1. Between the Land & the Sea The Social and Economic Importance of Wharves & Harbours for Nova Scotia

2. January 5, 2004PRAXIS Research2 Project Overview Data base of harbours & coastal communities Provincial overview of trends impacting on coastal regions Policy analysis - DFO Small Craft Harbours Case studies -- 10 harbour communities Planning workshop Final report & communications plan

3. January 5, 2004PRAXIS Research3 Data Base 2001 Census Canada Data used to create statistical model of Nova Scotia –77 harbour communities covering entire coastline – provincial zones Coastal rural Non-coastal rural Urban Cape Breton Urban HRM Other data loaded in including wharves and harbour facilities, labour force, tourism sites, aquaculture sites, etc.

4. January 5, 2004PRAXIS Research4

5. January 5, 2004PRAXIS Research5

6. January 5, 2004PRAXIS Research6 Population by Zone

7. January 5, 2004PRAXIS Research7 Community Level Change Coastal-Rural Zone, 1991-01 8 communities showed significant growth 9 communities had slight to moderate growth 16 experienced slight to moderate population losses 25 coastal areas show significant declines (from - 5.1 to -10%) 12 had very significant population losses (-10.1 to - 15%) 7 are labeled severe population loss –Lost more than 15% of their populations over the decade

8. January 5, 2004PRAXIS Research8 Migration, 1996 to 2001 124,000 Nova Scotians, 15% of the total population > 5 years of age, were migrants –56,000 moved to Nova Scotia from other provinces or countries 53% of immigrants from other provinces in rural communities –Over 67,000 people changed communities within Nova Scotia –Some 39,000 Nova Scotians migrated to/among rural communities

9. January 5, 2004PRAXIS Research9 Employed Labour Force

10. January 5, 2004PRAXIS Research10 Total Employment by Industry

11. January 5, 2004PRAXIS Research11 Sectoral View - Fisheries Overall value of fishery continues to grow Dramatic shift from groundfish to shellfish –Less employment in processing Shellfish predominantly owner-operator –Widely distributed small enterprises –Dependent on small harbours close to resource –Emerging policy “crisis” Intergenerational transfer and high cost of licenses

12. January 5, 2004PRAXIS Research12 Sustainable Utilization?

13. January 5, 2004PRAXIS Research13 Other Sectors Aquaculture –$30 million in production 2001 Up from $8 million in 1995 –1,200 permanent jobs Boatbuilding –1,600 employees & $85 million in sales in 2003 Tourism –Gross revenues of $1 billion in 2002 Current industry goal to double revenues by 2010 174 tourism & recreation enterprises using wharves Industry places high priority on public access to ocean

14. January 5, 2004PRAXIS Research14 Policy Trends DFO Small Craft Harbours SCH clearly acknowledges that deferred repair and budget shortfalls translate…. ….into unsafe or poor working conditions for users, increased client dissatisfaction and a growing potential liability for the Crown. The potential for public injury, loss of property and income due to degraded assets is high, as is public and political sensitivity associated with limited action. At active fishing harbours, closure or demolition is not a political or an economically acceptable solution Capital Plan for Small Craft Harbours 2002/2003 to 2004/2005, Small Craft Harbours, DFO, November 15, 2001.

15. January 5, 2004PRAXIS Research15 Planned SCH Spending in Nova Scotia Current DFO Departmental Estimates set out spending plans –$82.5 million in 2001-02 –$96.0 million in 2002-03 –$91.3 million in 2003-04 –$91.4 million on 2004-05 –$86.4 million in 2005-06 Possibility of further cuts through Program Review

16. January 5, 2004PRAXIS Research16 Maintaining the Asset Base Expenditures on Repair, Maintenance, and Recapitalization of Assets in 1999 SCH Vision Support Study, Elements 4 & 5, Draft Final Report. Mulcahy & Associates Inc. Prepared for Small Craft Harbours Branch, Department of Fisheries and Oceans, November 1999.

17. January 5, 2004PRAXIS Research17 Adequacy of Investment Levels According to SCH’s own calculation of the costs associated with marine facilities, these levels of re- investment are clearly inadequate. “The appropriate percentage to calculate asset replacement and maintenance costs should normally be set at between 4.0% and 4.2% as derived from industry experience with marine structures (PIANC International Navigation Association, BS Ferries, PWGSC, Marine Atlantic, Transport Canada.)” Capital Plan for Small Craft Harbours 2002/2003 to 2004/2005. Small Craft Harbours, Fisheries and Oceans Canada, November 15, 2001 Note: standard rate based on new assets

18. January 5, 2004PRAXIS Research18 Conclusions Outside experts say additional $50 million needed annually to maintain the integrity of core harbours “The most critical issue is the lack of an adequate stable refresh budget to address ongoing maintenance at core harbours, both to secure basic client service and to address public safety issues. Currently, 21% of our most active harbours register substandard performance ratings.” SCH Capital Plan for Small Craft Harbours 2002/2003 to 2004/2005

19. January 5, 2004PRAXIS Research19 Policy Options 1.Significant growth in the DFO-SCH budget Approx. $50 million annually needed to maintain status quo 2.Closure of more harbours to free up resources to support a shrinking number of core fishing harbours 3.Substantial increases in user fees 4.Access to new revenue sources beyond the current user fees and DFO-SCH budget

20. January 5, 2004PRAXIS Research20 Study Conclusions Coastal-rural zone is a core component of provincial economy There is substantial evidence that harbours are essential to the economic, social and cultural viability of coastal communities –Wharves are “bridges” that enable virtually all marine related activities in coastal zone –Critical issue of public vs privately controlled access to a diverse range of economic, social and cultural uses of the marine environment

21. January 5, 2004PRAXIS Research21 Overall Economic Impact 28% of population lives in coastal rural zone 24% of employed labour force works in coastal rural zone 14% of labour force depends directly on wharves and harbours for jobs 70% of provincial exports generated by largely rural-coastal based industries –2 largest export industries, non-metallic mining and mineral fuels and fisheries (45% of overall exports), depend directly on harbours

22. January 5, 2004PRAXIS Research22 Key Trends Overall population in coastal zone stable –Dramatic shifts in settlement patterns Many communities have had serious population losses –Effects of 1990s crises leveling off Groundfish collapse Coal & steel in Cape Breton Military bases –Underlying trends still to population shrinkage Loss of jobs in primary industries through technological change & consolidation of ownership Movement of young people to urban service jobs

23. January 5, 2004PRAXIS Research23 Threats to Community Stability Loss of viability through population loss Consolidation of ownership of shellfish licenses –Processors buying up licenses “under the table” –Former DFO Minister Thibault said he would “end trust agreements” (December 2003) Continuing deterioration of wharves –Costs and risks increase for users –Pressure to consolidate harbours

24. January 5, 2004PRAXIS Research24 Major Challenge The need to maintain investment levels in critical infrastructure as population declines –Healthy communities to attract and hold skilled workers and their families Adequate health and human services, transportation and communications, recreational facilities, etc. –Wharves are essential socio-economic infrastructure Impossible to maintain marine industries and access to the marine environment without them Essential to quality of life & social viability in coastal communities

25. January 5, 2004PRAXIS Research25 CCN Action Priorities Communicate findings to CCN member groups and plan and coordinate joint action Share the database and skills to use it Further develop small business perspective on economic significance of harbours Promote/facilitate integration of government services, 1-stop shopping, for harbour management

26. January 5, 2004PRAXIS Research26 Research Follow-up Need for deeper analysis of dynamics of shifting settlement patterns in rural areas –What’s really going on? –What are the thresholds for community viability in terms of population loss? –What are the implications for retention of essential supplies of skilled labour? Does the harbour authority model need to be redeveloped to include more stakeholders?