News Release
Office of the Official Opposition

   

 

Residents of Harbour Breton must be included in any decision on sale of former FPI plant

September 18, 2006

Opposition Leader Gerry Reid says he was surprised to learn last week that Fishery Products International (FPI) sold their Harbour Breton plant to Bill Barry for $1 without the knowledge of community residents, and apparently without the approval of the provincial government.

Section 7(2) of the FPI Act states that the company cannot sell a plant in this province without the approval of the provincial government. It states, "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, a plant or other processing facility, wherever located, and machinery and equipment located in the plant or processing facility."

"FPI’s unilateral decision to sell their Harbour Breton plant demonstrates once again the lack of respect John Risley and the company have for this province," said Mr. Reid. "Government accepted our amendment last spring that would ensure any sale of an FPI plant would require the approval of government. After hearing comments from Fisheries Minister Tom Rideout, FPI did not have this permission to sell their Harbour Breton plant and therefore are in contravention of the FPI Act.

"It is my understanding that both Cooke Aquaculture and the Barry Group of Companies had interest in the Harbour Breton facility. Before any decisions are made to sell this plant, the town should have direct input and access to any proposals to determine what would be the best option for their community. Nobody seems to know the details of Mr. Barry’s plan for the facility and it is unfair for FPI to make secret agreements behind the backs of both the town and government."

Oliver Langdon, MHA for the District of Fortune Bay-Cape La Hune, said there should be no deal with anyone until the property is transferred to the Town of Harbour Breton. "The residents of our community should be the people who make the ultimate decision as to who has the best proposal to take over the plant. If there is a dispute as to what proposal would be best for the region, I would suggest a referendum take place in the community to ensure everyone has a final say in their futures."

Both Reid and Langdon feel the provincial government should become directly involved and investigate the circumstances surrounding this sale. If it was done illegally, the province should ensure the appropriate course of action is taken.

 

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