The 1st review was into foreign investment in the processing sector, only it was held after Royal Greenland moved in, followed by reviews in 2022/2023 of the broken fish-pricing system that fixed nothing. Now apparently comes the mother of all reviews into harvesting/processing/capacity/competition/corporate control, etc.
(That's right, "cartel" didn't make the list.) Will the 4th time be the charm, or is the Andrew Furey administration spinning its fishery wheels?
Earlier this month the FFAW launched a campaign to reverse Ottawa's decision to lift the 32-year northern cod moratorium, and allow draggers access to the stock. The above union poster was spotted recently on the bottom of Signal Hill in St. John's.
BREAKDOWN OF FISHERY REVIEWS
#1 — 2023 REVIEW OF FISH PRICING
A three-person committee (Glenn Blackwood, Gabe Gregory, and Bill Broderick) were given just over six weeks to submit a report on the final-offer selection of fish pricing. Despite recommendations from that report, the 2024 snow crab season began with days of protest outside Confederation Building. The initial $3/lb-set snow crab price was ignored, with boats eventually fishing for $3.45/lb.
#2 — 2022 REVIEW OF FISH PRICING
In 2022, David Conway, former head of the province's labour relations board, reviewed the province's collective bargaining model for setting fish prices, producing a report three months later. Despite that review, the 2023 snow crab fishery began with a six-week tie-up, which the FFAW was later found liable for.
#3 — 2022 REPORT INTO FOREIGN INVESTMENT IN PROCESSING SECTOR
That review stemmed from a somewhat reluctant 2020 recommendation by the late Reg Anstey, former head of the province's fish processing licensing board and long-time FFAW executive, that Royal Greenland be permitted to expand its operations in the province.
Anstey waved a huge red flag at the same time he made the recommendation, but in a classic cart-before-the-horse decision, government signed off on the deal, and then called the review.
The report into foreign investment was put together by the provincial Fisheries department, and was memorable for nice pictures like this one.
The common thread from all three reviews was that they did not include direct consultations with the inshore fleet.
The Furey government doesn't seem to realize that enterprises live and die by the price of fish, and owner-operators might have something to say about it.
Hold on, there was one other semi fishery review.
#3.5 — The 2021 report of the premier's economic recovery team
In terms of fisheries, that sweeping review, led by well-respected Dame/Newfoundlander Moya Greene, raised the idea of an electronic fish auction project so that market and quality issues could be taken into consideration in the price paid for fish.
Indeed, the idea of an fish auction was first raised by a 1998 task force that travelled the world over studying price-setting models, but also held meetings around the province, supported by loads of advertising.
Can we expect such a no-holds-barred report in the 2024 review?
The inshore should expect no less.
TERMS OR REFERENCE OF LATEST REVIEW NOT YET ANNOUNCED
On April 1st, then-Minister Elvis Loveless wrote the FFAW to say that prior to Sept. 1st, the province will initiate a review of all issues pertaining to the fishery — including harvesting, processing, capacity, competition, corporate control, and other issues relevant to a "successful" fishery.
At the time, the province said the FFAW and Association of Seafood Producers would be consulted in advance on appointments and terms of reference.
I'm free if Furey's looking for no-holds barred.
(The new Fisheries Co-op was all set to start processing cod this season, but one of Loveless's last acts as Minister was to freeze new licences.)
Royal Greenland was waved in, but the door slammed shut on the small-boat Co-op.
Can you get more Newfoundland than that?
FEDERAL/PROVINCIAL REVIEW NEEDED
Ideally, the upcoming review would involve the province, which controls processing, and Ottawa, which controls harvesting.
Both impact wharf price.
With the feds involved we might get some answers as to why DFO recently dropped three separate investigations into alleged illegal controlling agreements (are they illegal or not?), or why fish pricing in this province is excluded from the federal Competition Act?
More than that, a federal/provincial review could dive into joint management, a thought that's been tossed around for years, but carried by no one.
For that, the Furey government would have to dead serious about the inshore fisheries, lay out a clear vision, and be prepared to lead.
There's no evidence of that ... yet.
Another nice picture from the 2022 provincial report into foreign investment in the processing sector.
The 1998 provincial task force report by local economist David Vardy first recommended the final-offer selection method of fish pricing as a pilot project to run parallel with an electronic auction pilot project.
Only the auction didn’t get off the ground for almost 10 years, and was later deemed a failure after processors wouldn’t take part.
Vardy was also a member of Furey’s 2021 economic recovery team whose report highlighted the “rejection” of the electronic auction system.
An electronic auction would ensure the best price and highest quality product.
And if the cartel doesn't like it, you know it's the way to go.
Ryan cleary is a former journalist, Member of Parliament, union leader, and long-time inshore fisheries advocate who’s currently helping to organize a co-operative (fpcnl.ca) for inshore enterprise owners. The opinions expressed in this blog are his own. Contact him at fpc-nl@outlook.com or call/text 709 682 4862.
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