News Release
Office of the Official Opposition

   

 

Has government already agreed to FPI's Income Trust transaction?

May 25, 2005

Opposition Leader Roger Grimes is questioning whether government has already indicated to Fishery Products International (FPI) that they will get approval to sell off part of their value added and marketing division through an income trust.

Premier Williams indicated in a Ministerial Statement on May 20th that government was considering bringing this issue before a special sitting of the House of Assembly to be debated. This was to be done if government received certain commitments and concessions from the company.

"Yesterday, FPI held their shareholders meeting in Toronto, a meeting that lasted approximately ten minutes," said Mr. Grimes. "It is not clear whether the company had planned to discuss these so-called commitments or concessions that government is looking to receive, but it does not appear to have taken place. It is clear, however, that FPI has already put aside $4.5 million in costs associated with their planned income trust proposal.

"It is now imperative for the Premier and government to advise the people of the province the status of discussions with FPI. There has not been any indication what commitments or concessions government is looking to receive from the company, and there is no indication as to whether government has given its conditional support to this proposal. There are still many questions that need to be answered before the House of Assembly opens to have this important debate.

"It is also very important for the Premier to release the conflicting legal opinions related to this income trust proposal. Government has already stated that there is legal uncertainty as to whether the FPI proposal contravenes the FPI Act. If the people of the province and the 48 Members of the House of Assembly are to have an informed and constructive debate, it is necessary to have these important documents made public.

"Allowing FPI to create an income trust and sell off part of its most profitable marketing division could have major impacts on the fishery in this province. In the spirit of openness and accountability, I hope the Premier realizes the significance of this debate and will provide all of this information in a timely fashion and before any decisions are made."

 

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