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Ottawa unveils biggest fishing industry aid package since cod moratorium

Money will be doled out through wage subsidy, grant program

Fisheries minister Bernadette Jordan responds to a question during Tuesday's virtual House of Commons meeting.
Bernadette Jordan: “Because of the nature of the industry, not everyone is the same. You cast a wide net and try to catch as many of them as you can in these programs. … This is something that is unprecedented." - SaltWire Network

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OTTAWA, Ont. — The federal government has announced more than half a billion dollars to support the fishing industry during the COVID-19 pandemic, representing the largest expenditure on the industry since the cod moratorium bailout.

On Thursday, Prime Minister Justin Trudeau announced $469 million in direct support to be allocated through two programs specifically aimed at fish harvesters, who are facing mounting uncertainty.

Crab and lobster fisheries throughout Atlantic Canada have faced delayed season openings due to fears about the coronavirus spreading in small communities and close working conditions.

The start of the season is also overshadowed by a significant drop in prices due to a collapse in retail and restaurant markets in the United States, Japan and China, major export markets for Canada’s seafood.

“You can’t harvest lobster from inside your house, so that leaves you trying to figure out how to space people out on a fishing boat or cancel your operations. It’s not an easy call to make,” Trudeau said during his daily news conference. “On top of that, prices and demand have gone down, putting financial pressure on fishers and their families. Taken together this adds up to a really tough time.”

The Fish Harvester Benefit, a program worth up to $267.6 million, will provide income support for this year’s fishing seasons to eligible self-employed fish harvesters and crew members who cannot access the Canada Emergency Wage Subsidy.

The benefit will be available to fishermen who have experienced fishing income declines of greater than 25 per cent in the 2020 tax year.

According to a Department of Fisheries and Oceans (DFO) news release, it will cover 75 per cent of fishing income losses beyond a 25 per cent income decline threshold, up to a maximum similar to what is provided under the Canada Emergency Wage Subsidy ($847 per week for up to 12 weeks). For harvesters who qualify for the CEWS instead, benefits will be extended beyond June.

A DFO spokesperson clarified that harvesters will not have to wait until the end of their season to apply for the harvester benefit, and they will be able to make an attestation based on what they expect their losses to be and apply based on that. The actual losses are then calculated at the end of the season and appropriate adjustments made.

The Fish Harvester Grant, worth up to $201.8 million, will provide non-repayable support of up to $10,000 to self-employed fish harvesters with a valid fishing licence who have been affected by the COVID-19 pandemic, and who are ineligible for the Canada Emergency Business Account or equivalent measures.

The aim of this measure, the government says, is to give harvesters more liquidity to address non-deferrable business costs.

The government also says it will introduce changes to employment insurance that would allow self-employed fish harvesters and crew members to access EI benefits on the basis of insurable earnings from previous years (winter and summer claims).

This is in addition to a $62-million aid package that was rolled out in April for fish processing companies across Canada to cover the costs of equipment and supplies for their plants to ensure a safe working environment for people on the processing lines.

Speaking with SaltWire Network, Fisheries Minister Bernadette Jordan said her department heard from many fishermen and industry groups who did not qualify for the many relief programs already announced by the federal government because of the way they’re structured.

Groups such as the Maritime Fishermen’s Union (MFU) and the Fish, Food and Allied Workers (FFAW) have been lobbying the federal government in recent weeks to either make adjustments to the existing aid programs or introduce new ones addressing some of these concerns and aimed specifically at the fishery.

“Fisheries are unique. … Sometimes they’re intergenerational, they’re paid based on a share of their catch as opposed to a wage — there are all different ways that they’re set up that make it very difficult to be able to collect the benefits we put forward,” Jordan said.

“We wanted to make sure we addressed those concerns, because it wasn’t just one or two people that were falling through the cracks, it was the whole sector, and we’re not going to leave a whole sector behind.”

As for when these benefits will be available, Jordan said her department is working as hard as they can to get money out the door as quickly as possible, and confirmed legislation will not be required for the wage subsidy or the grant portion of Thursday’s announcement. She said additional details on eligibility, timelines and the application process will be available soon.

Jordan also acknowledged there still might be some who fall through the cracks. She said her department will continue to listen to the concerns of the industry to address concerns and the changing realities of living with COVID-19.

“Because of the nature of the industry, not everyone is the same. You cast a wide net and try to catch as many of them as you can in these programs. … This is something that is unprecedented. A lot of the programs we’ve had are evergreen and they’re changing as needs change,” she said. “We’ll continue to assess how things are going, what works, what doesn’t and how we can best make sure we do support the industry, because that’s been my priority since day one.”

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