March 15, 2000
(Forest Resources and Agrifoods)

I am extremely pleased to be standing here today to update the House of Assembly on government�s success in ensuring a continued poultry industry in this province and the jobs related to it.

As Members of the House are aware, on Friday past, the receivers for the IPL Group of Companies, Ernst and Young, with the support of the Bank of Nova Scotia and the Province, were successful in finalizing a sale of the companies assets to the Atlantic Co-operative Alliance (ACA).

ACA has in excess of 70 years experience in all facets of the poultry business and brings to this province the necessary expertise and new capital required to grow our industry. With a significant investment of $11 million, which includes a commitment of $3 million towards further capital improvements, ACA has become the largest poultry producer in Atlantic Canada.

That is good news for the government, for consumers, and for the businesses that will benefit from an industry with sales of $40 million annually. It is also great news for the 400 employees who depend on this industry to make a living.

The poultry industry will survive and prosper under ACA�s leadership because this government stood its ground. After 30 years and over $200 million in taxpayers money we could not justify continued financial support. We insisted that there had to be a private sector solution. ACA is that solution.

Government went to considerable lengths to support IPL. We provided grants, guaranteed loans, purchased grain and provided IPL and its shareholders with time to find an investor or purchaser. Unfortunately, IPL could not succeed without more financial support from government. The shareholders are, however, fortunate in that the sale of assets to ACA was conditional upon the Farm Credit Corporation agreeing to write-off approximately $4.2 million owed by shareholders. This is debt which was accumulated before the creation of IPL. I am pleased that this burden has been lifted off the shareholders.

ACA has not requested any additional financial support from government. We have agreed to write-off $13 million in outstanding debt. In return, ACA has provided a firm commitment to grow our poultry industry; a commitment to new investment, a commitment to employment and a commitment to serve the agricultural community with grain and feed. ACA will be licensed to use our chicken quota but ownership has and will continue to be retained and controlled by the province.

Finally I want to publically welcome ACA to this province and to acknowledge their confidence in the poultry industry. As well, I want to thank all colleagues and public servants who over the last year have worked steadfast with the goal that we could indeed continue a poultry industry in this province. Their commitment has been instrumental in getting us to where we are today. The alternative would have proven to be very costly to all taxpayers of the province.

2000 03 15                                                     2:30 p.m.