NLIS 5
September 6, 2001
(Fisheries and Aquaculture)
 

Minister responds to FPI's proposed acquisition of Clearwater Fine Foods

Gerry Reid, Minister of Fisheries and Aquaculture, today responded to the announcement by Fishery Products International (FPI), regarding their proposed acquisition of Clearwater Fine Foods. Clearwater Fine Foods is currently owned by John Risley.

"The province has one overriding consideration in dealing with this issue, and that is to make certain that what happens in this situation is in the best interest of the people of this province, especially rural Newfoundlanders and Labradorians," said Mr. Reid. "The company has said it is taking this action because it wants to increase its profitability, and the prosperity of its workers. The province shares this objective and on this basis, we will approach this issue in a reasonable manner. The FPI Act was created by the legislature of this province and this government has no intention of neglecting or forgetting its responsibility and authority over the future of this company and this industry."

Although there has not been a specific request in relation to the acquisition of Clearwater, it has been suggested in the last couple of days that the company wants to see the removal of the 15 per cent share restriction currently in place under the FPI Act. "My answer to that is an unequivocal no," added Mr. Reid. "The only changes we will contemplate to the FPI Act will be for the benefit of Newfoundlanders and Labradorians. The government is of the view that the FPI Act does not hamper the ability of FPI to prosper and grow."

"As the people of the province know, the FPI Act was created by the legislature of this province. This government has no intention of neglecting or forgetting its responsibility. As I said earlier this spring, FPI was created by government for the purpose of maximizing the benefits of the fishing industry for the people and communities of this province. Our main and overriding priority is to ensure that FPI employees and communities are protected."

The acquisition process may take up to six months, as it requires the approval of various regulatory agencies and the shareholders of the company. During this time, government will continue to assess the acquisition.

Media contact: Elizabeth Matthews, Communications, (709) 729-3733, or (709) 727-3438.

2001 09 06                                          12:35 p.m.