Bay of Fundy Marine Aquaculture Site Allocation Policy

1.1 Principle

This Policy is founded on the basic principle of ensuring sustainable aquaculture development based on consideration of all applicable economic, environmental and social factors.

1.2 Policy Objectives

• To ensure the economic sustainability of aquaculture development.
  
• To ensure that aquaculture development is conducted in an environmentally-sustainable manner.
  
• To provide a policy framework that facilitates the restructuring of the Atlantic salmon marine aquaculture sector.
  
• To provide a policy framework that encourages diversification and development of alternate species. 
• To ensure that site allocation decisions are timely and undertaken within a transparent and equitable process.

1.3 Authority and Protocols

2.1.2 Bay Management Agreements

Both government and industry are committed to improving the level of co-operation and communication between aquaculture licensees with respect to local management practices. Both parties wish to encourage the establishment of a management framework that provides flexibility relative to specific conditions in each Bay while ensuring that all licensees agree and comply with established operating standards and practices. The aquaculture industry will develop agreements referred to as Bay Management Agreements in order to establish operating standards for the respective Aquaculture Bay Management Area. These agreements will reflect government and industry standards, plus any applicable local management practices.

While Bay Management Agreements are not mandatory they will be strongly urged between those finfish operations located within the same ABMA as the Province intends to legislate the Bay Management Plans (year class to be cultured) derived from these agreements. The Province will require all agreements for each ABMA be submitted for approval prior to the Department approving any new sites, boundary adjustments, subdivision of sites, sub-leasing of sites or production increases.

2.2 Site Allocation for Atlantic Salmon 2.2.1 New Sites

The Province intends to be strategic in terms of meeting the needs of industry to be economically and environmentally sustainable. Priority will be given to existing licence holders in the allocation of any new sites until industry restructuring is complete, within the context of the eligibility criteria outlined in Appendix 2 of this Policy.

Over time, the existing aquaculture licensees have increased production to address changing economic conditions. In certain bays, the overall production level and existing site structure limits the flexibility of the licensees with respect to attaining economically viable scales of production without potentially compromising the overall environmental sustainability of a bay. Applications for new sites that relinquish an existing site within a bay identified for a reduction in total farms in exchange for a site located in another area will be given priority until such time as reduction objectives have been accomplished.

2.2.2. Sub-Leasing of Sites

The Province will allow the sub-leasing of a marine aquaculture site into a maximum of two parcels to support two aquaculture companies to operate on the same site to establish the same year class entry for a single-year class entry operation as defined in Section 2.1.3. A formal written sub-lease or subdivision arrangement will be required and each party must have an aquaculture license and lease.

All sub-lease and subdivision arrangements will be subject to the parties practising the same single-year class entry operations on the entire site. The parties must have a written agreement with respect to practising single-year class operations on the site and both licensees/lessees agree in writing to the relevant ABMA.

All sub-lease agreements will be drafted by lawyers representing the involved aquaculture companies. The content and format of the agreements must be in accordance with Provincial requirements. All such agreements will be required to receive the prior written approval of the Province before stocking is allowed.

2.2.3 Boundary Amendments

To facilitate single year class restructuring, applications for boundary amendments to existing sites will be assessed on a case by case basis and will take into consideration the relative location of the subject site to neighbouring aquaculture operations as well as the potential impact on other users of the resource.

2.2.4 Transfer of Sites

The Province will consider requests to transfer marine aquaculture sites with a valid lease between existing aquaculture lessees to facilitate the implementation of single-year class entry sites. The involved parties will be required to accept the terms and conditions of the existing license and lease. The subject licensees will also be required to accept in writing the ABMA for the area. The Province will allow the transfer of an aquaculture lease to facilitate the purchase of an aquaculture operation. The new party will be subject to the terms and conditions of the existing aquaculture lease and license and must meet the terms of this Policy.

2.2.5 Exclusion Areas

A number of key areas are strategic to support the traditional fishing sector. The Province is committed to promoting the co-existence of the commercial fishery and aquaculture sectors and intends to exclude these areas for eligibility for new Atlantic salmon aquaculture sites at this time. These areas are specified in the Site Application Guide. Boundary expansions and production increases will be considered within these areas.

Over time these areas may be refined based on consultation with the aquaculture and commercial fisheries sector. A committee will be established consisting of representatives from the commercial fisheries, processing and aquaculture sectors, and the two levels of government to review and provide recommendations to the Minister of Agriculture, Fisheries and Aquaculture on modifications and refinement to exclusion areas.

2.2.6 Herring Weir Conversions

The Province will only consider sites associated with herring weirs for marine aquaculture in the context of the overall objectives of this Policy and the need to ensure a viable herring weir industry, in consultation with the local weir association and local processors.

Applications to convert herring weir sites to salmon aquaculture will only be entertained as part of the process to restructure the existing salmon aquaculture sector. A proposal to convert a herring weir to a salmon aquaculture site must involve one or more existing aquaculture licensees.

The Province will only approve a herring weir conversion where:

1. The viability of the herring weir sector is not compromised as reflected in consultations with the local weir association and processing component of the industry. In order to ensure the viability of the weir industry, weirs may be required to relocate to a different location prior to consideration being given for salmon site conversion.

2. The conversion does not result in a sub-lease arrangement whereby the former herring weir licensee merely rents the site to an existing aquaculture licensee. Specifically, the Province will only accept a proposal to convert a herring weir to a salmon aquaculture site where the former herring weir licensee either:

a) demonstrates a managerial and financial commitment to the aquaculture operation or;

b) demonstrates a significant financial investment in the proposed salmon aquaculture operation or;

c) is not involved with the salmon aquaculture operation in any manner.

2.3 Site Allocation for Alternate Species Aquaculture

The Province will support the allocation of a limited number of new marine sites to test the commercial feasibility of a number of alternate species other than Atlantic salmon. These alternate species will be considered for development on a case by case basis.

2.4 Site Allocation for Lobster Pounds

2.5 Information Requirements Evaluation Criteria and Compliance History for Site Proposals

Proposals for aquaculture sites will only be accepted from aquaculture licensees having no unresolved licensing, leasing, reporting or compliance issues with the Minister of Agriculture, Fisheries and Aquaculture, and the Minister of the Environment and Local Government.

The Province requires that site applications contain specific information to assist in the timely review of the proposal. In general, these information requirements will apply to all new site proposals or any major amendment to an existing aquaculture license relative to the site boundary or allowable production limit. Specific details of requirements for site proposals are outlined in the Marine Aquaculture Site Allocation Application Guide for the Bay of Fundy.

2.6 Consultation Process

The Province will consult with the public and government agencies as follows:

Aquaculture Industry Consultations: The Province will consult with existing aquaculture licensees with respect to new site proposals or amendments to licences for existing sites. These consultations will focus on the license and or leaseholders located within the same Aquaculture Bay Management Areas. The Province will consult directly with the appropriate representatives of the marine aquaculture sector prior to proceeding with applications not covered by an Aquaculture Bay Management Area. The New Brunswick Salmon Growers’ Association will be requested to assist in the consultation process with license holders.

Commercial Fishery Consultations: The Province will consult with the traditional commercial fishery as part of the process for new applications, boundary amendments, or production increases. The Province will provide an opportunity to fishermen who undertake commercial harvest activities in proximity to a proposed new site or where amendments to existing sites are being requested. Organizations representing the commercial fishery and the Department of Fisheries and Oceans will be asked to assist in identifying these fishermen and will also be asked for their own positions via a referral process.

Inter-Agency Consultation: The Province will continue to request other government agencies to assist in the evaluation of candidate sites via an inter-agency review network.

The Aquaculture Site Evaluation Committee (ASEC), comprised of federal and provincial agencies with regulatory authority relative to the marine environment, will continue to function as the key inter-agency advisory body in assessing site-related applications.

The Bay of Fundy is a unique eco-system that continues to support diverse and important marine-based economic activity. The Province is committed to protecting the habitat of this significant marine environment.

Considerable effort has been undertaken to ensure that aquaculture activities are environmentally sustainable. The substantial growth of the aquaculture industry warrants an enhanced level of environmental stewardship of all resources that make this industry viable.

The overall approach to environmental management involves many elements and must be comprehensive in design, complete with goals, standards, assessment, monitoring, research and compliance. The Province intends to work in cooperation with industry and the federal government in implementing the following measures and policy initiatives:

The Policy fosters the Province’s commitment to an increased level of consultation with the public, the commercial fishery and other affected stakeholders.

Advertisement of all proposed sites and boundary amendments will continue to be undertaken in order to afford the general public and other user groups the opportunity to make comment. Consultation will be undertaken with members of the commercial fishery, aquaculture sector, and processing sector. In addition, the historical high level of collaboration with Fisheries and Oceans Canada will continue.

The Policy, Application Guide and form will be made available on the Departmental web page in order to promote increased availability to the public. In addition to this, information with respect to advertised sites will be made available on the web page.

Ministerial decisions on new site allocations are available to the public on request.

The summary of combined results of the marine aquaculture site environmental monitoring program and monitoring standards will be available to the public upon request and on the web site for the Department of Agriculture, Fisheries and Aquaculture.

All company information relating to financing, fish health reports and records, and production levels will remain confidential consistent with the New Brunswick Aquaculture Act and the New Brunswick Right to Information Act.

Fees are prescribed by regulation 91-58 under the New Brunswick Aquaculture Act. It is the policy of the Province to review fees from time in the context of cost recovery from the industry.

Global demand for seafood products has grown steadily and is estimated to be in the vicinity of 120 million tonnes a year. The traditional fisheries have peaked at around 84 million tonnes and has been experiencing a decline over the past few years. At the same time, world wide aquaculture production has developed: over the last decade a 10% growth has been experienced on an annual basis.

Atlantic Salmon Aquaculture

The culture of the Atlantic salmon began as a research and development initiative in the late 1970’s. The successful over-wintering of this species at a site on Deer Island demonstrated its feasibility and over the next several years a number of commercial Atlantic salmon farming operations emerged. Significant growth in this sector was experienced in the 1980’s and early 1990’s. While the industry has experienced recent fish health problems and an increasingly competitive international market, both government and industry remain confident that the sector will continue to thrive.

This Policy is intended to act as an important tool in addressing the needs of the Atlantic salmon aquaculture industry in meeting the economic and environmental challenges and to secure a positive climate for the future.

Alternate Finfish Aquacualture

The culture of alternate finfish species has been identified as a significant wealth and employment creation opportunity for the future. Comprehensive research and development activities are underway aimed at identifying the methods of culture necessary to commercialize specific candidate species. The Province anticipates that, over time, the existing Atlantic salmon aquaculture sector will diversify its crop base by culturing alternate species as well as Atlantic salmon. However, some of the candidate species require different site conditions than Atlantic salmon. In such cases, the Province intends to accept applications for marine sites from the private sector to support the culture of alternate finfish species where appropriate. As knowledge of alternate species increases, it may be necessary to review this policy in that context.

The Province may allow the pre-commercial testing of alternate species on approved salmon aquaculture sites subject to the applicant receiving an aquaculture license amendment to include the species to be tested and subject to the research being conducted within the allowable production limit assigned to the site.

Lobster Pounds

Lobster pounds are located in the inter-tidal areas of the marine environment and provide holding capacity for owners with respect to meeting market requirements. Given their requirement to be adjacent to upland areas, the allocation of marine sites to support lobster pounds warrants specific requirements with respect to riparian rights. Representatives of the lobster pound sector have recently organized to allow lobster pound owners to better identify their needs to government. The Province is committed to collaborating with these representatives to further identify their strategic needs to support continued growth.

Applications for new marine sites to support Atlantic salmon aquaculture will only be accepted from licence/lease holders demonstrating the financial and managerial capability to develop and operate an economically viable aquaculture operation to the satisfaction of the Minister. Applicants will be required to demonstrate a managerial and financial commitment to the aquaculture operation. The Province will eliminate the allocation of a marine site whereby the applicant merely rents the site to an existing aquaculture licensee.

The following will be the priority for processing Marine Aquaculture Site Applications (Atlantic salmon only) in accordance with the Marine Site Allocation Policy for the Bay of Fundy. New site applications will only be entertained by eligible fish farmers who are already in the industry. Only one application from each eligible proponent will be accepted. Priority to processing applications will be given to operators who require production increases or alternate sites to sustain or achieve single year class operations by the spring of 2001. Applications should clearly illustrate why priority is required for either 2001 or 2002 entry.

An eligible proponent for the purpose of submitting an application must be a licence/leaseholder (referred to hereafter as an operator) having invested in at least 50% of the total capital equipment and daily operations on the site prior to July 31, 2000. An independently prepared statement by a professional recognized in the field of accounting which confirms that the licence/leaseholder has invested as outlined must accompany the application.

Priority for applications will be given to:

1. Operators demonstrating leasehold rights to only one marine site in any one Aquaculture Bay Management Area.
   
   
2. Two or more operators who apply collectively for a marine site to facilitate alternate single year class operations.
   
   
3. An operator who prefers to culture salmon at one site only and requires a production increase and/or boundary amendment to accomplish economic viability as a single year class operator. The proponent will be required to demonstrate how this increase would make the site economically viable.
   
   
4. An operator having two or more aquaculture sites in bay management areas that culture the same year class fish and requires another site to balance annual production.
   
   
5. Operators in Aquaculture Bay Management Areas that have not accomplished single year class farming.

Second priority will be given to an operator who is located in an area of potential conflict as related to navigation, marine user facilities, change in Departmental policy with respect to marine grow-out or concentrated production areas. The proponent will be required to relinquish interest in their existing site upon approval of the new application.

Applications will be processed subject to criteria outlined in the Bay of Fundy Marine Aquaculture Site Allocation Application Guide.

If you require assistanceor more detailed information, please contact the Department of Agriculture,Fisheries and Aquaculture (DAFA) Regional Office in St. George, or Head Office: