P.E.I. oyster growers frustrated, facing bankruptcy as Fiona claims drag on

An oyster grower in East Bideford, P.E.I., says he and others in the industry are running out of time as they wait for their compensation claims to be settled over gear damage from post-tropical storm Fiona.

The massive storm struck the Island almost 21 months ago, causing great disruption to the province and many of its resource-based industries. 

In early April, a provincial government spokesperson told CBC News that of the 89 damage claims that oyster growers had filed since the disaster, only 28 had been approved by the Canadian Red Cross, the non-profit administering the post-Fiona Disaster Financial Assistance Program on the province's behalf. 

As of June 4, the spokesperson said 47 claims approval letters had been sent out to aquaculture companies, out of 104 claims in total.

A "very frustrated" Kenneth Arsenault is one of the growers still waiting for a response to his application. His company, KBM Oysters, has a lease on the Lennox Island channel off P.E.I.'s North Shore, and suffered significant damage during the storm. 

"[It] pretty well wiped out over half my oyster operation," Arsenault told CBC News. "It took my floating workstation, and it put it up on the shore… damaged quite extensively."

He said he lost thousands of bags of oysters. He and his employees gathered up what they could along the shoreline, but much of the season's production was lost. 

Arsenault applied to the Canadian Red Cross for around $160,000 in damages, but said his losses now amount to more like a quarter of a million dollars — and they're still adding up. 

That's because he and other growers have had a severe drop in revenue over the last year and a half that they have been waiting for money to get back in the game. 

"I haven't made payments on my lease for two years, and I'm at the stage now where the money has ran out," Arsenault said. 

"It's either I get money from Red Cross, or claim bankruptcy and I'm done. Somebody else is gonna operate the farm, or it's gonna be going to the wayside."

Arsenault said he's fortunate to be running another business that is footing his month-to-month bills. He bought this lease to help pay for his retirement, but said that's not going to happen now.

Arsenault has three employees now, but intends to lay them off in three weeks, if his claim isn't settled. 

"We should have been paid at the latest the summer of '23. There's no reason for it," he said.