The following statement was issued today by Beaton Tulk, Minister of Forest Resources and Agrifoods. It was also read in the House of Assembly:

Newfoundland Farm Products Corporation

Mr. Speaker, I would like to take this opportunity to inform the Honourable Members of the House of Assembly of negotiations that are currently underway to privatize Newfoundland Farm Products Corporation. Mr. Speaker, government announced its intention to divest its interest in NFPC in the Budget speech in March of this year.

Over the last four years, Newfoundland Farm Products Corporation has cost taxpayers an average of $7.5 million a year in operating losses and subsidies. Government is unable to continue to have the taxpayers of this province absorb the costs of operation for the poultry sector. Furthermore, Mr. Speaker, it is not appropriate for government to be involved in the food processing sector. We have other public service priorities for the people of this province. The government has accepted that the private sector is best suited to operate businesses such as NFPC.

Since December, the board of directors of Newfoundland Farm Products has studied various options for the corporation with a view to eliminating public subsidies.

Mr. Speaker, negotiations are underway as we speak. Government has authorized the board of directors of NFPC to hopefully conclude negotiations with Integrated Poultry Limited (IPL) for the sale of its poultry business. However, IPL indicated in its proposal that it is not interested in continuing operations at the plant in Corner Brook as a chicken processing facility.

I must, therefore, inform the Members of the House of Assembly that yesterday (Tuesday) evening, two members of the board of directors for NFPC and the chairman of the board met with all employees of the Corner Brook plant to outline their options to them. I would like to emphasize, Mr. Speaker, that prior to that meeting, myself and the Honourable Paul Dicks met twice with representatives of the union - once in Corner Brook on Sunday and once in St. John's on Monday of this week, in order to ensure that they were fully aware of the situation, and to discuss the most appropriate means of informing employees.

Government did not want to comment publicly on the status of NFPC until the affected employees had been fully informed.

Mr. Speaker, at the meeting yesterday evening, employees were informed that government has decided to continue to pay employees at Corner Brook until an agreement is finalized with IPL. The NAPE local for the Corner Brook plant 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. To facilitate their deliberations, Mr. Speaker, NFPC has decided not to process chicken today in the plant in order to allow employees time to consider their options.

A committee of government and union officials has been established to consider appropriate severance benefits for affected employees. The board of directors of NFPC have initiated the process to seek alternative uses of the Corner Brook plant - a process which could include a public request for proposals and we are prepared to involve the employees in this process. Both government and the board are optimistic that a viable private sector opportunity will be found for the plant. I would assure you, Mr. Speaker, that government will make every effort possible to achieve this goal.