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Aquaculture in Canada AQUACULTURE IN CANADA Report of the Standing Committee on Fisheries and Oceans Gerald Comeau, M.P. Chairman AQUACULTURE IN CANADA Report of the Standing Committee on Fisheries and Oceans Gerald Comeau, M.P. Chairman July 1988 HOUSE OF COMMONS CHAMBRE DES COMMUNES Issue No. 40 Fascicule n° 40 Tuesday, June 7, 1988 Le mardi 7 juin 1988 Tuesday, June 14, 1988 Le mardi 14 juin 1988 Thursday, June 16, 1988 Le jeudi 16 juin 1988 Tuesday, June 21, 1988 Le mardi 21 juin 1988 Chairman: Gerald Comeau, M.P. President: Gerald Comeau, depute Minutes of Proceedings and Evidence of the Proces-verbaux et temoignages du Comite Standing Commiuee on permanent des Fisheries and Oceans Peches et des Oceans RESPECTING: CONCERN ANT: Pursuant to Standing Order 96(2), an examination Conformement a l'article 96(2) du Reglement, un of the Aquaculture Itidustry in Canada examen de l'industrie de l'aquiculture au Canada INCLUDING: Y COMPRIS: The Fourth Report to the House Le quatrieme rapport a la Chambre Aquaculture in Canada L' Aquiculture au Canada Second Session of the Thirty-third Parliament, Deuxieme session de Ia trente-troisieme legislature, 1986-87-88 1986-1987-1988 STANDING COMMITTEE ON FISHERIES AND OCEANS Chairman: Gerald Comeau Vice-Chairman: Charles-Eugene Marin Members (7) Gerald Comeau Morrissey Johnson Charles-Eugene Marin Mel Gass Jim Manly Ted Schellenberg George Henderson Acting Members (Those who travelled with the Committee) Jack Harris Felix Holtmann (Quorum 4) Jacques Lahaie Clerk of the Committee Research Service, Library of Parliament Pierre Touchette, Researcher Scientific Advisor Doctor Robert H. Cook, Director, St-Andrews Biological Station Department of Fisheries and Oceans STANDING COMMITTEE ON FISHERIES AND OCEANS MEMBERS Gerald Comeau, P.C. Chairman South West Nova (N.S.) Charles-Eugene Marin, P.C. Mel Gass, P.C. George Henderson. Lib. Vice-Chairman Malpeque (P.E.1.) Egmont (P.E.I.) Gaspe (QUE.) 3 · ~·(!,_-.· / ·' :­. - ' ' . I • ""' Morrissey Johnson, P.C. Jim Manly, N.D.P. Ted Schellenberg, P.C. Bonavista-Trinity­ Cowichan-Malahat­ Nanaimo-Alberni (B.C.) Conception (NFLD) The Islands (B.C.) ACTING MEMBERS (Those who travelled with the Committee) Felix Holtmann, P.C. Jack Harris, P.C. Selkirk-Interlake (MAN.) St-John's East (NFLD) The Standing Committee on Fisheries and Oceans has the honour to present its: FOURTH REPORT In accordance with its permanent mandate under Standing Order 96(2), your Committee has agreed to study the aquaculture industry in Canada and reports its findings and recommendations. Pursuant to Standing Order 99(2) of the House of Commons, your Committee request the Government to table a comprehensive response to this Report. ACKNOWLEDGEMENTS The Committee acknowledges, with gratitude, the cooperation and support of all those who contribu-ted to our study of Canada's Aquaculture Industry. We extend our thanks to all of the witnesses who appeared and shared with us their knowledge and insight on this subject. We also extend our thanks to all fish farmers who welcomed members of the Committee on their farms and provided them with generous details on the daily operation of their business. Much appreciation is extended to all industry representatives and officials from the Department of Fisheries and Oceans for their contribution in putting together a well-balanced program for the conduct of this study. We acknowledge the assistance of Pierre Touchette from the Research Branch of the Library of Parliament, and the expert advice provided by Dr. Robert H. Cook from the Department of Fisheries and Oceans. The Committee expresses its apprec1at1on for the logistics and administrative support provided by Jacques Lahaie, Clerk of the Committee. The Committee wishes also to acknowledge the valuable cooperation of the staff of the Committees and Private Legislation Directorate, the Translation Bureau of the Secretary of State, and the support services of the House of Commons and the Research Branch of the Library of Parliament. TABLE OF CONTENTS Page FOREWORD........... ... ... ...... .. .. ..... ......... ....... ..... ........ .... .. ............... .. ... ........ .. .. ... .. ...... .... ...... .... .. .. ... l INTRODUCTION........ .. ...... .... ...... .... ..... ... ..... .. ...... ...... ..................... .. ... ... .... .......... ... .. ....... .. .. ..... .. 2 ILLUSTRATIONS...... .. ... .. .. ... .......... .......... ....... ..... ........ .. ...... ... ...... ... ...... ........ ... ... .. ........... .... ........ 3 BACKGROUND ....... .. ..... ...... ... .............. ... ... .. ......... ........ ..... ..... .... ......... ... ..... ................. ... ............ 5 A. Norway........ ... ........ ............... .... ... ... ..... ... .. .... ...... ... .. ..... ... ............................ .. .... ... .... .. ...... 5 B. Scotland................. ..... ....... .. ............ ... ....... .. .. ...... .... ................ .. ........ .... ... .. ........ .. ..... ....... 6 ANALYSIS ......... .. .. ... .. .... .... .. ... .... ................... .. ......... .... ........... ............ .. .. .. ..... .. .... ... ........ .. ........... .. 9 A. Overview of Aquaculture in Canada ..... .................. ..................................... .. ........... .... 9 B. Potential Benefits of Aquaculture Development in Canada .. ............ ... .... ..... ... ..... ... .. I I 1. Employment........ ... .............. .. ... ......... ..... ...... .... ................. ...... ....... ...... ... .... ............ 11 2. Native Economic Development............ ...... ........................ ....... ........ .. ...... .. .......... 12 3. Regional Economic Development....... .. .. .... .. ...................... .............. ..... ....... .. ...... 12 4. Other B· :nefits of Aquaculture Development ........... ............... .... .. .. ... ..... ... .. .. .. ... I4 C. Constraints and Requirements of Aquaculture Development in Canada .. .. ... .. .... .. .. I5 I. Jurisdiction, Legislation and Regulation in the Aquaculture Industry ......... .... I6 a) Jurisdiction.............. ........ ... ..... ... .. .. ... .................. .. .. ... ............ .. .. ... .... .. ... ......... 16 b) Federal-Provincial Memoranda of Understanding ............. .. ....... ............... I7 c) Industry Regulation .. ............ ............ .... .. .. .. .................................... .. .............. 19 2. Financing the Industry's Development ... .............. ............................ .. ..... ............. 2 I a) Industry Financing and Capital Requirements .. ........................... ........ .. .. .. 21 b) Banking Sector Views on Aquaculture Financing ... ... .. ....... ...................... 24 3. Aquaculture: Fishery or Agricultural Pursuit? .............. .................. ............. .. .. .. 26 4. Interactions and/or Conflicts with Other User Groups .................................. .... 27 5. Research and Development .............. ........... ........... .. ...................... .. ...... ... ... ..... ... .. 31 a) DFO's West Coast Aquaculture Research Program... .... ....... ...... ..... .......... 31 b) DFO's East Coast Aquaculture Research Program..... ............................... 35 c) Overview of R&D Requirements in Aquaculture .. .................... ...... .......... 38 6. Molluscan Shellfish Aquaculture ........................... ................................................ 39 a) The Oyster Farming Industry in British Columbia .............................. ... .. 39 b) Molluscan Shellfish Aquaculture in Atlantic Canada ....... .... .... .... .. .. ........ 40 7. Fish Health .. .. .......... ..... .... .. ... ..... .... ... ..... ... .... .... .. ... ................. .. .... ...... ..................... 42 8. Public Sector Infras tructure Requirements ..................................... .. ................... 44 a) The Egg Supply in the B.C. Salmon Farming Industry ........................... 44 b) Broodstock Development Programs .. .... ............... .. .. ... .... .... ............ ..... .. ..... 45 c) Structural Changes to DFO's Organization .......... .. ........................... .. ....... 46 ct) Raw Materials for Fish Feed............ .............. .. .... .......... ... .. ...... ... .... ...... ..... .. 46 9. Marketing. .. .. ... ...... .... ..... ... .......................... .. ... ... .. ......... ... .............. .. .. ... .. ..... ....... .. ... 4 7 CONCLUSION .. ... ................. ............. .. ... ............. ....... .. ...... ..... ... .... ... ... .... ... .. .... .... .. ........... ... ...... ... 51 RECOMMENDATIONS ...................... .. ............. .... .. ................... ..... .... .. .... .. .. .............. ..... .......... .. 55 BIBLIOGRAPHY ... ..................... .. ... .. ... .... .... ..... .. ...... ..... .............. ..... ... ... ... ...... ....... .... .................. 63 APPENDIX "A''............ ................ .................... ... .... .. ... .... .. ... ....... .. ... .. ............ ..... ... .. ..................... 65 APPENDIX "B'' .... ... .. .... ..... ................ .. ...... .. .. .. ... ...... ... ..................... ... ............................... .... .. ..... 75 MINUTES OF PROCEEDINGS ..................... .. .... .......... .. ............ .. .... ......... .. ... ............................ 127 FOREWORD As part of its study, your Committee travelled to Norway and Scotland to study advances made by those countries in aquaculture. Your Committee also visited aquaculture
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