New fisheries initiatives for Coastal Labrador

R. John Efford, Minister of Fisheries and Aquaculture, today joined with representatives of two of the province�s major fish processing companies in announcing their partnership agreement to pursue new business development ventures for Coastal Labrador, including a state of the art shrimp processing factory at Charlottetown, Labrador.

The announcement was made at Happy Valley-Goose Bay at the opening of the Voisey�s Bay and Beyond conference being held in the town. The announcement involves the Labrador Fishermen�s Union Shrimp Company (LFUSCo) based at L�Anse au Loup, Labrador, and the Barry Group Inc. with headquarters in Corner Brook and which operates 24 fish processing facilities in Newfoundland, Nova Scotia and New Brunswick.

Minister Efford was joined by Frank Flynn, chairman of the Labrador Fishermen�s Union Shrimp Company, and Bill Barry, president of Barry Group Inc., for the announcement. In addition to announcing the partnership�s agreement to proceed immediately with the construction of the Charlottetown shrimp processing factory, costing approximately $7 million, Minister Efford, on behalf of the partnership, also announced that the LFUSCo/Barry Group partnership is proceeding with immediate plans to acquire a medium size wetfish shrimp trawler to harvest shrimp allocations held by a number of local fishermen to supply some of the raw material requirements of the Charlottetown plant. The partnership is also exploring the possibility of acquiring a freezer trawler over the forseeable future to harvest and process a share of shrimp and turbot quotas already allocated to the partnership companies and third parties in the region.

On a related initiative, the partnership has also reached an agreement whereby the majority of the Barry Group�s northern turbot allocation will be allocated to the new partnership. A portion of this allocation will be harvested by middle distance vessels and landed at L�Anse au Loup for full processing. All future turbot allocations to Barry Group Inc. are committed to this new partnership. This additional volume of repatriated turbot will provide additional employment for this existing plant on a sustained basis and will also provide greater stability for the company�s overall operations.

Minister Efford said: "These developments clearly show how important the fishery will be to the economy of Coastal Labrador into the future. This partnership arrangement will be an excellent vehicle through which the region�s economy will be strengthened and diversified." The minister also said he is extremely pleased that the entire Barry Group Inc. northern turbot allocation will now be processed in the province, with a significant amount to be earmarked for processing at L�Anse au Loup.

Bill Barry stated that the construction of the modern shrimp factory will mean that shrimp quotas held by Labrador interests can now be processed in a Labrador plant immediately adjacent to the shrimp resource. He further noted that he is extremely pleased that the fisheries policy of the Government of Newfoundland and Labrador will ensure that employment opportunities in Labrador associated with the shrimp resource off its shores are maximized.

Minister Efford noted that any future increase in shrimp quotas off Labrador should be allocated to meet the needs of onshore processing in Labrador and added that the province will continue to apply its policy that fish harvested by Labrador boats in Labrador waters and shrimp quotas assigned to Labrador residents must be processed in Labrador where processing capacity is available. "This policy makes perfect sense because it will maximize the benefits to all residents of Labrador," said the minister.

Frank Flynn said that a separate operating company will be established for the purpose of exploring opportunities to acquire a freezer trawler to fish northern shrimp and turbot. "I am quite confident that sufficient raw material from within and outside the partnership will be available to make this a solid business opportunity over the foreseeable future." He also noted that this integrated approach to fisheries development in Labrador will ensure that Labrador communities will derive the full benefits from quotas assigned to Labrador interests in particular.

Minister Efford expressed elation over the employment and economic potential for Coastal Labrador which will arise from the partnership�s initiatives and said this announcement is a milestone in the economic development of Labrador.

The minister added: "These new opportunities are based around renewable fisheries resources and therefore provide the foundation for enhanced economic stability throughout Coastal Labrador. As well, the development of the shrimp processing operation will be enhanced by the new Labrador highway initiative and transportation initiatives.

Mr. Flynn and Mr. Barry also noted that these fisheries development initiatives could not have come to fruition without the cooperation of the province, the federal government, and the Town of Charlottetown in constructing a new $1.7 million water supply system for the plant under the Post-Tags Economic Development Agreement. They praised the efforts of Labrador MP Lawrence O�Brien and Cartwright-L�Anse au Clair area MHA Yvonne Jones in accessing funding for this water supply.

Premier Brian Tobin, Labrador MP Lawrence O�Brien, Yvonne Jones, MHA - Cartwright-L�Anse au Clair, Wally Andersen, MHA - Torngat Mountains and Ernie McLean, Minister Responsible for Labrador, joined Minister Efford in wishing the new partnership solid success.

The new shrimp processing factory at Charlottetown will be ready for production for the 2001 fishing season and will employ approximately 100 workers. Altogether, over 300 jobs will be enhanced and created by the partnership�s fisheries development plans.

Media contact:

Sonia Glover-Sullivan, Communications (709) 729-3733

Barry Group Inc.: Karl Sullivan, (709) 576-7292

Labrador Fishermen�s Union Shrimp Company: Frank Flynn, (709) 927-5816

2000 06 26                 12:15 p.m.