News Release
Office of the Official Opposition

 

 

FPI increases profit in 2004

Government must refuse sale of American assets


February 25, 2005

Gerry Reid, Opposition Fisheries Critic and MHA for the District of Twillingate-Fogo, says despite Fishery Products International’s (FPI) attempts to convince the people in this province they were losing money in 2004, the company made profits of $4.4 million last year, more than double its profits in 2003.

In media stories today, it is reported that FPI earned profits of $4.4 million in 2004, up from their 2003 profits of $1.7 million. It is also reported that the company generated record revenues of 800.4 million in 2004, up from $758.9 million in 2003.

"The reported profits of FPI demonstrate that this company is closing plants and laying off workers for one reason, their greed to further increase their profits," said Mr. Reid. "The company remains very profitable and is only looking for excuses to get rid of less profitable plants that have been the backbone of the company for years.

"Last year, the value-added and marketing division was again the most profitable part of the company. The processing division has always been considered the least profitable sector of the fishery and has been subsidized by the more profitable marketing arm. I have continuously stated that if FPI is permitted to sell off their value-added and marketing division, it will mean the end of their fish processing division in this province. The less profitable processing division will not generate sufficient profit to satisfy the shareholders of this company.

"I hope this is evidence enough for Premier Williams and Fisheries Minister Trevor Taylor to refuse the sale of FPI’s value-added and marketing division. It should also be a wake-up call that demonstrates the company is still very profitable. FPI was created in the legislature of this province for the benefit of all Newfoundlanders and Labradorians. I hope government remembers this fact the next time a plant is closed to increase profits."

 
 

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