Controversy is mounting over the Canadian government’s decision to reallocate a portion of the quota for the Arctic surf clam fishery.
The issue has become personal, with calls for the Parliamentary Ethics Commission to investigate the Liberal family links to the owner of the government’s choice to receive 25 percent of the total Arctic surf clam quota.
Since 1999, Bedford, Nova Scotia-based Clearwater Seafoods has held all quotas issued for the lucrative surf clams fishery. Artic surf clams are prized for sushi due to their auspicious red color, taste, and consistency. In 2016, Clearwater generated USD 91.9 million (USD , EUR ) in sales on 38,756 metric tons (MT) of surf clams. In 2017, Clearwater unveiled a new CAD 70-million, 73-mete-long, 74-crew, purpose ship, the Anne Risley, designed to harvest surf clams. The vessel was part of the company’s CAD 225 million (USD , EUR ) multi-year investment in the fishery.
In September 2017, the Canadian government announced it would reallocate part of the quota held by Clearwater to a First Nations fishery as part of its goal of reconciliation with Native Peoples to create jobs and wealth for Fist Nations. The government received numerous proposals from First Nations tribes that had partnered with traditional processors, and made its decision on 22 February, awarding the quota for 8,924 MT to a group of First Nations called Five Nations Clam Company, which partnered with Arichat, Cape Breton-based Premium Seafoods.
Now, those who didn’t win are studying every piece of the process and paperwork to find a reason for a re-evaluation and change of the award. Mayors in several fishing communities across Atlantic Canada, the premier of Newfoundland Labrador, Clearwater, other industry partners, losing First Nations and federal opposition parties have complained about the process. There have been calls for ethnics and conflict-of-interest investigations, a review of the process, a request for courts to quash the decision, threatened lawsuits, all in an effort to force Fisheries Minister Dominic LeBlanc to reconsider his decision.
The issue has become personal, with calls for the Parliamentary Ethics Commission to investigate the Liberal family links to the owner of Premium Seafoods and a possible link to the minister’s wife’s family.
"Any notion that this was the reason for my decision is a baseless and ludicrous accusation. I made my decision for no other reason than to allow for increased indigenous participation in the fishery. I reject any insinuation to the contrary in the strongest of terms," LeBlanc said in a statement to CBC News. He called the charges reckless personal accusations."
Three areas of contention are the status of Five Nations Clam Company, composition of the company and division of benefits. When the quota was awarded, the Five Nations Clam Company was a paper company. It was an agreement between indigenous people and Premium Seafoods. There was some question about which five nations comprised the partnership, since four were named and an open spot for a fifth nation. The third main concern involves the 25-75 percent split between the First Nations and Premium. That, the partners say, is the starting point for the agreement.
In the paperwork on file with the DFO Five Nations estimated annual revenues of CAD 29.5 million (USD , EUR ). For the first five years, their share would be CAD 1.23 million (USD , EUR ). The Five Nations have an option to increase their ownership to 50 percent once industry partner Premium Seafoods pays down its CAD 24 million (USD , EUR ) capital investment.
The Clearwater - Mi'kmaq partnership projected CAD 2.2 million (USD , EUR ) in annual wages in Mi'kmaq communities and a "total impact" of CAD 315 million (USD , EUR ) over an unspecified time period.
Another revelation in the DFO paperwork was a May 2017 offer by Clearwater co-founder John Risley to give up two of the company's four clam licences on condition that DFO ensure whoever received them would use Clearwater to harvest, process, and market the product.
"If the policy objective is to diversify ownership, we are committed to finding constructive solutions. If it is to satisfy those who seek to grow their own interests at our expense, we have a problem,” Risley wrote.
An opposition party complaint filed with the DFO claims Minister LeBlanc personally intervened in the surf clam process, ordering his department to award the lucrative contract “to a group that didn't have a boat.”
“They didn't have multiple First Nations partners. They weren't even incorporated,” the complain alleges.
In response, LeBlanc defended his decision.
"Seven [proposals] were reviewed in detail,” he said. “If one was selected, I'm not surprised the other six would somehow show some signs of displeasure."
Clearwater’s First Nations partner, led by Membertou Chief Terry Paul, have also challenged the transparency of the process and award.
As previously reported, after losing out, Clearwater threatened to sue over what it called an expropriation. The Minister responded, "A company doesn't own in perpetuity a quota; Canadians do. The word expropriation is loaded language … designed to make a point, but it's not entirely accurate. You can't be expropriated from a property you don't own."
LeBlance said he wasn’t surprised or worried about the potential of a Clearwater lawsuit.
“I'm satisfied the condition that this particular proponent put forward can and will be met,” LeBlanc said. “And of course if they can't meet that condition, I will not issue the formal legal document which would give them the licence and quota.”
Premium Seafoods president Edgar Samson said in a press release the First Nations involved in the deal have the skills and resources to develop the surf clam fishery in a responsible and sustainable manner.
"From the outset, every group responding to the department's call for submissions knew that there would only be one winner,” Samson said. “The decision has been made, so we urge dissenters to let us get the job done."
Photo courtesy of RicardoCuisine.com
