CCN Back Issues Vol 2 Issue 3

When Little Narrows Gypsum Company first proposed a dredging project at Middle Shoal in the Bras d'Or Lakes, Cape Breton, back in the Spring of 1995 no one could have imagined the disputes it would cause.

By the time the project was halted this past October it had aroused accusations of pay offs, dirty tricks, unlawful actions, and down right deception. The criticisms and arguments carved a wide swath engulfing everyone from local fishermen's organizations, Union of Nova Scotia Indians, federal, provincial and municipal politicians, ACOA, the USG Corporation of Chicago and residents of the Little Narrows area in Cape Breton.

The dredging project was designed by Little Narrows Gypsum Company, a division of the U.S. based U.S.G. Corporation. The company has operated two gypsum mining operations in Nova Scotia for decades, one in Windsor and the other in Cape Breton. About 150 people are directly employed by the Cape Breton mine.

The company hoped, that by dredging Middle Shoal, on the Bras d'Or Lakes, that its larger vessels would be able to more efficiently travel down the lake and load at its facilities at Little Narrows. Without the dredging the company was only able to load its ships to about 75% of their capacity.

The idea was not a new one. In fact about 10 years ago the company had first considered the idea of dredging but nothing was done until the Spring of 1995.

That is when local residents and fishermen in the Little Narrows area first heard about a plan to dredge the shoal. According to Kevin Squires, Secretary of the Big Bras d 'Or Fishermen's Group, there was wide spread opposition to stage. " The initial reaction was completely negative," says Squires.

In order to help provide information to local residents the gypsum company held a community meeting and invited everyone who would have a stake in the projects results. "We recognized that the biggest threat would be to the fishery,' says Kevin Squires. He goes on to explain that fishermen were concerned about the project not being done properly and irreversible damage being done to the local fishery.

In response to those concerns, the Project Manager for Little Narrows Gypsum, John Fitzgerald, met with local residents and gave them a presentation on the dredging project. Still people were sceptical and they made it clear that they were not satisfied with the answers they had received. Meanwhile the company was proceeding to file for permits and was having biological and oceanographic studies completed. During this permit process, residents, fishermen, local native groups, businesses and others were contacted.

It was at this time that one of the groups contacted, the Big Bras d'Or Fishermen's Association, challenged the gypsum company and insisted that they be allowed to conduct their own study of the project. The company for its part agreed and actually gave the Association funding to do their own study. Kevin Squires explains that in the past they had not had good experiences when it came to being included in environmental consultations. Because of this they hired a consultant, (Gadus Associates) and undertook their own review of the potential impacts of the dredging project.

In the Spring of 1996 a final report was issued. While the results showed that there were potential consequences from the dredging, they were deemed minor and unlikely to occur. The group had three main environmental concerns. Namely the impact on lobster in the dredging area, the affects of sedimentation, and the impact on migratory fish like herring or salmon. This last concern was of major importance to the native community.

In the end the Big Bras d'Or Fishermen's Association concluded that the project looked like it was going to proceed since there were few consequences identified and there were no major objections being raised by government. The only way they felt they had to ensure that the project was not detrimental was to be involved in monitoring it everyday. Kevin Squires says, "We wanted to be right there breathing down their neck." It was the belief of local fishermen that the only way to ensure fish habitats were not destroyed was to be a part of the process and make sure it was done properly.

To accommodate the fishermen the company agreed to hire members of the Big Bras d'Or Fishermen's Association to monitor and advise on the dredging project. It was this decision that sparked major controversy. The Association signed a contract with the company to provide inspectors, deck hands, safety personnel and boats for the dredging and monitoring project. More than 50 fishermen and eighteen boats were contracted. In total that contract between the Association and Little Narrows Gypsum would amount to over $750,000.

"I am very proud of the deal we reached. It provided work and incomes for local fishermen that otherwise would have gone out of the community," says Kevin Squires. When the dredging actually got underway in August public attention was suddenly focused on the happenings in Little Narrows.

First, the Union of Nova Scotia Indians filed a court case against the project wanting it stopped because they had not been adequately consulted about the impact the project might have on their aboriginal fishing rights. When the case went to court details of the funding arrangements for the project raised eyebrows among some. It was revealed that nearly half of the funding for the dredging project had come from the Atlantic Canada Opportunities Agency (ACOA). In addition the Nova Scotia government had provided another $500,000.

This news came as a surprise to many since there had never been a public announcement of the funding from either ACOA or the province. The company had contended all along that there was no tax payer money involved. For their part the company contended that the agreements they had with government prevented them from discussing the details.

ACOA spokesman, Don Landry, told the media that they had proceeded to support the project because Little narrows Gypsum had a long history on the island and that the dredging was part of a larger expansion of the mill and mining operation. In total ACOA provided $4.7 million.

Politicians were the next to wade into the fray with provincial NDP leader Robert Chisolm accusing the Savage government of having its priorities wrong. Supporting a U.S. corporation, with a $500,000 grant, while at the same time cutting Nova Scotian's health care. The court case also brought out the details of the agreement between the Big Bras d'Or Fishermen's Association and Little Narrows Gypsum. Once it was public that local fishermen had been hired many people jumped to the conclusion that they had been bought off; paid for their support of the project.

"I can appreciate that it may appear that way but we've taken a position of active engagement and we made the right decision," Kevin Squires told the media on behalf of his members. He went on to say, "Of course we knew we'd be accused of being bought off but our best protection for ourselves was to be involved," says Squires.

Testimony at the native court challenge revealed that 22 fishermen had received an equal share of a $75,000 lump sum payment as compensation for loss of fishing during the dredging. They also agreed that by accepting the payment they would not press any further claims against the company. In addition $75,000 was paid to the Association for wharf disruption and another $25,000 for emergency response capability. An additional $790,000 was paid to hire fishermen and their boats and equipment to provide the monitoring of the project.

In response to the perception of being bought off the Association explained that, "We had to make a judgement. Either drive ourselves nuts and try to stop a project that by all appearances was going ahead whether we liked it or not and see the work go elsewhere or get involved and make sure it was done right." John Fitzgerald, spokesman for the company explained that hiring local fishermen was logical given their expertise and the readiness of personnel and access to equipment in an area adjacent to the project.

With talk of money circulating came claims from other fishermen's associations in the region that they should be eligible for compensation as well. The Point Aconi Fishermen's Association was one of those that raised concerns. Especially about the severe damage that the dredging may have caused to their lobster fishery.

Kendall Jessome, President of the Point Aconi group said, "We're talking millions of dollars worth of product here. We were never fully apprised of the project details nor were our concerns addressed."

In the swirl of criticism came the project's final blow when on October 25th Justice Andrew MacKay agreed with the Union of Nova Scotia Indians and issued a stop work order bringing the dredging to a halt. With the project 90% complete it was a big setback for the company.

Justice MacKay said that the federal and provincial government did not properly assess the impact the dredging would have on aboriginal fishing in the Bras d'Or Lakes. He went on to order that the environmental impact be reassessed with full consultations with Mi'kmaq and the gypsum company. The judge also said that if the new review shows that the project is not detrimental then work can begin again.

Bruce Wildsmith, the lawyer for the Union of Nova Scotia Indians said that the judge's decision points out the special responsibility that the federal government has to address native interests.

As for the Big Bras d'Or Fishermen's Association, Kevin Squires says, "This project was a wonderful example of cooperation between a community group and a corporate interest. This is how community development is supposed to work." In hindsight though Squires wishes there had been better communication and that they had worked harder to ensure people knew they had a big say in the process.

The company wants to finish the project if all of the environmental reviews are positive. Natives proved an important point and may have regained a little respect for the Nova Scotia justice system. The Big Bras d'Or Fishermen's Group believes that their experience with this project was not fairly portrayed by the media.

But overall this whole story seems to show how the best of intentions can divide a community, when open communication and trust are lacking. In next month's issue we will explore this story in more detail and will examine the lessons learned and the implications for other communities who are faced with similar projects and decisions.

Fresh Ideas And New Opportunities Are Leading To Growing Optimism In Guysborough County.

Communities In Action

Natural gas may soon be flowing from Nova Scotia's fabled Sable Island and when that gas is brought ashore it will land first in Guys borough County. The announcement of a new industry and accompanying jobs has been received warmly in this rural region. But natural gas is not the only thing that promises new prosperity and growth for this community. Coastal Communities News recently visited Guysborough County and discovered a long list of new initiatives and development projects underway.

Guysborough County is the second largest county in Nova Scotia. Most of the population is situated along the coast in communities such as Canso, Mulgrave, Guysborough and Sherbrooke. Other small coastal villages dot the shoreline, places like Tor Bay, Queensport, Port Shoreham, Liscomb, Sonora, and Country Harbour.

During the 1700's and 1800's, the area was settled by Acadians and Loyalists as well as African descendants of the Loyalist movement. During the past two hundred years Guysborough County has remained rural. The people have relied upon natural resources, such as the fishery and forestry, to earn a living. That reliance, on cyclical industries, has meant slow economic growth and an economy that has not been able to produce enough jobs to support the local population. Many have had to move away from the area to find work.

In fact the population has been declining steadily. From 1976 to 1995 the population of Guysborough County dropped from 12,825 persons to 11,495. The slow economy has also meant lower than average incomes for area workers who, according to Statistics Canada, regularly have the lowest average income per tax filer in Nova Scotia. Turning the economy of the area around is not an easy prospect but that does not seem to be discouraging local community members and development workers. Indeed Guysborough County has an aggressive and innovative list of projects underway to help create new opportunities and jobs.

While a lot of media attention has been focused on the impending natural gas pipeline that will be built in the Goldboro area, it is still not a done deal and as with most rural areas the residents seem to be of the attitude, 'we'll believe it when we see it'. While the project does stir excitement, Pam Harrison, a development officer with the Guysborough County Regional Development Authority (GCRDA), points out that the project still has to be approved by the National Energy Board. "There is still an element of if in it, but we are very optimistic" she says.

Natural gas will create a short term boom with about 2000 jobs being created during construction. When completed it is expected that about 38 full time jobs will exist at the onshore gas processing site and another 60 - 100 offshore. David Anderson, of the Atlantic Canada Opportunities Agency points out that while 38 jobs may not sound like a lot but it will make a major dent in the unemployment rate of Guysborough County. Statistics show that the creation of just 75 jobs would create a 5% increase in employment in the area.

This is important in a region with an unemployment rate that can hover as high as 23%. The gas project has also had critics who fear environmental damage. Glen Avery, Aquaculture Co-ordinator for the GCRDA, says the re was some concern on the part of area fishermen and aquaculturists. In response to those concerns the natural gas project sponsor, Mobil Oil, met with local citizens and revised their plans. "They moved the pipe landing spot to accommodate lobster fishermen," says Glen Avery. He goes on to say, "Mobil did their homework and helped to lessen any environmental concerns."

There is also an organized effort underway by a community group called the North Shore Anti-Pipeline Group. They believe that the project presents many potential risks, including the destruction of natural habitat, the risk of fires and explosions, land devaluation, and the threat to groundwater and wetlands. In a presentation to the Joint Public Review Panel, Helga Hoffmann, spokesperson for the group said that, "We are very concerned that fragmentation of the forest will destroy the habitat of animals and songbirds."

The GCRDA sees the natural gas project as a major boost for the area. "There will be new money coming into the area, more spin off businesses. It will embellish everything", says Susan Hendsbee, administrative assistant, for the GCRDA. Pipeline construction is scheduled to begin in 1997-1998 with natural gas production by the year 2000.

The GCRDA and local residents are not depending on the gas project alone to revive the local economy. That is why a comprehensive strategic plan for community economic development in Guysborough County has been completed. The plan which was prepared by the former Guysborough County Community Futures Committee was adopted by the GCRDA in April of 1995 as its guiding document. The GCRDA in cooperation with other community partners has introduced a series of projects to create a positive environment for growth and development of the local economy.

On a recent visit to Guysborough County, Coastal Community News got a first hand look at the projects underway:

This project, which has just completed its first year, encouraged students to start their own small businesses. In the process they learned the fundamentals of small business management. About 50 students started 38 businesses with a $100 grant each from the GCRDA. According to Pam Harrison those businesses generated about $15,000 in total sales.

"It is a very successful way to provide small business experience to our youth", says Pam Harrison. "Someday we hope that this training will encourage some of them to open their own business in Guysborough County". The students started businesses such as lawn mowing, child care, craft related businesses and cookie carts.

Guysborough County is an area known for its rich natural environment. Indeed the forests have been a source of jobs for centuries. The GCRDA is now hoping to encourage alternative uses of natural woodlands. One of the projects currently being sponsored is the raising of forest grown Ginseng, a natural root that has become a popular nutritional supplement. About 30 residents have established Ginseng farms on their hardwood lands.

Vernon Pitts is one of those residents. "There is unlimited potential here. We have the land and resources", he says. Although it will take about seven years for the crop to mature the income generated can be as much as $10,000 for each one-tenth of an acre harvested. Cranberries are another potential crop that can be harvested in the region. The completion of a coastal resources mapping project has identified about 2000 acres of good cranberry bog.

Vernon Pitts sees potential in this area as well. "Right now there is just recreational picking and it is bringing in small dollars. But the sky is the limit. We have the potential to take what was considered useless land and make it productive and create jobs at the same time."

"I can't say enough positive about the efforts being made by the Guysborough County Regional Development Authority."
Vernon Pitts.

There are currently only about 80 acres in production. Already there are about 15 people interested in starting commercial natural cranberry bogs.

To assist businesses in this rural area to take full advantage of the internet and accompanying technology, the GCRDA provided financial assistance to help businesses with acquiring access to the internet. As a result five businesses in the area have been provided with a one year subscription to the internet. "This is designed to help bring Guysborough County into the communication and technology age," says Pam Harrison.

Guysborough County has proven to be an ideal location for certain types of aquaculture. To date there are about 21 sites approved for production along the coastline. There are 4 active finfish farms and 7 active shellfish farms. The other approved sites have leases but are not in production as of yet. There are also another 5 sites doing experimental sea urchin farming.

To help encourage the development of aquaculture in the region the GCRDA has hired an aquaculture development officer. Glen Avery is that officer and he helps local aquaculture businesses with their business plans, make contacts with government, and develop courses. While aquaculture development has come in for some harsh criticism in other areas of the province there has been a general acceptance of the industry in Guysborough.

The GCRDA fisheries sub-committee acts as the review body for aquaculture development in the area. According to Glen Avery there have been concerns raised by some residents about the impact aquaculture might have on other fisheries. "When concerns are raised the committee goes into the community. So far there have been no concerns raised that could not be resolved by the community." Already aquaculture employs about 28 full time and 26 part time workers in Guysborough County.

Guysborough County has targeted ecotourism as one of its prime opportunities for business development. A number of projects are already underway including the use of local lighthouses as tourist attractions. The Canadian Coast Guard is divesting its responsibility for maintaining lighthouses. It is looking to community groups to take over the sites.

In Guysborough County a number of lighthouses have been identified by the community as potential tourist sites. The lighthouses of Eddy Point, Queensport, Cranberry Island, Isaac's Harbour and Liscombe have been identified for developments such as, accommodations, boat tours, whale watching, bird watching, and beach combing. Jeannie Kaiser is a member of the Port Bickerton and Area Planning Association. She explains that the preservation and utilization of the area's lighthouses will help to create job opportunities.

Port Bickerton is a community of about 350 people and Kaiser believes that the entire community is behind the effort to turn the local lighthouse into a tourist attraction. "The whole community is putting forth effort to make it a reality" , says Kaiser. "We are hoping for spin off jobs. We have to create some employment in our area."

David Curry is another member of the Planning Association. He stresses that there is a real sense of community ownership of the lighthouse preservation project. "It is a community project. There have been numerous public meetings, extensive communication and consultation."

Another tourism project in the development stage includes a centre to honour the memory of Stan Rogers based on his music and his story. This may include a festival, a visitation centre, and a county tour package.

Ecotourism has been identified as a real opportunity for the area due to its unspoiled forests and coastline. Carmel Avery-Hendsbee, the Tourism Coordinator for GCRDA, explains that Europeans and Americans are showing a real interest in ecotourism. "Guysborough County is well suited. Our underdevelopment is becoming an asset in this regard." Indeed tourism has been growing in the area. Just five years ago there were only a couple of bed and breakfasts in the region, today there are 15.

In an area that has seen its share of hard times and has watched as its population has steadily declined, as residents moved away to find work, you may think it would be hard to be optimistic. That is not the case in Guysborough as our visit has shown. Local volunteers and development officials have a growing sense of optimism. In one sense the bad news of declining resources, like fish, and the chronic unemployment problems of the area have helped to inspire a growing feeling of 'we will have to do it for ourselves', in Guysborough.

Pam Harrison is quick to point out that there is a real will among the people to find employment and not rely on the government. "Those that have moved will return if jobs exist. People from away are looking for opportunities. They are saying, 'We want to come home'," says Harrison.

Creating those opportunities is the challenge that exists but it appears that Guysborough County is already well on its way to developing a strategy that will enable local residents to identify and act on new opportunities.

To contact the Guysborough County Regional Development Authority phone:
(902) 533-3731

DFO Cutbacks May Threaten Nova Scotia Salmon Stocks

Coastal Communities Network Offers Resource Guide On Community Based Co-Management

In it's continuing to promote community based co-management of the fishery the Coastal Communities Network (CCN) has developed a resource guide on the topic. At their regular meeting on November 5th CCN members agreed that a resource guide was needed by fishing and community groups to help them in their efforts to develop co-management model projects.

During the last two years the CCN has published extensive reports on community based co-management that can be useful to groups attempting to set up pilot projects. The CCN has also developed a position statement on co-management that helps clarify the discussion around what constitutes co-management and why it is important for fishermen and communities. That position paper details the following:

The CCN's vision of community based co-management is based on community interest having a significant role in the management of fishery resources. Government and community organizations clearly define and share specific management responsibilities and authority. By working cooperatively all of the tasks related to resource management are addressed. Through appropriate legislation, government delegates the authority to develop and implement policy to co-management groups.

In all co-management activities fishermen are recognized as the primary participants, and along with their families play a central role in making decisions about policy, planning, regulation, allocation, enforcement and monitoring. Through the co-management process the wealth of the fishery is shared and spread among the greatest number of fishermen and communities to ensure that there is a fair and equitable division of opportunity among all of those who rely upon the fishery for their livelihood.

The CCN is steadfast in its belief that community based co-management is not about auctioning off fishery resources to the highest bidder or about privatizing fishery resources into the hands of corporations. During the past few years there has been considerable discussion about the government establishing 'partnership agreements' with fishing groups.

At the present time it is unclear what DFO means when it speaks of partnerships or partnering. DFO is in the process of issuing new information on the topic of partnerships. When that information becomes available the CCN will publicize and distribute it widely.

The Resource Guide, developed by the CCN is a quick and easy reference tool and provides examples of community based co-management initiatives undertaken in Nova Scotia. It details how various groups got started on community based co-management and the progress made to date. It also provides a step to step guide to assist other organizations in getting started.

Community based co-management of the fishery is essential to renewing and reviving Nova Scotia's fishery and the communities that depend on it for their growth and sustainability. Community based co-management would see fishermen and community members take on the responsibilities related to managing fishery resources. Placing these responsibilities into the hands of those who depend on the resource will help to end conflicts between competing gear sectors, ensure equitable allocation of fishing opportunities, reduce conflict between DFO and N.S. Department of Fisheries managers and harvesters, reduce excessive investment by fishers and fishing companies in competitive gear, improve the quality of data and data analysis, promote conservation and enhance stocks and empower communities to promote community economic development and promote community self-determination.

The Coastal Communities Network supports the implementation of community based co-management initiatives and encourages government to take the necessary action to implement legislation that will enable fishermen and communities to establish effective co-management projects.

To obtain a copy of the CCN Community Based Co-Management Resource Guide:

Looking For More Information On Community Based Co-Management?

The Coastal Communities Network has a number of resource materials available on community base co-management. They include:

1. Fisheries Co-Management:"Making It Happen" , General Principals and Framework To Guide Implementation prepared by the Coastal Communities Network call:
(902) 379-2688

2. Fisheries That Work: Sustainability Through Community Based Management, Evelyn Pinkerton and Martin Weinstein, published by the David Suzuki Foundation.

3. Beyond Crisis In The Fisheries: Respecting Nature and Community will be produced shortly by the Conservation Council of New Brunswick. It is written by Janice Harvey and David Coon and looks at the environmental and community benefits of co-management and provides some suggestions for sustainability. ( For copies call: (506) 458-8747 )

Canada's Fisheries Policy:
Beware Fisheries Privatization

The Atlantic Canada groundfish crisis and the recent dramatic drop in British Colombia's salmon runs have stirred debate over how Canada should manage its fish resources. The corporations that dominate fish processing in Canada have a neat and tidy solution. Privatize the fishery they say and let the market sort things out.

Caught up in the swirl of deficit reduction and government down-sizing the Department of Fisheries and Oceans (DFO) has taken the bait. Without any public debate or consultation the DFO has completely rewritten the Fisheries Act to allow for a massive privatization of the fishery.

Under the partnership agreement provisions of the new act whole fisheries would be turned over to private interests in exchange for funding certain parts of the existing management regime. At the same time the Department is putting the squeeze on independent fishers on both coasts by aggressively promoting concentration of ownership through property rights, licencing changes and a host of user fees. If these measures are allowed to continue the human face of the fishery will soon disappear. Corporations will use their capital clout to concentrate their control over the fishery and in all likelihood fish stocks will be overfished.

This is not idle speculation. We need only look to New Zealand to see consequences that fisheries privatization has wrought. On the strength of market theory New Zealand introduced privatization measures ten years ago, supposedly to protect both independent fishers and the resource. Today a mere eight companies control 73 per cent of the fish quotas in New Zealand and two extremely valuable species, orange roughy and snapper, have been seriously overfished.

There is no doubt that Canada's fishery needs fixing. But before the Department of Fisheries and Oceans organizes a giant fire sale of the country's fish resources we should take stock. Its time to bury the myth that the Canadian fishing industry is nothing but a fiscal black hole and a gigantic make work project wreaking ecological havoc on Canada's fish resources.

Far from being a drain on the public purse and an economic back-water the fishing industry is a vibrant, dynamic, and vital contributor to the Canadian economy. In fact, the fishing industry is a huge job creator at the cutting edge of Canada's export oriented economy. What isn't widely known is that in the midst of the Atlantic groundfish crisis the landed value of Canadian fish hit an all time high in 1994. In fact, between 1989 and 1994, the total value of fish landings grew from $947 to over $1 billion in Atlantic Canada and from $440 million to $555 million in British Colombia. In 1990, the fishing industry also accounted for the equivalent of 55,000 direct full time jobs and another 60,000 jobs outside of the fishery.

A decade ago the fishery depended on a narrow range of species and competed for market share against cheap meats like poultry and pork. Today seafood is a high- value product and Canada is recognized as a world leader when it comes to quality supply. Harvesters and processors responded aggressively to the revolution in global communications and opened up new fisheries to serve world markets. Species once considered of no value are now in demand - sea urchins, sharks, monkfish, silver hake, skate, lumpfish, offshore clams, dogfish, rockweed, silversides, whelks, eels, and half dozen crab species to name just a few.

This is a remarkable turn-around. The fishing industry has demonstrated its resilience in the face of historic catastrophe. We have shown that we can adapt and prosper in the new global economy. But above all we have shown that the fishing industry is a source of sustainable jobs and renewable wealth for the people of Canada.

As professional fish harvesters we want to bring Canadians our view on how this wealth should be managed and shared. It is not the view from Bay Street. We are concerned as with anyone with the profitability of enterprises. And we understand as well the workings of the market, we deal in it every day. We know its strengths and weaknesses. We know the market alone will not ensure that our communities are sustainable nor provide the quality of life that we seek. The market doesn't care about our families, our communities, our independence, our attachment to particular localities or whether there should be fish in the water for future generations.

We can't let the market set fisheries policy. It is up to us and our governments to put in place the policies that best promote a socially sustainable use of our last common property resource.

We believe the fishery should remain fundamentally a public resource, governed by public policies that will ensure that its wealth is shared as broadly as possible. To ensure that Canada's fish resources are used for the broadest social good our new fisheries act must provide three fundamental guarantees.

First that the right to fish remains in the hands of individuals who fish for their livelihood. The policies that have allowed fishing licences to be turned into another form of capital speculation on both coasts must end.

Secondly the sustainability of the resource and the communities that depend on it require fishing units that can flexibly respond to the natural fluctuations in the resource and market conditions. As such the new fisheries act must promote the development of multi- species fishing enterprises.

Thirdly, those that depend on fishing for their livelihood, the professional fish harvesters, must be given a real say in how the overall industry is managed not merely awarded exclusive harvesting rights for individual species.

Three simple principles that would require a complete about-face in our fisheries policy but would go a long way towards sharing the wealth from the sea and providing sustainable livelihoods to the greatest number of Canadians.

This issue's commentary was from Daniel Bernier and is reprinted as part of our Opinion Series. In each issue Coastal Communities News provides space to reprint the opinions of our readers. We want to hear your opinion on any topic you believe is of interest to our coastal communities.

The views expressed in the opinion section do not necessarily represent the views of the Coastal Communities Network, its members, or the editorial committee of Coastal Communities News.

New Links Being Formed Between Pictou County and Eastern P.E.I.

Pictou County and Eastern Prince Edward Island are discovering that they have a lot in common, especially in relation to tourism. The Northumberland Ferries (NFL) service between Woods Island, Prince Edward Island and Caribou in Pictou County, Nova Scotia has been a major factor in the economy of Eastern PEI and Pictou County for more than 50 years. It provides an important transportation service for industrial, commercial, recreational and family travel in the region. The ferry terminals at Woods Island and Caribou are the second largest points of entry to PEI and Nova Scotia , respectively.

According to Robert Roy, chief executive officer of the Pictou Regional Development Commission (PRDC) no one really knew just how big the economic impact of the service was until they started to do some investigating. "I was surprised by how big the impact was," says Roy. A study of the service was commissioned by a group comprised of the PRDC, Opportunities East on Prince Edward Island, Northumberland Ferries, and ACOA. That study concluded that as many as 758 jobs on PEI and another 698 in Pictou were created by the ferry service . In terms of dollars the service creates spinoffs of almost $24 million.

According to the study, the anticipated impacts of the new Confederation Bridge between PEI and New Brunswick on traffic demand for the Northumberland Ferries have generated rest and apprehension. It was this concern and the growing recognition that the service was vital to the local economy that prompted officials from Opportunities East on PEI to approach PRDC about cooperating on a strategic plan for not only preserving the ferry service but enhancing it.

With the impact study now complete the two communities are about ready to sit down and start developing a plan of action to enhance the service. On December 5th, a meeting involving PRDC, Opportunities East, provincial government representatives from both provinces and Northumberland Ferries will begin the work on a plan of action.

This cooperation between the two regions, one in Nova Scotia and one across the water on PEI, is new. Robert Roy points out that while tourism is the most obvious thing the two regions have in common they will be looking at other areas in the future where the two communities can cooperate.

"This is an issue that faces us both and has brought our two areas together but I believe it serves to demonstrate the importance of partnering," says Roy. He goes on to explain that a major portion of the PRDC's development plan is strategic partnering where the community and other partners can develop projects that provide a win - win scenario.

When the committee sits down to work, it will examine ways to maintain as much of the existing traffic and customer base for the ferry as possible, how to attract new customers and how to make the ferry service more attractive. This type of cooperation between communities, a business , and governments is a positive example of how effective community economic development can be when partners with like needs are linked together in a common cause.

Robert Roy is very pleased about the partnership that has been formed between Pictou County and Eastern Prince Edward Island. He says,"Our two regions have been linked for many years by this ferry service and by tourism and business traffic we have shared. It's time we worked cooperatively on our mutual interests and I see this project as just the start of an ongoing relationship that I am sure will develop more extensively over the years. A relationship not just between the PRDC and Opportunities East, who I think have demonstrated strong leadership in forging this interprovincial partnership, but between the tourism and other business operators on each side of the strait."

Communications Secretariat News

DFO Advisory Committee Update:
Recorders To Take Minutes

A step has finally been taken to improve the quality of minutes from DFO advisory committee meetings in Scotia-Fundy. On a trial basis, until the end of 1996, members of the administrative staff in DFO's Fisheries Management Branch have agreed to volunteer to take minutes. If all goes well and they agree to continue, the advisory committees will have recorders in 1997.

Recently, the volunteer recorders attended a training workshop held by DFO and the Communications Secretariat to prepare them for the task. Although this project has received positive support, there are not enough volunteers to cover all of the meetings. DFO will try to recruit more volunteers from other branches to make sure that the advisory committees are well served.

This project is very important to the Communications Secretariat. For many years, fishermen's organizations in Scotia-Fundy complained about the poor quality of advisory committee minutes and in many cases, the fact that there were no minutes at all. Since its beginning, the Communications secretariat has recommended that there be recorders in each of these committees to ensure that minutes are timely and accurate. In April 1996, the Communications Secretariat wrote guidelines for the communications procedures of advisory committee meetings called, Manual of Recommended Communications Procedures for Advisory Committees. At that time, the Communications Secretariat began to discuss with DFO how to find the best solution to the problem. To reflect this initiative, the manual is being revised and will be sent to Scotia-Fundy fishermen's organizations.

DFO and Fishermen's Organizations to Meet on Co-Management

DFO and fishermen's organizations in Scotia-Fundy will soon meet to talk about the future of fisheries management. Beginning in December, DFO will meet with fishermen's organizations in Cape Breton and on the Eastern Shore to develop a dialogue on co-management. The meetings will give DFO an opportunity to present what its vision of co-management is and will give fishermen's organizations an opportunity to respond in an open forum.

The Communications Secretariat will record the discussions and make reports available to all organizations in Scotia-Fundy. The Communications Secretariat believes that this is the only way to make sure all organizations have access to the same information and are on a level playing field when it comes to developing co-management agreements in the future. More meetings are planned for Southwest Nova Scotia and Southwest New Brunswick in the new year.

Communications Secretariat Strengthening Fishermen's Organizations

One of the goals of the Communications Secretariat is to strengthen fishermen's organizations. In each issue, the Communications Secretariat News will feature two fishermen's organizations in Scotia Fundy. In this issue, we feature the two sponsoring organizations of the Communications Secretariat, the Eastern Fishermen's Federation and the Maritime Fishermen's Union.

Eastern Fishermen's Federation

The Eastern Fishermen's Federation (EFF) was formed in 1979 to provide a voice for the many individual fishermen's organizations that exist throughout the Maritime Region and Quebec. The EFF is comprised of 21 member organizations.

The EFF is an umbrella organization that provides leadership, innovation, and administrative requirements for members of the Federation. The EFF strives to keep the membership informed with background information and interpretation of relevant fisheries and marine topics. The strength of the EFF comes from the diverse fishing backgrounds, the individuality, and independence of each member association. The board meets quarterly with executive meetings as required. The meetings that are held quarterly continue to be a very important avenue for organizations to exchange information on global and local issues affecting industry.

Maritime Fishermen's Union

The Maritime Fishermen's Union (MFU) has been working for inshore fishermen since 1977. Currently there are six locals in operation; Locals 1, 2 and 10 along the Gulf Coast of New Brunswick; Local 9 in SW Nova Scotia; Local 4 along the Northumberland Strait in Nova Scotia, and Local 6 in Sydney Bight, Cape Breton.

Members choose a port rep in each port, and these port reps act like a board of directors in each Local. Members also elect their delegates to Convention, every year at the annual meeting. The Local functions through general and port rep meetings throughout each year , deals with Local issues. Larger issues, affecting inshore fishermen throughout the Maritimes, are dealt with at the convention, by the elected delegates. Between conventions, the decisions are made by Maritime Council, which consists of the executives of all Locals, as well as staff.

Current dues paying membership is over 1700 inshore fishermen. As is the case with other organizations, we feel obligated to service many more fishermen in our areas, who do not choose to pay dues. Information flows through the membership from Local executives; port reps; and Local Newsletters, as well as the MFU Bulletin - all of which are mailed to our members a few times per year.

We try to involve as many fishermen and women as we can, and do the best job that we can. Our aim is not simply to oppose policies and practices that are on the drawing board now, but to develop our own vision of a fishery that will sustain coastal communities. as always we welcome more inshore fishermen to join.

For more information on the Eastern Fishermen's Federation, please call:
Melanie Sonnenberg at 506-662-8481 or Norma Richardson (Vice President-Scotia Fundy) at 902-889-4061.

For more information on the Maritime Fishermen's Union, please call:
Jeff Brownstein at (902) 929-2757 or Graeme Gawn ( Local 9 and provincial co-ordinator, NS ) at (902) 645-3371.

Q: How will the recently announced blended sales tax or harmonized sales tax affect fishermen in Nova Scotia?
A: The new harmonized sales tax (HST) is getting a lot of attention of late as politicians, business people and others debate the pros and cons of the new tax plan. Depending on who you talk to you will get different opinions about the benefits and disadvantages of a harmonized sales tax.

In order to get an answer to your question, Dear Cod went to the Nova Scotia Department of Finance for an official explanation of how the tax will affect fishermen.

On April 1, 1997, the old 11% Provincial Sales Tax (PST) and the 7% Goods and Services Tax (GST) will disappear. In their place will be a new 15% Harmonized Sales Tax (HST) which will operate like the GST, with full refunds, called input tax credits, in most sectors. New Brunswick and Newfoundland will also be switching to the new tax.

A commercial fisherman now pays GST and PST at a combined rate of 18.77% on many items not used directly in the business of fishing. The HST will apply to the same items, but at 15% instead of 18.77%. Most direct fishing purchases are already PST exempt.

As of April 1, 1997, the full 15% paid by people in the fishing industry will be eligible for income tax credits. Input tax credit is the technical name for the tax that people in the fishing industry and many other business people pay when buying certain goods and services. Prior to April 1, 1997, only the GST paid by fishing industry registrants was refundable. The PST was a non-refundable cost of doing business. Certain major items purchased exclusively by commercial fishermen (ie: boats, nets, and related equipment) will continue to be zero rated under HST to alleviate fishermen's cash flow difficulties.

Most fisheries products are classified as food and therefore are not taxed at all when they are sold. This status is called zero rating. It is the way the GST is handled and will continue for the new sale tax system.

There may be occasions when people in the fishing industry sell goods that are taxable. In this case the item will not be zero rated, and the full 15% tax will apply. For your business customers this will not represent a cost of doing business, as the they will get back the tax they have paid as an input tax credit. If the customer is not a business then this will represent an increase in taxes. However the number of non-food products sold by the fishing industry is small, and no significant impact is expected.

Fishermen with annual sales under $30,000 are not required to be registered for GST and, therefore, not required to collect the tax. This small business threshold also applies to the HST. How ever, such operations are not eligible for income tax credits on their purchases.

When it comes to exports the Department of Finance explains that once again the products the fishing industry sells are zero rated and thus are exempt from tax. The exception is the sale of non-food products, which will have to include sales tax. Sales to parts of Canada outside Nova Scotia, New Brunswick and Newfoundland must include the tax at 7%, not 15%. This will put businesses in Nova Scotia on the same footing as those in the rest of the country.

Fish and other exports are totally exempt from tax when they are sold for export outside of Canada. Taxable sales made from the rest of Canada into Nova Scotia will have to include the 15% HST. Revenue Canada will ensure that the rest of Canada charges the full 15%. For business people in this industry the 15% paid is, of course, fully refundable as an input tax credit.

One issue for consideration is the switch on purchases from tax exemption to tax refunds and zero rating. Prior to April 1, 1997, people in the fishing industry have purchased many of their goods using a PST exemption number. The system of tax numbers will by and large come to an end. The only exception will be for marked gasoline, which will continue to be exempt from the separate provincial fuel taxes.

Most of the old system will end, because the process is moving from a system of exemptions to refunds. This will reduce the complexity of book keeping for many suppliers. The bookkeeping burden will be small, because the fishing industry already has to administer the GST.

The Department of Finance also points out that the end to tax exemptions and tax numbers will also tighten up tax compliance. A small number of people have been abusing the system by wrongfully using their tax numbers. The Department of finance hopes that the possibility of abuse will now come to an end. There will likely be more debate over the final details of the HST before it comes into effect on April 1, 1997.

To obtain more information about the new HST you can call 1-800-959-8286 or fax 1-902-424-0590. If you want to express your opinion on the new tax or discuss policy issues with the provincial government you can call 1-800-731-7707.

Do You Have Questions For Dear Cod?
Write to Coastal Communities News at:
PO Box 578,
Halifax, NS, B3J 2S9
or fax: (902) 424-0666

Coastal Communities News is published bi-monthly by the Coastal Communities Network, a non-profit society registered in the province of Nova Scotia.

Coastal Communities News is made possible by the generous efforts of many volunteers, and by financial contributions from Human Resources Development Canada, and by donations and in-kind contributions from the Nova Scotia Department of Education and Culture, as well as from member groups and organizations.

We welcome all articles and submissions, from individuals and groups, with content in keeping with the role and nature of this magazine. We reserve the right to edit all submissions. Except where additional credit has been given, all articles are prepared by the Editor and Editorial Board.

Our Mission Statement

The Coastal Communities Network is a volunteer association of organizations whose mission is to provide a forum to encourage dialogue, share information, and create strategies and actions that promote the survival and development of Nova Scotia's coastal and rural communities.

"A Large Voice for Small Communities"

CCN is made up of organizations rooted in Nova Scotia's coastal and rural communities, and it is the diversity of its membership that gives it strength. Your organization, and your community, can help CCN determine its direction and strengthen its voice still further. Join the Coastal Communities Network today.

— by participating in regular monthly meetings of the CCN membership. These are held in Truro (usually on the first Tuesday of each month), and allow representatives from member organizations to review what is happening in coastal communities across the province, plan actions on issues of common concern, and review progress on CCN-sponsored projects;

— by getting on our mailing list to receive regular copies of Coastal Communities News. Send us your name and address by mail or fax, or call us directly;

— by contributing written articles to Coastal Communities News, and so letting everyone know what's happening in your community;

— by taking part in CCN workshops and information sessions. Special events like this are held on topics of importance to coastal communities (for example, community economic development, co- management in the fishery, etc);

— by inquiring about CCN's resource library, which includes information, reports, and studies on topics that affect the future and sustainability of coastal communities.

CCN Coordinator:
PO Box 1613
Pictou, N.S. B0K 1H0
Phone:(902)485-4754 Fax:(902)445-7134
e-mail:coastalnet@ns.sympatico.ca

CCN Communications Office:
Phone: (902) 445-7168
Fax: (902) 445-7134
e-mail:ccnews@ns.sympatico.ca

A Dredging Project Runs Aground Amidst Controversy and Confusion.

Fresh Ideas And New Opportunities Are Leading To Growing Optimism In Guysborough County.

Communities In Action

DFO Cutbacks May Threaten Nova Scotia Salmon Stocks

Coastal Communities Network Offers Resource Guide On Community Based Co-Management

To obtain a copy of the CCN Community Based Co-Management Resource Guide:

Looking For More Information On Community Based Co-Management?

Canada's Fisheries Policy:
Beware Fisheries Privatization

New Links Being Formed Between Pictou County and Eastern P.E.I.

Communications Secretariat News

DFO Advisory Committee Update:
Recorders To Take Minutes

DFO and Fishermen's Organizations to Meet on Co-Management

Communications Secretariat Strengthening Fishermen's Organizations

Eastern Fishermen's Federation

Maritime Fishermen's Union

Coastal Communities News

Join the Coastal Communities Network

Our Mission Statement

"A Large Voice for Small Communities"

How to Become Involved
in the Coastal Communities Network

A Dredging Project Runs Aground Amidst Controversy and Confusion.

Fresh Ideas And New Opportunities Are Leading To Growing Optimism In Guysborough County.

Communities In Action

DFO Cutbacks May Threaten Nova Scotia Salmon Stocks

Coastal Communities Network Offers Resource Guide On Community Based Co-Management

To obtain a copy of the CCN Community Based Co-Management Resource Guide:

Looking For More Information On Community Based Co-Management?

Canada's Fisheries Policy: Beware Fisheries Privatization

New Links Being Formed Between Pictou County and Eastern P.E.I.

Communications Secretariat News

DFO Advisory Committee Update: Recorders To Take Minutes

DFO and Fishermen's Organizations to Meet on Co-Management

Communications Secretariat Strengthening Fishermen's Organizations

Eastern Fishermen's Federation

Maritime Fishermen's Union

Coastal Communities News

Join the Coastal Communities Network

Our Mission Statement

"A Large Voice for Small Communities"

How to Become Involved in the Coastal Communities Network

Canada's Fisheries Policy:
Beware Fisheries Privatization

DFO Advisory Committee Update:
Recorders To Take Minutes

How to Become Involved
in the Coastal Communities Network