Between the Land & the Sea

Between the Land & the Sea

The Social and Economic Importance of Wharves & Harbours for Nova Scotia

January 5, 2004 PRAXIS Research 2

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

January 5, 2004 PRAXIS Research 3

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.

January 5, 2004 PRAXIS Research 4

January 5, 2004 PRAXIS Research 5

January 5, 2004 PRAXIS Research 6

Population by ZoneZone 1991 1996 2001 1996-2001 1991-2001

Cape Breton Urban 69,595 67,900 62,935 -7.30% -9.60%

% of Total 7.7% 7.5% 6.9%    

Coastal Rural 268,095 261,990 251,650 -3.90% -6.10%

% of Total 29.8% 28.9% 27.7%    

Halifax-Dartmouth-Bedford-Sackville 266,960 320,875 337,283 5.10% 26.30%

% of Total 29.7% 35.3% 37.2%    

Non-Coastal Rural 294,090 257,205 255,539 -0.60% -13.10%

% of Total 32.7% 28.3% 28.2%    

Province 898,740 907,970 907,407 -0.06 0.90%

January 5, 2004 PRAXIS Research 7

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

January 5, 2004 PRAXIS Research 8

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

January 5, 2004 PRAXIS Research 9

Employed Labour Force

      Change Change

  1991 1996 2001 96 - 01 91 - 01

102,950 95,945 98,460 3%Coastal - Rural

26% 25% 24%

-4%

129,210 105,485 110,230 4%Non-Coastal Rural

33% 28% 27%

-15%

22,715 20,805 20,430 -2%Cape Breton Urban

6% 5% 5%

-10%

134,820 157,625 172,950 10%Halifax-Dartmouth- Bedford-Sackville

35% 41% 43%

28%

Total Nova Scotia 389,695 379,860 402,070 6% 3%

January 5, 2004 PRAXIS Research 10

Total Employment by Industry Number % of

Total

Total Employment 423,300 100%

Harbour User Employment 20,700 5%

Harbour Dependent Employment

37,200 9%

All Harbour Dependent Employment

57,900 14%

January 5, 2004 PRAXIS Research 11

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

January 5, 2004 PRAXIS Research 12

Sustainable Utilization?

Changes in Volume and Value of Nova Scotia Fish Landings, 1978 - 2002 (1978=100)

-

50

100

150

200

250

300

350

400

1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002

Year

Inde

x

Volume

Value

January 5, 2004 PRAXIS Research 13

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

January 5, 2004 PRAXIS Research 14

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.

January 5, 2004 PRAXIS Research 15

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

January 5, 2004 PRAXIS Research 16

Maintaining the Asset BaseExpenditures on Repair, Maintenance, and

Recapitalization of Assets in 1999SCH 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.

Area Replacement

Value

Expenditures on Repairs, Maintenance, and Recapitalization

Reinvestment Rate

National $2.1 billion $40.9 million 1.95%

Nova Scotia

$572.6 million $7.8 million 1.36%

January 5, 2004 PRAXIS Research 17

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

January 5, 2004 PRAXIS Research 18

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

January 5, 2004 PRAXIS Research 19

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 fees4. Access to new revenue sources beyond the

current user fees and DFO-SCH budget

January 5, 2004 PRAXIS Research 20

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

January 5, 2004 PRAXIS Research 21

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

January 5, 2004 PRAXIS Research 22

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

January 5, 2004 PRAXIS Research 23

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

January 5, 2004 PRAXIS Research 24

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

January 5, 2004 PRAXIS Research 25

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

January 5, 2004 PRAXIS Research 26

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?