February 18, 2015 Executive Director's Message
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- Market Access Issues Update
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Conversations about an industry levy have occurred for some time, but since the Lobster Value Recovery Summit held in March 2014, they have become more directed, with all four Atlantic Provinces engaging in consultations with industry about how a levy would work. Each province is progressing with a different process and timetable but all are in discussions with industry in their respective provinces about a levy or flat fee system. A high level update follows: Prince Edward Island - Consultations have been underway for some time with harvesters and buyers with PEI planning a two pronged approach using existing legislation that would see a marketing board created under the Natural Products Marketing Act to establish a lobster marketing board which will collect from harvesters. To collect from buyers and processors the provincial government has introduced an amendment to the Fisheries Act (Bill 21) that has been passed and will be proclaimed by cabinet. This bill provides amendments to the Fisheries Act that allows for the collection of levies from buyers who are regulated by the province. New Brunswick - In New Brunswick the provincial government is preparing draft enabling legislation that if introduced and passed would allow for any seafood group to collect and invest in their sector. The core feature would be collection from the first buyer who would collect from the harvesters and remit the amount together. Processors represented by the NS/NB Lobster Processors Association support the plan as does the Maritime Fishermen’s Union, Grand Manan Fishermen’s Association and Fundy North Fishermen’s Association. The province held consultations with buyers on the East coast before Christmas and have sessions planned for the Bay of Fundy for early 2015. Barring any major challenges the proposed legislation could be introduced at the Spring sitting of the house. Newfoundland – Discussions are still being held in Newfoundland with meetings planned for late February with the Fish, Food and Allied Workers Union, representatives of the buyers groups and the provincial government to discuss options for collection. Nova Scotia - In Nova Scotia organized harvesters in the East/Gulf/North, through their associations, have agreed to support a levy system where the first buyer collects and remits on behalf of the harvester. A consultative process for South West Nova Scotia is currently underway and is being organized by the Nova Scotia Department of Fisheries and Aquaculture. Associations in the East/Gulf/North will also be asked to provide input on mechanism for collection. A group of dealers have advised the government that while they generally support the need for an industry funding source for the priorities of the LCC, they are not in favour of a levy system or collecting from harvesters. They do, however, favour some type of a flat fee system that would collect the same expected amount from the buying sector but the details are unclear of how that could look. Maine is currently utilizing a flat fee system. Most live shippers who are members of the LCC support a levy program. The province is planning consultations with the buying sector to review options and support with a format similar to that noted above for harvesters in SWNS.
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