News Release
Office of the Official Opposition

Government confirms it wants out of the fish business!
June 14, 2007

Judy Foote, MHA for the District of Grand Bank and Opposition Critic for the Department of Innovation, Trade and Rural Development, says that it is clear following comments from the acting Minister of Fisheries, Trevor Taylor, that the Williams’ led government wants out of the fish business.

The Liberal MHA questioned government on why the approved FPI deal did not include a right_of_first_refusal provision on the sale on the Burin plant, as it did with the FPI facility in Marystown should the new operator decide it no longer wanted to operate the facility. Under the tentative deal, Ocean Choice International(OCI) will take over FPI’s primary processing plant at Marystown, while High Liner Foods Inc. of Nova Scotia will purchase the secondary processing plant in Burin. The minister’s response to Foote’s questioning on the tentative deal was that "it was not a business that we want to get into".

"It is now very obvious from the minister’s comments that this government wants no involvement in the fish business ," says Foote. "This is something that as an Opposition we have always suspected, that this government did not like the smell of fish on their hands and now, the acting minister of fisheries has confirmed those suspicions and those of a lot of Newfoundlanders and Labradorians who are involved in the fishery.

"This government had an opportunity to ensure that the plant in Burin, being bought from FPI by a company from outside the province, could be acquired by government for fair market value should the new owners decide that they wanted to offload the plant. They essentially failed to ensure the long_term security of that facility and the employment opportunities that are connected to the plant for residents of the area. The terms of the sale are such that if High Liner decides to close the plant within five years they will incur penalties, but after five years they can close up shop and continue to run their business out of Nova Scotia. This issue has been raised with me by people who see it as a cause for concern and one that was initially thought to be an oversight by government. However, from the minister’s comments yesterday, this government was simply not interested in securing this facility and are letting the chips fall where they may."

Foote says that government approved the piece_meal sale of FPI because not to have a deal would have been seen as a thorn in their side during an election year. "There are no long-term guarantees surrounding employment levels, potential plant closures or the future of those FPI communities. It goes against the premier’ so_called stand that there will be no more giveaways and it highlights a double standard in his equity stand on offshore resources. The fishery and rural communities have never been a priority with this government despite their insistence otherwise . Today, however, one of the government’s own ministers has made that loud and clear, with no apologies whatsoever for their regressive and short_sighted actions."

Media Contact:
Kim Ploughman
Caucus Communications
Office of the Official Opposition
709-729-6427