Liberal Party of Newfoundland and Labrador
 
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News Release
Office of the Official Opposition

   

 

Foote says Fortune situation further emphasizes need for inquiry into operations and management of FPI

December 1, 2005

Judy Foote, Opposition Critic for Innovation, Trade and Rural Development and MHA for the District of Grand Bank, says recent developments concerning the Fishery Products International plant in Fortune tell the true picture of the nature of discussions between government, the company and affected communities as it relates to the future of the company’s operations in the province.

"This company, whether it intended to or not, has released information about one of the outcomes of the internal review that is being carried out by the company," said Foote. "Obviously the company has no intentions of following through on the commitment it made to their employees who worked for them at the fish plant in Fortune. This admission now raises more questions about the commitments the company made to their employees in Harbour Breton and Bonavista. The actions by FPI with respect to Fortune is just another example of where the company has failed to live up to one of the promises made by the new Board of Directors when they took over FPI. That promise was to grow the company and, by doing so, create more jobs in Newfoundland and Labrador.

"The commitment to put a secondary processing plant in Fortune was made, along with other commitments, in return for the approval for FPI to establish an income trust. The company knew the capacity at Burin and Danvers when it committed to installing secondary processing at the plant in Fortune and to suggest now that they can’t keep that promise because the company’s secondary processing facilities at Burin and Danvers aren’t operating at full capacity is troublesome. At no time during the discussions about establishing a secondary processing facility in Fortune did the company tie it to the purchase of three marketing companies in the United States which it did yesterday in the meeting with the Concerned Citizens Committee.

"Government confirmed in the House of Assembly today that it has no further knowledge of the intentions of FPI than has already been indicated by the Concerned Citizens Committee. If the company is reneging on it’s commitment to a long-term future for the plant in Fortune, then I question their sincerity in delivering on financial commitments to Harbour Breton and a new plant for Bonavista.

"It is time for government to take decisive action before the future of these and other communities are sacrificed by the management decisions of FPI with respect to their operations in this province. The need for an inquiry into the operations and management of the company has never been greater. It will be too late once FPI has completed its internal review and there are fewer fish plants and few jobs remaining in this province."

 

Media Contact:
Darrell Mercer
Director of Communications
Office of the Official Opposition
709-729-6151 or 709-687-0477