A Lake Erie commercial fishing company headquartered in Chatham-Kent says Ontario has been shutout of federal funding to help Canada's fish and seafood processing sector.
Great Lakes Food President and CEO John Neate told Blackburn News the $62.5 million of federal funding announced at the end of April isn't available to Ontario fishing companies. He said the funding is instead meant to help address the financial strain and instability being experienced by fisheries on the east and west coasts during the COVID-19 pandemic.
An announcement by the federal government said the Canadian Seaford Stabilization Fund would be delivered through the Atlantic Canada Opportunities Agency, Canada Economic Development for Quebec Regions, and Western Economic Diversification Canada.
Neate said Ontario tends to be forgotten in fisheries funding announcements like the one made on April 25. He added even if it applied to the province, it would be a drop in the bucket compared to what is needed to sustain the freshwater fishing industry in the long term. Neate said companies like his need access to capital funding and liquidity in order to make it through the next 12-18 months. He said some boats are back out on the water fishing for yellow perch, but there's no demand for high-quality freshwater fish right now.
The Great Lakes Food CEO said other federal aid programs like the wage subsidy are too slow and are not a lot of help because freshwater fisheries like his aren't selling anything right now and have no freezing capacity to store the fish that have been caught. Neate said what is needed is a loan that could be repaid over five years with no payments in the first year to get them back on their feet.
"Nobody is asking for a handout," added Neate.
Neate said the 2008 economic crisis pales in comparison to the COVID-19 pandemic, and he expects high unemployment of around 20 per cent over the next year or so. He said it remains to be seen if his freshwater fishery will bounce back and added he is frustrated because pension plans for his 50 or 60 employees are in jeopardy.
The new $62.5 million Canadian Seafood Stabilization Fund announced April 25 will, according to the federal government, help businesses on all coasts to access short-term financing to pay for maintenance and inventory cost, add storage capacity for unsold product, comply with new health and safety measures for workers, support new manufacturing/automated technologies to improve productivity and quality of finished seafood products, and, adapt products to respond to changing requirements and new market demands.
The Ontario Commercial Fisheries’ Association (OCFA) reported last month the economic and social consequences of flattening the curve by closing restaurants across North America have devastated Ontario’s commercial fishery.
OCFA Executive Director Jane Graham said operators have been crippled and most of them have experienced a near 100 per cent revenue decline because long-standing distribution networks have dried up. She said supermarket fish counters have also closed to minimize customer interaction.
"Almost 100 percent of Ontario’s fishing fleet remains tied to the dock, as the fishermen have no place to sell their catch," said Graham. "The start of spring fishing season will be delayed, with a strong possibility that the season will be completely lost."
Graham said nearly all employees have been laid off and Neate said it's anybody's guess when they will come back.
