News Release
Office of the Official Opposition

   

 

Opposition will introduce nine amendments to FPI legislation

May 23, 2006

Opposition Leader Gerry Reid says the Official Opposition will be introducing nine amendments to strengthen the Fishery Products International (FPI) Act currently being debated in the House of Assembly.

"The FPI amendments introduced by government certainly do not go far enough to strengthen the Act," said Mr. Reid. "While some of these amendments are good starting points, stronger language and more clarity is essential. The amendments we will be introducing provide this language and clarity. We are hopeful that the premier and his government will put aside their politics and accept our suggestions on strengthening the Act on behalf of the people of this province."

The amendments being put forward by the Opposition will ensure that FPI cannot make decisions at will without the approval of the provincial government. This includes decisions regarding the closure of fish plants and the sale of assets inside and outside the province. The proposed amendments also prohibit a direct competitor of FPI from sitting on the Board of Directors and would allow the provincial government to appoint some directors who will be able to monitor the day to day operations of the company.

"After listening to the premier and the minister of fisheries over the past several weeks, I fully expected government to bring forward much stronger amendments. Unfortunately, this did not happen and it now appears the premier is backing away from his strong language that suited his interests just a few short weeks ago. If this government is serious about strengthening the FPI Act, instead of merely paying lip service to the issue, I suggest they acknowledge and accept our amendments.

"I hope the premier will give consideration to our concerns and listen to the points raised during this debate. We feel our amendments would be a step in the right direction and would ensure that the people who work for FPI have some protection and stability."

Number 1

Amendment to Bill 32, AN ACT TO AMEND THE FISHERY PRODUCTS INTERNATIONAL LIMITED ACT

I move that clause 1 of Bill 32 AN ACT TO AMEND THE FISHERY PRODUCTS INTERNATIONAL LIMITED ACT be amended in the proposed subsection 7(1) by deleting the words "a substantial" and replacing these words with "any" so that the subsection 7 (1) of the Act will read;

 

7.(1) Except with the prior approval of the Lieutenant - Governor in Council, neither FPI Limited nor Fishery products International Limited shall, lease, exchange, mortgage, grant or assume a security interest on, or otherwise dispose of, or allow or direct a subsidiary of it to sell, lease, exchange, mortgage, grant or assume a security interest on, or otherwise dispose of, any portion of an undertaking, property, assets or business operation which relates to or carries on, in whole or in part, the harvesting, processing or marketing of seafood.

 

Number 2

Amendment to Bill 32, AN ACT TO AMEND THE FISHERY PRODUCTS INTERNATIONAL LIMITED ACT

I move that clause 1 of Bill 32 AN ACT TO AMEND THE FISHERY PRODUCTS INTERNATIONAL LIMITED ACT be amended by adding the words "or close" after the words "or otherwise dispose of" and before the words "a plant or other processing facility" so that the subsection 7 (2) of the Act will read;

 

"(2) Notwithstanding subsection (1), except with the prior approval of the Lieutenant-Governor in Council, neither FPI Limited nor Fishery Products International Limited shall sell, lease, exchange, mortgage, grant or assume a security interest on, or otherwise dispose of, or allow or direct a subsidiary of it to sell, lease, exchange, mortgage, grant or assume a security interest on, or otherwise dispose of or close, a plant or other processing facility situated in the province, and machinery and equipment located in the plant or processing facility."

 

Number 3

 

Amendment to Bill 32, AN ACT TO AMEND THE FISHERY PRODUCTS INTERNATIONAL LIMITED ACT

I move that clause 1 of Bill 32 AN ACT TO AMEND THE FISHERY PRODUCTS INTERNATIONAL LIMITED ACT be amended in subsection 7(2) by deleting the words "in the province" and replace these words with "anywhere" so that the subsection 7(2) of the Act will read;

 

 

"(2) Notwithstanding subsection (1), except with the prior approval of the Lieutenant-Governor in Council, neither FPI Limited nor Fishery Products International Limited shall sell, lease, exchange, mortgage, grant or assume a security interest on, or otherwise dispose of, or allow or direct a subsidiary of it to sell, lease, exchange, mortgage, grant or assume a security interest on, or otherwise dispose of or close, a plant or other processing facility situated anywhere, and machinery and equipment located in the plant or processing facility."

 

Number 4

Amendment to Bill 32, AN ACT TO AMEND THE FISHERY PRODUCTS INTERNATIONAL LIMITED ACT

I move that clause 1 of Bill 32 AN ACT TO AMEND THE FISHERY PRODUCTS INTERNATIONAL LIMITED ACT be amended by adding after the proposed subsection 7(4) the following;

"(5) In subsections (1) and (2) "property" and "assets" shall include but not be limited to vessels, all physical property owned by the companies anywhere, the marketing division of the companies and all company quotas."

 

Number 5

Amendment to Bill 32, AN ACT TO AMEND THE FISHERY PRODUCTS INTERNATIONAL LIMITED ACT

I move that clause 2 of Bill 32 AN ACT TO AMEND THE FISHERY PRODUCTS INTERNATIONAL LIMITED ACT be amended to delete the proposed subsection 9 (4) and replacing these words with;

"(4) No director shall serve as a director, officer or employee of a competitor, customer or supplier of the company or be a major shareholder of a competitor, customer or supplier, unless specifically approved by the other members of the Board of Directors by majority vote, and by the Government of Newfoundland and Labrador, and otherwise as permitted by applicable law."

Number 6

Amendment to Bill 32, AN ACT TO AMEND THE FISHERY PRODUCTS INTERNATIONAL LIMITED ACT

I move that clause 2 of Bill 32 AN ACT TO AMEND THE FISHERY PRODUCTS INTERNATIONAL LIMITED ACT be amended by adding after the proposed subsection 9(6) the following;

(7) Two of the directors referred to in subsection 9(1) shall be appointed by the Government of Newfoundland and Labrador.

 

Number 7

Amendment to Bill 32, AN ACT TO AMEND THE FISHERY PRODUCTS INTERNATIONAL LIMITED ACT

I move that clause 2 of Bill 32 AN ACT TO AMEND THE FISHERY PRODUCTS INTERNATIONAL LIMITED ACT be amended by adding after the proposed new subsection 9(7) the following;

"(8) One of the directors referenced in 9 (6) shall be an appointee of the Government of Newfoundland and Labrador appointed pursuant 9(7)."

 

Number 8

Amendment to Bill 32, AN ACT TO AMEND THE FISHERY PRODUCTS INTERNATIONAL LIMITED ACT

I move that clause 3 of Bill 32 AN ACT TO AMEND THE FISHERY PRODUCTS INTERNATIONAL LIMITED ACT be amended by adding after the proposed subsection 14(3) the following;

"(4) The company shall establish a standing committee of the Board on Corporate Responsibility. The purpose of the Corporate Responsibility Committee shall be to review and define and monitor performance of the Company’s responsibilities as set out in the FPI Act and as a good corporate citizen. This shall include growth and strengthening of the fishery in the province, maximum employment stability, and resource stewardship. The Corporate Responsibility Committee reports regularly to the Board and annually to the House of Assembly."

 

Number 9

Amendment to Bill 32, AN ACT TO AMEND THE FISHERY PRODUCTS INTERNATIONAL LIMITED ACT

I move that Bill 32 AN ACT TO AMEND THE FISHERY PRODUCTS INTERNATIONAL LIMITED ACT be amended by adding immediately after clause 4 the following;

4.1 Article 13 (e) of the Act is amended by deleting the words

"The Directors of the Company shall have the power to determine, which determination shall be final and binding upon all holders of Securities of any class," and substitute the words, "The Government of Newfoundland and Labrador shall have the power to monitor and enforce that the Directors of the Company are properly determining and following restrictions upon all holders of securities of any class,"


 

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