BC Sport Fishing Coalition

The Real Fact Sheet

Pacific Halibut Allocation Policy

Since its imposition onto the Public Fishery in 2003 by Liberal Fisheries Minister Thibault, three
successive Ministers have supported the Pacific Halibut Allocation Policy, against all advice and
discussion with the Recreational Community.
It seems prudent to have the facts be considered before opinions from the commercial fleet
representatives are accepted as correct. The continuance of flawed policy does not demonstrate
that it is good policy, simply that the ability to change established policy is, it appears, difficult.

1. The 88%:12% allocations were imposed on the Recreational Community

after much debate, intervention by facilitators and pressure from the
commercial fleet representatives in 2003. It was then, and still is inequitable,
possibly illegal.
In 2003, under pressure from the Commercial fleet to limit the Public Harvest of halibut, Minister
Thibault announced his intention to create and assign quota to the Public fishery as well as the
commercial fleet. At that time the monitoring and counting of the recreational halibut catch was
minimal, perhaps at best collecting a rough guess at total harvest, so an artificially low estimate
suggested that the recreational sector harvested 9% of the catch, which the commercial reps
fought to have reduced to 5%. After much debate and facilitator advice, this was eventually
raised to 12%. The Recreational advisors in the process pointed out that it still needed to be 20%
to be able to meet the needs of the recreational fishery and suggested that all uncaught fish
could be given to the commercial fleet to “clean up” in the fall. This was rejected, and the
Minister mandated 12%. Since 2003 huge strides have been made in design, collection, and
audit of data for the recreational halibut catch, due to strong requests from the recreational
community. This improved monitoring has been accepted by the IPHC, and this year was
validated again by the commission. It also shows that 2003 estimates were clearly low, and that
in fact the 20% originally recommended is actually below what is required to keep the Public
fishing.
Finally, it should be noted that to his credit, Liberal Minister Thibault created a policy in 2003 that
incorporated 3 key components, two of which actually recognized the importance and potential of
the recreational fishery:
1. That initially, the allocation would be split 88%:12%.
This is what the commercial sector considers to be the complete allocation policy.
2. That a market-based mechanism would be developed to enable allocation to be
transferred from one sector to the other.
This component clearly recognized the need to accommodate growth in the recreational fishery
due to its significance to Canada both in social and economic terms.

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It also makes it clear that Minister Thibault never intended for 88\12 to be a permanent
allocation. DFO appears to agree since it has spent tens or possibly hundreds of thousands of
tax payers’ dollars since 2006 in two facilitated processes in an attempt to identify this
mechanism. The fact that no legal entity exists within the public fishery to facilitate the collection
and transfer of funds, combined with the complete lack of a regulated, transparent, open
“market” for quota ensured the complete failure of both processes.

3. There would be no in-season closures of the recreational fishery.

This component recognizes the social and economic importance of the recreational fishery by
creating certainty and stability in season length. Assuming that the intent was for complete
implementation of the entire policy, it could also have been viewed as an incentive to the
commercial sector and DFO to implement component two as soon as possible.

The fact that over the past decade DFO has failed in the implementation of the complete policy
as it was intended, and has instead chosen to only implement one out of three equally important
components clearly indicates that the policy is unworkable, and that the only solution is to go
back to component one and change the allocation formula away from 88\12.

The original policy in its complete form allowed for growth and recognized the importance of the
recreational halibut fishery to the people of Canada. The subsequent failure in its implementation
has created the problem we face today.

2. Talk of Conservation is unfounded, and is being used as a complete

misdirection to intentionally confuse discussion. (Nice talk, but it just isn’t
true!)
Halibut are the best managed species of fish on the entire West Coast of North America, and will
continue to be under the direction of the International Pacific Halibut Commission. Each year the
commission meets to review best available science on halibut stock health, and assigns each
country ( U.S. and Canada) a Total Allowable Catch. ( TAC) The key word here is ALLOWABLE,
because it gives the catch which can be completely harvested with no concern about total stock
health…it is the model of true harvest with absolutely no worry about conservation.
What it does require is that the Canada stay within that Total Allowable Catch, and the
recreational community has never suggested, and will never suggest that Canada go over that
TAC.
B.C. fishermen, both recreational and commercial have seen the total number of pounds of
halibut available for harvest reduced as one large age class of fish is becoming older and
reduced in number while we wait for a the next large year class to enter the fishery, which is
beginning to show up now. This is again the ultimate good conservation practice.
It should be noted that the total number of halibut in the Pacific is at or near record high numbers
– it is only the fish that are over a commercially legal minimum size that are at lower

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numbers. It should also be noted that in recent years, over 50% of the recreational catch has
been under that commercial minimum legal size. Any perceived “abundance concerns” relate
directly to commercial harvest only – the recreational fishery is not constrained by this arbitrary
and market driven minimum size limit that has nothing to do with conservation.
What is at dispute is the Public Fishery share, or allocation of the IPHC determined total
allowable catch, not the sustainability of the halibut fishery in Canada. 12% is not a fair
share to allow Public access to their fish.

3. The reduction in TAC has economically “hurt” commercial quota holders:

Of course the economic theory of supply and demand works, and although the commercial fleet
is harvesting fewer pounds of fish, the price the quota holders receive has gone up substantially,
so that they have in fact still been making large profits based on the large number of fish “owned”
by relatively few individuals. Unfortunately, active commercial fishermen are hurt by the increase
in quota lease prices being charged non-fishing quota holders as the margin between lease cost
and landed value continues to get smaller and lease costs amount to a greater share of the total
trip costs borne by the active fishing fleet. For the non fishing quota holders however, it’s all profit
– lower TAC’s mean higher lease prices which equals greater profits. The reduction in the
poundage of their quotas is typically more than offset by the increase in the prices they charge
for access to their gift – especially in 2011.
The recreational community on the other hand, has a far smaller quota which results in far fewer
fish being shared by a drastically larger number of individuals, and therefore this sector has
taken a harder impact from the reduced TAC resulting in significantly reduced season length and
catch limit reductions so that we stay within the Canadian TAC. There is no direct relationship
between TAC size and price in the recreational fishery – as supply decreases, competition
increases for a smaller number of fish. “Price” is not part of the equation in a public access
fishery.

4. Recently First Nations have been entering the commercial fisheries of all
species as part of Treaty negotiations.
In fact a whole program has been put in place, which sees Government buying existing
commercial licenses and providing them to First Nations to be fished as any commercial license.
This is in addition to the provision of all Food and Ceremonial fish, which are clearly provided to
all First Nations before any other fishery takes place.
We have been assured in the House of Commons that commercial fisheries are not race based,
but are all treated the same, as simply a commercial fishery under the rules and regulations set
forth by DFO. We have no idea why the Commercial fleet representatives think they should
single out First Nations participation in the halibut fishery, unless it is to create a smokescreen?

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5. The individual quotas when established were, in the opinion of many, turned
into private property, and then gifted to individual commercial fishermen
based on their historical catch.
In 2003 Minister Thibault gave 435 individual private businessmen, (commercial halibut
fishermen), free quota based on their historical catch. It is the contention of the Recreational
Community that this was illegal, that at this point the Minister turned the Canadian Common
Property Resource, halibut, into private property which has since been sold, bought, leased and
used as loan collateral. 88% of our resource was given away. Since that time, many fishermen
quickly realized the windfall they received and sold it to others, realizing quite a profit in doing so.
Further, some quota holders elected to stop fishing entirely, and enjoy a high return on their gift
from Canadian taxpayers by leasing it out to under 200 active fishermen who have to struggle to
make a profit after paying high lease fees, this year as high as $5.00 per pound. One non fishing
individual quota holder has 200,000 lbs of halibut he owns, and leases out each year while not
fishing one day…is this a healthy commercial fishery to benefit all Canadians? None of this
lease payment goes to Canada, but to the private business people who believe they own it.
Quota holders do pay 10 cents per pound to Canada for harvested fish annually….this is a good
deal for Canada?

6. Commercial fishermen “provide fish for ordinary Canadians”. They are

putting food on the table of average citizens who choose not to fish.
The truth is, based on a report by BC Stats, that of the halibut harvested by west coast
commercial fishermen in 2009, fully 75% is exported out of Canada. Of the 25% of the
commercial catch that actually remains in Canada, the price in 2011 ranged from $12.00 to over
$25.00 per lb. This price is determined not by what is best for ordinary Canadians, but by the
price obtained in exclusive restaurants in the USA, Europe and Asia. Providing food for
Canadians? Hardly, more like providing huge profits for 435 quota holders while denying
ordinary, average income Canadians affordable, healthy products harvested from their own
oceans in a fishery that is subsidized by their tax dollars.

7. Fishing is a pastime enjoyed by millions of families and individuals right

across Canada, part of our social fabric, and used year round to provide
healthy fresh food to our nations tables.
More people over the age of 15 fish in Canada than play hockey and golf combined!
The annual revenue from fishing in Canada exceeds the total beer and wine sales!
In 2000 the government survey estimated 8 million people in Canada fish.

Link to the source: http://www.csia.ca/news/economics_of_fishing.pdf

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8. Minister Thibault required a market based transfer of quota to help

recreational community acquire quota?
One of they key points Minister Thibault failed to grasp in his decision that any change in his
quota assignment between the recreational community and the commercial sector be done by
purchase in a market based process was the very nature of business itself. In order for a group
to hold money, buy or sell goods, or indeed own anything the group needs a legal entity…a
society or legally incorporated body ( company). The Public sector fishermen are just that,
members of the public who purchase a license and, when the “time is right” go out to fish. We
have no company or society that can enter into a “Market Based Process”, indeed we do have
only one legal entity to represent us all wherever we reside in Canada….the Federal
Government charged with “the duty to manage, conserve, and develop the fishery on behalf of
all Canadians” ( sec. 43, Fisheries Act of Canada)
If the inequitable, unfair allocation of halibut is to be changed, only the minister can do so.

9. The Public recreational fishery is a strong economic generator, and using a

far smaller number of fish comparatively, generates far more economic
returns to Canada than Commercial fishing.
Please refer to the document, (http://www.env.gov.bc.ca/omfd/reports/BC-Fisheries-
Aquaculture-Sector-2007.pdf) specifically pages 10 -14, for a rationale as to why GDP is the
preferred indicator for use in defining and comparing the economic contribution of fisheries
related industries.
Using the aforementioned report, it was estimated that in 2005 the tidal waters recreational
fishery generated $135 million dollars in real gross domestic product which was 39% of the
combined GDP of all fishery and aquaculture related activity in BC in that year. The commercial
halibut fishery generated $17 million during the same period. Assuming that halibut account for
approximately 30% of this effort, and that there has been a further 30% decrease in effort in the
halibut fishery recent years due to the onset of the recession, the recreational halibut fishery in
BC generated a real gross domestic product of $28.35 million in 2010 which is still over twice as
much as the commercial fishery produced prior to the onset of the recession, and the decrease
in TAC.

10. The underlying principles of all recreational fishing are the stability of
opportunity, and the expectation of catch.
Under the management of DFO and their refusal to move from the 88/12 allocation formula
season length has been unknown and shorter, different length each year, and reduced catch
limits have changed and varied throughout the year. These seasons and reduced catch limits
have been announced late in the year, often not until the delayed season opens. No one is any
longer able to plan holidays, book cabins, motels or lodges, marina spots, campgrounds….

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Guides who depend on preseason bookings have no idea when they can offer trips or for how
many fish. Minister Thibault’s original written policy stated clearly there would be no in season
closures…that was the first part of the policy to be violated by DFO.

The Best for last …

Guides and Lodges are not catching all of the halibut!
Thank goodness for all average Canadians that we have guides with safe boats with modern
electronics and sound knowledge of safe boat handing to safely take us out to catch our fish.
Guides offer a service to let us catch our fish without having to own and operate a boat…why is
this considered a bad thing by the commercial fleet? People come from all over Canada, many
from Alberta and Saskatchewan, but in recent years more and more from Ontario, Quebec and
the Maritimes also like to combine a holiday to the temperate BC region with a day’s fishing trip
and take home a halibut or two. The lodges offer accommodation only, they don’t take
fish….they are not even allowed to cook the fish caught by us for meals, they have to buy it from
commercial fishermen if they wish to serve Halibut to their guests…and many buy quite a bit.

By attacking, (and the commercial sector is attacking) guides and lodges, they are suggesting
that we as average Canadians should have to buy large boats, learn how to operate them, and
head out on our own…why on earth is hiring someone to help us harvest our own fish
considered “commercial fishing”? They are suggesting that Canada should discriminate access
against members of the public who do not own boats. All people outside Vancouver Island must
take a ferry at some expense to travel to the fishing spots…does this mean the ferry corp. must
now purchase quota? Boat dealers all over BC depend upon anglers looking to go out on the
ocean to purchase larger boats, and a lot are sold here in BC…do boat dealers have to purchase
quota because their clients fish for halibut? There exists only one real reason the commercial
sector wants guides and lodges to purchase our fish to sell back to us….because no other group
has the legal ability to hold money or buy property, so they are being targeted to fill the pockets
of the commercial quota holders….and for no other reason.

The bottom line is that 12% of Canada’s total halibut allocation has never been
enough to support a vibrant and successful recreational fishery. It is time for
government to recognize the importance of this sector to coastal communities,
businesses, and average Canadian families across BC and Canada. This issue is not
about the conservation or sustainability of the halibut resource, it is about
government making choices about what is the best use of a resource that is already
sustainably managed. Is it privatization and the concentration of the wealth
generated by that resource in to the hands of a few chosen individuals, or is it to
continue the great Canadian tradition of common Property Ownership With
Resources Managed By Government To The Best Use Of All Canadians?

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