Federal Fish Factory Floundering Says Audit

WINNIPEG, MB: Following the release of a "special examination" by the auditor general's office on the Freshwater Fish Marketing Corporation (FFMC), the Canadian Taxpayers Federation (CTF) is calling on the federal government to protect taxpayers by pulling the plug on the crown corporation and allow fishermen to market their catch themselves.

• Federal Crown Corp that processes fish is $43 million in debt, now asking for $15-20 million from taxpayers
• CTF says time to protect taxpayers by pulling the plug on facility and allow fishermen to market the fish themselves

Right now, commercial fishermen in Northern Ontario, Manitoba, Saskatchewan, Alberta and the Northwest Territories have to sell most species of fish to FFMC, a federal fish marketing body. The CTF has supported local fishermen's call for the right to market their catch themselves. The fishermen are upset with the amounts they're paid for their catch and other aspects of the federal marketing monopoly. A new co-op started by fishermen is proving successful, despite FFMC placing strict restrictions on its export license. Conversely, a recently released federal audit shows FFMC is in absolute disarray:

Issue	Auditor's Comment
Overall Concerns	"Our examination found significant deficiencies in the Corporation's systems and practices related to governance, strategic planning and risk management; and in operational areas, including processes to establish prices paid to fishers in order to remain self sufficient and meet its mandate, capital asset management and procurement, production efficiency, and human resources." (page 2)
Board's Focus	"The Board is not focussed on high risk issues." (page 2)
No Strategic Plan	"The Corporation does not have a current strategic plan to overcome its critical challenges." (page 2)
Financially Struggling	"The Corporation has not met its annually budgeted net income levels over the past five years and is struggling financially." (page 3)
Debt Increasing	"Debt has grown approximately $10 million since 2008." (page 10)
Asking for Money from Taxpayers	"The Corporation believes it needs an investment of $15 million to $20 million from its shareholder, which has not been approved to date." (page 25, note: shareholder refers to the federal government)

"Despite being given a very limited license, local fishermen have proven that they can do a better job at marketing their fish than the federal crown corporation," said CTF Prairie Director Colin Craig. "It's time to wind down the federal crown corporation before it costs taxpayers more money. The federal government has more important things to do than market fish." For more information, please contact: Colin Craig @ 204-227-5561(cell)

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