Legal challenge that threatened independence of inshore fishery withdrawn

Nova Scotia fish harvester Susan Beaton is breathing a little easier now that a legal challenge that could have overturned the rules protecting the independence of Atlantic Canada's inshore fishery appears to be over.

"I think it's very good news, at least for those of us who care about the owner-operator policy," said Beaton, who is from Antigonish.

The federal government's owner-operator policy stipulates the main benefits of inshore fishing licences must go to the licence holders.

Labrador fisherman frontingchallenge

Kirby Elson, a fisherman from Cartwright N.L., a small fishing town in Labrador, had launched a legal challenge, appealing a decision by the federal fisheries ministerto take away his commercial fishing licences.

He was scheduled for a Feb. 28 judicial review hearing in Federal Court.

But the case ended quietly and abruptly this week when Elson notified his lawyers Jan. 10 that he wanted to "immediately withdrawfrom this litigation," according to documents filed with the FederalCourt.

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Viewedas a test case

Elson had refused to obey a DFO requirement that he exit a so-called "controlling agreement" with two Newfoundland and Labradorfish processors.

Controlling agreements allow individuals or corporations other than the licence holder to control the use of the licence.

However, Ottawa says such agreements threaten an independent inshore fishery and its long-standing owner-operator policy that fishermen control their licenses.

Under Elson's arrangement, the two fish processors financed his snow crab licence, provided the boat and told him where to sell his fish.

Fisherman too poor to fish

In 2014, Elson was the only fisherman in Atlantic Canada to openly refuse a blanket order to get out of controllingagreements.

In his court filing, Elson said he was too poor to afford to fish and a controlling agreementwas the only way he could pursue his livelihood of 50 years.

He was represented in his legal battle with the federal government by McCarthy Ttrault, one of Canada's biggest law firms. Newfoundland and Labrador's Association of Seafood Producersfiled evidence on his behalf.

Would've 'broken open the fisheries'

Beaton saidcontrolling agreements were being used to undermine the owner-operator policy.

"It was a very kind of frightening scenario that could have played out because it would have broken open the fisheries to corporate interests, I believe, if he had prevailed," she said.

"The only thing that is stopping accumulation of fishing enterprises into corporate hands right now is the owner-operator policy."

No responses from DFO or Elson

The Department of Fisheries and Oceans continues to be on the lookout for more controlling agreements.

Last year it stripped licences from two fishermen in the Maritimes after they were found to be operating under controlling agreements. The department has not responded to a CBC request for comment.

CBC News has been unable to reach Elson or his lawyers.

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