Rising licence fees push Atlantic fishers into risky third-party financing deals

Veteran fisherman Peter Wallace notes that a licence now sells for about $1 million and a suitable vessel can cost $700,000 to $1.2 million, prices most newcomers cannot meet. With limited bank financing, seafood processors and other corporations are offering loans that come with controlling agreements, allowing them to set where fish are landed, influence daily fishing decisions and even dictate licence succession. The Maritime Fishermen’s Union and other groups say these deals threaten safety, as fishermen may be forced to fish in bad weather to meet payment obligations, and they can siphon up to 60 % of revenue.

Fisheries and Oceans Canada flags red-flag clauses and rejects licence transfers that contain them, but many arrangements remain informal. The issue is under review by Senate and House of Commons committees, and industry leaders are calling for a national public financing program similar to Farm Credit Canada.