HAY RIVER
Turning the Hay River fish plant into a private-sector locally owned business is likely to get underway in 2016 with a study for the business case coming this spring.
A fishing boat is lowered into water by crane at Hay River's Fisherman's Wharf. The GNWT is looking at measures that would see the Hay River fish plant privatized and locally owned. - NNSL file photo |
Back in June 2013, David Ramsay, minister of Industry, Tourism and Investment, met with the parliamentary subcommittee of fisheries and oceans and laid out a plan to re-energize the Hay River fishery and bring it into the 21st century.
That plan would require a major overhaul, with Ramsay estimating it would cost in the vicinity of $5 million. That number would include a new fish plant, a program aimed at fishers and producers and a program aimed at smaller capital investments on the Great Slave Lake to assist with mobility.
He dangled $1.5 million the GNWT is ready to put up front to help lever further funding from the federal government and other interest groups.
"You don't want to walk into these agencies empty-handed," said John Colford, manager of traditional economies, agriculture and fisheries with the Department of Industry, Tourism and Investment.
"You basically want to say we've got skin in the game and we'd like you to put some in.
"From the outsider's perspective, we're looking at assuming a federal Crown corporation asset here, and we're taking it out of the equation and replacing it with a private sector asset. We're hoping that the federal government will recognize that we're relieving them of a liability and hopefully they'll share in the cost."
That could look like a one-time capital injection to help come up with the new plant. Colford said the private sector group that will assume control of the plant, which will likely be a co-operative involving the fishermen's federation, would contribute as well.
The Hay River plant, which is owned by the federal Freshwater Fish Marketing Corporation, became economically unviable in the years since its inception.
"The way it operated in the past by just shipping whole fish out of the Northwest Territories without adding any value, that worked in the 1970s and '80s but it's not going to work any longer," explained Colford. "Costs have risen significantly."
He said the overhaul of the plant needs to serve the interest of the fishers.
"You can build the greatest plant in the world but if you're not paying a good price for a fish you won't have anybody show up (to work)," said Colford. "You may as well open a bowling alley."
Fishermen should get a fair price for their product, Colford said, and the way to do that is market diversity.
"Market demand has been realized here in the Northwest Territories, as well as export markets," said Colford.
"So part of the plan is to develop the infrastructure to serve both markets."
Colford said the government will move forward as soon as it has a plan and financing in place.
