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News
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Foote tables Private Members Motion calling on government
to conduct an inquiry into FPI operations and stop income trust November 21, 2005
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Judy Foote, Opposition Critic for Innovation, Trade and Rural Development
and MHA for the District of Grand Bank, read a resolution into the public
record this afternoon that will be debated in the House of Assembly on
Wednesday afternoon. The motion will call on the provincial government to
conduct a public inquiry into FPI’s operations and deny proclamation of the
income trust legislation. "The opposition will continue to raise the serious issues and concerns about the future of FPI operations in the province in question period," said Foote, "Wednesday will be another opportunity to highlight and debate the seriousness of the situation with the introduction of this Private Member’s Motion. Even though Premier Williams says he is all over the FPI file, government has not kept on top of issues facing people who rely on FPI operations in this province. It is time an investigation was launched into the crisis situation facing rural Newfoundland and Labrador as a result of FPI’s corporate actions. "Other companies operating in this province are continuing with their operations despite facing similar challenges. In fact, some are expanding while FPI has laid off workers over the past two years. Fishery Products International is spending money that will result in jobs being created in the United Kingdom to the detriment of the workforce in Newfoundland and Labrador. Fish from Newfoundland will be taken to a facility in the United Kingdom for processing. It is time that a thorough investigation was launched to determine why management at FPI have been unable to deal responsibly with challenges without jeopardizing the future of those communities in which they have fish plants and employees, despite a guaranteed resource base and a highly skilled workforce." In addition to launching an inquiry, the Liberal MHA is calling on government to postpone the proclamation of the amendments made to the FPI Act in the last sitting of the House of Assembly until it can be determined that such a transaction would be of primary benefit to the people of Newfoundland and Labrador. "Since the passage of these amendments, information indicates that FPI may not be a good candidate for an income trust transaction and promises made by the company to towns like Fortune, Harbour Breton and Bonavista are at risk. Until such time as these commitments are guaranteed, and any further benefit of the trust transaction is guaranteed to benefit this province, the changes should not be proclaimed. "FPI was created by an act of the House of Assembly and a significant investment of tax dollars was made in the establishment of the company at that time. The company has been making poor management decisions over the past two years and it is time for government to step in before further problems emerge, resulting in a total collapse of the operation. FPI has a high debt load and I fear that Newfoundland and Labrador operations are still at risk in the coming months and years. A public inquiry into the operations of the company and a delay in the proclamation of amendments to the FPI Act should allow the government to play the role it was intended to play to ensure the company acted in the best interests of the province." |
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