Talks for new crab pricing formula off, protests continue
Fish harvesters’ union, processors will have to go back to old system of final offer selection to set price before crab fishery begins
After months of trying to hammer out a new marketbased pricing formula for snow crab, negotiating teams for the Association of Seafood Producers (ASP) and the Fish, Food and Allied Workers (FFAW) union have walked away from the table just weeks before the start of this year’s crab fishery.
Both sides will now revert to the previous system, which means heading to the provincial Price Setting Panel, where next Thursday they will argue final price offers for selection by the panel.
A news release by the FFAW on Thursday, March 21, states that both parties have until next Wednesday at 4 p.m. to craft their final submission to the Price Setting Panel – the expectation is that both will submit their version of a formula based on market returns. The panel will then select one of the two formulas for implementation this fishing season.
This is the system utilized in 2023, when a dispute delayed the start of the crab fishery for six weeks.
The ASP, in a news release Thursday, stated that conversations between the ASP and the FFAW commenced over six months ago to define a formula for snow crab that would ensure a top-quality product, thereby increasing the value of the fishery to the benefit of all Newfoundland and Labradorians.
“The formula (would have) meant to ensure that every harvester will receive the same value for their product regardless of when they fish
in the season. When it comes to establishing raw material prices, we need to work with industry partners to negotiate prices that the market will respond to, that are fair to harvesters, and that is financially viable for processors,” the ASP stated. “But ultimately, prices are driven by the market. Both parties agreed to do everything possible to avoid a delay like we had last year, and we can’t let history overshadow the future of the fishery for the province.”
FISHERIES PROTEST ISSUES
The ASP says if the government does issue new processing licences and allows for additional processing capacity in the province, it would have a detrimental effect on the local seafood processing sector, and on people in rural communities.
The ASP said the protests at the Confederation Building are an attempt by harvesters to influence government decisions and result in a higher raw material price, when in reality it is leading to stress and challenges for plant workers and local businesses.
That new minister of housing, Fred Hutton, said integration into core government has been done with other entities. He said there will be no job losses or reductions.
The budget documents tout a record expenditure on housing, with almost $44 million in new funding to create affordable homes and repair and maintain existing ones.
MORE FAMILY CARE TEAMS
This year’s budget sees continued record spending on health care totalling $4.1 billion, amounting to almost 40 per cent of the budget. This beats last year’s record healthcare spending, which was $3.6 billion.
Some of that spending includes:
• $30 million to hire additional health-care providers for existing family care teams and to create new teams in the Baie Verte and Springdale region, Lewisporte, Portugal Cove-st. Philip’s and downtown St. John’s.
• $16 million for a new health information system this year, plus an allocation of $620 million over 10 years for that new system. The system is called EPIC, and it will replace Meditech. Budget documents said this will allow people to self-schedule appointments, receive virtual care and allow records to be easily shared with health providers.
• $1.3 million to expand mobile primary care which was introduced last year so residents in under-resourced communities can better access care.
• Introduction of a mobile X-ray service pilot project which will begin with residents in some long-term care homes and personal care homes who need non-urgent X-ray services.
• $10 million for the expansion of virtual care services.
• $1.8 million for expansion of the continuous glucose monitoring program so people with Type 1 diabetes up to age 25 can avail of it. The program will also be expanded to include pregnant women with gestational diabetes.
• For mental health, there is more than $1 million to expand the mobile crisis response teams to include Sheshatshiu, Stephenville, Twillingate, New World Island, Burin, Clarenville and Conception Bay North.
• $8 million added to the Prescription Drug Program, bringing the program to almost $200 million to add more than 20 drugs to the formulary.
FISCAL SITUATION
At the same time the government touted record spending, the province’s net debt is expected to be $17.8 billion this year, an increase of $1.6 billion compared to last year’s forecasted net debt of $16.2 billion.
Officials explained the increase is due to a combination of capital spending and deficits. This year’s deficit is projected to be $152 million.
Last year’s budget had actually projected a surplus for this year. The government’s budget documents indicate the deficit is due to “continued investments in initiatives to assist residents and businesses with affordability at this time.”
It goes on to say, “Balance is forecasted to be achieved next year and for the foreseeable future.”
The budget projects revenues for 2024-25 to be $10.3 billion, an increase of 7.8 per cent, which officials said will be the highest in the province’s history. That was countered with an increase in projected expenses by 4.6 per cent, to $10.4 billion.
INFRASTRUCTURE OVER PEOPLE
Dinn described the budget contents as “ho-hum,” and the budget speech as a “performative farce.”
Wakeham said the budget was disappointing, and the government continues to spend money unnecessarily because it doesn’t have a plan.
“When you have no plans, you’re constantly in reaction and every time you react, it costs you a lot more money,” he said.
“They’ve announced the money for new family care teams when at the same time they haven’t been able to staff the current teams that they have,” Wakeham said.
He said health care is about having human resources to help people, but the government continues to announce new buildings instead.
“How is that going to help anybody waiting over two years for an MRI?” he asked.
Dinn said there was “nothing brilliant” in the budget.
“If they’re looking for something to dig themselves out of the hole that they’ve dug themselves into over the last few weeks, this is not it, no matter how much they dress it up,” he said.
Dinn said the government has a long way to go to address human resource issues in both health care and education.
“They seem to be focused on infrastructure as the solution, and I think they’ve missed the human piece,” he said.