April 29, 1997
(Forest Resources and Agrifoods)

Negotiations to privatize Newfoundland Farm Products underway

Negotiations to privatize Newfoundland Farm Products Corporation (NFPC) are progressing, and the Board of Directors of NFPC is working with Integrated Poultry Limited (IPL) to reach a deal.

"Cabinet has given approval to NFPC to conclude negotiations for the sale of its poultry business," said Forest Resources and Agrifoods Minister Beaton Tulk. "IPL has indicated it is not interested in continuing operations at the plant in Corner Brook. The chair of NFPC's board met with employees in Corner Brook this afternoon to ensure they are fully informed of the process, and the options available to them."

Mr. Tulk added that government did not want to comment publicly on the status of NFPC until the affected employees had been fully informed.

Government announced its intention to get out of the chicken processing business in the Speech from the Throne in March. Since that time, the board of directors has studied options for the future of Newfoundland Farm Products with a view to eliminating public subsidies.

"Government has decided to continue paying employees at Corner Brook until an agreement is finalized with IPL," said Mr. Tulk. "The NAPE local there has been asked to indicate by Friday of this week, whether it wants the plant to remain open and in production until the deal with IPL is concluded, or whether employees want to go home on special leave. The latter option would mean immediate closure of the plant."

Government has suggested that a committee(s) be established to consider appropriate severance benefits for affected employees, and to explore other options for continued operations at the Corner Brook plant.

Contact: Anna Buffinga, Communications, (709) 729-3750.