Joint Action to Curb Illegal Seafood Trade

The Nova Scotia government continues to make good on its promise to curb the illegal lobster trade in the province with a new federal-provincial memorandum of understanding that will strengthen efforts to curb the practice.

Ernest Fage, Nova Scotia's Minister of Agriculture and Fisheries, announced the new agreement between the Canada Customs and Revenue Agency and his department on Saturday, June 15. He was attending the annual general meeting of the Nova Scotia Fish Packers Association.

The minister said the agreement will enhance the co-operation between the two levels of government to ensure that all seafood buyers, processors and harvesters meet their record-keeping obligations under the federal Income Tax and Excise Tax acts and Nova Scotia's Fisheries Act.

"We see this as a critical, multi-million-dollar problem for Canada, Nova Scotia and the legitimate lobster industry players," said Mr. Fage. "The agreement brings together the appropriate legislative powers and expertise to look into this type of illegal activity."

The transactions under scrutiny usually involve cash sales of lobsters and other high-value species, such as shrimp and snow crab, which are not reported for tax purposes. Canada Customs and Revenue Agency estimates the total value of unreported lobster sales to be at least $17 million per year in Nova Scotia.

Elinor Caplan, Minister of National Revenue, said the memorandum of understanding is another example of the excellent working relationship between the government of Canada and the province.

"This new memorandum of understanding will help us to ensure that honest business people in the Nova Scotia fishing industry are not harmed by a few illegitimate operators," Ms. Caplan said.

In conducting books and record audits to ensure compliance with federal laws, Canada Customs and Revenue Agency staff will also determine if the records comply with provincial acts and regulations. Information shared between the government of Canada and the province of Nova Scotia is treated as confidential.