Increase License Fees to $32- to $40-Million

Hi John  Horgan et al

In Norway, the big companies are spending $32- to $40-million for a license.

Do you know what the big companies pay in BC? $5000. In other words, they are not investing in BC, they are raping BC oceans.

You need to include in your fish farm policies a drastic increase in license fees. Charging the same as in Norway would bring in for the 120 licences the industry claims it now has in BC: $32 X 120 = $3.8 Billion to $40 X 120 = $4.8 Billion. That is how much BC is subsidizing fish farms to ruin our oceans.

Raise the license to $32 million and Marine Harvest, Cermaq and Grieg Seafood would pay it because they are doing so in their own country, Norway. And it is a bargain rate for them.

See: http://fishfarmnews.blogspot.com/2018/03/bad-news-bites.html. Item 393.

“393. Huge License Costs - Norway:  http://salmonbusiness.com/have-the-salmon-auction-winners-paid-too-high-a-price-for-the-gold/. "“Adding a minimum price of NOK 120 (€ 12.7) million per license is incomprehensible. In areas with the highest dominance of listed companies, the real price can quickly reach between NOK 200-250 (€ 21-26) million per license. You don’t have to be a mathematician to figure out that this is a gratuitous fit for only a handful of the major publicly listed companies,” NSL Managing Director Robert Eriksson said."

At an exchange rate of .16, the license cost in CDN dollars is: 120 X .16 = S19.2 million; 200 X .16 = $32 million, and 250 X .16 = $40 million.”

DC Reid

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Note that the reason Marine Harvest, Cermaq and Grieg Seafood can spend this much is high fish farm profit margins. Typically the margin is about 23%, which is very high, but the margin can be as high as 45%, which is phenomenal. Look at this list: http://salmonbusiness.com/northern-dominance-on-profit-among-norways-largest-salmon-farmers/.

The graph is:

And in 2017, one fish farm topped 80% profit EBIT!: http://salmonbusiness.com/a-whopping-80-2-percent-has-korshavn-havbruk-topping-norwegian-producers-profit-margin-list/.

Raise BC Fish Farm License to $32 Million - Save Wild Salmon

Hi John et al [Adam Olsen, John Horgan, Lana Popham, Andrew Weaver, Sonia Furstenau]

In Norway, the big companies are spending $32- to $40-million for a license.

Do you know what the big companies pay in BC? $5000. In other words, they are not investing in BC, they are raping BC.

You need to include in your fish farm policies a drastic increase in license fees. Charging the same as in Norway would bring in for the 120 licenses the industry claims it now has in BC: $32 X 120 = $3.8 Billion to $40 X 120 = $4.8 Billion. That is how much BC is subsidizing fish farms to ruin our oceans.

Raise the license to $32 million and Marine Harvest, Cermaq and Grieg Seafood would pay it because they are doing so in their own country, Norway. And $32M is a bargain rate for them.

See: http://fishfarmnews.blogspot.com/2018/03/bad-news-bites.html. Item 393.

“393. Huge License Costs - Norway:  http://salmonbusiness.com/have-the-salmon-auction-winners-paid-too-high-a-price-for-the-gold/. "“Adding a minimum price of NOK 120 (€ 12.7) million per license is incomprehensible. In areas with the highest dominance of listed companies, the real price can quickly reach between NOK 200-250 (€ 21-26) million per license. You don’t have to be a mathematician to figure out that this is a gratuitous fit for only a handful of the major publicly listed companies,” NSL Managing Director Robert Eriksson said."

At an exchange rate of a Norwegian Krone equaling .16 of a dollar, the license cost in CDN dollars is: 120 X .16 = S19.2 million; 200 X .16 = $32 million, and 250 X .16 = $40 million.

Put the $3.8 B into freshwater habitat restoration for wild salmon.

DC Reid

Fish Farms - Freshwater Habitat Restoration

Hi John Horgan et al [Adam Olsen, Andrew Weaver, Lana Popham, Sonia Furstenau]

Your fish farm plan has gone over like a lead balloon. Even I have criticized you, and I would like to be on your side: https://fishfarmnews.blogspot.com/2018/07/john-horgan-what-are-you-thinking-four.html?showComment=1530823583272#c9026406336797317256.

What you can do that would turn things around is to put $25 million into freshwater habitat restoration right now – the only real solution for bringing back wild salmon – giving the money to the Pacific Salmon Foundation that leverages money 4 to 7 times for habitat projects (in other words, the effect of $100- to $175-million). Then, every year for the following 10 years, add $10 Million each year. Announce it as $125 Million for wild salmon, making it the biggest plan ever devised.

Point out that the leveraging figures, are: year one: $100- $175-million; plus an additional for ten years of $400- to $700-million.

The bad press you have been getting on your fish farm non-plan would be undercut as you would have tied the two issues together with a bold positive plan for wild salmon – fish farms/habitat - all on a very reasonable amount of money.

Please put the money into wild salmon and get the good press. Even from me.

DC Reid