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### Viewing cable 08OTTAWA94, CANADIAN FISHERIES LEGISLATION -- THIRD TIME CHARM?

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
08OTTAWA94 | 2008-01-17 20:08 | 2011-04-28 00:12 | UNCLASSIFIED//FOR OFFICIAL USE ONLY | Embassy Ottawa

`

    VZCZCXRO5395
    RR RUEHHA RUEHVC
    DE RUEHOT #0094/01 0172015
    ZNR UUUUU ZZH
    R 172015Z JAN 08
    FM AMEMBASSY OTTAWA
    TO RUEHC/SECSTATE WASHDC 7161
    INFO RUEHHA/AMCONSUL HALIFAX 2895
    RUEHVC/AMCONSUL VANCOUVER 2592
    RUCPDC/NOAA WASHDC

` `

    UNCLAS SECTION 01 OF 02 OTTAWA 000094

    SIPDIS

    SENSITIVE
    SIPDIS

    STATE FOR WHA/CAN AND OES/OMC; NOAA FOR NMFS

    E.O. 12958: N/A
    TAGS: EFIS SENV PREL CA
    SUBJECT: CANADIAN FISHERIES LEGISLATION -- THIRD TIME CHARM?

    ------
    Summary
    -------

    ¶1.  Summary:  On November 29th, 2006, Fisheries and Oceans
    Minister Loyola Hearn introduced a new bill to Parliament to
    modernize Canada's 139-year-old Fisheries Act.  While there
    is unanimous agreement that the Act must be updated, there
    are differences among stakeholders regarding changes that
    should be made, and how far those changes should go.  This is
    the third attempt in a decade by the Department of Fisheries
    and Oceans (DFO) to update the Fisheries Act.  Barring an
    unforeseen early election, DFO officials believe the
    Government will have sufficient time to pass the legislation
    by October 2009 -- the latest date by which national
    elections must be held.  End Summary.

    ----------
    Background
    ----------

    ¶2.  Canada's Fisheries Act is the federal law that governs
    the management of fisheries and the protection of fish
    habitat in Canada.  It was enacted in 1868, the year after
    Canada was formed.  That was before all the provinces and
    territories now on Canada's coasts -- most notably the
    provinces of British Columbia, Newfoundland and Prince Edward
    Island -- had entered Confederation, and before modern
    fishing practices and technologies had been developed.  The
    archaic character of the Act is most visible in the authority
    it gives to the Minister, who has "absolute discretion" to
    make decisions about and manage Canada's fisheries.  This is
    still upheld by the Canadian legal system.  Commented one DFO
    contact, "We don't lose court cases."

    ¶3.  DFO initiated its drive to reform the Act in the late
    1990s.  Its first effort was shot down by environmental NGOs
    who insisted on the inclusion of stronger habitat provisions.
     A second bill was preceded by several years of discussion
    between DFO officials and stakeholders, but it died last
    September when the Government prorogued Parliament.  DFO
    officials took the opportunity before resubmitting their
    draft to make changes to the text to address certain
    recurring criticisms.  The result was the present Bill C-32.

    ---------------
    What is Changed
    ---------------

    ¶4.  The most fundamental change that will occur should Bill
    C-32 be passed is that the Minister will no longer have
    absolute authority in law over granting licenses, permits and
    quotas.  Stated Minister Hearn when he introduced the bill in
    Parliament, "In the 21st century it is not acceptable to have
    a system that allows politicians to determine who gets what
    fish without any type of public accountability."  (Hearn was
    overstating the case somewhat, as much of the Minister's
    current authority is delegated to various officials and
    representative bodies in somewhat transparent arrangements.)
    Licensing rules and criteria will be set out in regulations
    under the new Act.  While the Minister will continue to
    decide on access to the coastal fishery, licensing officers
    will issue or refuse individual licenses.  A newly-formed
    Canada Fisheries Tribunal will hear appeals.  The Minister
    will continue to make but in a more transparent process.  The
    feudal days of petitioning the Minister personally and
    relying on one's political associations will end (or, at
    least, be significantly reduced).  Not surprisingly, some
    well-connected individuals and firms are quietly unhappy with
    Bill C-32 for this very reason.

    ¶5.  Concerns of environmental NGOs were addressed by wording
    that requires the Minister to consider conservation
    priorities before making licensing and allocation decisions.
    The new language directs the Minister, among other things,
    QThe new language directs the Minister, among other things,
    "to take into account" sustainable development and "to seek"
    to conserve fish and fish habitat.  This is optional
    language, according to critics, and gives the Minister too
    much leeway to pursue commercial ends over environmental.  In
    a meeting with embassy officials, Michaela Huard, DFO
    Assistant Deputy Minister for Policy, opined that many
    organizations criticizing the new legislation had not
    actually read the 122-page text of the current Fisheries Act.
     "People aren't aware of what the law actually is now -- they
    would be shocked if they knew."

    ¶6.  DFO is proud of new enforcement provisions found in Bill
    C-32.  Instead of relying solely on monetary fines levied by

    OTTAWA 00000094  002 OF 002

    a cumbersome court system, DFO will be able to punish
    transgressors through a variety of means that could include
    cutting quotas and confiscating fishing boats.  "Many of the
    big companies look at financial penalties as just another
    cost of doing business.  Taking away their quotas will really
    mean something."  Many of these sanctions will be meted out
    through a newly-formed Canada Fisheries Tribunal composed of
    GOC officials, with representation from the
    scientific/educational and fishing communities.  DFO predicts
    the speed of enforcement for fisheries violations will
    increase.  Ironically NGOs are criticizing the new
    enforcement provisions because the fines for many fishing
    license violations will be reduced.  In response, DFO points
    to the new ability to seize fishing vessels and reduce quotas.

    -------------------
    Legislative Process
    -------------------

    ¶7.  The "first reading" (introduction of the bill to
    Parliament) took place on November 29th.  The Harper
    Government may refer it to committee now -- as some critics
    are urging -- or wait until after the bill's "second reading"
    to refer it to committee.  The timing of referral to
    committee will be a political decision.  Should the bill be
    referred before its second reading, committee members will
    have the ability to change the scope of the bill.  A referral
    to committee after the second reading means that members have
    agreed in principle on the purpose, intent and scope of the
    bill, and must limit themselves to technical and
    administrative changes.  Our DFO contacts predict the
    Government continue to resist pressure for a first reading
    committee referral.

    ¶8.  There is virtually unanimous agreement that a new
    Fisheries Act is urgently needed.  While legislators will
    strive to influence the bill in ways that are favorable to
    their own provincial interests, we understand that it is
    unlikely that anyone will take specific actions that could
    endanger its passing.  More probable -- but still unlikely --
    would be efforts from NGO representatives who could oppose
    the bill because it does not, in their view, go far
    enough....a case of the perfect being the enemy of the pretty
    good.  Barring an unforeseen early election, DFO officials
    believe that the fixed date set for national elections --
    October 2009 -- will allow sufficient time to get the
    legislation passed.

    -------
    Comment
    -------

    ¶9.  (SBU)  Bill C-32 will have little direct effect on how
    Canada conducts business in multinational fisheries fora and
    in its bilateral dealings with the United States.  "We're
    just trying to catch up and codify what present practice is,"
    said Huard.  In a sense, this is unfortunate, as it seems to
    reflect the degree of inertia imposed by entrenched interests
    and key political constituencies in Canadian fisheries
    policy.  DFO fisheries managers are still trying to live down
    their failure to anticipate and prevent the collapse of the
    Atlantic groundfish (cod) stocks in the early 1990s, and they
    continue to find it very difficult to restrict fishing quotas
    to the levels recommended by scientific advice.  This is
    particularly true on the Atlantic Coast, where the fishing
    industry continues to represent one of the main economic
    drivers in constituencies which tend to "swing" between the
    two leading political parties.  Progressive DFO policymakers
    have broad visions for asserting Canadian leadership in
    multilateral fisheries conservation and oceans management,
    but those aspirations tend to founder on domestic political
    Qbut those aspirations tend to founder on domestic political
    realities.  Given this context, we are not surprised to be
    told that the new Act is necessary, but that it may not live
    up to its advanced billing.

    Visit Canada,s Economy and Environment Forum at
    http://www.intelink.gov/communities/state/can ada

    WILKINS

`