News Release
Office of the Official Opposition

   

 

Reid disappointed with FPI's Income Trust proposal

Government must release legal opinions

June 6, 2005

Opposition Leader Gerry Reid says he is disappointed with the proposal put forward by FPI that would allow them to sell off 40 per cent of the value added and marketing division and place it in an income trust. This division of FPI is their most valued asset and generates approximately 60 per cent of FPI revenues.

"There are many areas of concern related to this Income Trust proposal," said Mr. Reid. "My first concern is for the future of FPI’s operations in the province. In return for allowing FPI to sell off part of their most valuable asset, the people of this province, especially those communities that have FPI plants, get very little. Harbour Breton requested part of FPI’s traditional fish quotas to secure the long-term viability of the community, but were refused. Burin or Fortune will get 201 jobs in secondary processing, nowhere close to replacing the more than 300 jobs that were eliminated last year. FPI isn’t even guaranteeing the future of their Bonavista plant.

"The company is saying that no other plants in the province will close over the next five years. However, this is subject to each plant’s economic viability and resource availability. With the excuses that FPI has been making regarding their operations in Harbour Breton, this is not a very solid guarantee for any FPI plants in the province.

"I am also very disappointed in the provincial government. We have been asking to receive the legal opinions related to whether this proposal contravenes the FPI Act. The Premier promised in the House of Assembly on December 7th that he would release these opinions when a free vote was going to take place. This morning, we were once again refused access to these documents. If we are to have an informed debate, these documents must be released to ensure all members are well prepared. I am asking that the Premier release these opinions and delay this important debate until next week so that all members may have sufficient time to be briefed and carry out consultations with their constituents.

"FPI has made promises and commitments in the past that they have failed to honour. The promises and commitments made in this proposal are not concrete and raise several concerns. While I am apprehensive about this proposal, each of our caucus members will have a free vote. I am confident that after weighing all of the facts, Members of the House of Assembly from all parties will vote to reject this proposal."

 

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