Atlantic Fisheries Policy Review Public Consultations on “Preserving the Independence of the Inshore Fleet in Canada’s Atlantic Fisheries” January, 2004

2 Public Consultation - Meeting Format 1 Opening Presentation  Overview of the Discussion Document - Preserving the Independence of the Inshore Fleet in Canada’s Atlantic Fisheries 2Submissions by Pre-registered Speakers 3Open Sessions on Discussion Document key themes :  Preserving the Independence of the Inshore Fleet  “Trust Agreements”  Owner-operator and Fleet Separation Policies 4Wrap-up / Next Steps

3 Public Consultation - Objectives Preserving the Independence of the Inshore Fleet Objectives:  Seek advice on options to preserve the independence of the inshore fleet  Hear views on the owner-operator and fleet separation policies and concerns about their erosion by so called “trust agreements” The fundamentals  DFO endorses the importance of maintaining an independent and economically viable inshore fleet.  The owner-operator and fleet separation policies are integral elements of the Commercial Fisheries Licensing Policy for Eastern Canada, 1996, and remain in effect

4 These issues are part of the broader Atlantic Fisheries Policy Review (AFPR) The AFPR is a process to build a modern Policy Framework that provides clear objectives and principles to manage fisheries for the long term  provides the foundation to make the necessary program and other changes to focus on conservation-based fisheries  creates incentives for responsible use of the fisheries resource and supports self reliant and sustainable fisheries. Atlantic Fisheries Policy Review (AFPR)

5 Policy Framework is expected to be released later this spring (Phase I). Putting the framework into operation (Phase II)  Actions will build on work underway to modernize fisheries management e.g. Objective Based Management, co-management, etc.  Some work (an acceleration of Phase II) has already begun:  Independent Panel on Access Criteria (IPAC)  Vessel replacement rules  Preserving the Independence of the Inshore Fleet in Canada’s Atlantic Fisheries – discussion document

6 The Discussion Document Why a Discussion Document on Preserving the Independence of the Inshore Fleet?  Widespread concern from inshore fleets re: “trust agreements” and the erosion of Owner-Operator and Fleet Separation Policies  Others argued that these policies impair the ability of the fishing industry to be competitive The AFPR process did not resolve these divergent views

7 The Discussion Document What are “trust agreements”? “Trust agreements” are legal instruments entered into by a licence holder and a corporation or other third party.  Often times they propose to direct the use of the licence (beneficial interest) by the third party.  These private contracts are legal instruments which bind the parties that sign them.  DFO is not party to these contracts and is not bound by their provisions

8 The Discussion Document “Trust agreements”, although they are not considered illegal by the courts, sometimes contravene the intent of the owner-operator and fleet separation policies. DFO will examine all options to deal with “trust agreements” and enhance the viability of the inshore fleets Possible Options from Discussion Document:  Regulation under Fisheries Act To intertwine “legal title” and “beneficial use” (for fisheries management reasons)  Licensing Policy Change Update to include clear written criteria for licence issuance  Role for others (Provinces/Territory, others)

9 The Discussion Document Owner-operator and Fleet Separation Policies (Contained within the Commercial Fisheries Licensing Policy for Eastern Canada, 1996) The owner-operator and fleet separation policies are integral elements of the Commercial Fisheries Licensing Policy for Eastern Canada, 1996, and remain in effect Under the owner-operator provision, licence holders (<65 feet) are required to fish their licences personally, unless they have previously designated an operator under a “grandfather clause”.  A substitute operator may be designated when the licence holder is prevented, by circumstances beyond his/her control, from engaging in the activity authorized by the licence.

10 The Discussion Document Fleet Separation Policy Under the fleet separation policy, initially adopted in 1979, corporations may not hold new fishing licences (<65 feet); pre-1979 corporations may retain their licences which may be issued as replacement licences to another pre-1979 corporation which holds fishing licences for vessels <65 feet in length.

11 The Discussion Document Consultations seek your input on new processes to apply the owner- operator and fleet separation policies The AFPR Policy Framework proposes that resource users take a greater role in the decision-making processes that affect their operations. This could mean adaptation of the policies, within constraints, to deal with (for example) inter-generational transfers, the pooling of quota shares or designation of qualified operators with a long-term attachment to the industry

12 The Discussion Document Proposed constraints  Respecting underlying objectives avoiding undue concentration of licences preserving and fostering a diversified sector of viable multi- licenced/multi-species independent inshore enterprises headed by professional fish harvesters.  Other constraints include: Conservation objectives, Aboriginal and treaty rights, interests of others who may be affected, avoiding imposition of undue costs, maintaining geographic distribution of benefits, etc.

13 The Discussion Document Some issues from the Discussion Document: What process should fleets follow to bring proposals to DFO on the owner-operator and fleet separation policies? How will the interests of other fleets or non-resource users be factored in?  How will fleets bringing proposals forward be accountable for this? How should “a significant proportion of commercial licence holders within a fleet or region” be defined? Apart from the set of constraints identified in section 4.1, what other constraints should be considered?

14 Next Steps Based on what we hear at these consultations, DFO will finalize and adopt an approach to preserving the independence of the inshore fleet. We will post “What We Heard on Preserving the Independence of the Inshore Fleet” on the AFPR web site: If a regulation is found to be the most effective means to preserve the independence of the inshore fleet, DFO will circulate a draft regulation that reflects the results of these consultations, and consult on the proposed change. DFO will finalize and release “Guidelines for the Application of the Owner- operator and Fleet Separation Policies”

15 Next Steps Please provide us with your comments Regular mail: Atlantic Fisheries Policy Review 8 th Floor, 200 Kent Street Ottawa, Ontario K1A 0E6 Phone: Fax: (613)