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Government's decision to back away from quota protection another broken commitment April 30, 2007 Opposition Leader Gerry Reid says with what appears to be the imminent sale of Fishery Products International (FPI) to Highliner, Ocean Choice International (OCI), and possibly Clearwater of Nova Scotia, he was very disappointed to learn today that government is backing away from its original commitment to protect all of FPI?s quotas for the benefit of the people of Newfoundland and Labrador. Earlier today in the House of Assembly, Fisheries Minister Tom Rideout confirmed that government would only be asking for the transfer of FPI?s groundfish quotas to the province. Minister Rideout stated that government would not be looking to retain the more lucrative shrimp and scallop quotas. This means that companies including Clearwater could get direct ownership of those quotas. "The announcement today that FPI has reached agreements to break up and sell the company raises a lot of questions," said Mr. Reid. "I was very disappointed that government has broken its commitment to protect FPI?s quotas for the benefit of this province. Instead, Minister Rideout is now trying to convince people that his previous statements were only meant in reference to the groundfish quotas. Unfortunately, these groundfish quotas will be the only leverage government will have over the new company to ensure any commitments are fulfilled. These are the same quotas that FPI felt were not valuable enough to process themselves and the reason they closed Harbour Breton and Fortune. What guarantees will be put in place to protect Marystown should the new company break its commitments? What commitments will be put in place to ensure that Highliner, a Nova Scotia based company, will not close its Burin secondary processing plant and move its equipment to Nova Scotia or Danvers, Massachusetts where they will now own both primary and secondary processing facilities? Will this company transfer fish into Burin from outside of the province, or will it be cheaper for them to transfer the equipment out of Burin? "I was also very concerned that there was no mention of what, if any, commitments would be made regarding employment levels in FPI plants around the province. For example, how many of the 650 people employed at the Marystown fish plant will retain their jobs once this deal goes through? Will a new company honour the commitment made by FPI to build a new crab plant in Bonavista? Who will now own the Seafood Company in Great Britain that FPI bought last year for $50 million, a plant that was of no benefit to the workers of FPI in this province? These are only some of the many questions that need to be answered. Unless the workers of FPI get answers to these questions and feel that they are fully protected by this deal, I will not support any legislation that comes before the House of Assembly amending or abolishing the FPI Act."
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