Current Restrictions on Foreign Access to Canadian Fish Stocks Frank Metcalf,Q.C. & Andrew N. Montgomery Metcalf & Company 2006

Transcription

1 Current Restrictions on Foreign Access to Canadian Fish Stocks Frank Metcalf,Q.C. & Andrew N. Montgomery Metcalf & Company 2006 INTRODUCTION The Canadian Federal Government has the exclusive jurisdiction over the fishery including access to it. Accordingly all legislation and regulations affecting the fishery emanate from and are administered by Ottawa. The purpose of this paper is to review the question of access by foreign nationals to Canadian fish stocks and consider the possibilities which exist for such activity within the framework of current Federal legislation. This afternoon s sessions are grouped under the umbrella title of The Greening of the Seas suggesting an ecological or environmental flavour to the issue of restrictions on foreign access to Canadian fish stocks. I believe the genesis of foreign restriction is simply self interest and domestic economic pressures. Nevertheless, an unanticipated result of foreign restriction may very well be a contribution to or result in a greening effect through apparently strict control of access to fish stocks inside the offshore Canadian 200 mile Exclusive Economic Zone and regulation of all aspects of the harvesting process. The social fabric of Atlantic Canada greatly reflects our historic reliance on the fishery for basic subsistence and wealth creation. To a much lesser extent this is also the case on the Pacific Coast. The data in Figure 1 graphically demonstrates the significance of the Atlantic coast fishery in the national picture. More than 80% of the landings by quantity and value relate to that fishery. Consequently, when we talk about foreign access to the Canadian fishery we are

2 2 talking first and foremost about access to the Atlantic coast fishery reflecting this reality. Policy initiatives by the Department of Fisheries & Oceans (DFO) also tend to be focused to a much greater extent on the Atlantic coast. Given the commercial and economic importance of the fishery, it is also very clear that from a management perspective, which includes environmental and ecological considerations, it is in Canada s best interest to control access to and regulate its fishery for the benefit of its citizens. CANADA S FISHERY IN 2004 QUANTITY (tonnes) VALUE (000 s dollars) Atlantic 893,050 1,853,573 Pacific 258, ,800 Rest of Canada 35,394 60,817 Figure 1 While we frequently hear and read of the many complaints by fishing interests concerning the management and future of the Canadian fishery, the disastrous effects of over fishing and environmentally unsound fishing practices engaged in by many of the world s leading fishing nations are equally well known. Many areas of the world s oceans are now utterly devoid of certain fish species and others are rapidly disappearing. Many underdeveloped and developing countries situated adjacent to plentiful fish stocks are unable to harness the asset for the benefit of their citizens except at the most fundamental level of catching fish. The participation of their citizenry frequently does not even extend to owning or crewing the fishing boats which exploit the resource let alone generate any wealth with value-added activities. Worse still, the country entitled to exploit the resource may have little or no control over the harvesting process with the result that species may be seriously endangered, resulting in the potential

3 3 disappearance of the resource itself and the consequent loss to a country s economy of potential employment, etc. Fortunately, while we have raging debates here over licensing and harvesting issues, Canadians at least exert significant control over their own destiny. Accordingly, it seems clear that if a country is to have any chance of generating serious commercial activity from adjacent fish stocks, it must first develop and articulate its policy with respect to who may have access to such stocks and the management of the harvesting process. Domestic harvesting issues are far too numerous and complex to contemplate review here and in any case they are incidental to access. Once access is established the harvester is governed by current DFO policy and legislative requirements. KEY LEGISLATIVE TOOLS There are four main pieces of legislation having a significant impact on access by Canadian or foreign interests to Canadian fish stocks as outlined below in Figure 2. Canada s Fishery Foreign Access Key Legislative Tools Oceans Act, S.C. 1996, c. 31 Coastal Fisheries Protection Act, R.S.C. 1985, c. C-33 Canada Shipping Act, R.S.C. 1985, c. S-9 Fisheries Act, R.S.C. 1985, c. F-14 Figure 2 While Canada has asserted sovereign rights out to the 200 mile limit from our coastline since the late 1970s, ratification of the United Nations Convention on the Law of the Sea II (7 November 2003) and the promulgation of the Oceans Act

4 4 (in force 31 January 1997) formally and legally established Canada s sovereign rights over the Exclusive Economic Zone and the Continental Shelf. The Coastal Fisheries Protection Act regulates the activity of foreign ships, their crews and foreign nationals generally with respect to our fishery. The Canada Shipping Act permits foreign built, foreign owned, foreign flag fishing vessels to become Canadian flagged and owned by a Canadian citizen or company, the shareholders of which can continue to be the former foreign owner(s). The newly Canadianized ship is then free to engage in the Canadian fishery subject only to the regulations applicable to the other Canadian vessels engaged in the same fishery. The Fisheries Act and regulations made pursuant thereto provide the primary management tools whereby the Minister of Fisheries and Oceans (the Minister ) manages the Canadian fishery through the licensing process. The Foreign Vessel Fishing Regulations made pursuant to the Act clearly impact the activity of foreign nationals but only after access is granted to the stocks. It is not the purpose of this discussion to do other than acknowledge the existence of the regulations. Finally and perhaps not least, the Eastern Canadian fishery (Atlantic Canada) is subject to the Commercial Fisheries Licensing Policy for Eastern Canada (the Licensing Policy ). While it is not legislation, it has plenty of teeth. Should the guiding principles articulated therein be found to be infringed by a license holder in any way, the Minister, at his or her sole discretion, has the draconian power derived from the Fisheries Act to suspend or revoke the privilege enjoyed by a license holder. Effectively, the license holder is out of business a very powerful tool for enforcement of the rules and regulations pertaining to both access and management issues.

5 5 THE EXCLUSIVE ECONOMIC ZONE The Oceans Act establishes Canada s sovereign rights (Figure 3) over the living and non living resources in the water column, on the seabed and under the seabed out to the extent of the 200 mile Exclusive Economic Zone. Accordingly, Canada s Fishery Foreign Access Exclusive Economic Zone Oceans Act 14. Canada has (a) sovereign rights in the exclusive economic zone of Canada for the purpose of exploring and exploiting, conserving and managing the natural resources, whether living or non-living, of the waters super adjacent to the seabed and of the seabed and its subsoil. Figure 3 Canada is legally able to control foreign access to all living resources within 200 miles of its coasts. It is important to note that the Exclusive Economic Zone and the Continental Shelf are not one and the same, particularly in Eastern Canada. On the Atlantic Coast the Exclusive Economic Zone includes most but not all of the Continental Shelf. Comparatively, the Continental Shelf on the Pacific Coast comprises a relatively small part of the 200 mile Exclusive Economic Zone. THE CONTINENTAL SHELF In significant areas off the east coast of Canada, perhaps the best known being the so called nose and tail of the Grand Banks, the Continental Shelf extends beyond the 200 mile Exclusive Economic Zone. The Oceans Act (Figure 4) establishes Canada s sovereign rights over the non living resources on and under the seabed and also over living organisms which are considered sedentary

6 6 throughout the entire extent of the Continental Shelf which may extend in places well beyond the 200 mile Exclusive Economic Zone. For the purposes of the Canada s Fishery Foreign Access Continental Shelf Oceans Act 18. Canada has sovereign rights over the continental shelf of Canada for the purpose of exploring it and exploiting the mineral and other non-living natural resources of the seabed and subsoil of the continental shelf of Canada, together with living organisms belonging to sedentary species. Figure 4 Oceans Act, sedentary is defined as immobile or only capable of movement in constant contact with the seabed. The Oceans Act does not, consequently, extend Canada s rights over non sedentary living resources, meaning fish which swim in the water column over the Continental Shelf outside of The 200 Exclusive Economic Zone. These resources are the subject of straddling stocks conventions and legislation which are the subject of a different presentation here this afternoon. DISTINGUISHING BETWEEN THE OFFSHORE AND THE INSHORE In Atlantic Canada, it is important to distinguish between the inshore and the offshore fishery (Figure 5). The inshore fishery is principally allocated to individual harvesters having a strong community orientation, while the offshore fishery is principally oriented to industrial or corporate harvesters.

7 7 Canada s Fishery Foreign Access Distinguishing the Inshore from Offshore Fishery The Inshore Fishery to 50 miles from shore and vessels under 19.8m in length The Offshore Fishery beyond 50 miles from shore and vessels 19.8m or greater in length Figure 5 THE INSHORE FLEET GOVERNMENT POLICY I believe the most significant issues concerning foreign access relate to the offshore fishery. However, it is useful to look briefly at the inshore fishery which is comprised principally of individual harvesters. The interests of these harvesters and the communities which are home to them are intended to be protected by government initiatives such as are outlined in Figure 6. The Fleet Separation Policy for example ensures at least theoretically, that the ownership of a fishing license remains in the hands of the individual harvesters and not in the possession of large corporations such as processors. The Owner Operator policy seeks to accomplish the same end by requiring that the individual who actually holds the inshore fishing license is at all times actually on the vessel which is fishing the license. Apart from a handful of grandfathered corporate licenses in the inshore, corporations cannot be the recipients of inshore fishing licenses. GOVERNMENT POLICY CIRCUMVENTED However, as the old adage aptly states Where there is a will there is a way. The Atlantic fishing industry has devised ingenious ways of circumventing government policy with respect to ownership of fishing licenses. The ubiquitous

8 8 Canada s Fishery The Inshore Fishery Within 50 miles vessels less than 19.8m length Fleet separation policy Owner operator policy Grandfathered corporate exceptions Figure 6 trust agreement is probably the best known. The value of inshore licenses in certain fisheries, e.g., scallops, lobster, and crab in particular, has grown enormously in recent years. The ability of individual fishermen to finance the purchase of licenses, which may be valued anywhere in the range of $300,000 to in excess of $1,000,000 depending on the species and the location, is limited. Enter companies, mainly fish processors and other wealthy investors who finance the purchase of licenses, share in the beneficial interest of the license and effectively control the ownership of those licenses. Since trust agreements are private contracts they are not publicly available hence the potential exists for foreign interests to buy into the beneficial interest and legal control of the inshore fishery. While it is doubtful whether any foreign interests are significantly involved by way of trust agreements, it is common knowledge amongst licence holders and DFO that many non license holder interests have extensive investments in the licenses issued in the inshore fishery. It is a fair assumption that such investment results in a transfer of substantial, if not all, of the control of large numbers of fishing licenses to parties other than those intended by stated government policy. As a reflection of this reality, there is currently a serious initiative being led by the Gulf Region of the Department of Fisheries and Oceans, pursuant to orders from the Minister, which is attempting to force the

9 9 disclosure of the existence of any controlling trust agreements with a view to eliminating them. The purpose is to enforce the policy guidelines set out above. COASTAL FISHERIES PROTECTION ACT The Coastal Fisheries Protection Act (Figure 7) and the Coastal Fisheries Protection Regulations apply to both Canadians and foreign nationals. The purpose of the Act is to regulate access to the fishery with a view to ensuring the maximum benefit accrues to Canada and that license holders do not engage in environmentally unacceptable fishing practices. Not to put too fine a point on it, our own Canadian fishing practices are frequently accused of being devastating and neglectful of the future. The Act also provides for the limited access by foreign interests as and when it is deemed appropriate by the DFO and the Canadian government. It is not my intention to-day to review the detail of this legislation, nor in my view is it important for the purpose of this presentation to do so. Suffice it to say foreign interests who are granted access to Canadian fish stocks are required to meet the terms of this legislation before commencing fishing operations and Figure 7 conveys the flavour and thrust of the Act. I have no statistics on how often foreign interests come within the ambit of this Act in the course of a year, but my understanding is not frequently. There are currently several projects on both the Atlantic and Pacific coasts which involve the use of foreign flagged vessels, including processing ships, to exploit and develop the squid and Pacific hake fisheries. In the case of the squid fishery there is apparently no suitable Canadian equipment or expertise available at this time. There are, nonetheless, Canadian harvesters who would dispute this and today most, if not all inshore core fish harvesters hold squid licenses as one license in their core package of licenses. In the case of the

10 10 Canada s Fishery Foreign Access Coastal Fisheries Protection Act 3. No foreign vessel shall enter Canadian waters for any purpose unless authorized by this Act 4.(1) No person aboard, employed aboard or serving as a crew member aboard foreign vessel shall fish or prepare to fish.unless authorized by the Act 4.(2) No person aboard, employed aboard or serving as a crew member aboard foreign vessel shall fish or prepare to fish sedentary species.unless authorized by the Act Addresses the issue of jurisdiction over the continental shelf 5. Prohibition against transporting fish into Canadian waters 5.(1) through 5.(5) Conservation and management measures for the NAFO Regulatory Area straddling stocks 6. Regulations Ministerial authority Figure 7 Pacific hake fishery Canadians have developed the harvesting expertise after years of foreign flag operators performing this function but the Canadian processing and market capability is limited with the result foreign flag ships and crews continue to be used for this purpose. The ships will be chartered or on some joint venture arrangement with the Canadian license holder entitled to fish the particular species. This approach has served Canada well in the past. Significant examples of this type of arrangement relate to the silver hake fishery, the Northern shrimp fishery and the stimson surf clam fishery, all on the Atlantic coast, to name a few. Ships and crews from Cuba, Denmark, the Faroe Islands and Norway respectively, pioneered these fisheries. Some of those crews became Canadian citizens or

11 11 permanent residents and continue to work in the Fishery. A number of the ships formerly flagged in those countries continue to operate today under the Canadian flag with Canadian crews. COASTAL FISHERIES PROTECTION REGULATIONS The Coastal Fisheries Protection Regulations (Figures 8 and 9) address requirements relating to foreign fishing vessels in Canadian fishery waters. The following quick review gives a sense of the detailed requirements foreign ships are obliged to meet to enter Canadian waters for purposes which may not even include fishing. For the purposes of this presentation today it is in my view, only necessary to acknowledge the existence of the regulations the foreign owner is required to meet. A detailed analysis is beyond the scope of time afforded here. The conditions are stringent, detailed and probably expensive, however, not impossible to comply with provided the commerciality of the project warrants it. A sampling of some of the regulations referred to in Figure 8 conveys the extent of the control exerted by the Act. 5.(1)(a) provides for a license to be issued for a foreign fishing vessel to enter Canadian fisheries waters for a number of set purposes including (i) to engage in commercial fishing or fishing for purposes of scientific research, (ii) to tranship or take on board any fish, outfit or supplies while at sea, (iii) to process fish at sea, (iv) to transport fish from fishing grounds, (v) to provision, service, repair or maintain any other foreign fishing vessel while at sea, (vi) to purchase or obtain bait, outfits or supplies at a Canadian port, (vii) to effect repairs at a Canadian port, (viii) to purchase, load, unload, transship, sell or process fish or fish products at a Canadian port, (ix) to unload, land, re-embark or tranship at a Canadian port any equipment of that vessel or of any other fishing vessel of the same flag state,

12 12 Canada s Fishery Foreign Access Coastal Fisheries Protect Act Regulations 5.(1)(a) License for foreign vessel to enter Canadian fisheries waters for prescribed purposes 5.(1)(b) License for foreign vessel to pass through certain Canadian fisheries waters Supplying Canadian or foreign vessel while at sea and Prohibitions on issuance of licenses Agreement between Canada and France on their Mutual Fishing Relations Treaty between the Government of Canada and the Government of the United States of America on Pacific Coast Albacore Tuna Vessels and Port Privileges Convention between Canada and the US for Extension of Port Privileges to Halibut Fishing Vessels on the Pacific Coasts of the US and Canada Figure 8 Canada s Fishery Foreign Access Coastal Fisheries Protection Act Regulations 6. Application for license 11. Terms and conditions of license 12. Requirements of foreign masters 13 Authorization for Canadian vessels to land fish received from foreign vessels 13.1 Suspension or cancellation of licenses 14. Limited authorized entry into Canadian fishery waters 20 Return of prohibited species to the water Foreign fishing in NAFO Regulatory Area Figure 9

13 13 (x) to grant shore leave to the crew of that vessel at a Canadian port, and (xi) to discharge or take on board at a Canadian port a member of the crew of that vessel or of any other fishing vessel of the same flag state. 5.(1)(b) licenses passage of foreign fishing vessels through certain Canadian fisheries waters to a destination outside of Canadian fisheries waters. Currently all such designated Canadian fisheries waters through which foreign fishing vessels can be licensed for passage are on the Pacific coast Licenses may be issued to foreign fishing vessels to enter Canadian fisheries waters for the purpose of supplying either a Canadian or foreign fishing vessel operating under license in Canadian fisheries waters. Licenses may also be issued to foreign fishing vessels to enter Canadian fisheries waters for the purpose of purchasing and obtaining supplies in a Canadian port. Restrictions on the issuance of licenses to foreign fishing vessels are found in sections and of the Regulations (1.11) The Minister shall not issue a licence under paragraph (1)(a) or subsection (1.1) unless the Minister determines that the Government of Canada has favourable fisheries relations with the government of the vessel's flag state. (1.12) The Minister shall not issue a licence under paragraph (1)(a) or subsection (1.1) if there are reasonable grounds to believe that (a) the vessel is not licensed or otherwise authorized by its flag state to engage in fisheries activities; (b) the vessel is not in compliance with relevant conservation and management measures; (c) the vessel is providing supplies to a foreign fishing vessel that is not in compliance with relevant conservation and management measures; (d) the proposed activity is not compatible with or will undermine relevant conservation and management measures; or

14 14 (e) the proposed activity is not consistent with the sustainable use of fisheries resources or will contribute to excess harvesting or processing capacity. COMMERCIAL FISHERIES LICENSING POLICY FOR EASTERN CANADA In the Eastern Canadian offshore fishery, in addition to the legislative and regulatory mechanisms previously discussed, foreign access to the fishery is controlled, in part, through the Commercial Fisheries Licensing Policy for Eastern Canada (Figure 10). No comparable policy exists for the Pacific Region or the Central and Arctic Regions of the country. Licenses in the offshore fishery can only be held by Canadian companies which demonstrate not less than 51% Canadian ownership and control. If foreign ownership and control of a Canadian corporate license holder increases above 49% during the term of the license and DFO becomes aware of the situation, that license will not be reissued so long as foreign ownership and control remains above 49%. The possibility exists that subsidiaries of entirely foreign owned companies, which subsidiaries themselves Canada s Fishery Foreign Access Commercial Fisheries Licensing Policy for Eastern Canada Licenses only to Canadian companies with at least 51% Canadian ownership Companies holding licenses which exceed 49% foreign ownership will not have their licenses renewed Foreign subsidiaries in Canada with 51% or greater Canadian ownership and control may hold license Figure 10 are 51% or more owned and controlled by Canadian interests, may have licenses issued to them.

15 15 The policy language providing for 51% control of the common shares of the license holder begs the question whether a company where non-canadians hold more than 49% of the ownership through non-voting share structures, but otherwise comply with the ownership requirement with respect to common shares and hence control, is in contravention of the Policy. To the best of my knowledge the issue has not been the subject of open censure and loss of fishing privileges. Suffice to say, the Ministerial power is an effective enforcer of policy. The Licensing Policy makes provision for a very limited access for foreign interests, albeit a logical one for certain specific situations (Figure 11). A Canadian vessel which has either been lost or otherwise rendered inoperable for more than four months in the preceding 12 month period can be replaced through leasing or chartering of a foreign vessel for a maximum term of two years. The chartered vessel must be similar in terms of size and it must follow the same fishing plan as the vessel it is replacing. It must sell to the same buyers as the replaced vessel sold to. No processing of groundfish is permitted at sea. Strict observer requirements will be maintained. Ministerial approval is required. In most cases it will likely be a requirement of the vessel flag registration that at least the foreign master and chief engineer and other key officers remain aboard the vessel. The DFO in conjunction with Human Resources Development Canada ( HRDC ) will generally require some component of the crew, deckhands and other similar ranks to be Canadian.

16 16 Canada s Fishery Foreign Access Commercial Fisheries Licensing Policy for Eastern Canada Leasing Foreign Registered Vessels Canadian vessels permanently removed or rendered unserviceable for a minimum period of 4 months in the preceding 12 month period Maximum period of two years duration may be permitted for leasing of a foreign vessel Leased foreign vessel must be crewed by Canadian citizens or permanent residents except where approved otherwise by the Minister of Fisheries and Oceans Similar catch capacity, similar fishing plan, similar catch buyers No processing of groundfish at sea Observer requirements Ministerial approval Figure 11 FOREIGN INVESTMENT AND THE CANADA SHIPPING ACT So, given the exclusionary nature of the licensing policy and legislative restrictions, it seems clear a foreign national, corporate or individual has an uphill battle to become significantly involved in the Canadian fishery. Nonetheless, it is not impossible some hints from my earlier comments indicate how such interests can be pursued and realized. Clearly, a corporate license holder can accommodate a financial involvement by a foreign national through non-controlling share ownership. The investor can exercise all the normal rights and remedies available to a minority shareholder. The investor may sit on the Board of Directors and, of course, depending on the terms of the shareholders agreement that party may exercise substantial control over the conduct of the license holder s business activities. Whether that control actually breaches the letter and spirit of any Canadian legislation, regulation, policy or guideline would, of course, depend on the facts of the situation. It is not

17 17 my purpose today to debate or propose the parameters of control which may or actually do violate the law, but rather to point out the potential for involvement by foreign nationals in accordance with Canadian law. There are many reasons for a foreign national wishing to become involved in the Canadian fishery: Certainty of supply for sales Profit motive Continuation of temporary fishing permission Continued utilization of surplus vessel and equipment Reduction of quotas and/or declining domestic catch rates.to name but a few. Many of the foregoing are also reasons why Canadians might wish to be associated with foreign nationals, but in addition, there are several others: Need for capital Need for specialized ships, equipment and fisheries expertise Marketing expertise Processing expertise again, to name only a few. So, to marry these needs together for the benefit of both Canadians and foreign interests requires careful planning. Assuming a need for capital and the appropriate commercial terms are available, the capital investment in a Canadian license holder can be accomplished as outlined above. If a ship is needed, it can be imported into Canada pursuant to the terms of the Canada Shipping Act (Figure 12) and the regulations administered by Transport Canada.

18 18 Canada s Fishery Foreign Access Canada Shipping Act Documentation for first-time registration Application for registry Declaration of ownership Appointment of authorized representative Certificate of survey International Tonnage Certificate Proof of closing of foreign registry Figure 12 If the vessel in question exceeds 15 tons gross tonnage, is owned by a qualified person as defined in the Canada Shipping Act, and is not registered in a foreign registry, it must be registered under the Act. A qualified person can be either an individual personally or a corporate entity incorporated under the laws of Canada or one of the provinces (Canada Shipping Act, s.2 and s. 16(1)). There is a provision for bare-boat chartered ships to be listed in the vessel registry under certain conditions as provided for in s.18 of the Act. Assuming the foreign national wishes to continue to manage and control its investment in the ship, it will be required to set up a Canadian company for the purpose of owning and operating the vessel and in which it can own 100% of all classes of shares including common shares. Once the vessel has been successfully imported and flagged Canadian she can be chartered or made available to a Canadian license holder and commence fishing activities as a fully qualified Canadian fishing vessel. As discussed above, the foreign national may also be a shareholder of the Canadian license holder, with the result that the foreign national owns the catching capacity and has a significant financial interest in the license. It is likely

19 19 also that the foreign interest will have the marketing expertise and network to dispose of the catch or the product if the catch is processed on board. The result appears to be a natural and well integrated business activity deserving of governmental encouragement. I have skipped over a number of important issues and intermediate steps necessary to be accomplished before Canadian registration can be fully completed, such as financing and compliance with technical requirements of Transport Canada Ship Safety Branch. Those issues need to be and are routinely addressed by various professional advisers when planning importation but are not a part of this discussion. My experience of this type of commercial activity would suggest the involvement of foreign nationals in the Canadian fishery is not uncommon. It probably tends to occur where Canadian license holders seek to develop an otherwise underdeveloped fishery and where the basic entry costs are beyond the financial capability of the Canadians who may be interested in developing a particular fishery. Once the activity matures and the technology transfer is well advanced the need for continued involvement by the foreign national is greatly decreased. The possibility exists then for a Canadianized operation. Having said that, many relationships between the parties continue on one basis or another, and there is no prohibition on a continuation of the relationships. EXCLUSIVE CANADIAN PRESERVE? It is clear from the foregoing legislative and policy review that the Canadian government has gone to great lengths, at least on paper, to provide an exclusive preserve for exploitation by Canadians whether as individuals or in a corporate capacity. It is equally clear that such activity can, a priori only be engaged in by using Canadian flag fishing vessels, crewed by Canadian citizens unless otherwise authorized by the Minister. Foreign nationals can and are involved in

20 20 the Canadian fishery however, the question of degree varies from case to case. The result should be greatly reduced and highly controlled access by Foreign nationals to Canadian fish stocks. Arguably the 200 mile Exclusive Economic Zone has resulted in a greening effect however, the debate rages on about whether Canadian fishing practices are environmentally sound and, indeed, whether controls over foreign fishing are adequate and/or effectively exercised. Canada has the jurisdiction, under UNCLOS II and through the promulgation of such legislation as the Oceans Act and the Coastal Fisheries Protection Act and these can only be seen as positive developments. What remains in question to some degree is whether Canada can be credited with effectively exercising its jurisdiction. This is inevitably a matter of perspective and a subject ultimately for consideration by the historians.