Federal Memo Reveals Up to 30% of Atlantic Canada’s Lobster Catch Goes Unreported
The federal Department of Fisheries and Oceans (DFO) has raised concerns over the hundreds of millions of dollars worth of lobster that are caught in Atlantic Canadian waters each year but are never reported to authorities. This issue raises both tax evasion and conservation implications in the country’s largest fishery.
An internal memo from August to DFO’s deputy minister revealed that between 10 and 30 per cent of lobster landings in the region are unreported. The department is currently working to map out criminal networks and money laundering in the sector. Osborne Burke, the president of the Nova Scotia Seafood Alliance, expressed his frustration, stating that it is difficult for those following the rules to compete in the industry when illegal activities are taking place.
Commercial lobster fishermen are required to fill out daily logbooks detailing various information about their catches. This data is crucial for DFO to analyze the health of the lobster stock. The value of reported lobster landings has fluctuated between $1.2 billion and $2 billion annually in recent years. The internal memo estimated that unreported catches range from $176 million to $681 million annually based on data from 2018-2021.
DFO is collaborating with the Canada Revenue Agency to conduct audits in the sector and is also engaging with FINTRAC to identify key players involved in unreported fishing. Unreported catches can significantly impact the decline of stocks, damage marine ecosystems, and harm Canada’s international reputation for sustainable fishing.
Morley Knight, a retired former assistant deputy minister with DFO, highlighted the growing problem of unreported fishing in the past decade. He emphasized that the significant income generated by the fishery has led some individuals to under-report their catches to evade taxes. The issue is further fueled by buyers from outside the Maritimes, some of whom engage in cash transactions at wharves.
Knight proposed implementing a dockside monitoring program for the lobster industry to verify catches during weighing at the wharf. This system could help curb misreporting and enhance transparency in the sector. Burke raised concerns about criminal elements infiltrating the industry and using it to launder money from other illicit activities.
DFO has faced criticism for its enforcement efforts, with some commercial fishermen accusing the department of inadequate action. Nova Scotia Fisheries Minister Kent Smith has highlighted organized crime linked to illegal lobster fishing in the province. DFO has emphasized its commitment to detecting and preventing unreported cash sales, with Fisheries Minister Diane Lebouthillier urging fish harvesters to cooperate in addressing the issue.
In response to the concerns raised, the province has introduced new license requirements for fish buyers and processors and increased inspections of holding facilities. The ongoing efforts aim to tackle illegal fishing activities, uphold sustainability in the fishery, and safeguard the reputation of Maritime lobster in the global market.
