Ontario's fish farmers see gold in the waves of Lake Huron and Georgian Bay, if the government would just get out of the way. Rainbow trout farms already produce the large majority of Ontario's farmed fish, but the industry's catch is stuck at the same level it's been at since the early 2000s. The culprit, the Northern Ontario Aquaculture Association says, is well-intentioned but burdensome regulation in the aftermath of the Walkerton tainted water tragedy.

"Ontario's ability to fill that demand came to a stagnation, and everything that came forward as a new farm application (since Walkerton) got put on a shelf," Karen Tracey, executive director of NOAA, says. "Unfortunately, aquaculture got in that vortex of inaction."

That inaction has left Ontario's cage-pen fish farming industry restricted to a handful of sites around Manitoulin Island, though many farms buy their young fish stock from land-based farms in the south. Tracey estimates the industry could double or triple its current output of roughly 9 million tonnes if regulations would permit it. But the fragmented nature of regulation between the ministries of environment and natural resources currently make it difficult for fish farmers to even get a bank loan—for example, current farm licences only last five years.

Natural Resources Minister David Orazietti says the government is working with NOAA and others to try and give the regulatory clarity that will allow investment money to flow into the industry.

"Is there enough certainty within the regulations to permit the investments to take place? And can we create certainty with respect to the regulations of the industry so that they can carry on? The industry is looking for certainty," Orazietti said on Wednesday.

Private capital has stepped in, to a limited extent. Blue Goose Pure Foods, a food company that owns cattle ranches and chicken farms in British Columbia has recently expanded substantially on Manitoulin Island, buying a trout farm there.

"Blue Goose being a very progressive, forward-thinking company, have seen the potential in aquaculture and seem to be investing heavily," Tracey said.

Earlier this summer, Blue Goose bought an 800-acre former camp property in Evansville, Manitoulin. Blue Goose CEO Kevin Reed said then he hoped to have new fish nets in the water by 2014.

Meanwhile, NOAA and Tracey are trying to clarify the regulatory environment for prospective farmers with a two-track approach. The first is producing a "coordinated guide", putting all the regulatory requirements in one document that both regulators and industry can use as farmers work their way through the permitting process. Tracey stresses despite the frustrations of regulation, collaboration between NOAA and various ministries in putting together the guide has been positive and essential.

The other track is pressuring the government to reduce or streamline regulations, and to that end NOAA has joined the Ontario Federation of Agriculture in the early stages of urging the government to modernize the rules under the Fisheries and Wildlife Conservation Act in line with the 2010 Open For Business Act, which created a two-tier approvals system of environmental regulation. Activities deemed "low-risk" are no longer required to apply for individual environmental assessments but can follow a rules-based process.

"The first meeting has already taken place, that was presented by OFA on our behalf and that got people's attention," Tracey said. Another meeting is expected in September to further discuss the regulation of the fish farming industry.

tThe industry is looking to deeper waters away from possible conflicts with shore-based users (such as cottagers) as one possible area for expansion. Orazietti says that while it's still a hypothetical discussion and he would need to see more details, he wasn't opposed to the idea of deep-water fish farming and would look forward to hearing more about it.

More broadly, Orazietti sees the industry as a potential growth opportunity for the north. "I think it's a fantastic fit with the Northern Growth Plan. I think there's tremendous potential."

"We need to make sure that we have policies and regulations that are respectful of the environment but also support industry growth in this area."

Ontario’s fish farms want regulatory relief to put more trout on your plate

Read this for free.