SALMONID ENHANCEMENT 59 



In Chapter 3 I proposed a joint program directed 

 toward inventory of the aquatic habitat to enable formu- 

 lation of long-term objectives and plans for the fisheries 

 and to identify opportunities for fish enhancement. This 

 will complement the planning of future enhancement 

 projects, provide groundwork for rehabilitating natural 

 stocks and, at the same time, provide data for more posi- 

 tive responses to other, competing resource demands. 



Term Some of the difficulties encountered under 

 Phase I can be attributed to its term; it is a seven-year 

 program; it started abruptly; and after having built up 

 staff and momentum, its expiry is approaching with the 

 possibility of significant dislocation. The new agreement 

 should provide for more stable planning through a series 

 of short-term commitments renewable well before their 

 terms expire. I therefore suggest that — 



8. The new federal-provincial agreement should carr\ a 

 term of five years, with provisions for renewal for suc- 

 cessive five-year terms to be negotiated after three 

 years. 



This will ensure that the program will not terminate 

 with less than two years' notice. It will enable five-year 

 operational and financial planning while providing the 

 governments with opportunities to review their commit- 

 ments at three-year intervals. Periodic renewals of this 

 kind will also facilitate changes in the size and structure 

 of the program in response to accumulating experience 

 and evaluations of completed projects. 



Program Size and Funding 



My preceding recommendations imply that a renewed 

 enhancement program beginning in 1984 should involve 

 some reorientation and scaling down tor a few years, par- 

 ticularly in respect of large engineering works until their 

 success is demonstrated. These major facilities account 

 for about half the expenditures in Phase I. The new pro- 

 gram should be constrained by two considerations; the 

 available funds and the opportunities for projects that 

 can be expected to generate significant benefits in excess 

 of costs. 



9. The renewed enhancement program should pnwide 

 for undertaking those projects that promise to yield 

 the greatest benefits in excess of costs, based on the 

 demonstrated success of the different forms of 

 enhancement and without invoking risky assumptions 

 about restructuring the fisheries, harvesting patterns 

 and management reforms. Within this general con- 

 straint, the program should be limited by the funding 

 currently available for this purpose. 



The cost of enhancement activities under the new 

 agreement should be shared by the two govenmients, 

 though not necessarily in the same proportions as the 

 present agreement. And, as in the present agreement. 



to 



provisions should be made to enable the goveniments 

 recover their costs. Thus — 



10. The agreement should provide for sharing the costs of 

 the program between the two governments in propor- 

 tions that should be newly negotiated. It should enable 

 both governments to recover their expenditures under 

 the agreement. 



While the Department, under its regular budget, oper- 

 ates hatcheries and other enhancement works, the facili- 

 ties constructed under Phase I continue to be managed 

 by the enhancement program staff and budget. The oper- 

 ating costs have been growing significantly and, with the 

 extension of the program by two years, they impose a 

 heavy burden on enhancement funds. By the end of 

 Phase I, some $20 million is expected to be absorbed in 

 operating projects completed under the program. 



In general, the continuing op)erating costs of completed 

 enhancement works should not encroach on the budget 

 available for new projects; completed projects should be 

 funded through the Department's regular budget and 

 integrated with general fisheries management plans. 

 Accordingly — 



11. The operating cost of all completed enhancement 

 facilities shiNild be provided through the Department's 

 regular operating budget at the end of Phase I, and 

 thereafter the cost of operating new projects should be 

 transferrt>d as they are completed. 



Cost Recovery 



The federal government's position on recovering the 

 costs of enhancement has been somewhat equivocal. In 

 1977 the Cabinet approved a plan to recoup expenditures 

 on enhancement from sport fishermen and the fishing 

 industrv'. New charges were to be levied on fishermen, 

 beginning the following year sufficient to recover not less 

 than 85 percent of the plarmed expenditures. The remain- 

 der, up to 15 percent (some $22 million) was considered 

 not recoverable because of the program's social goals.'" 

 But the first steps were not taken until 1981 when the new 

 saltwater sportfishing licences were implemented and 

 commercial licence fees were increased. In announcing 

 these measures in late 1980 the Minister also stated his 

 intention — 



... to move forward with all administrative 

 arrangements and enabling legislation for the 

 third component of this plan, commercial 

 salmon landings charges, to be ready for 

 implementation in 1982." 



No charges on commercial landings have yet been levied. 

 Saltwater sportfishing licence fees yielded $1.68 million in 

 1981, half of which was absorbed in related administra- 

 tive costs. The increase in commercial salmon licence fees 



