NLIS 7
May 1, 2001
(Fisheries and Aquaculture)

I rise today to speak on an issue which affects Newfoundlanders and Labradorians and the future of an industry which is the backbone of our province�s economy.

This afternoon, the shareholders of Fishery Products International elected a new board of directors. The new board will now lead FPI as has been directed by the shareholders of that company.

This issue has received a great deal of attention over the past number of weeks as it affects several plants and hundreds of fish harvesters and plant workers in rural communities around the province. Many concerns have been raised, and I stand here this afternoon to reaffirm this government�s commitment to protect the people of rural Newfoundland and Labrador, especially those directly affected by the corporate actions of FPI.

In recognition of FPI�s corporate nature, all interested parties recognized that there was no role for government to play in the election of FPI�s board of directors. In fact, the leader of the opposition, Danny Williams, also recognized that government should not intrude in the situation, and I quote, �I think it is an internal corporate battle. You can�t get involved in exactly what goes on in the board of directors.�

To get involved would have seriously undermined the rights of shareholders and potentially devastated the share value of the company. This would have seriously impacted this province�s reputation as a place to do business and hampered our ability to attract new investment.

Now that a new board is in place at FPI, this government remains actively committed to ensuring the protection of the current FPI plants and the communities and workers which depend upon them. We are also committed to ensuring that all of the current plants are utilized to their fullest potential, irrespective of who sits on the board of directors today or in the future.

Representatives of the new board have repeatedly stated their intention to invest in the company and to grow FPI in a manner which will positively impact the rural communities and people of Newfoundland and Labrador. This government will hold the board accountable and ensure that they fulfill their commitments.

In a circular distributed to the shareholders of FPI, the new board said, and I quote, �We realise that FPI�s strength and potential is derived from its strong partnership with the communities and people of Newfoundland and Labrador. We do not intend to close any of FPI�s processing plants...on the contrary, we are committed to reinvesting and enhancing these facilities. Suggestions made....that we intend to shut down Newfoundland-based operations are scare tactics of the worst kind, and are absolutely untrue.�

The new board of directors at FPI have repeatedly made this commitment to the shareholders of the company, to this government and to the people of Newfoundland and Labrador. I can assure you that we will be exceedingly vigilant in monitoring the actions of this board, so as to protect the interests of the people of this province.

This government, and indeed the people of the province, must hold this new board accountable for the commitments and promises which they have made. FPI is a creation of this legislature for the purpose of maximizing the benefits of the fishing industry for the people and communities of this province. This government is committed to undertake any legislative amendments necessary to achieve this end.

Furthermore, I have written and spoken to the Minister of Fisheries and Oceans requesting that the Government of Canada confirm its commitment that all current and future FPI quotas are harvested and processed for the long-term benefit of Newfoundlanders and Labradorians.

We will hold the new board accountable and will request that they outline for government how they plan to fulfill and uphold the commitments which they have made to the communities and people of this province.

2001 05 01                                         3:25 p.m.