(June 14, 2013) - Good morning, my name is David Ramsay, and I am the Minister of Industry Tourism and Investment for the Government of the Northwest Territories.

As Minister of Industry, Tourism and Investment I am responsible for supporting the commercial fishery in the Northwest Territories which is largely centered on Great Slave Lake.  This is the topic of my discussion with you today.

For background and context, the economy of the Northwest Territories is resource based.  Mining and oil and gas dominate the economy and provide substantial contributions towards our Gross Domestic Product.  Today these sectors are robust and the future is very promising.

The mining and oil and gas sectors are dependent on a number of factors which we here in the Northwest Territories are unable to influence and control.  World prices, a healthy national and international investment community and access to international markets are only a few of these influences that greatly effect whether or not one or all these sectors can flourish.   When any one of these influencers experience a downturn, the opportunities and benefits to northerners and our economy quickly erode and in some cases disappear.  Our economy has been witness to examples of this over the past number of decades.

The NWT also has a number of smaller economic sectors that are also resource based.  These include the Traditional Economy, such as fur trapping, an emerging agriculture sector and, of course, the fishery.  These industries are small relative to the rest of Canada, but, very important to the NWT.  They are largely “home grown” industries involving renewable resources that engage northerners in all 33 of our communities in the economy, by providing benefits in the form of employment or income and offer tremendous social benefits.  These also offer employment to those who, for whatever reason, can’t, or who choose not to participate in the larger non-renewable resource sectors and provide for stable, reliable sources of income for their families.  In summary when all else fails and all other options disappear these small sectors are relied upon to provide northerners with an option for employment and income.

Now let me speak specifically to the fishery on Great Slave Lake.

Let me first point out that the fishery in the NWT is competently and professionally managed and regulated by the Department of Fisheries and Oceans (DFO).  We have an exceptionally healthy, well managed stock, in fact our problems today, contrary to elsewhere, have very little to do with the stock but more with capacity and production.

Again for context let me provide you with a bit of history.

The commercial fishery on Great Slave Lake has been in existence since the 1940’s when it was largely unregulated and controlled by buyers serving growing markets in southern Canada and the United States.  In those years fishing was good but the resource was overexploited.  In about 1950, 4,500 metric tons were taken from the Great Slave Lake.   Lake trout as a population was almost wiped out entirely and whitefish became and remains today the dominant species. The Government of Canada through the DFO stepped in, in the 1950’s and 1960’s to bring about regulations and control.  A commercial quota approximating 1,650 metric tons was established as well as a restricted entry regime, regulated by vessel certificates which allowed for only a limited number of fishing vessels on the lake.

All of these certificates were fully subscribed up until the early 2000’s.

These vessel certificates are re-issued each year.  Holders of these certificates do not own these certificates nor can they attach themselves through the certificates to a quota of fish.  These certificates have no monetary value assigned to them so offer fishers no support in securing bank financing.

In 1969 the Government of Canada introduced the Freshwater Fish Marketing Act (the Act).  This Act established Federal Crown Corporation, Freshwater Fish Marketing Corporation (FFMC).  The purposes of the Act and the FFMC were to regulate interprovincial and export marketing of fish in western and northern Canada.  The fishers of the Northwest Territories support their ongoing relationship with the FFMC.

In about 1970, the Government of Canada, through the FFMC, established a fully certified fish plant in Hay River and fish collection stations strategically situated around Great Slave Lake.  The Lake Stations allowed fishers to deliver fish to FFMC without having to transport these back to Hay River.  These Lake Stations enabled fishers to “follow” the fish around the Great Slave Lake.

From the 1970’s through to the early 2000’s the fishery provided a reasonable income for fishers who for the most part were made fairly secure in their circumstance largely due to a restrictive licensing regime put in place in the 1970’s.   Over 250 people, 90% + aboriginal, were actively involved in the fishery.

The principle species for Great Slave Lake fishers is Export Grade Whitefish.  This species represents 90-95% of the annual fish harvest.  This species and grade allows our whitefish to be exported from Canada to markets around the world.  Given the fat content of Great Slave Lake whitefish, it is often directed, by FFMC to the smoked fish markets found in Canada, the United States and abroad. Other species of fish harvested include trout, pickerel, coney and northern jackfish.  The latter being highly sought after in France and other countries in the European Union.

While the Government of Canada did play a significant role in the Great Slave Lake commercial fishery through management and regulation as well as initial capital investments, this has not been a one sided effort by any means. The fishers through their production paid for all the costs associated with the FFMC operation of the commercial fishery.  The Government of the NWT has also provided for freight support to transport fish from Great Slave Lake to the FFMC plant in Winnipeg.  This support allows fishers on Great Slave Lake to deliver their fish, gutted and gilled, to the fish plant in Hay River or to the Lake Stations, where it was packed on ice and shipped to FFMC’s Transcona plant in Winnipeg for processing and sale through their national and international marketing network.  The support ensures fishers on Great Slave Lake received the same price for their fish as fishermen from Lake Winnipeg.  This cost, from the mid 1980’s to date is in the millions of dollars.  In addition the Government of the NWT has also provided capital assistance to fishers looking to upgrade and modernize their equipment.

The most significant changes to this fishery occurred between 2003 and 2008 when cost of operations exploded and revenues declined.  External influences took hold.  The weakening US dollar and economy, and the unprecedented rise in the price of fuel resulted in a dramatic drop in production and participation.  Production declined from almost 1,000 metric tons to less than 300 metric tons in the span of two or so years.  Only 20% of the commercial quota is being harvested today. All equity in this fishery was lost in a very few short years.  Many fishers have lost hope and simply pulled their vessels on shore.  Vessel certificates which were always oversubscribed since they were introduced in the 1970’s were now available to anyone who made application for these.

In response the FFMC imposed dramatic cost cutting measures to simply survive and meet its mandate of cost neutrality.  The effect of these measures combined with rising costs of production brought our commercial fishery to near collapse.  Production over the next several years dropped dramatically.  The winter fishery was closed, the lake stations disposed of and the FFMC on site management diminished considerably.

Now in 2013 the commercial fishery on Great Slave Lake is slowly rebounding. Deliveries of fish to the FFMC are marginally increasing and new markets are emerging in the NWT.  This Government has supported a number of fishers who are now developing a domestic commercial market for fish fillets here in the NWT.   Volumes are approximately 90 metric tons per year.  This is very small relative to the overall quota.  While small almost all the production is being sold in a added value format, meaning more employment and income for this fishery.   The local market is growing annually and we will continue to make investments directed not only at building capacity but also in branding our whitefish and other species to distinguish these products from others that are being imported regularly into the NWT.

While fishers’ equity remains very weak, we do have a willing partner in FFMC, but they find themselves hampered by economic burdens.  The FFMC by virtue of its own legislation is neither nimble enough nor capable to affect the status quo. The FFMC must operate on a cost neutral basis.  They receive no subsidy from Canada.  The FFMC lake stations are gone and the main FFMC fish plant established in the early 1970’s is literally falling down and too costly to repair and operate.

So we now find ourselves in the dilemma of having a healthy, viable stock of fish, willing markets both in the NWT and elsewhere but a rapidly declining capacity to deliver.  If we fail to solve this dilemma then the future of this fishery is not bright.  Canadian markets face the prospect of losing a valuable, and, without question sustainable food source harvested from “clean, cold, pristine” waters.  These are not simply marketing attributes.

The Great Slave Lake today is one of the last great water bodies in North America not impacted by industrialization or urbanization.  The water is clean and safe from contaminants, but we can’t be complacent.  Climate change is a reality.   Invasive species such as Asian carp and zebra mussels have wreaked havoc on other water bodies in North America.  Down-stream pollutants, regardless of the source is always a threat.  We need the support of the Federal Government to put in place the means and protections to ensure the integrity of Great Slave Lake is safeguarded for future generations.

In terms of the commercial fishery, small investment of approximately $5 million dollars over the next several years would make all the difference to this small industry.  This investment would not only bring capital for a new plant but also provide the means to re-invigorate a very tired fleet.  An investment of this size could very well result in attracting 200+ northern residents back to the fishery leading it to a new era of self-sufficiency and return it to the status of a smarter, leaner more nimble industry once again.

We here in the NWT would be happy to work with the Federal Government and look at building the business case for this investment.  We firmly believe there is a future for this fishery and it would be well worth the effort.

In closing this is an industry worth saving.

Thank you.