28.1 Canada's ability to sustain the Pacific salmon resource at the present level and diversity is questionable given the various factors influencing salmon survival, many of which are beyond its control. While Fisheries and Oceans has built up major salmon stocks, others are declining and many are considered threatened. There is evidence that habitat loss is contributing to these declines. However, no overall status report on salmon habitat is available to assess the impact of habitat loss on the resource.

28.2 Fisheries and Oceans has a strong mandate in the Fisheries Act to protect salmon and their habitat . However, due to the division of environmental powers under the Constitution Act, the support and co-operation of the Province of British Columbia (B.C.) and municipalities are prerequisites for sustainability of the resource.

28.3 The Department's Habitat Policy (1986) promotes both sustainability and genetic diversity. The Policy balances proactive elements (land use planning, integrated resource management and development of guidelines) and reactive elements (project review/approval, compliance monitoring and enforcement). The Department has tended to focus more on the reactive elements, but without sufficient emphasis on monitoring and follow-up.

28.4 Habitat management requires improved co-ordination within the Department and the increased involvement of external groups, including provincial and municipal governments, stakeholders and the public, under agreements that include accountability provisions, where appropriate. The Department's overall responsibility for habitat requires clear accountability to maintain control of the process and depends especially on B.C. being held accountable for its own habitat responsibilities.

28.5 The opportunity now exists for Fisheries and Oceans to further develop and strengthen its relationship with the Province following the signing in April 1997 of the new Canada-B.C. Agreement on the Management of Pacific Salmon Fishery Issues. The Agreement is intended to revisit existing areas of intergovernmental co-ordination covered under the 1985 General Fisheries Agreement and to examine other areas for co-operation. B.C. has released a discussion paper in anticipation of future negotiations. The Department's position on habitat management is expected to be clarified to prepare it for these negotiations.

Introduction

Importance of salmon habitat

28.6 For thousands of years, Pacific salmon have been a vital part of life on the West coast of Canada, and the six species of salmon in British Columbia - sockeye, pink, chum, chinook, coho and steelhead - continue to generate a wide range of economic, social and cultural benefits.

28.7 Salmon fisheries contribute significantly to local, provincial and national economies. Based on information obtained from Fisheries and Oceans, the commercial fishery, which takes all species, had an average landed value of $265 million per year over the period 1986 to 1995. Results of the latest recreational fishing survey indicate that direct expenditures alone by anglers in B.C. tidal waters exceeded $228 million in 1990, with the overall economic impact being considerably larger. This fishery is focussed essentially on three salmon species - chinook, coho and steelhead.

28.8 Salmon are a primary food source for the Aboriginal people and fisheries are a mainstay of their economy. Protecting these fisheries and the resource base on which they depend is therefore an important step in preserving this unique part of Canada's heritage.

28.9 The commercial fishery takes over 90 percent of the annual catch, with the recreational and Aboriginal fisheries sharing the remainder. The latter fisheries are legally protected and are thus a first management priority after conservation needs have been met.

28.10 Although trends in salmon numbers are influenced by catch, as well as marine and freshwater productivity, a healthy habitat is a fundamental requirement for sustaining salmon stocks. Furthermore, the habitat provides food and shelter for other desirable resident and migratory aquatic and terrestrial wildlife, while providing water for human consumption and other uses. The challenge for Canada is how to protect salmon habitat in the context of sustainable development, which seeks to balance economic development with environmental protection.

Responding to change

28.11 Since the introduction of the Green Plan (1990), the federal government has been adjusting its programs to reflect its international commitments to sustainable development and biodiversity. By December 1997, all federal departments must table sustainable development strategies and action plans in Parliament. Recently, Fisheries and Oceans has been the subject of a number of reviews (both internal and external) that have resulted in recommendations for changes in the way it manages salmon habitat.

28.12 This push for change, to which the Department is responding, has also been prompted by internal budget cuts, the Department's amalgamation with the Canadian Coast Guard and the new Oceans Act .

Focus of the audit

28.13 In view of the complexity of issues associated with the conservation and protection of the salmon resource and its habitat and the management of fisheries, our audit of the Pacific salmon fishery has been divided into two phases. This report addresses the sustainability of the salmon resource base, with an emphasis on the conservation and protection of habitat; the second phase will address the sustainability of the salmon fisheries, including fisheries management and the allocation of catch, and will be reported in the spring of 1999. In both cases, our examination is confined to the five species of salmon that are managed by Fisheries and Oceans - namely, sockeye, pink, chum, chinook and coho; the sixth, steelhead, is under provincial control. Further details on the audit objective and criteria are found at the end of the chapter in the section About the Audit . A glossary of technical terms as used in the text is in Exhibit 28.1 .

Observations and Recommendations

Legislation and Policy

The Department has a strong mandate to protect salmon and habitat

28.14 Under the Constitution Act (1982), the federal government has legislative responsibility for Canada's fisheries. The Minister of Fisheries and Oceans has been assigned responsibility for sea coast and inland fisheries, marine science and administration of the Fisheries Act . A key component of this responsibility is the protection of fish and fish habitat from disruptive and destructive activities as described in section 35. Projects with potential impacts on fish habitat are reviewed to determine if they can proceed and, if so, under what terms and conditions. In making these determinations, the Department is guided by its Policy for the Management of Fish Habitat (1986) (the Habitat Policy) and the Habitat Conservation and Protection Guidelines (1994) derived from it. Details on the specific habitat protection provisions in the Act are given in Exhibit 28.2 .

28.15 The Habitat Policy's objective is "net gain" - that is, increasing the amount of habitat available to salmon by conserving existing habitat, restoring damaged habitat and, where possible, developing new habitat. In determining the level of protection afforded to habitat at a given site, the Policy indicates that its potential contribution to those stocks on which communities rely is especially important. The Department is therefore guided by its first operating principle: conservation of the fisheries resource is paramount.

The provincial government's support is essential

28.16 Canada has made special arrangements with British Columbia concerning day-to-day management of the freshwater fisheries of the province and that of the migratory steelhead. While the Fisheries Act applies across Canada, provincial legislation controls land and water use, which also affects fish habitat in freshwater. The B.C. Ministry of Environment, Lands and Parks has conservation officers stationed throughout the province and they assist Fisheries and Oceans in enforcing the Fisheries Act , as well as provincial legislation. The continuing co-operation of the two levels of government is therefore essential if freshwater salmon habitat is to be protected.

Conflicting Evidence on Status of Resource Base

28.17 The total numbers of all species of salmon returning to B.C. waters show a positive trend from the early 1970s through 1993, reaching a peak of over 70 million fish in 1989. The annual returns are dominated by production originating from the Fraser and the Skeena Rivers, the two largest river systems on the coast of B.C. The large numbers of sockeye, pink and chum produced in these two rivers are the result, in part, of the enhancement of major stocks.

28.18 While there appears to be little reason for concern about the overall numbers of these three species, the numbers of chinook and coho salmon returning to B.C. waters to spawn tend to be low at present.

28.19 Those stocks that spawn within tributaries of the Strait of Georgia may be declining, with serious problems emerging for some chinook and coho stocks. Chums are considered to be in a sustainable state.

28.20 When the status of individual stocks of salmon that arrive on their spawning grounds is examined in detail, there is evidence that many stocks are under stress. A recent report based primarily on departmental data concluded that, of the 4,906 stocks of salmon in B.C. and the Yukon, on which there was sufficient information to assess their status, 600 are at high risk, 63 at moderate risk and 57 of special concern.

Limited information precludes a complete assessment

28.21 The total number of salmon stocks identified in the above-noted study were 8,171. For 3,265 (40 percent), there were insufficient data on which to determine their status. Due to their small size, these stocks are not of great commercial importance now, but may be important for local sport and Aboriginal fisheries in the future. They are also needed to maintain genetic diversity. At the present level of stock assessment, it may be some time before the status of these stocks is determined - perhaps too late to take remedial action.

28.22 The Department's Pacific Stock Assessment Review Committee (PSARC) process is one where scientific advice on stock status, available catch, methodologies and other technical matters are rigorously reviewed, often involving external reviewers. The PSARC subcommittee dealing with data and data quality has proposed that expenditures be made to improve the nature and quality of the databases. It is hoped that the Canada-B.C. Agreement on the Management of Pacific Salmon Fishery Issues (1997), which provides for provincial representation on PSARC, will be able to address the problem of data quality successfully.

The physical habitat base is being eroded

28.23 While the overall number of salmon returning to B.C. waters is increasing and some major stocks are rebuilding to higher and sometimes record numbers, the numbers and strengths of some individual stocks are declining and are cause for concern. The causes for these declines are complex and include natural processes, such as cyclic changes in ocean productivity and marine survival, alterations of freshwater productivity, both natural and man-made, and human influences, such as fishing and habitat alteration. Habitat loss is a major problem and, in fact, the Department estimates that loss of habitat probably accounts for 20 to 30 percent of the disappearance of small stocks of salmon in B.C. For example, the development of the City of Vancouver has resulted in 70 percent of the Fraser River estuary's original wetland system being altered, mostly by diking and drainage projects, and approximately 50 percent of the estuary's delta habitat being lost to development since 1880. Such changes have resulted in the documented destruction of streams and the subsequent loss of salmon. (see photograph)

28.24 In seeking to achieve a "net gain" of habitat, Fisheries and Oceans first seeks to conserve existing habitat (see Exhibit 28.3 ) and obtain compensation for damaged habitat under the guiding principle of "no net loss". However, departmental reports on projects indicate that on balance habitat is being lost.

28.25 Since the introduction of the Habitat Policy in 1986, Fisheries and Oceans has not prepared an overview report on the status of fish habitat conservation in Canada. While it does report annually to Parliament on the administration and enforcement of the fish habitat protection and pollution prevention provisions of the Fisheries Act , pursuant to section 42.1 of the Act, there is no mandated responsibility to report on the Department's performance in meeting the objectives and goals of the Habitat Policy.

28.26 The overall objective of the Habitat Policy is to achieve a "net gain" in the productive capacity of fish habitat. Because productive capacity is difficult to measure in practice, the Department relies on surrogate measures of physical parameters (for example, loss or reduction of a salt marsh or gravel bed) or biological parameters (for example, loss or reduction of food supply) to assess gains and losses of fish habitat. In 1991, in reporting on the Department's implementation of the Habitat Policy, this Office noted that the Department had not yet developed an acceptable, standardized measure of habitat productivity. However, it has since increased its scientific effort in this area.

28.27 The Habitat Policy's first goal is conservation, followed by restoration and development. Given this and the difficulties of measuring habitat productivity, a focus on the protection of existing habitat is warranted. The Department's Internal Audit of 1993-94 confirmed that this approach was being taken, in that nationally the Department spent only 20 percent of its budget on "net gain" with the remaining 80 percent being directed toward the achievement of "no net loss".

28.28 However, the Department has indicated that current expenditures in the Pacific Region show an almost equal allocation of funds to these two areas. It is unclear whether this is a change in priorities or a reflection of the perceived importance of habitat restoration in B.C. Regular reporting to Parliament on the status of habitat would provide the opportunity for both a review of policy implementation in this regard and new direction to the Department should it be deemed advisable.

Threats to habitat are widespread and increasing

28.29 There are many reasons for loss of habitat given in the scientific literature. Fisheries scientists cite, for example, the direct and indirect effects of forestry operations; impoundments for hydroelectric development and domestic water supplies; mining, agriculture, road and rail construction; and sewage, industrial effluents and urbanization. These activities all have impacts on the life cycle of salmon, although the significance of these impacts on habitat varies over time (see Exhibit 28.4 ). For example, while forestry practices have improved and their damage to habitat has been reduced in B.C., the impact of urbanization continues to grow and urban streams are now considered to be seriously endangered. (see photograph)

28.30 Recent federal statistics show that population growth rates have exceeded 20 percent in the Greater Vancouver area and on the southeast coast of Vancouver Island since 1986. The Lower Mainland population is expected to grow from 1.7 million to at least 3 million by the year 2021. As these areas are significant for salmon production, especially coho, pressure on stocks from urbanization and related infrastructure development is expected to increase. The protection of fish habitat in urban areas may be the Department's most serious challenge in its efforts to maintain the genetic diversity of salmon and particularly coho.

Information management needs improvement

28.31 The senior governments (federal and provincial) are responsible for fisheries resource and habitat inventories in B.C., and progress has been made in this area by the collaboration of the Department and the Province in the Fish Habitat Inventory and Information Program over the last 10 years. Furthermore, there are many promising mapping tools emerging that will integrate renewable and non-renewable resources, and thereby generate more useful land use inventories for the protection of fish habitat. However, these tools are not yet readily available for habitat biologists or technicians, who rely primarily on the Stream Information Summary System, on published maps and reports relating to the area in question, and on their personal files.

28.32 New information is continually being collected by Fisheries and Oceans from on-site inspections at the time of project review. Such information is only now being incorporated into a habitat database, the Habitat Referral Tracking System (HRTS). This system is in place nationally and is intended to be comprehensive in its coverage of proposed and approved projects when fully operational. Although HRTS in the Pacific Region is essentially a recording system for projects covered under the Canadian Environmental Assessment Act , it could become a key source of data for both planning and reporting purposes in the future.

28.33 The new data management initiatives are bringing all aspects of land use together to facilitate integrated resource management on a regional or watershed basis. But these various systems are not yet co-ordinated. It is difficult to find mapping techniques that can accommodate planners at both the regional (overview) and community (individual stream) levels, although progress is being made to rectify this. Current mapping projects often miss small coho streams in urban areas, which is a concern for both Fisheries and Oceans field biologists and community members involved in habitat work, especially where no detailed stream maps are available. The situation is further complicated by the current use of a variety of systems, some political (for example, county, municipality) and some geographic, which often do not coincide with aquatic ecosystems such as river basins.

Information is not always accessible to managers

28.34 Although information is available in various formats, there is a problem of accessibility for both departmental personnel and external interest groups. It is time-consuming and difficult to locate information that may be in electronic format, on maps, in various publications and in files. The Department, in co-operation with the Province, is making an effort to co-ordinate information access, but the activity does not have a high priority. The Department's recent transfer of information to the Internet may be a step in the right direction.

28.35 Information comes in many forms and with differing degrees of reliability. The reliability will determine its standing in the scientific community. Although scientifically acceptable data are essential for determining the status of salmon stocks, an indication of the presence or absence of salmon in a stream may be useful for habitat planning purposes in the absence of more accurate data. While it would be best to collect such information according to an accepted set of standards, in times when resources are limited every piece of information is helpful.

28.36 The Department should give the collection and management of information on Pacific salmon stocks and habitat a high priority to meet both the needs of resource managers in the field and any reporting requirements on the status of the resource.

Department's response: The collection and management of information on Pacific salmon stocks and habitat will continue to be given high priority by the Department.

Achieving Sustainability and Protecting Genetic Diversity

Salmon sustainability and genetic diversity depend on habitat conservation and protection

28.37 In order to ensure sustainability, salmon must have access to sufficient and suitable freshwater, estuarine and marine habitat. Freshwater habitat is needed for spawning, the hatching of eggs and the development of fry, the feeding and growth of young salmon and the migration of juveniles to and adults from the ocean. Unfortunately, habitat used by salmon is under stress and in many instances may have already been irreversibly altered from its former natural state. (see photograph)

28.38 The situation is becoming more serious as new threats to salmon abundance emerge. For example, there is growing evidence that abrupt shifts in the productivity of salmon stocks appear to be linked to sudden changes in the marine climate, possibly influenced by global climate change. Changes in climate are expected to cause local effects such as elevated water temperatures and variations in the timing and volume of the seasonal flow patterns of rivers. These changes in habitat conditions could have a significant impact on specific salmon stocks in the Fraser River watershed, resulting in their reduction or eventual loss.

28.39 Protecting the full complement of stocks will help to minimize the impact of such changes, as there is no way of determining ahead of time which stocks will prove to be more adaptable to habitat changes. It also offers general protection to the salmon resource in that the more stocks there are producing juvenile salmon, the greater will be the total numbers entering the ocean. The large numbers, which will be widely dispersed along the coast, may reduce the impact of predation from such species as mackerel and hake.

The Department's Habitat Policy allows for sustainable development and protects genetic diversity

28.40 The objective of the Habitat Policy is to achieve a "net gain" of habitat, thereby ensuring adequate habitat to sustain current stocks of fish. The Policy promotes the integration of habitat needs with fish management objectives through the development of fish habitat/stock production plans for specified geographic areas such as watersheds or components of watersheds. This approach facilitates the incorporation of fish habitat priorities into the broader picture of integrated resource planning, usually initiated at a regional level. The emphasis is on the relationship between salmon stocks and their habitat, and the promotion of planning for their continued productivity within the framework of integrated resource use. The Policy recognizes that habitat conservation will be applied, if necessary, on a stock-specific basis, especially where stocks support community fisheries. This practice supports genetic diversity.

Sustainability must be implemented at the stock level to optimize genetic diversity

28.41 Sustainability of the salmon resource can be achieved in two ways: by concentrating on the protection of, and production from, only the dominant stocks regardless of species, leaving the weaker stocks to survive as best they can; or by focussing on the survival of and production from all stocks, both the strong and weak of all species. By concentrating on the survival of individual stocks, genetic diversity is achieved at the species level.

28.42 While in the past Fisheries and Oceans has managed salmon using both approaches, it has tended to concentrate its efforts on the major stocks. Consequently, there is a lack of assessment data on many of the smaller stocks currently of minor or no economic importance. However, given the complexity and number of emerging environmental and biological problems that are impacting on the salmon resource, a more prudent approach to habitat management is warranted. The greater the number of stocks protected, the stronger the genetic diversity within species, which, in turn, provides insurance against future major catastrophes such as global climate change.

28.43 Fisheries and Oceans should clarify the extent to which it intends to apply sustainability and genetic diversity practices to the management of individual salmon stocks and their habitats.

Department's response: Fisheries and Oceans agrees to provide clarification on how we intend to apply the concept of sustainability and genetic diversity. The Department will continue to apply the Policy for the Management of Fish Habitat to the habitat of B.C. salmon stocks.

28.44 Fisheries and Oceans should develop more explicit operational objectives and targets to address sustainability and genetic diversity of salmon stocks for inclusion in fishing plans. The linkage between harvest management and fish production, including enhancement as well as habitat protection, needs to be strengthened.

Department's response: The linkage between harvest management and fish production, including enhancement as well as habitat protection, will be strengthened further.

Project Referral System

The project referral system is the primary tool being used to conserve habitat

28.45 The Habitat Policy establishes the project referral system, a six-step procedure for project review to prevent the loss of fish habitat. All projects referred to Fisheries and Oceans are reviewed to determine whether changes to fish habitat are likely to occur if the project proceeds as proposed. Habitat managers make recommendations to project proponents to alter project designs if habitat is likely to be harmed. If this cannot be avoided, a Fisheries Act authorization must be issued, thereby triggering a review under the Canadian Environmental Assessment Act (CEAA) - irrespective of the size of the project.

28.46 Land, river and marine foreshore development projects are "referred" by individuals, companies and agencies (federal and provincial) to both the Department and the B.C. Ministry. The potential impacts on fish and fish habitat are determined by departmental and ministry staff based on habitat function, productivity, uniqueness and sensitivity.

28.47 The number of habitat referrals in the Pacific Region has been estimated at 15,000 to 25,000 annually. Although the Department, through the referral process, probably receives the majority of these referrals, we were unable to determine a percentage. These referrals come either directly from proponents or from other provincial and federal agencies. Varying informal arrangements have been made throughout B.C. to deal with the balance of these referrals. The two levels of government have developed, individually and jointly, land development and stream stewardship guidelines, as well as documented procedures for stream-related works, such as dredging and culvert installation, to help proponents plan habitat-friendly projects and thereby reduce the workload of project review and assessment. To this end, the two governments collaborated, for example, on the development of the B.C. Forest Practices Code.

28.48 Referrals range from telephone calls for information to major projects that may involve many hours of work. The Department's Habitat Referral Tracking System provides up-to-date comprehensive data on referrals for the whole province. It could also serve as a statistical database to assist the Department in evaluating its success in meeting the "no net loss" principle. This is one of the purposes of the documentation collected as part of the referral process, according to the Department's Habitat Conservation and Protection Guidelines.

Planning is not receiving the emphasis it deserves

28.49 The Habitat Policy, introduced in 1986, established a proactive framework for the management of fish habitat based on integrated resource planning, within which the referral process is a contributing, but not the dominant, component. However, there appeared to be a change in the Department's strategic approach to habitat conservation and protection with the introduction of the Habitat Conservation and Protection Guidelines in 1994. The Habitat Conservation and Protection Guidelines, while focussing on the project review process, state that staff are "encouraged", rather than instructed, to enter into planning initiatives whenever possible. The time constraints imposed by the planning process, which often requires evening or weekend meetings if the public is to be accommodated, may have further discouraged extensive participation in planning initiatives at the community level.

The referral process results in some habitat loss

28.50 All projects require an authorization if habitat is to be altered, disrupted or destroyed. If this can be avoided by outlining appropriate conditions, such as the timing of construction or location of a sea wall or breakwater to mitigate the impact on habitat, a "Letter of Advice" is issued to the proponent. The Letter states, however, that it does not constitute an approval under section 35(2) of the Fisheries Act for the harmful alteration, disruption or destruction of fish habitat. There is seldom a follow-up visit by a departmental official to ensure compliance even though projects of this type can, and often do, result in minor alterations to fish habitat.

28.51 An accumulation of small habitat losses could result in a significant impact; indeed, such losses are probably the source of the slow net loss of habitat that is occurring. However, there was no information on such cumulative impacts located in the files; nor was there any indication that the Department had conducted periodic assessments on a regional or watershed basis to ascertain whether such cumulative impacts are occurring.

Insufficient attention is given to monitoring and follow-up

28.52 Habitat monitoring is the eighth strategy listed in the Habitat Policy. It requires the Department to monitor the effects on habitat of proposed actions, both during and, for a limited period, after development. In this way, the effectiveness of prescribed conditions of approval, intended to conserve fish habitats, is evaluated and new knowledge acquired. However, without serious attention being paid to this strategy, the long-term conservation of habitat is questionable; the cost/benefit of decisions made and work done is difficult, if not impossible, to assess; and the opportunity to apply lessons learned to increase efficiency and effectiveness is lost.

28.53 The Department's 1993-94 Internal Audit of the Habitat Management Program recognized the Pacific Region's lack of attention to monitoring; however, there was no evidence to suggest that the Department has since corrected this deficiency to any great extent.

28.54 There are two important aspects to monitoring: the monitoring of compliance with terms and conditions attached to the approval to proceed; and follow-up at a later date to assess the effectiveness of those terms and conditions. The Department does carry out some compliance monitoring, but this is limited to about 10 percent for small projects involving mitigative measures. This is not done according to any structured process, but merely when convenient due to workload. For larger projects requiring a section 35(2) authorization, compliance monitoring and reporting are mandatory for the proponent, together with post-project monitoring if deemed necessary by the Department.

28.55 There has been some follow-up activity to assess the long-term effects of habitat alteration. The Department has collaborated with the B.C. ministries of Environment and Forests, industry, universities and First Nations to assess the long-term effects of logging practices on salmon habitat, under the auspices of the Department's Science Strategic Research Program. There have also been a few investigations by consultants who were hired to revisit sites for large-scale projects where habitats were altered, for example, the Coquihalla highway and Jones Creek. Those investigations showed that natural flood conditions could completely destroy certain in-stream structures, raising questions about the effectiveness of prescribed compensation projects over time and the importance of protecting existing habitat.

28.56 Fisheries and Oceans should increase its level of participation in regional and community-based planning initiatives.

28.57 Fisheries and Oceans should work with the Province of British Columbia to improve efficiencies in the referral system, subject to an appropriate accountability framework being put in place to satisfy the Department's national mandate for habitat protection.

28.58 In implementing the referral process, Fisheries and Oceans should devote more time and effort to compliance monitoring and follow-up in order to assess the effects of its habitat management decisions and its performance toward the achievement of "no net loss" of habitat.

(See paragraph 29.93 for Department's response.)

Putting "Partnerships" to Better Use

28.59 In the delivery of its habitat conservation and protection program, the Department relies on the support of and input from a number of internal and external groups. Without their help, the Department would be hard pressed to deliver its mandate. If the Department is to implement a balanced approach to habitat management,comprising both proactive (planning) and reactive (referral process) elements, it needs more involvement from these groups. Co-ordination of this effort under departmental leadership and within a strategic framework is required to ensure that all are working toward a common objective.

Internal co-ordination is improving but problems still exist

28.60 In order to manage fish habitat within the context of sustainability, there needs to be good internal communication and co-operation between fisheries management and habitat management, between habitat management and habitat science and between habitat management and habitat enforcement. The Department's recent amalgamation of the Salmonid Enhancement and Habitat Management Programs to create the Habitat and Enhancement Branch has improved the situation, but more needs to be done. In discussions with staff, it was apparent that barriers to communication still exist, in spite of efforts to bring the groups together in workshops and other forums. Such barriers contribute to misunderstandings and inefficiency.

28.61 The 1993-94 Peer Review of Habitat Science, conducted as a component of the Internal Audit of the Habitat Management Program, stated that the existing organizational structure is not conducive to integrated planning and analysis in the activity of habitat science research, and even tends to exclude habitat management as a primary client and recipient of this research. More generally, the Review recognized that communication across branches, and within and outside the Science Branch, was not commonplace. Since this study was completed, changes have been made. The management team concept has been endorsed with area managers sitting on the Science Executive Committee, which plays a key role in the development of operational priorities for the science program.

The Salmonid Enhancement Program (SEP) can support genetic diversity and promote proactive habitat management

28.62 The Salmonid Enhancement Program (SEP) has been operating since 1977 and has contributed to overall salmon production in B.C. Enhancement is used to supplement wild stock production and to maintain or create fisheries. While stock restoration has been promoted by the construction of fishways and stream improvements, the major thrust has been through the construction of hatcheries and spawning channels. However, a significant component of the SEP funding also contributes to habitat protection.

28.63 SEP can lead to the maintenance of or an increase in genetic diversity by diverting fishing effort away from the less productive or threatened wild stocks and toward the more productive enhanced stocks. Future activities in this area could concentrate on small enhancement projects using mobile facilities that can respond quickly to provide temporary relief to threatened stocks, especially during periods of low ocean productivity, and thereby contribute to the rebuilding of stocks and the protection of genetic diversity.

28.64 Fisheries and Oceans has made a contribution to habitat protection through its public education and involvement programs, both unilaterally and bilaterally with the B.C. government, using funds from the Green Plan and SEP. For example, it is hard to find a river or stream and associated community in the lower Georgia Strait that have not been affected by SEP. An educational package, highly regarded among educators, is being used in over 200 schools. As of 1995, SEP had put in place 286 small enhancement projects, some stream rehabilitation, side channel improvements and small hatcheries. An estimated 236,000 people had been involved in these activities since SEP began. Furthermore, a "Streamkeepers" public involvement initiative is in place and a manual on stream rehabilitation has been produced. (see photograph)

28.65 SEP is therefore making both a direct contribution to habitat management and an indirect one by sensitizing citizens to the importance of salmon and salmon habitat. This public education initiative will help to bring to the community planning table a more informed public that is aware of the need to protect environmentally sensitive areas and ready to impress on local politicians the importance of such action to the community, the region and the province. Future protection of fish habitat in B.C. will require the involvement of a more informed public. Continued support for this aspect of SEP is therefore essential to conserve and protect salmon habitat in urban areas, where coho in particular are at risk.

More community involvement in planning is needed

28.66 Under the Fraser River Action Plan (FRAP) and the Habitat Action Plan, several watershed committees have been put in place to promote local decision making and involve stakeholders and the communities in salmon resource issues. Examples include the Quesnel River Watershed Alliance, Salmon River Watershed Roundtable, and the Nicola Watershed Community Round Table. These groups are working well together, according to a report issued by the Department. All of these initiatives are raising the public's awareness of habitat problems and helping to co-ordinate efforts to alleviate them.

28.67 The Province has also recognized the importance of such initiatives and proposes to work with communities and build on the energy of existing volunteer programs to help get the job done. Non-government organizations have made important contributions by being involved in urban stream stewardship activities such as inventorying important wetland habitat in the Fraser Valley, tree planting, lobbying and surveillance activities.

The momentum established by SEP and the Green Plan needs to continue

28.68 Although success has been achieved, the public's appetite for information and involvement has only been whetted. If public education and involvement programs are to be used extensively by governments in habitat management, more information needs to be distributed and standards/guidelines developed to provide direction. Progress has been made to date but, with the end of the Fraser River Action Plan on 30 March 1997, a large gap has opened up. It would be both wasteful and counterproductive to abandon this process now when it has demonstrated such promising potential.

28.69 With the pressures to do more with less, such programs will assume even greater importance. If the goals of the Habitat Policy are to be achieved, the Department needs to look for ways to expand the direct intervention of the public in such activities as planning, compliance monitoring and habitat restoration, which would be subject to departmental audit.

Aboriginal groups have a greater role to play in habitat management

28.70 The Aboriginal Fisheries Strategy (AFS) is making a contribution to habitat conservation and protection. Habitat projects are funded under terms and conditions of formal annual agreements negotiated by the Department with First Nations groups. For example, in 1995-96, 75 agreements were signed at a total cost of $15.6 million. Of these agreements, 23 had habitat projects listed at a total cost of $0.8 million. Final reports include an accounting of works and expenditures but there was no accounting of results achieved.

28.71 The AFS has potential as a delivery mechanism for future habitat protection programs. However, the habitat components of the strategy need to be more structured and focussed, and co-ordinated with other habitat activities in the watershed to maximize their contribution to habitat management. Under many agreements, Aboriginal fishery officers are integral to fisheries management activities but not specifically to habitat activities. Local area planning teams provide co-ordination for habitat restoration and protection activities. Standards and guidelines are needed if improvements in habitat surveillance and in the collecting and reporting of habitat data are to be made.

Government Involvement

Governments are becoming more proactive in habitat management

28.72 The Department and the B.C. Ministry of Environment, Lands and Parks currently are represented on several planning groups. These are all contributing to habitat planning at a regional level and, in some instances, such as the Burrard Inlet Environmental Action Program, are assisting in the referral process by serving in a screening capacity and handling land use and mitigation requirements.

28.73 Other groups, such as that involved with the Fraser River Estuary Management Program, have no enforcement powers and depend on government to enforce any terms or conditions imposed by the project review (referral) process. With the exception of the Fraser Basin Council, which covers the Fraser watershed, each group is limited in its area of influence. Co-ordination of such groups is therefore an important responsibility of the senior governments.

Municipalities are supporting planning approaches but problems remain

28.74 Through official community plans and by-laws, municipalities have a direct impact on habitat management. Local governments have control over zoning and most land development. It is land development that has the primary impact on ecosystems in urban environments. Municipalities, through such provincial acts as the Municipal Act , Land Titles Act , Local Services Act and its Subdivision Regulation, Health Act and Growth Strategies Act , have the tools to protect the environment if they choose to do so. In addition, official community plans can protect local ecosystems through the use of density bonus zones, comprehensive development areas, and development permit areas.

28.75 Progress has been made at the municipal level, especially in land use planning. A number of municipalities have designated environmentally sensitive areas in their official community plans. The Department is involved in the review of those plans and regional plans. Identification and designation of environmentally sensitive areas is one of the most important tools for the protection of aquatic and riparian resources and their habitat.

28.76 The Department is a signatory to a few memoranda of understanding (MOUs) with municipalities, such as the Corporation of the District of North Vancouver. MOUs are currently under discussion with Coquitlam, Surrey and Langley. Those municipalities plan to support the work of Environmental Review Committees by clarifying roles, responsibilities and resources for environment protection.

28.77 These developments are encouraging, but there are still problems to be resolved. For example, a report commissioned by Fisheries and Oceans on the Comox-Strathcona Watershed Committee, established in 1995, noted a lack of willingness by the Department to move away from a reactive referral system process toward a more proactive land use planning approach that is able to use the information provided by the participants.

28.78 Municipalities have raised a number of concerns, such as a reluctance to incorporate fish habitat protection into their by-laws, because they do not feel technically competent, do not want federal responsibilities, and worry about additional expenses. Furthermore, they have requested more habitat information and standards from the senior governments. Less than half of municipal governments have established regulatory guidelines and measures that could be implemented. The review of audit files yielded only one example of a municipality, the District of North Vancouver, that has actually incorporated the Land Development Guidelines into its by-laws. As the Department has no authority to require municipalities to adopt guidelines, it must convince them of the benefits of doing so.

Accountability Is Needed

Accountability for delegated habitat management responsibilities is lacking

28.79 Some agreements are in place to co-ordinate departmental and provincial efforts to protect fish habitat. Such arrangements are not subject to monitoring and audit by the Department even though it is ultimately responsible for habitat conservation and protection. Previous Reports of the Auditor General noted that there was a drop in compliance by project proponents when monitoring and enforcement of fish habitat provisions were carried out by the provinces.

28.80 Two recent reports, one on compliance with stream protection provisions under The Forest Practices Code Act and the other a preliminary report on compliance with urban development by-laws, indicate that problems still exist in the absence of adequate compliance monitoring by government.

28.81 The Department needs to audit monitoring activities in the provincial and municipal areas, or to negotiate agreements with the other levels of government to ensure that the requirements of the Fisheries Act are met and that the Department receives regular progress reports according to an agreed accountability framework. No such framework currently exists, although Fisheries and Oceans receives some information through the co-operative arrangements in place. An example of such a framework is given in Exhibit 28.5 .

The 1985 General Fisheries Agreement has no provision for accountability

28.82 The General Fisheries Agreement was intended to foster co-operation. Included in its strategy section is a provision for the development of guidelines that would describe processes and procedures to be followed by both the provincial and federal governments in dealing with specific issues raised. However, there is no evidence that accountability was formally addressed under the Agreement. Furthermore, the memoranda of understanding that were developed under the Agreement make no reference to accountability.

Proposed changes to the Fisheries Act could deal with the accountability problem

28.83 The Department's Report to its Minister on the National Habitat Delegation Workshop held in November 1996 states that monitoring is one of the recognized criteria for delegation of habitat responsibilities. There was general agreement that the Department should take the lead role in determining and defining the objectives, methodology and timelines for monitoring and evaluation, including conducting audits. Clear and public reporting mechanisms were seen to be necessary to ensure accountability.

28.84 In the debate in Parliament over the introduction of amendments to the Fisheries Act , the Minister of Fisheries and Oceans said that those provinces that receive delegated responsibility for fish habitat will be required to show that they are meeting national habitat protection standards. This will be demonstrated by an appropriate accountability framework, including reports to the federal government on the status of habitat and periodic federal audits of their performance. Such accountability would demonstrate the Department's leadership and control in habitat conservation and protection, in keeping with its national mandate.

28.85 Fisheries and Oceans should review the performance of existing co-operative arrangements in B.C. and build on those models that have produced positive results in habitat conservation.

28.86 Agreements setting up such co-operative arrangements should contain a statement of objectives, a clear definition of roles and responsibilities, expected results and requirements for program co-ordination, performance reporting and evaluation.

(See paragraph 28.93 for Department's response.)

Canada-B.C. Relations

There is an opportunity to enhance Canada-B.C. relations

28.87 The Minister of Fisheries and Oceans is seeking to share responsibility, decision making and management of costs with fisheries groups through long-term partnership agreements. This follows the considerable interest expressed by stakeholders in direct involvement in fisheries management. The matter has assumed greater prominence due to the recent federal-provincial negotiations on salmon management in B.C.

28.88 The Canada-B.C. Agreement on the Management of Pacific Salmon Fishery Issues, signed in April 1997, provides for a stronger federal-provincial commitment to the protection of fish stocks and to habitat restoration and protection. Policy initiatives will be reviewed and co-ordinated through a Council of Fisheries Ministers. A Pacific Fisheries Resource Conservation Council will advise the Fisheries Ministers on the conservation and long-term sustainable use of salmon resources and habitat. It is also expected to report publicly on the status of the salmon resource and its habitat. As part of this Agreement, the Department is devoting new funds to stewardship initiatives under the Pacific Salmon Revitalization Strategy.

The Province has released its fisheries strategy

28.89 The first step in implementing the provisions for habitat protection under the new Canada-B.C. Agreement is for the two governments to develop joint objectives and a strategic framework embodied in working agreements to achieve those objectives. The Province released its discussion paper, The B.C. Fisheries Strategy, in May 1997. It names conservation as the first guiding principle and saving the fish as its first priority. It states that habitat must be protected and restored in every salmon-bearing river and stream. The Department's current policy goal is to achieve a "net gain" of productive habitat through the guiding principle of "no net loss" applied on a project-by-project basis. The positions of the Province and the Department are similar and both support the maintenance of genetic diversity. However, the Department is not preventing habitat loss under the current referral system, and protecting fish habitat stream by stream may be equally difficult. If the main objectives of both governments can be reconciled, there would be the basis of a joint approach around which a strategic framework for the protection of the resource and its habitat could be built.

28.90 The new Agreement recognizes areas of current co-operative action between the two governments. For example, it seeks ways to improve the handling of referral workloads to avoid overlaps, and suggests administrative measures to streamline the process, such as cross-delegation of authority between governments, and collocating of staff within common administrative boundaries for watershed-based activities and processes. The Agreement also recognizes the need to bring decision making on salmon resources and habitat closer to clients and stakeholders. Major new policy initiatives will be developed in consultation with stakeholders, through a jointly agreed stakeholder group. The group will advise the Council of Fisheries Ministers on habitat restoration and enhancement matters through a Fisheries Renewal Advisory Board.

The Department needs to review its Habitat Policy

28.91 Fisheries and Oceans has not conducted a review of the effectiveness of its Habitat Policy to conserve and protect habitat since its introduction in 1986. It is our understanding that the Policy will be incorporated into the Department's Sustainable Development Strategy and Action Plan to be tabled in the House of Commons by December of this year. Thus the Policy's goals, objectives and strategic approach to habitat management will be open for public discussion.

28.92 There is an opportunity, therefore, for Fisheries and Oceans to lay out the elements of a strategic framework for the management of salmon fisheries and habitat management, much as the Province has done in its document, and to obtain the public's views on it. The response to the Department's proposals could then be used to formulate a departmental position for the upcoming negotiations with the Province.

28.93 Fisheries and Oceans should review the effectiveness of its Habitat Policy and habitat management program and develop a strategic approach to guide its negotiation of a new sub-agreement on habitat conservation and protection with British Columbia.

Department's response: Fisheries and Oceans is undertaking an internal review of the habitat management program in the Pacific Region to provide strategic direction for program delivery. This review is a component of the 1997 Canada-B.C. Agreement, which is expected to result in a co-ordinated and balanced habitat management program in B.C.

Conclusion

28.94 Pacific salmon stocks and habitat are under stress. While the Fisheries Act and Habitat Policy provide the necessary legislative base for the Department to manage Pacific salmon and their habitat for sustainability, results indicate that this is not being fully achieved. The development of its Sustainable Development Strategy and Action Plan could provide the opportunity for the Department to address problem areas raised by this audit.

About the Audit

Objective

Our audit objective was to determine if the Pacific salmon resource was being managed to ensure its conservation and sustainability.

Criteria

We expected that the Department would:

have adequate databases on fish habitat and stock assessment that would be accessible to and used by decision makers;
have a science program to determine the fish production of major freshwater and marine habitats;
be applying the Fisheries Act and regulations and specifically the Policy for the Management of Fish Habitat to achieve the stated goal of "net gain", first, by applying the guiding principle of "no net loss" and, second, by enhancing habitat where feasible;
be using the Salmonid Enhancement Program and the Aboriginal Fisheries Strategy to support the sustainability of the resource base; and
have entered into partnerships wherever and whenever possible to improve its efforts to protect fish habitat and enhance fish production in areas outside its jurisdiction, and to maximize benefits from resources at its disposal.

Approach

Our examination involved meetings or telephone conversations with departmental staff in headquarters in Ottawa, in the Pacific Region Office in Vancouver and in the district offices in Nanaimo (Vancouver Island) and New Westminster. We reviewed Fisheries and Oceans files and documentation as well as external reports relating to Pacific salmon from a number of sources.

Audit Team

Geoffrey Robins
John Sokolowski
Gregory Springate
Deborah Irwin

For information, please contact John McCullough, the responsible auditor.

1997 December Report of the Auditor General of Canada

Chapter 28—Fisheries and Oceans Canada—Pacific Salmon: Sustainability of the Resource Base

Main Points