Government partners with FCC and the owners of IPL in financial package. Kevin Aylward, Minister of Forest Resources and Agrifoods, today announced that government, in partnership with IPL shareholders, the Farm Credit Corporation and the Bank of Nova Scotia, have reached agreement on a financial package designed to enhance the long term viability of IPL and the poultry industry in this province. The province currently consumes about $70 million worth of poultry products a year. Less than $40 million worth is produced and processed in the province. "We should be producing more and reducing our dependence on imported products. We know we can produce high quality fresh, frozen and value-added poultry products. Self-sufficiency in poultry products is an achievable objective," stated Minister Aylward. "There is lots of room in the Canadian market place, and in other countries, for high quality poultry products from Newfoundland and Labrador." Canadians consume about $2.6 billion worth of poultry products a year. "We sometimes have a tendency to focus only on the contributions made to our economy by oil and gas, information technology, manufacturing and communications," said the minister. "The major contribution made by the agriculture sector is too often taken for granted. The agriculture sector has contributed a lot, and has a lot more to give. The Agriculture Awareness Campaign in Newfoundland and Labrador has demonstrated over the past year - WE ARE GROWING!" A total capital investment of almost $22 million in the poultry industry of this province has been allocated and includes:
IPL has experienced overruns on its capital plan, and the transformation from a government owned and money-losing enterprise to a modernized privately-owned operation has taken a little longer than expected. IPL needs another $3.5 million. This determination was made after a thorough review of financial data and discussions with IPL, the Farm Credit Corporation and the Bank of Nova Scotia. The $3.5 million requirement will be met in the following manner:
"Without IPL we will become almost totally dependent on imported poultry products. The people of Newfoundland and Labrador should not have to depend on imported chicken. Our own home-grown agriculture sector is now well equipped to meet our needs, and continue to support some 400 jobs in this province," stated Minister Aylward. "It's time we lifted the dark cloud over IPL which has been created by the recent exchanges in the House of Assembly. Let's allow IPL to get on with its business as a private company operating in this province," said the minister. "I would like to commend the IPL shareholders and employees, the Farm Credit Corporation and the Bank of Nova Scotia for the confidence they have displayed in continuing to support the poultry industry in this province." Media contact: Cynthia Layden-Barron, Communications, (709) 729-6183 1998 12 21 2:40 p.m.
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