the conservation and protection of our wild Pacific salmon.

The decision on the intention to phase out fish farms by June 2022 in the Discovery Islands was not an easy one. It was made based on the outcome of consultations, including those with seven First Nations in the Discovery Islands.

The farms in the Discovery Islands are a specific case; through consultations it was clear that many First Nations in this area do not support the continued operation of these farms.

We will continue to work with partners and key stakeholders to advance sustainable aquaculture in British Columbia.

If pressed on transfer applications made to date:
All requests to transfer fish to sites in the Discovery Islands were reviewed with an open mind, considering all relevant information, including input from First Nations, environmental and socio-economic considerations, and representations made by the applicant.

Each decision made is specific to the particular application put forward by a company. It does not affect other operators or farms in British Columbia.

I recognize that these decisions have implications for the companies, workers and communities in the region. We are engaging with partners to develop a transition plan for net-pen aquaculture in BC.

If pressed on the Judicial Reviews:
As this matter is before the court, I cannot comment on the matter.

If pressed on fish being culled:
Any decision to cull farmed fish is a business decision for companies to make, and is not an ordered destruction of fish by DFO, as DFO does not have this authority.

Licences in the Discovery Islands have been renewed on an annual basis for 10 years, always with the understanding that a decision on the future of net-pen aquaculture in that area would be made by the end of 2020.

If pressed on the matter of the economic impact of the decision
I acknowledge that this decision is affecting the local economy.

We offer a strong suite of supports for workers and communities. There is already a strong partnership with BC in place, including through the Canada-BC Workforce and Labour Market Development Agreements.

Our Government is committed to supporting the economic development of BC’s regions. As announced in Budget 2021, a new regional development agency for BC is being established to support economic development in more communities and to help develop businesses to create good jobs that people can rely on.

• On November 5, 2009, Canada established the Commission of Inquiry into the Decline of Sockeye Salmon in the Fraser River (“Cohen Commission”) to investigate the decline of Sockeye salmon stocks and to provide recommendations.
• The final report of the Cohen Commission, The Uncertain Future of Fraser River Sockeye, was released in October 2012. The report did not find any single factor leading to decreased Sockeye salmon stocks.
• The report made 75 recommendations, the majority of which focused on Pacific salmon fisheries management, fisheries science, salmon habitat protection, and the implementation of the Wild Salmon Policy. Thirteen of the 75 recommendations related specifically to aquaculture.
• Fisheries and Oceans Canada (DFO), along with Environment and Climate Change Canada and the Province of British Columbia (BC), have taken actions to address all 75 of these recommendations.
• In response to the Cohen Commission’s Recommendation 19, DFO considered the risk to Fraser River Sockeye salmon from diseases that occur in Atlantic salmon farms. The scientific risk assessments focused on farms located in the Discovery Islands area.
• The nine peer-reviewed, scientific risk assessments concluded that the transfer of these pathogens pose, at most, a minimal risk to migrating Fraser River Sockeye salmon in the area. A summary of the findings and science advice has been posted on the DFO website (https://www.dfo-mpo.gc.ca/cohen/iles-discovery-islands-eng.html). The timing of this publication was linked to the expiration date of the annual licences in the Discovery Islands.
• Following consultations with the seven First Nations in the Discovery Islands area, as announced on December 17, 2020, a decision was made to phase out existing salmon farming facilities in the area over an 18-month period (by June 30, 2022). No new fish of any size may be introduced into Discovery Islands facilities during this time and all farms must be free of fish by June 30, 2022.
• Consultations with the seven First Nations in the Discovery Islands area heavily informed the decision. This approach aligns with the provincial land tenure commitment that, effective June 2022, the Province will grant Land Act tenures only to fish farm operators who have negotiated agreements with the First Nation(s) in whose territory they propose to operate.
• DFO consulted with the Holmalco, Klahoose, K’ómoks, Kwiakah, Tla'amin, We Wai Kai, and Wei Wai Kum First Nations.
• On January 18, 2021, Mowi Canada West Inc., Cermaq Canada Ltd., Grieg Seafood B.C. Ltd., and 622335 British Columbia Ltd. filed applications for Judicial Review of the Minister’s decision on the intent to phase out salmon farms in the Discovery Islands.
• Mowi has stated numerous times that a significant number of juvenile fish would be culled in relation to the Discovery Islands decision. For example, on February 24, 2021, Mowi signalled that it would begin to cull the 925,000 juvenile salmon at its Big Tree Creek Hatchery originally destined for Discovery Island facilities and in a May 7, 2021, press release, Mowi indicated that they were planning to cull an additional three million fish. They have also noted they have been laying off employees associated with its Discovery Islands operation. These were business decisions on the part of the company, and not an ordered destruction of fish by DFO, as DFO does not have this authority.
• Mowi currently holds 13 sites in the area, and has a total of 44 tenures in BC.
• The February 2021 report “Consequences of the decision to shut down salmon farming in the Discovery Islands” published by RIAS Inc., an independent economics consulting firm, examines the financial, economic and social consequences of the Discovery Islands announcement. The report indicates that more than 24 per cent of BC’s farmed salmon production is being shut down, and that potentially more than 1,500 people could lose their jobs in the near term. It also notes that potential losses to BC salmon farmers from having to euthanize 10.7 million young fish amount to over $170 million, and that salmon farming companies will lose almost $200 million in annual revenue.
• The report also highlights the ongoing ripple effects of the announcement across North Island communities and the impacts on future investment and BC’s recovery. For example, it indicates that planned investments of over $1.4 billion in the province in new technology and equipment, which would have generated an estimated $2.7 billion in annual economic output and 10,950 additional jobs by 2050, are now in jeopardy.
• The Government of Canada has a number of programs that support economic development, skills training, and employment assistance. Through its Workforce Development and Labour Market Development Agreements, the federal government provides provinces and territories with approximately $3 billion annually in funding to support skills training and employment assistance.
• On December 14, 2020, Parliamentary Secretary Beech commenced a series of engagements on the transition of net-pen aquaculture in BC. This engagement is now complete and his report to the Minister was published in July 2021.
• On April 5, 2021, the Federal Court granted an interlocutory injunction in favour of Mowi Canada West and 622335 British Columbia that prevents the Department from taking into account the December 16, 2020, policy that prohibits the transfer of fish to aquaculture facilities in the Discovery Islands. The injunction does not mean that the Department must allow the transfer of fish; however, all decisions on fish transfers must be made with an open mind, be based on relevant considerations, and cannot take into consideration the December 16, 2020, policy on fish transfers.
• Budget 2021 includes $101.4 billion over three years in proposed investments as part of the Government of Canada's growth plan that will create good jobs, and support a resilient and inclusive recovery. Key measures include supporting small and medium-sized businesses through several transformative programs, such as:
• Funding a new BC-focused agency with $553.1 million over five years, starting in 2021-22, and with $110.6 million ongoing.
• On June 14, 2021, the Minister denied a request by Cermaq Canada to transfer fish into the Venture Point and Brent Island Discovery Islands sites and extend the marine finfish licences at these two sites.
• On May 3, 2021, Saltstream Engineering Ltd. applied to move Chinook salmon to their Doctor Bay facility. This application was denied by the Minister on June 30, 2021.
• On May 31, 2021, Mowi Canada West applied to move Atlantic salmon to their Phillips Arm site. This application was denied by the Minister on July 15, 2021.
• On June 18, 2021, Cermaq filed an injunction on the June 14, 2021, decision to deny a transfer application. It was heard on June 28, 2021, and dismissed by the Federal Court on July 2, 2021.
• On July 22, 2021, Saltstream Engineering Ltd. filed an application in the Federal Court with respect to the Minister’s denial of its May 3, 2021, transfer licence application – asking for an order quashing the decision and an order for the Minister to issue the licence or, in the alternative, render a new decision.

None