Opposition Leader Gerry Reid says today=s agreement between the provincial government, Ocean Choice International (OCI) and Highliner to abolish the Fishery Products International (FPI) Act and allow the company to be sold off piecemeal is a sad day for the fishery in Newfoundland and Labrador. Reid says in addition to the sale of the company, there are no iron-clad guarantees surrounding employment levels, potential plant closures or the long-term future for FPI communities in the province. 

AI was disappointed to read the deal outlined today by the provincial government regarding the sale of FPI,@ said Mr. Reid. AThis deal has so many loopholes that I cannot in good conscience say there is any real security for the people who work in FPI communities throughout the province.  

AIn this agreement, there are references to OCI maintaining employment levels at all of the FPI plants in the province. However, this commitment is dependent upon quotas and price fluctuations. There is nothing that protects workers should the price of fish drop or quota levels be reduced. I am also not aware of any penalty provisions put in place should OCI fail to live up to its employment commitments should profits become more important than workers.

 AThere are also references to penalties that OCI will have to pay should they close any of the FPI facilities. If upgrades to plants are more expensive than the imposed penalty, what will stop OCI from closing these plants? Everyone knows that Bonavista needs a new facility and I fear that instead of making this investment, OCI may decide it is more profitable to close the plant and process crab elsewhere.@ 

Reid says he also has concerns regarding the sale of FPI=s marketing and secondary processing division to Highliner.  AThe marketing and secondary processing division kept FPI=s groundfish plants in our province alive during the moratorium. Government is now willing to sell off this valuable asset. Should Highliner want to close their Burin facility and transfer the assets out of the province, the company would have to pay a $2.5 million fine. Highliner may consider this the cost of doing business and decide it would be more efficient to close the plant, transfer the machinery to Nova Scotia or Massachusetts and pay the fine. There is nothing in the agreement that stops this from happening. 

AI am also disappointed that the agreement failed to address the situation facing the 120 people employed at FPI=s office on O=Leary Avenue in St. John=s. As confirmed by the minister today, those employees will have to look for opportunities elsewhere. Will these people be forced to leave the province in search of work like the thousands who left over the past three years?