House of Commons Standing Committee on Fisheries and Oceans examination of the 2021-22 Supplementary Estimates “C” for the Department of Fisheries and Oceans
March 24, 2022

Vote 10 – Planned grants and contributions

• Total Grants and Contributions authorities for 2022-23 are $620.1 million as voted through the Main Estimates.
• Authorities increased significantly from 2019-20 to 2021-22, largely due to funding for Reconciliation Agreements.  This funding levels off in 2022-23 as larger planned payments related to access, vessels and gear will be made within the scope of the initiative.
• Temporary funding sources make up a large portion of the overall authorities.  Notable programs funded in this way include the Nature Legacy, Pacific Salmon Strategy Initiative, and Marine Conservation Targets. 
• Based on our 2022-23 Main Estimates, the Department has 19 Transfer Payment Programs – with the largest recipients consisting of Indigenous organizations, associations focused on conservation and research organizations.

2021-22 Supplementary Estimates C

2021-22 Supplementary Estimates (C) – Overview

• Supplementary Estimates serve two main purposes:
  • To seek authority from Parliament to revise the Departments’ spending levels; and
  • To provide Parliament with information on changes in the estimated expenditures.

• This is the third and final Supplementary Estimates exercise scheduled for 2021-22.
  • Supplementary Estimates (A) occurred in the spring, as scheduled, however DFO submitted a nil in terms of requirements for that exercise.
  • Supplementary Estimates (B) were tabled on November 26, 2021 and received Royal Assent on December 17, 2021.

• Supplementary Estimates (C) were tabled on February 19, 2022 and Royal Assent will be determined according to House of Commons’ Order of Business.
• A summary of expected departmental 2021-22 frozen authorities will be published as an online annex upon tabling, indicating the amounts that will lapse in the year-end Public Accounts (see Annex D).

2021-22 Supplementary Estimates (C) – Current Status

2021-22 Supplementary Estimates (C) - $243.2 million (including statutory) – Twenty (20) items

• $94.8 million – Vote 1
• $124.9 million – Vote 5
• $19.0 million – Vote 10
• $4.4 million – Statutory

Table: 2021-22 Supplementary Estimates (C) - Revised Appropriations*
(in dollars)

2021-22 Supplementary Estimates (C) - Revised Appropriations*
(in dollars)

-	Previous authorities to date	Supplementary estimates (C)	Proposed authorities to date
Operating Vote 1	2,069,552,599	94,805,455	2,164,358,054
Capital Vote 5	1,342,281,156	124,942,325	1,467,223,481
Grants and Contributions Vote 10	1,261,756,694	19,011,993	1,280,768,687
Total Voted Authorities	4,673,590,449	237,759,773	4,912,350,222
Statutory	178,136,153	4,420,518	182,556,671
Total Budgetary Expenditures	4,851,726,602	243,180,291	5,094,906,893

* Represents all funding, voted or anticipated, including funding that is "frozen" (i.e., funding that is in DFO's reference levels, but cannot be spent without the approval of TBS).

2021-22 Supplementary Estimates (C) – Items

[Information was severed in accordance with the Access to Information Act.]

Transfers with other government departments – Five for net total of ($3.3 million)

• $2.6 million from the Department of National Defence for the Bedford Institute of Oceanography lab renovation and Facility for Intelligent Marine Systems
• ($0.01 million) to the Treasury Board Secretariat for Financial Community Developmental Programs and the Inclusion, Diversity, Equity and Accessibility initiative
• ($0.1 million) to the Natural Science and Engineering Research Council to establish the Fisheries and Oceans Canada Science Indigenous Supplement
• ($0.1 million) to the Department of Indigenous Services for the Ownership, Control, Access, and Possession (OCAP®) of data collection processes in their communities
• ($5.7 million) to the Department of Natural Resources for the Terrestrial Cumulative Effects Initiative and to support the administration of the Aquatic Habitat Restoration Funding

Reprofiles

• $5.5 million to advance reconciliation on Indigenous rights and fisheries issues
• $0.7 million for the Marine Safety System
• $0.5 million for the Salmon Allocation Policy Engagement

2021-22 Supplementary Estimates (C) – Items

Other Technical Adjustments

• $1.5 million in reinvestment of royalties from intellectual property 
• $0.7 million for the proceeds of sale from disposition of real property
• $0.3 million reinvestment of revenue received from polluters or the Ship-Source Oil Pollution Fund for clean up costs associated with oil spills

Notes:

• All amounts exclude EBP, SSC and Accommodation Costs

2021-22 Supplementary Estimates (C) - Items by Vote (in dollars)

2021-22 Supplementary Estimates (C) - Items by Vote (in dollars)

Items (Voted Authorities)	Vote 1 - Operating	Vote 5 - Capital	Vote 10 - Grants & Contributions	Total
[Information was severed in accordance with the Access to Information Act.]
Transfers	-	-	-	-
Transfers from other government departments	-	$2,654,867	-	$2,654,867
Transfers to other government departments	($8,333)	-	($5,935,000)	($5,943,333)
Reprofiles	-	-	-	-
Funding to advance reconciliation on Indigenous rights and fisheries issues	-	-	$5,484,538	$5,484,538
Funding for facilitating Indigenous Partnerships in the Marine Safety System	-	-	$700,000	$700,000
Funding for the Salmon Allocation Policy	-	-	$462,455	$462,455
Other Technical Adjustments	-	-	-	-
Reinvestment of royalties from intellectual property	$1,503,516	-	-	$1,503,516
Funding for the proceeds of sale from disposition of real property	$675,000	-	-	$675,000
Reinvestment of revenue received from polluters or the Ship-Source Oil Pollution Fund for clean up costs associated with oil spills	$337,801	-	-	$337,801
Total Items - Voted Authorities	$94,805,455	$124,942,325	$19,011,993	$238,759,773

Annex A – 2021-22 Supplementary Estimates (C) by Core Responsibility (in dollars)

2021-22 Supplementary Estimates (C) by Core Responsibility (in dollars)

Core Responsibility	Vote 1	Vote 5	Vote 10	Voted Authorities	EBP	Total Authorities
Fisheries	49,870,876	116,787,458	13,366,993	180,025,327	3,089,202	183,114,529
Aquatic Ecosystems	-	-	2,895,000	2,895,000	-	2,895,000
Marine Navigation	1,503,516	-	-	1,503,516	-	1,503,516
Marine Operations and Response	36,390,272	-	2,750,000	39,140,272	602,859	39,743,131
Internal Services	7,040,791	8,154,867	-	15,195,658	728,457	15,924,115
Total	94,805,455	124,942,325	19,011,993	238,759,773	4,420,518	243,180,291

Annex B – 2021-22 Supplementary Estimates (C) by Standard Object (in dollars)

Standard Object

Operating and Capital	-	-
Personnel *	(1)	20,792,814
Transportation and Communications	(2)	10,955,971
Information	(3)	398,507
Professional and Special Services	(4)	102,422,567
Rentals	(5)	4,740,252
Purchased Repair and Maintenance	(6)	16,711,298
Utilities, Materials and Supplies	(7)	1,469,817
Acquisition of Land, Buildings, and Works	(8)	7,126,464
Acquisition of Machinery and Equipment	(9)	58,046,462
Public Debt Charges	(11)	-
Other Subsidies and Payments	(12)	1,504,146
Total Operating and Capital	-	224,168,298
Total Transfer Payments	(10)	19,011,993
Total	-	243,180,291

* Includes EBP

Annex C – 2021-22 Supplementary Estimates (C) by Transfer Payment Program (in dollars)

2021-22 Supplementary Estimates (C) by Transfer Payment Program (in dollars)

Transfer Payment Program	-	-
Grants in Support of the Small Craft Harbours Class Program	2,050,000	-
Grants in Support of Salmon Enhancement Programming	525,000	-
Total Grants	-	2,575,000
Contributions in Support of Ecosystems and Oceans Science	8,465,000	-
Contributions in Support of Indigenous Reconciliation Priorities	5,946,993	-
Contributions in Support of the Canadian Coast Guard Integrated Program Management Framework	2,750,000	-
Contributions in Support of the Integrated Fish and Seafood Sector Management Framework	2,000,000	-
Contributions in Support of the Integrated Aboriginal Programs Management Framework	1,375,000	-
Contributions in Support of the Pacific Salmon Foundation	650,000	-
Contributions in Support of the Small Craft Harbours Class Program	575,000	-
Contributions in Support of Salmon Enhancement Programming	375,000	-
Contributions in Support of Aquatic Species and Aquatic Habitat	(5,700,000)	-
Total Contributions	-	16,436,993
-	-	-
Total Transfer Payment Programs	-	19,011,993

Annex D – 2021-22 Permanent Frozen Allotments (in dollars)

2021-22 Permanent Frozen Allotments (in dollars)

Initiative	Vote 1	Vote 5	Vote 10	Total
Transferred or Reallocated	3,070,776	-	-	3,070,776
Loss on sale of real property	3,070,776	-	-	3,070,776
Reductions	11,390,000	-	-	11,390,000
Travel reduction (Budget 2021)	11,390,000	-	-	11,390,000
Reprofiled	-	423,337,563	132,058,617	555,396,180
Arctic Offshore Patrol Ships	-	69,600,125	-	69,600,125
CCGS Griffon Vessel Life Extension	-	17,027,974	-	17,027,974
Commercial Icebreakers (Light)	-	64,369,877	-	64,369,877
Commercial Icebreakers (Medium)	-	25,850,000	-	25,850,000
Offshore Oceanographic Science Vessel	-	102,849,472	-	102,849,472
Oceans Protection Plan	-	93,040,440	-	93,040,440
Canadian Coast Guard Vessel Life Extension and Mid-Life Modernization Program	-	20,135,854	-	20,135,854
Vessel Life Extension 2020 – Phase 1	-	16,246,483	-	16,246,483
Tsilhqot'in National Government Mandate	-	-	3,400,000	3,400,000
Trans Mountain Expansion Project	-	8,905,308	28,658,617	37,563,925
Atlantic Mandate	-	-	100,000,000	100,000,000
Funding to complete the adjustment of the light-lift helicopter avionics system	-	5,312,030	-	5,312,030
Total Frozen Allotments	14,460,776	423,337,563	132,058,617	569,856,956

2021-22 Supplementary Estimates C Detail by Organization - DFO

2021-22 Supplementary Estimates (C) issue note

These Supplementary Estimates, the final for fiscal 2021-22 and second being presented following the 44th general election, are seeking a total increase of $243.2 million to the Department’s authorities.

Of this amount, $238.8 million and $4.4 million are being sought respectively for our voted and statutory appropriations.

The $238.8 million sought through voted appropriations is primarily for the: Small Craft Harbours Program; Pacific Salmon Strategy Initiative; and, response and remediation efforts to the Bligh Island marine pollution incident.

Small Craft Harbours Program

This new funding, as announced in Budget 2021, will be used to supplement the Small Craft Harbour Program to accelerate repair and maintenance work at core Small Craft Harbours across Canada, divest non-core harbours and close inactive non-core harbours that are unsafe but cannot be divested.

This initiative will ensure that the harbour network is right sized for the user base and that the commercial fishing industry has access to safe and accessible harbours. 

This funding will support Canadians in the fishing, aquaculture, tourism, environmental, recreational, marine engineering, and construction industries, and strengthen the resilience of rural and coastal communities.

Pacific Salmon Strategy Initiative

This funding will be used to further advance the Pacific Salmon Strategy Initiative, which aims to provide a long-term strategy to stem declining trends in the Pacific salmon stocks. 

The overall results are to make the commercial Pacific salmon harvesting sector in Pacific Region more adaptive and resilient, enhance relationships with involvement of and outcomes for Indigenous people, and improve salmon conservation through effective stewardship and integrated ecosystem planning.

Pacific salmon are some of the most iconic fish species in Canada, with social, cultural, and economic significance for many communities in BC and Yukon, impacting Indigenous, commercial, and recreational fishers. 

Response and Remediation efforts to the Bligh Island marine pollution incident

In late 2020-21 the Department responded to a petroleum leak in the Motor Vessel (MV) Schiedyk, a vessel that sank on the west coast of Vancouver Island in 1968. The response included the removal of 60 tonnes of pollutants from the ship and surrounding waters.

As a result of the response operation, there is a requirement to offset the costs of response efforts as well as replace fundamental equipment essential in re-establishing CCG’s preparedness for future environmental emergencies.

Background

• These Supplementary Estimates are the final planned supplementary exercise for 2021-22. They represent the  second opportunity for the Department to seek Parliamentary approval for supplemental funding following September’s 44th general election.
• These Supplementary Estimates (C) are presenting a total increase of $243.2 million, which is comprised of $238.8 million and $4.4 million in voted and statutory appropriations respectively.
• The $238.8 million in voted authorities includes 20 items, including transfers to/from other departments, and represents an increase to our spending levels, over and above what was approved in the Main Estimates.
• The increase to our voted authorities is mainly attributed to:
  • Funding for the Small Craft Harbours Program ($148.4 million);
  • Funding for the Pacific Salmon Strategy Initiative ($36.8 million); and
  • Funding for the response and remediation efforts to the Bligh Island marine pollution incident ($31.3 million).

Investing in Small Craft Harbours

In Budget 2021, our government announced it would provide $300 million over the next two years to repair, renew, and replace small craft harbours.

With this new funding, our government has now announced $784 million in new funding for the Small Craft Harbours Program since 2016.

The amount of $148 million to the Small Craft Harbours Program that is identified in the Supplementary Estimates (C) will cover costs of delivering on Year-1 of this $300 million budgetary envelope.

If pressed on financial pressures put on the Small Craft Harbours Program

Small Craft Harbour officials estimate that approximately $250 million would be needed annually to properly maintain the program’s existing harbours.

Also, based on current technical analysis, an additional estimated amount of $20 million would be required to address the Program’s dredging needs across the country.

These estimates do not include the additional pressures such as harbour overcrowding, aquaculture use, Indigenous reconciliation efforts, and the impacts of climate change on existing infrastructure. SCH continues to monitor and analyze the financial impact these may have on the Program.

If pressed on potential user fees

The day-to-day operations of Small Craft Harbours are managed by approximately 5,000 volunteers that are part harbour authorities around the country.

Currently, harbour authorities raise $31 million in user fees and use these funds for minor maintenance and repairs. The amount each harbour authority raises depends on the reality and size of the harbours they are managing.

The Department is reflecting on various options regarding the future of user fees at harbours but no decisions have been made.

Over the coming months, work will continue to analyze what impact changing user fees could have on the Program. Decisions will be made once this analysis is complete.

Benefits of Small Craft Harbours to the Fishing Industry

From coast to coast to coast, Fisheries and Oceans Canada owns, operates, and maintains a national system of harbours to provide commercial fish harvesters and other small craft harbour users with safe and accessible facilities.

90 per cent of Canadian seafood goes through small craft harbours and Canada’s fish harvesters depend on these facilities to support their livelihoods.

Harbour Overcrowding

I understand that a number of harbours, particularly in Nova Scotia and New Brunswick, are facing overcrowding issues due to an increase in vessel sizes and larger vessel fleets.

I know that Small Craft Harbours officials are working hard to address the overcrowding and deterioration impacts on harbours and to recommend long-term solutions.

Harbour Authorities

Harbour authority officials are on the ground, managing day-to-day operations of core harbours throughout the country. The input they provide to us through their knowledge and experience make them invaluable partners.

The Department will continue building its already strong relationship with harbour authorities.

Three longer term projects in New Brunswick and Prince Edward Island funded under Budget 2021

Malpeque, Prince Edward Island 

SCH is building on previously completed studies and proceeding with advanced planning to identify long-term options to address on-going dredging needs at the harbour facility in Malpeque Cove, PEI.

DFO established a Working Group in 2019 to encourage collaborative partnership with provincial and federal counterparts, aquaculture and commercial fishing industry representatives, as well as other users to look at short- and longer-term considerations.

Woodward’s Cove, New Brunswick

SCH is proceeding with advanced planning efforts to prepare tender-ready documents for a possible new harbour development in Woodward’s Cove, which is on Grand Manan Island in New Brunswick.

The objective is to have a tender-ready package by fall 2023. A steering committee comprised of SCH, Grand Manan Harbour Authority, Atlantic Canada Fish Farmers Association and the provincial Department of Agriculture, Aquaculture and Fisheries has been formed to ensure key stakeholder engagements and promote effective communication in this planning stage.

Burnt Church, New Brunswick

Small Craft Harbours will carry out advanced planning for a possible harbour development to respond to Esgenoôpetitj First Nation harbour infrastructure needs. This includes engagement and consultations with members of the First Nation to determine the needs of the community, as well as conducting various studies and investigations to determine site selection, configuration, and concept design.

Harbour Development in the North

In August 2019, the Government of Canada and  Qikiqtani Inuit Association announced that four new harbours would be constructed in the High Arctic, two of which by the Small Craft Harbour Program, in Clyde River and Arctic Bay, Nunavut.

The other two harbours, to be constructed in Grise Fiord and Resolute Bay, Nunavut, will be funded by Transport Canada.

DFO will invest $80 million over seven years in the Clyde River and Arctic Bay harbours, which will serve as catalysts for economic development in those communities. Construction is expected to be completed by 2025-26.

In addition, under Budget 2021, Small Craft Harbours will undertake two other feasibility studies to examine the potential for other harbours in the High Arctic.

Through these construction projects and feasibility studies, the Small Craft Harbours Program is contributing to Indigenous reconciliation and supporting broader departmental objectives of working to meet Marine Conservation Targets.

Background

• As of January 2022, the Small Craft Harbour Program was responsible for 973 harbours:
  • 672 core fishing harbours; and,
  • 301 non-core fishing harbours.
• Small craft harbours provide key support to the commercial fishing industry. The Small Craft Harbour Program keeps the harbours that are critical to the fishing industry open and in good repair.
• In Budget 2021, the Government announced it would provide $300 million over the next two years to repair, renew, and replace small craft harbours.
• SCH’s ongoing regular budget is approximately $90 million, of which $20 million covers administrative costs. 
• Approximately 90 per cent of the Canadian fish harvest is landed at harbours operated through the SCH Program. The value of landings in Canada in 2019 was estimated at approximately $3.7 billion.
• Another key objective of the SCH program is to transfer ownership of designated harbours to third parties, particularly those that are not widely used by fishers or that are focused primarily on recreational boating.
• The Small Craft Harbour Program is delivered in cooperation with Harbour Authorities, local not-for-profit organizations representing the interests of local commercial fishers and the broader community.
• Each year, more than 5,000 volunteers assist the Program.
• The Small Craft Harbour Program's annual regular budget has been stable at about $90 million (includes salaries and administrative costs) since 2007-08. Since 2008-09, the Government of Canada has provided the Small Craft Harbour Program with more than $1 billion in temporary funding.

2021-22 Supplementary Estimates C - Pacific Salmon Strategy Initiative

Budget 2021 announced $647.1 million over five years, plus $98.9 million in amortization, for a Pacific Salmon Strategy Initiative, which will include habitat, hatcheries, and harvest approaches to conserve and restore Pacific salmon.

The Pacific Salmon Strategy Initiative is built on four key pillars: Conservation and Stewardship, Salmon Enhancement, Harvest Transformation, and Integration and Collaboration.

2021-22 was the launch year for the PSSI and focused on finalizing financial and program authorities and engagement with Indigenous peoples, partners and stakeholders regarding early program design, implementation and ongoing consultative mechanisms.  

The Department is continuing to work to ensure new and ongoing investments and activities in Pacific salmon programming are appropriately aligned to achieve key results.

In particular, programs and actions will be implemented to respond to the historic declines of Pacific salmon by putting in place conservation approaches and plans for prioritized Pacific salmon populations, to support their recovery.

PSSI Funding Distribution

$36.83 million was approved for the PSSI specifically within the Department’s Supplementary Estimates C. As part of this amount $23.17 million is vote 1 funding dedicated to initiating program operations across all four pillars, including climate change science,  stock assessment, fisheries monitoring, a new Habitat Restoration Centre of Expertise, and enhanced collaborative processes with First Nations, BC and Yukon, and key partners.

Secondly, $4.93  million is vote 10 funding, which includes grants and contributions support for external partners through such programs as the Pacific Salmon Commercial Licence Retirement program, and other activities.

Lastly, $8.73 million is vote 5 capital funding to acquire key science equipment, such as mass marking trailers, and initiate infrastructure and capital projects for hatcheries.

Background

• The Pacific Salmon Strategy Initiative (PSSI) aims to stem historic declines in key Pacific salmon stocks and rebuild the species to a sustainable level where possible. DFO’s response to these declines will involve a series of distinct measures, phased in over the next five years and beyond. Given the lengthy (4-year average) reproductive cycle of Pacific salmon, indicators of success will take several years to measure – as many as 15 or more.
• Under the PSSI Conservation and Stewardship pillar, DFO plans to improve our understanding of salmon ecosystems by enabling salmon and ecosystem status reporting to support decision-making and prioritize departmental actions. It will also create a team of cross-disciplinary experts to better analyze climate scenarios.
• DFO will also be developing new monitoring frameworks to integrate salmon, ecosystem and climate data to identify drivers of salmon survival, assess their vulnerability to climate change and support decision-making. These are areas with significant opportunity for collaboration and partnerships with BC. 
• The Habitat Restoration Centre of Expertise will complement the existing programming and partnerships DFO has with various stakeholders to provide enhanced technical expertise to support stewardship groups undertaking salmon restoration work.
• DFO has several initiatives currently underway to address declining Pacific salmon stocks: the Wild Salmon Policy 2018-2022 Implementation Plan, Coastal Restoration Fund, BC Salmon Restoration and Innovation Fund, Salmon Allocation Policy review, implementation funding for the renewed Pacific Salmon Treaty, and the renewed Fisheries Act. The PSSI is expected to build upon these initiatives and transform the harvest sector for greater economic certainty, and support the many BC communities whose jobs and way of life rely on them. In particular, BCSRIF and Salmon Allocation Policy will be coming under the banner of PSSI.
• One of the important tools that DFO has to support conservation and rebuilding of salmon is hatcheries.  DFO currently has 23 major hatchery facilities and spawning channels, which are supported by a number of community based hatcheries. A science based approach to hatchery management allows them to be an effective tool to support salmon stock that are in decline.

Bligh Island marine pollution incident

The safety of mariners and the protection of the marine environment are top priorities for the Canadian Coast Guard (CCG).

When the Bligh Island Shipwreck was assessed as a source of pollution, the CCG took action to mitigate the impacts to the marine environment.

The CCG worked expeditiously to address the threat of pollution from this vessel and ensured an appropriate response to this incident including: on-water containment and collection of fuel; shoreline assessments; environmental monitoring; and operational planning.

Operations to mitigate the environmental impacts of the spill concluded in July 2021, and cost the CCG $31.6 million.

During the eight-month environmental response operation, costs included the: mobilization of response resources; incident management costs; contracts awarded; containment, collection and disposal of pollutants; technical assessment of the wreck; bulk fuel removal; and demobilisation.

The Government funded these pollution response operations because the shipwreck occurred in 1968, which exceeds the time limitation to claim response expenses against the vessel owner under Canada’s Marine Liability Act.

Background

• In September 2020, the Canadian Coast Guard (CCG) received reports of extensive sheening throughout the Zuciarte Channel on the West Coast of Bligh Island. With no known or reported source of pollution it was believed to be bilge discharge originating from transiting vessels.
• Calls of oil pollution in the area continued to be reported, which led the CCG to investigate other possible sources of pollution. Several overflights were conducted, which observed oil pollution on the water near the West Coast of Bligh Island.
• Further investigation identified the source of the pollution as the wreck of the Motor Vessel (M/V) Schiedyk, which sank on January 3, 1968.  The vessel had just left Hay River, British Columbia (BC) and was carrying approximately 1000 tons of grain and pulp when it ran aground near Bligh Island. The vessel is believed to have been carrying up to 700 tonnes of Heavy Fuel Oil.
• Between December 4 - 6, 2020, there was an increase in the volume of pollution observed on the water near Bligh Island, leading CCG to take immediate action to address the continuing threat of pollution from this sunken vessel.
• On December 9, 2020, a Remotely Operated Vehicle (ROV) confirmed that the M/V Schiedyk was the source of the pollution. ROV operations reported that the product was seeping from more than one location and that vessel was resting in 350–400 feet of water.
• The sunken vessel is adjacent to a Marine Protected Area and Marine Provincial Park, and there are several  fish farms nearby.
• The CCG response teams and equipment were deployed to the site The CCG contracted the Response Organization “West Coast Marine Response Corporation” (WCMRC) to deploy to the area and contain and recover the pollutants leaking from the vessel.
• Recovery operations onsite removed contaminants from the water’s surface to address the upwelling of Heavy Fuel Oil from the wreck. 
• The CCG established a virtual Incident Command Structure to effect the response. This structure included a Unified Command comprised of the CCG; BC Ministry of the Environment & Climate Change Strategy and the Mowachat Muchalaht First Nation.
• On January 5, 2021, the bid process was completed and a contract was awarded for tug and barge services.  Requests for Proposals (RFP) were posted for spill response support and an underwater technical assessment.
• CCG required several contracts to support the response operation and technical expertise required to be able to do the complex bulk oil removal and remediation work on-site.
• The vessel was leaking Heavy Fuel Oil and was at risk of a sudden and catastrophic release of these pollutants and other onboard fuels given the age of the vessel, its degraded structural condition and its recent shift in position.
• During the eight-month environmental response operation, CCG led activities included: on-water containment and collection of fuel; shoreline assessments; environmental monitoring; and operational planning.
• The CCG concluded response operations in July 2021 and successfully removed 147 tonnes of pollutants from the vessel.  Due to its deteriorated condition, the vessel was not removed from the marine environment however CCG is confident that response operations removed all pollution onboard the wreck.  
• [Information was severed in accordance with the Access to Information Act.], the Department of Fisheries and Oceans and the CCG received $ 31.6 million in funding to pay for marine pollution response costs associated with this operation.
• These costs included the mobilization of response resources; incident management costs; contracts awarded; containment, collection and disposal of pollutants; technical assessment of the wreck; bulk fuel removal; and demobilization.
• The Government paid for these pollution response costs because the vessel sank in 1968 and exceeds the time limitation to claim expenses against the vessel owner under Canada’s Marine Liability Act.

2022-23 Main Estimates - Department of Fisheries and Oceans

2022-23 Main Estimates - Overview

Introduction

• Main Estimates list the Government’s financial spending plan for each government organization for the coming fiscal year and are used to seek Parliamentary authority for spending.
• DFO’s 2022-23 Main Estimates include all items for which the Department has received previous approval and reflect full implementation of all reductions related to previous Budget decisions, or changes to funding profiles for multi-year initiatives, where relevant.
• Tabling of the Main Estimates occurred on March 2nd. Parliament will vote on Interim Supply on or before March 31st, providing DFO with 3/12ths of voted authorities for all Votes to cover first quarter obligations.
• The remaining voted authorities would be granted once Royal Assent on Full Supply is granted in June.

2022-23 Main Estimates ($ millions)	2021-22 Main Estimates	2021-22 Estimates to Date	2022-23 Main Estimates	Increase / Decrease *
Operating Vote 1	1,885.6	2,079.5	1,945.6	60.0
Salary	1,094.4	1,145.9	1,141.5	47.1
O&M	831.2	973.7	844.1	12.9
VNR	(40.0)	(40.0)	(40.0)	0.0
Capital Vote 5	1,155.7	1,285.7	1,241.3	85.6
Capital Salary	42.7	43.9	57.2	14.5
Capital	1,113.0	1,241.8	1,184.2	71.1
Grants and contributions Vote 10	1,173.4	1,280.8	620.1	(553.3)
Grants	136.8	141.0	8.5	(128.3)
Contributions	1,036.6	1,139.8	611.6	(425.0)
Statutory	168.4	182.6	179.9	11.5
Contributions to employee benefit plans	168.3	182.5	179.8	11.5
Minister of Fisheries and Oceans - Salary and motor car allowance	0.1	0.1	0.1	0.0
Total Estimates	4,383.1	4,828.6	3,986.9	(396.2)

Note: Totals may not add due to rounding.
* Difference between 2021-22 Main Estimates and 2022-23 Main Estimates

Key Changes Between 2021-22 and 2022-23 Main Estimates

Fisheries and Oceans’ 2022-23 Main Estimates total $3,986.9 million, which is $396.2 million less than the 2021-22 Main Estimates ($4,383.1 million).

Key increases ▲ included in the 2022-23 Main Estimates ($589.8 million)

• New funding related to the Pacific Salmon Strategy initiative - $176.7 million
• New funding for Small Craft Harbours - $149.5 million
• New funding related to Marine Conservation Targets - $126.0
• New funding to conserve Canada’s lands and freshwater, protect species, advance Indigenous reconciliation and increase access to nature - $40.1 million
• Various other initiatives - $97.5 million

Key decreases ▼ included in the 2022-23 Main Estimates ($986.0 million)

• Planned funding profile change for Indigenous programs - $468.4 million
• Sunsetting funding to support self-employed fish harvesters in Canada affected by COVID-19 - $141.0 million
• Planned funding profile change for the Oceans Protection Plan - $103.1 million
• Planned funding profile change for the ongoing response to the Big Bar landslide - $77.3 million
• Planned funding profile change for Canadian Coast Guard's fleet projects - $71.2 million
• Planned funding profile change to strengthen environmental protections and address concerns raised by Indigenous groups regarding the trans mountain expansion project - $55.1 million
• Various other initiatives - $70.0 million

Note: All increases/decreases exclude accommodations and SSC costs.

Next Steps

• Final page proofs for Main Estimates were received on January 18, 2022.
  • CFO signoff and attestation was sent on January 25, 2022.

• Main Estimates were tabled by the President of the Treasury Board on March 2nd.
  • Royal Assent should be received on or before March 31 and in June respectively, for Interim and Full Supply. This will occur according to the House of Commons’ Order of Business.

Annex A: 2022-23 Main Estimates by Core Responsibility

2022-23 Main Estimates by Core Responsibility ($ millions)

-	-	-
Marine Operations and Response	-	1,402.6
Fisheries	-	1,276.6
Aquatic Ecosystems	-	391.9
Marine Navigation	-	347.4
Internal Services	-	-
Real Property	279.9	-
Management and Oversight	71.1	-
Financial Management	62.7	-
Information Technology	47.0	-
Human Resources Management	42.3	-
Legal Services	20.9	-
Communications	18.7	-
Information Management	14.0	-
Acquisitions and Materiel	11.8	568.5
Total		3,986.9

Annex B: 2022-23 Main Estimates by Standard Object

2022-23 Main Estimates by Standard Object ($ millions)

Budgetary Authorities	-
Personnel	1,378.5
Transportation and Communications	97.0
Information	3.9
Professional and special services	717.1
Rentals	45.8
Purchased repair and maintenance	190.6
Utilities, materials and supplies	138.5
Acquisition of land, building and works	292.7
Acquisition of machinery and equipment	504.3
Transfer Payments	620.1
Other subsidies and payments	38.1
Total Gross Budgetary Authorities	4,026.9
Revenues netted against expenditures	(40.0)
Net Budgetary Authorities	3,986.9

The standard object breakdown, excluding personnel and transfer payments, is calculated using historical spending.

Personnel includes Vote 1 ($1,141.5 million), Vote 5 Personnel ($57.2 million) and Statutory ($179.9 million for EBP and the Minister’s salary and car allowance).

Annex C: 2022-23 Main Estimates Transfer Payment Programs

2022-23 Main Estimates Transfer Payment Programs

Grants	-
Grants in Support of Aquatic Species and Aquatic Habitat	4.4
Grants in Support of Salmon Enhancement Programming	1.6
Grants in Support of Asset Disposal Programming	1.5
Grants in Support of Indigenous Reconciliation Priorities	0.7
Grants in Support of Organizations Associated with Research, Development Management and Promotion of Fisheries and Oceans-related Issues	0.3
Total Grants	8.5
Contributions	-
Contributions in Support of Indigenous Reconciliation Priorities	142.1
Contributions in Support of Aquatic Species and Aquatic Habitat	127.8
Contributions in Support of the Integrated Indigenous Programs Management Framework	125.8
Contributions in Support of the Integrated Fish and Seafood Sector Management Framework	116.0
Contributions in Support of the Sustainable Management of Canada’s Fisheries	53.4
Contributions in Support of the Canadian Coast Guard Integrated Program Management Framework	21.6
Contributions in Support of Ecosystems and Oceans Science	14.1
Contributions in Support of Salmon Enhancement Programming	5.0
Contributions in Support of Organizations Associated with Research, Development, Management and Promotion of Fisheries and Oceans-related Issues	2.7
Contribution in Support of the Pacific Salmon Foundation	1.6
Contributions in Support of the Small Craft Harbours Class Program	1.2
Contribution in Support of the Salmon Sub-Committee of the Yukon Fish and Wildlife Management Board	0.3
Contribution in Support of the T. Buck Suzuki Environmental Foundation	0.0
Total Contributions	611.6
Total Transfer Payments	620.1

Note: Totals may not add due to rounding.

Annex D: 2022-23 Main Estimates – A-base (permanent) versus B-base (temporary)

2022-23 Main Estimates – A-base (permanent) versus B-base (temporary)

Vote ($ millions)	A-Base	B-Base	Total
Operating Vote 1	1,593.7	351.8	1,945.6
Salary	1,004.9	136.5	1,141.5
O&M	628.8	215.3	844.1
VNR	(40.0)	0.0	(40.0)
Capital Vote 5	752.4	488.9	1,241.3
Capital Salary	41.9	15.3	57.2
Capital	710.5	473.6	1,184.2
Grants and contributions Vote 10	340.0	280.2	620.1
Grants	1.3	7.2	8.5
Contributions	338.6	273.0	611.6
Statutory	157.1	22.8	179.9
Contributions to employee benefit plans	157.0	22.8	179.8
Minister of Fisheries and Oceans - Salary and motor car allowance	0.1	0.0	0.1
Total Reference Levels	2,843.2	1,143.6	3,986.9

Note: Totals may not add due to rounding.

Main Estimates detail by organization – DFO

2022-23 Main Estimates issue note

Fisheries and Oceans Canada’s 2022-23 Main Estimates are presenting a total of $3.987 billion dollars in planned spending. This amount represents a slight change in total planned spending compared to the 2021-22 Main Estimates.

The change is attributed to a combination of factors, including the evolution of existing initiatives, such as the Indigenous Programs; the completion of others, such as the support Program for self-employed fish harvesters in Canada affected by COVID-19; and newly initiated ones, such as the Pacific Salmon Strategy Initiative.

Indigenous Programs

Indigenous programs cover a variety of initiatives such as advancing reconciliation, land claims and treaty agreements.

This funding will enhance relationships, involvement and outcomes for Indigenous peoples to allow for self-sufficiency and autonomy, while respecting cultural rights; and, support the Government’s priority to renew the nation-to-nation relationship between Canada and Indigenous peoples, based on recognition of rights, respect, co-operation and partnership.

Support self-employed fish harvesters in Canada affected by COVID-19

This funding was used to provide immediate assistance to harvesters to ensure that operations could begin, or continue, during the 2021 fishing season. The program’s aim was to help secure the sustainability of Canada's fisheries sector.

Harvesting operations required this assistance to cover a decrease in income and address increased costs due to health and safety requirements.

Pacific Salmon Strategy Initiative

Pacific salmon are some of the most iconic fish species in Canada, with social, cultural, and economic significance for many communities in BC and Yukon.

This new funding will be used to further advance the Pacific Salmon Strategy Initiative, which aims to provide a long-term strategy to stem declining trends in the Pacific salmon stocks. 

The overall results are to: make the commercial Pacific salmon harvesting sector in Pacific Region more adaptive and resilient; enhance relationships; increase involvement and outcomes for Indigenous people; and, improve salmon conservation through effective stewardship and integrated ecosystem planning.

Background

• The Main Estimates list the resources required by individual departments and agencies for the upcoming fiscal year in order to deliver the programs for which they are responsible. Main Estimates are used to seek Parliamentary authority for spending.
• Due to timing, it is not always possible to include items announced in the Government’s federal budget.  Additional funding stemming from the upcoming Budget would therefore be sought through Supplementary Estimates later in the fiscal year.
• These Main Estimates will be tabled near the end of February, with the Interim Supply bill receiving Royal Assent prior to the start of the fiscal year. The remaining voted authorities will be received once Full Supply is granted in June.

Indigenous Programs and Initiatives

Fisheries and Oceans Canada’s 2022-23 Main Estimates present a significant year-over-year change (decrease) in planned spending on Indigenous programs compared to the 2021-22 Main Estimates.

This year-over-year change is attributable to changes in the planned spending profile for the Department’s Reconciliation Agreements Program (RAP) and Treaty Related Measures program (TRM). These Programs are the means by which the Department transfers funds to Indigenous groups in support of fisheries reconciliation agreements and Treaty-related measures items. As such, planned spending under these Programs varies from year to year, based on the status of ongoing negotiations and other factors.

The main factor underlying the year-over-year change from 2021-22 to the 2022-23 is the successful ratification of significant reconciliation funding agreements in 2021-22, which has resulted in total payments of approximately $300 million to Indigenous groups in support of fisheries access, vessels, and gear and collaborative governance to date in 2021-22, of which $290 million has represented one-time payments. 

DFO will continue to negotiate and implement fisheries reconciliation agreements and Treaty related measures to advance reconciliation through fisheries

Background

• The year-over-year change in planned spending for Indigenous programs is attributable to planned funding profile changes for the Department’s RAP and TRM, which facilitate the transfer of funds to Indigenous groups pursuant to fisheries reconciliation agreements and Treaty-related measures.
• DFO has entered into fisheries reconciliation agreements or TRMs with the following First Nations or First Nation organizations to date: La Premiere Nation Wolastoqiyik, Wahsipekuk, Epekwitk Assembly of Councils Inc, Mawiw Council Inc,  Mi'gmawe'l Tplu'taqnn Incorporated, Kwilmu'kw Maw-Klusuaqn, Wolastoqey Nation, Listiguj First Nation, Innu of Labrador, Ha'oom Fisheries Society; Tŝilhqot’in National Government; Heiltsuk, and Coastal First Nations (Haida, Gitzaala, Metlakatla, Gitga’at, Kitasoo/Xai’xais, Heiltsuk, Nuxalk, and Wuikinuxv First Nations).
• [Information was severed in accordance with the Access to Information Act.]
• For the same reasons, $103 million was requested to be reprofiled to 2022-23.
• The final amount to be requested for reprofile to 2022-23 will be confirmed in April 2022, as per standard financial timelines. 
• Payments to Indigenous groups under the RAP and TRM programs have totalled $303 million in 2021-22 to date, in support of fisheries access, vessels, and gear, collaborative governance, and implementation, of which over $290 million has represented one-time payments.
• The most significant reconciliation funding agreements concluded in 2021-22 were with the Coastal First Nations (comprised of Haida, Gitzaala, Metlakatla, Gitga’at, Kitasoo/Xai’xais, Heiltsuk, Nuxalk, and Wuikinuxv First Nations) and Listiguj First Nation (financial data for individual agreements is confidential). Other new reconciliation funding agreements were in respect of smaller amounts related to agreement implementation.

Supporting self-employed fish harvesters affected by COVID-19

The Fish Harvester Benefit and Grant (FHBG) Program has provided COVID relief to self-employed harvesters and crew since its establishment in 2020.

To date, the Program has paid out about $163 million in support of its target recipients in Canada’s fishing sector, about $53 million via the grant and $110 million via the benefit.

The fishing sector shows encouraging signs of rebound after the pandemic. Export levels, prices, and quantities are starting to return to -- and in some cases exceed -- their pre-pandemic levels.

FHBG Program Eligibility

The FHBG Program fills a gap in the overall COVID-relief strategy by assisting self-employed individuals who would not otherwise have been eligible for COVID-19 support.

Self-employed harvesters and self-employed crew – the latter called sharepersons – are eligible for the Program. 

Applicants’ employment status is based on the income tax information that they filed with the Canada Revenue Agency (CRA). The Program defers to applicants’ tax data.

Self-Employed Shareperson Crew vs Employees

Self-employed crew (sharepersons) are eligible for support under the Program.

Importantly, from its launch the Program has been explicit that wage-earning crew are not eligible for the Program.

Crew members who filed tax information that characterized their income as deriving from regular employment were not eligible for the Program.

To be included, crew members’ tax information needed to reflect that their income derived from self-employment, not regular wages. 

Overpayment Letters to Wage-Earning Crew

To issue phase-one payments quickly, applicants attested to: their income, employment status, and estimated COVID losses. They received monies based on this information.

Their information was subsequently reviewed against the tax data they filed, when it became available in the summer of 2021.

Some individuals who attested to being self-employed filed tax information indicating that they were wage-earning employees, and therefore not eligible.

Those individuals received overpayment letters, for which they had a right of appeal. The calculation of interest payments on these overpayments has been waived until January 1, 2023.

Applicants Turned Down

Based on the Program’s limited scope, a sizeable number of applicants were turned down during the Program’s first and second phases.

While applicants could be turned down for a number of reasons, the group most affected in each phase were crew members.

Crew members that filed tax information indicating that they were wage-earning employees were not eligible for the Program.

Indigenous Applicants/Alternate Sources Income Information

While the Program was able to defer to applicants’ data as filed with the CRA, obviously this option was not available for Indigenous applicants who were tax exempt.

In these cases, the Program worked with individual applicants, their community representatives, and Indigenous fishing companies to secure alternate sources of income information for tax-exempt applicants.

The use of alternate income data was restricted to tax-exempt applicants, and when CRA information was available, the Program relied on it.

Appellants Claiming Their CRA Information Was Incorrect

Some individuals said that their CRA information did not accurately reflect the nature of their employment.

In response, Fisheries and Oceans Canada (DFO) and the CRA developed a process to allow those who were appealing overpayment letters to request a change to their T4 information and advance their FHBG file at the same time.

The process involved the appellant and the employer sending the Program letters or emails with additional information about the individual’s employment status, and their intention to seek a T4 adjustment from CRA. 

The FHBG Program could then take this additional information provided into account when adjudicating the appeal, while CRA could start its review in response to the request for T4 adjustment.

Program Tax Expertise

The Program is a partnership led by DFO and supported by Employment and Social Development Canada, and the CRA.

DFO has, through the course of the Program, drawn on the taxation expertise resident in the CRA.

As well, since phase one of the Program, DFO has contracted expertise through Price Waterhouse Coopers, which has provided advice and guidance to the Program on taxation-related matters.

Program Payments

The Program was initially approved for $439.4 million in grants and contributions over two years. To date, it has spent about $163 million.

The initial budget was based on a worst-case scenario regarding the pandemic.

Some applicants did not ultimately lose the 25 per cent minimum amount of their annual income, an eligibility requirement. 

This is not to say that harvesters did not suffer losses, but that often losses were below the Program’s threshold level. 

Lower-than-expected losses, necessarily reduced Program payments.

Phase-two Applications

A requirement of the Program was a second application.  That application window opened in August and closed at the end of October, 2021.

Applicants were reminded about filing second applications through a number of means:

• The 2020 T4 tax slip, which went to everyone who received phase-one monies, included a reminder about the phase-two application;
• Employment and Social Development Canada issued “Nudge Letters” in late August 2021. These letters were sent to everyone who received a phase-one benefit, and reminded of the phase-two applications;
• A Notices to Harvesters sent in August, September, and October 2021; and
• Announcements via social media about the launch of phase two.

Background

• On May 14, 2020, the Prime Minister announced the creation of the FHBG Program, which launched its first phase in August 2020. The Program is currently working to complete phase-two processing. The deadline for phase-two applications was October 31, 2021. The FHBG Program is presently completing the processing of applications and appeals.
• The Program supports self-employed fish harvesters and self-employed crew affected by COVID-19. It fills a programmatic gap in the Government of Canada’s COVID-19 strategy by providing COVID relief benefits to self-employed individuals who would not otherwise be eligible for COVID support. It is delivered in partnership by DFO, Employment and Social Development Canada (ESDC), and with the CRA.
• Payments from the FHBG Program are taxable and must be declared on harvesters’ income tax returns.
• The FHBG Program is delivered in two-phases:
  • Phase One (2020) involved the issuance of: 1) one-time grant payments to provide emergency business expense support to address the non-deferrable business costs of self-employed fish harvesters; and 2) the first part of the benefit payment (60 per cent) to provide income assistance to eligible self-employed fish harvesters and self-employed crew.
  • Phase Two (2021) involves confirming that the applicant-attested information provided in phase one aligns with CRA data. A phase-two application was required by all applicants who received payment in phase one. If eligible, and with the successful submission of the phase two application, the Program issues the second part of the benefit payment (the remaining 40 per cent).
• The benefit payment covers up to 75 per cent of income losses beyond a 25 per cent threshold for the 2020 tax year when compared to 2018 or 2019. The maximum benefit is $10,164.
• In the opening weeks of round two in August 2021, applicants experienced lengthy telephone wait times in trying to connect with a Service Canada call centre agent. Service Canada responded quickly to provide additional call centre support, and wait times were reduced dramatically.
• The first installment of the benefit payment was promptly issued to applicants based on their attestations to the program respecting their status, income, and expected COVID-related losses. That information was subsequently reviewed against CRA data filed by the applicants when that information became available prior to the launch of phase two.
• Some recipients of the first benefit payment had initially indicated that they were self-employed crew. However, CRA tax data indicated that some of those recipients were wage-earning employees, and therefore not eligible for the program. Individuals in this situation were issued overpayment letters. Recipients of those phase-one overpayment letters had a right of appeal. The deadline for those appeals was October 15, 2021.

2022-23 Main Estimates: Pacific Salmon Strategy Initiative

Budget 2021 announced $647.1 million over five years, plus $98.9 million in amortization, for a Pacific Salmon Strategy Initiative, which will include habitat, hatcheries, and harvest approaches to conserve and restore Pacific salmon.

The Pacific Salmon Strategy Initiative is built on four key pillars: Conservation and Stewardship, Salmon Enhancement, Harvest Transformation, and Integration and Collaboration.

2021-22 was the launch year for the PSSI and focused on finalizing financial and program authorities and engagement with Indigenous peoples, partners and stakeholders regarding early program design, implementation and ongoing consultative mechanisms.

The Department is continuing to work to ensure new and ongoing investments and activities in Pacific salmon programming are appropriately aligned to achieve key results.

In particular, programs and actions will be implemented to respond to the historic declines of Pacific salmon by putting in place conservation approaches and plans for prioritized Pacific salmon populations, to support their recovery.

PSSI Funding Distribution

Within this total five-year funding envelope, $346.4 million is vote 1 funding dedicated to program operations across all four pillars, including climate change science, stock assessment, fisheries monitoring, a new Habitat Restoration Centre of Expertise, and enhanced collaborative processes with First Nations, BC and Yukon, and key partners.

Secondly, $274.5 million is vote 10 funding, which includes grants and contributions investments in the BC Salmon Restoration and Innovation Fund, the new Pacific Salmon Commercial Licence Retirement program, and other activities.

Lastly, $125.1 million is vote 5 capital funding to build new conservation-based hatchery facilities in the Upper Fraser watershed, retrofitting DFO and community hatcheries in key geographic areas, and acquiring key scientific equipment such as mass marking trailers.

Background

• The Pacific Salmon Strategy Initiative (PSSI) aims to stem historic declines in key Pacific salmon stocks and rebuild the species to a sustainable level where possible. DFO’s response to these declines will involve a series of distinct measures, phased in over the next five years and beyond. Given the lengthy (4-year average) reproductive cycle of Pacific salmon, indicators of success will take several years to measure – as many as 15 or more.
• Under the PSSI Conservation and Stewardship pillar, DFO plans to improve our understanding of salmon ecosystems by enabling salmon and ecosystem status reporting to support decision-making and prioritize departmental actions. It will also create a team of cross-disciplinary experts to better analyze climate scenarios.
• DFO will also be developing new monitoring frameworks to integrate salmon, ecosystem and climate data to identify drivers of salmon survival, assess their vulnerability to climate change and support decision-making. These are areas with significant opportunity for collaboration and partnerships with BC. 
• The Habitat Restoration Centre of Expertise will complement the existing programming and partnerships DFO has with various stakeholders to provide enhanced technical expertise to support stewardship groups undertaking salmon restoration work.
• DFO has several initiatives currently underway to address declining Pacific salmon stocks: the Wild Salmon Policy 2018-2022 Implementation Plan, Coastal Restoration Fund, BC Salmon Restoration and Innovation Fund, Salmon Allocation Policy review, implementation funding for the renewed Pacific Salmon Treaty, and the renewed Fisheries Act. The PSSI is expected to build upon these initiatives and transform the harvest sector for greater economic certainty, and support the many BC communities whose jobs and way of life rely on them. In particular, BCSRIF and Salmon Allocation Policy will be coming under the banner of PSSI.
• One of the important tools that DFO has to support conservation and rebuilding of salmon is hatcheries.  DFO currently has 23 major hatchery facilities and spawning channels, which are supported by a number of community based hatcheries. A science based approach to hatchery management allows them to be an effective tool to support salmon stock that are in decline.

Achieving Canada’s Marine Conservation Targets

The Government of Canada has committed to an ambitious marine conservation target of conserving 25 per cent of Canada’s oceans by 2025, and 30 per cent by 2030. In order to reach the 2025 target, in July 2021 the Government announced a historic investment of $976.8 million over five years to marine conservation programs. This investment is shared across Fisheries and Oceans Canada (DFO), Environment and Climate Change Canada (ECCC), Parks Canada Agency (PCA), Transport Canada (TC), Natural Resources Canada (NRCan), and Crown-Indigenous Relations and Northern Affairs Canada (CIRNAC).

Currently, Canada conserves almost 14 per cent of its ocean area, DFO’s contribution to which is 14 Oceans Act marine protected areas (MPAs), and 59 marine refuges. This new funding will support reaching the 25 per cent by 2025 target by establishing new MPAs and other effective area-based conservation measures (OECMs), effectively managing existing MPAs and OECMs, and supporting marine spatial planning efforts. The funding will also increase collaboration, build capacity to negotiate Inuit Impact and Benefit Agreements, and contribute to the Government’s commitment to reconciliation.

The work towards these ambitious targets will remain grounded in science, continue to build meaningful collaboration with provinces, territories, Indigenous governments, and local communities, and will deliver benefits to all Canadians. A healthy ocean is integral for the Canadian economy, livelihoods of coastal and Indigenous communities, and the overall health and well-being of all Canadians. Achieving these ambitious targets will showcase Canada’s global leadership in ocean conservation, and secure a healthy future, supporting a sustainable blue economy for all.

Establishing New MPAs and OECMs 

In order to meet Canada’s marine conservation target of 25 per cent by 2025, DFO will continue to pursue a number of sites that are already underway towards possible designation. For example, several proposed areas are being advanced for possible designation as MPAs under Canada’s Oceans Act, including Offshore Pacific, Eastern Shore Islands, Fundian Channel-Browns Bank, St. Lawrence Estuary, and Southampton Island. There are also a number of proposed marine refuges, such as the Howe Sound Sponge Reefs and Eastern Canyons.

Background

• Canada’s marine conservation targets aim to address increasing human and climatic pressures on our oceans, including degradation of ecosystems, nature and biodiversity loss, and climate change. Increasing the conservation of marine and coastal areas through nature-based solutions such as MPAs and OECMs can address these challenges, and support the health of our oceans by protecting Canada’s diverse marine and coastal species, habitats, and ecosystems.
• Budget 2021 earmarked $1.06 billion over the period 2021-22 to 2025-26 to DFO, ECCC, PCA, NRCan, CIRNAC, and TC to conserve 25 per cent of Canada’s oceans by 2025. Of that amount, $1 billion was earmarked for DFO, less $108.2 million in existing resources.
• On July 22, 2021, the Government of Canada announced a historic investment in marine conservation, providing $976.8 million in funding over five years to protect 25 per cent of Canada’s oceans by 2025.
• To reach the 2025 target, progress will be advanced on:
  • New site establishment: Advance work to establish new MPAs and OECMs to meet the 25 per cent target by 2025.
  • Effective site management: Manage existing MPAs and OECMs to ensure they are effective in achieving their conservation objectives.
  • Collaboration: Building upon and sustaining meaningful partnership with provincial, territorial, and Inuit and Indigenous governments, industry and local communities, to advance effective ocean planning and conservation activities.
  • Advance marine spatial planning (MSP): Advance marine conservation within the broader context of MSP and Canada’s Blue Economy Strategy, to help enable ambitious marine conservation objectives while also allowing for sustainable growth in our ocean sectors as part of the development of a resilient blue economy.
  • International Advocacy: Continue to take a leadership role along with like-minded countries to advocate for conserving 30 per cent of the world’s ocean by 2030.
• On December 16, 2021, the Minister of Fisheries, Oceans and the Canadian Coast Guard was directed in her mandate letter to continue to work with the Minister of Environment and Climate Change and partners to ensure Canada meets its targets, to work towards the halt and reversal of nature loss by 2030, achieve a full recovery for nature by 2050, and champion this goal internationally.
• Canada currently conserves almost 14 per cent of marine and coastal areas, including 14 MPAs established by DFO under the Oceans Act and 59 marine refuges, which qualify as OECMs. Additional Areas of Interest are being pursued for Oceans Act MPA designation (e.g., Offshore Pacific, Eastern Shore Islands, Fundian Channel-Browns Bank, St. Lawrence Estuary, and Southampton Island).