The Government of Canada announces $40 million for hard-hit shellfish sector in Atlantic Canada

Investment will help shellfish operations recover from Hurricane Fiona damages, safeguarding key jobs

SPRINGBROOK, PE, Jan. 20, 2023 /CNW/ - In the wake of Hurricane Fiona, people directly impacted by the storm have faced many challenges. With characteristic resilience, residents in those areas immediately mobilized to help their neighbours and rebuild. During this difficult time, the Government Canada has been there to help people, communities and businesses recover and rebuild.

The hurricane had a particularly devastating effect on shellfish producers and farmers. These are major employers that generate important economic benefits in many coastal, rural and small communities throughout the region. The sector also holds substantial growth potential because of global demand for farmed seafood.

In Atlantic Canada, losses, damages and cleanup costs from the devastating storm are extensive. Types of losses include product, crop, seeds, gear and infrastructure. The full extent of damages may not be known until spring 2023 as some shellfish operations had already begun to submerge their equipment at the time of the storm.

That is why today, the Honourable Ginette Petitpas Taylor, Minister of Official Languages and Minister responsible for the Atlantic Canada Opportunities Agency, announced ACOA is providing financial support up to $40 million, over two years, to the shellfish sector in Atlantic Canada. The financial support from ACOA will assist shellfish operators and non-profit organizations that provide services to them with immediate needs like storm damage repairs, equipment replacement, cleanup, product loss, as well as longer-term projects for adaptations against extreme weather.

This announcement is another major step in ACOA's effort to assist businesses and communities affected by Hurricane Fiona as part of the $300 million Hurricane Fiona Recovery Fund.

The Government of Canada remains committed to helping Canadians overcome the impacts of Hurricane Fiona and adapt to the inevitability of future storms brought about by the effects of climate change. ACOA continues to work closely with other federal departments to develop targeted and flexible initiatives to assist in recovery and rebuilding efforts. More information on these measures will be made public in the near future.

Quote

"Our government has been working collaboratively with hard-hit communities, sectors and businesses that suffered devastating losses as a result of this storm. The support we are announcing today for the shellfish sector will help filling gaps where no other support measures are available. This is one of many measures our government has initiated to maintain jobs after the hurricane took its terrible toll."

- The Honourable Ginette Petitpas Taylor, Minister of Official Languages and Minister responsible for the Atlantic Canada Opportunities Agency

Quick facts

On October 4, 2022, Prime Minister Trudeau announced the Hurricane Fiona Recovery Fund (HFRF), which will provide $300 million over two years to support local communities, businesses and organizations affected by the storm and to help long-term recovery efforts.
The Fund is a support measure to fill gaps for those who have exhausted all other sources of financial support, including insurance or other existing federal and provincial support measures, like their respective province's disaster financial assistance.
ACOA is coordinating the HFRF and is working closely with communities, associations, businesses and all levels of government to assess needs and develop targeted and flexible initiatives to assist in recovery and rebuilding efforts.
The 2022 Fall Economic Statement established a provision of $1 billion in 2022-23 in anticipation of Hurricane Fiona-related requests from provinces under the Disaster Financial Assistance Arrangements (DFAA). Through the DFAA, the government covers up to 90 per cent of eligible provincial expenses following a disaster.

Additional resources

Businesses and communities facing hardship due to Hurricane Fiona can contact ACOA Business Information Services at 1-888-576-4444 to learn more about the various programs and initiatives already available.
Businesses already working with ACOA should contact their account manager to discuss available options.
A list of current resources and financial assistance for individuals who have suffered loss or damages as a result of Hurricane Fiona is available on the Canadian Red Cross website.
Impacted communities should first seek assistance from their provincial disaster assistance programs. More information is available here:

Associated links

BACKGROUNDER

ACOA provides targeted support to shellfish sector following Hurricane Fiona damagesDedicated federal assistance for shellfish sector in Atlantic Canada

Dedicated federal assistance for shellfish sector in Atlantic Canada

ACOA is providing financial support up to $40 million, over two years, in targeted support through the Hurricane Fiona Recovery Fund (HFRF), which supplements other federal measures to cover costs not covered by private insurance and other federal and provincial programs, such as Disaster Financial Assistance Arrangements (DFAA).

The Agency will help industry associations undertake studies to better understand the extent of the damage and develop recovery plans. This could include using underwater observation technology. It can also assist with the clearance of debris.

In addition, individual businesses in the shellfish sector can apply for eligible costs such as:

Lost or damaged facilities
Lost or damaged equipment that was permanently fixed
Lost product or inventory at cost value
Clearance of natural debris and man-made debris
Reasonable fixed expenses incurred, including rental of office space and equipment, generator, production equipment, rolling stock and facilities
Potential projects to cover additional costs not covered under DFAA for firms that are eligible for DFAA (e.g., clearance of man-made debris)

How to submit an application

To be eligible, businesses and associations in the shellfish sector must have exhausted all other sources of financial support, including programs offered by their provincial government. They must also have an immediate need and demonstrate quantifiable loss or damage resulting directly from Hurricane Fiona.

To apply for assistance, please visit ACOA's website for further information or contact the ACOA office nearest you at any time.

Shellfish Sector in Atlantic Canada

The shellfish sector in Atlantic Canada is part of aquaculture, which refers to the farming of fish, shellfish and aquatic plants in fresh or salt water.
Aquaculture contributes nearly $200 million to Atlantic Canada's gross domestic product (GDP), representing a little over 50 percent of the total GDP of the industry nationally.
The production value of shellfish in Atlantic Canada in 2021 was valued at nearly $100 million.
Based on June 2022 data from Statistics Canada, Atlantic Canada is home to 46 percent of Canada's aquaculture firms (266 of 580). Of those 266, nearly half are located in areas impacted by Hurricane Fiona.
Overall, aquaculture has significant year-round employment (roughly 2,200 jobs in Atlantic Canada in 2021), providing economic benefits in remote, rural and coastal communities, including Indigenous communities.
Supply-chain companies support nearly 30 different elements of the sector from hatchery to sales and distribution, engaged in activities like design and engineering, automation and robotics, welding and fabrication, service to boats, vessel repairs and data collection and analysis.

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SOURCE Opportunities NB

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