e-4317 (Fisheries)

Fisheries and Oceans Canada (DFO) takes the challenges being described in this petition very seriously. The Department is acutely aware that many independent harvesters are concerned about the level of control and consolidation of commercial access amongst foreign-owned fisheries participants. Since the House of Commons Standing Committee on Fisheries and Oceans’ 2019 report titled "West Coast Fisheries: Sharing Risks and Benefits" was released, DFO has advanced the foundational work required to better understand the extent of foreign control of commercial fishing access and is now preparing to engage on this important topic in 2024.

Following the release of the Government Response to the 2019 report, Fisheries and Oceans Canada launched a review of its existing foreign ownership policies across all commercial fisheries. This review concluded that the Department lacked the comprehensive data required to quantify the concerns regarding foreign ownership expressed by Parliamentarians in the 2019 report. The Department immediately sought to fill these missing data gaps on foreign ownership, ultimately leading to two key initiatives:

First, in 2021, DFO enhanced of the implementation its foreign ownership restrictions for Atlantic and Quebec midshore, offshore, and exempted fleet fisheries. This action ensured that the 51 per cent Canadian ownership requirement would be applied to the full corporate structure of prospective licence holders. Prospective licence holders in these large-scale commercial fisheries are now required to provide departmental officials with evidence that 51 per cent of the company’s shares are ultimately controlled by Canadian citizens and/or permanent residents.

Second, in 2022, DFO launched the Beneficial Ownership Survey to all commercial harvesters whose corporate structure were not already regulated by the Department, including all commercial licence eligibility holders in Pacific vessel-based and party-based fisheries. The Survey results were published in September 2023, indicating that 98 per cent of respondents were entirely beneficially-owned by Canadian citizens. Further to this, the Survey found that over 97 per cent of respondents employed a simple corporate structure; structures that are free from multiple layers of indirect ownership.

With formal ownership structures now much more clear, the Department is now looking to understand the means by which foreign and domestic entities can control commercial licences and their allocated quota through informal structures and arrangements, such as private leasing agreements. DFO is aware of the concerns posed by private leasing agreements and has committed to building a better understanding of licence and quota leasing practices; it is of the utmost importance that DFO fully understands the extent of these agreements before any policy changes be considered.

In 2024, DFO will engage First Nations and fisheries stakeholders in Pacific region on the results of the Beneficial Ownership Survey, as well as discuss their concerns regarding foreign ownership and potential policy changes. The Department also intends to explore licence and quota leasing practices in Pacific region to better understand the ultimate control of commercial access.

DFO will continue to engaging provincial counterparts through existing federal/provincial fora to discuss concerns related to foreign ownership of the fisheries supply chain under each government’s respective jurisdictional responsibility.

DFO will continue to conducting additional analysis and meaningful engagement before any significant changes are made to existing licensing regimes.