Punitive budget leaves industry reeling
The Newfoundland & Labrador (NFLD) government's new budget, which was announced last week, heralds a four-fold licence fee increase for the province's salmon and trout farmers.
“Unfortunately, in this budget, as last year's, our industry’s fees have increased dramatically. The fee structure outlined in Budget 2016, translates into more than 400% increase for simply licensing our 89 sites for salmon and trout in this province,” Mark Lane, Executive Director of the Newfoundland Aquaculture Industry Association (NAIA), told Fish Farming Expert.
In addition, Crown Land leasing fees have also doubled for all finfish and shellfish farming operations. Processors of farmed seafood will also be subject to new surcharge fees priced at $1.50/tonne. It also contains new Water Usage Fees at $1000 for marine aquaculture and $10,000 for freshwater aquaculture, as well as, cost per volume of water in aquaculture operations.
Lane continued: “Fish farming is a renewable resource. Farming our oceans with care enables Newfoundlanders and Labradorians to produce a sustainable healthy food for a growing population. Aquaculture has a long history in this province and we see a bright future; working in concert with traditional fisheries, providing premium seafood to the world and being a significant contributor to our provincial economy for generations to come. Now is not the time to penalize an industry that works to revitalize rural coastal communities.”
“As an industry, we are disappointed with the significant increase in licensing, leasing and water usage fees for our producers. These new and heightened fees, in addition to increased gas tax and HST, pose significant increased costs of operation to those already established in the province and may serve as a deterrent to companies from making capital investments to expand or start-up in the future,” said Lane.
On the up side, the budget pledged $2 million for a new Seafood Innovation and Transition Program, supporting technology and innovation; $200,000 (over the next two years) to establish a Fisheries Advisory Council, comprised of stakeholders to advise the minister on strategic policy and programs; and $420,000 for oceanographic research to support aquaculture sustainable management practices.
“As an industry we are pleased that the Government of Newfoundland and Labrador are investing in a new Seafood and Aquaculture Innovation and Transition Program to support technology and innovation in harvesting, processing, aquaculture and marketing. We are also pleased that the provincial government remains committed to a Ministerial Advisory Committee on Fisheries and Aquaculture,” Lane stated.
In recent years, the value of the NFLD aquaculture industry has reached $200 million, producing nearly 25,000 MT of premium seafood and creating thousands of employment opportunities in rural coastal communities; contributing in excess of $100 million annually to the total GDP.
