The following statement was issued today by Gerry Reid, Minister of Fisheries and Aquaculture. It was also read in the House of Assembly:

I rise today to update my honourable colleagues on the recent sale of the fish plant in Twillingate to Notre Dame Seafoods, and the re-activation of the shrimp processing license for that plant.

Twillingate is one of the oldest and most historic fishing communities in Newfoundland and Labrador. The existing plant opened in 1975, and, for many years, was the economic engine of that town, employing more than 400 people.

When the plant closed in 1998, the economy of Twillingate was devastated and the people demoralized. Through no fault of their own, the people of Twillingate were forced to watch millions of pounds of fish trucked out of their community, despite having had all the applicable licenses.

I would like to give a brief history of this situation and, let me begin by saying, that this license to process shrimp is not a new license. Late in 1997, the owners of the plant, Conpak Seafoods, were issued a license to process crab and shrimp. However, due to the lateness of the 1997 season, no product was processed until 1998, when the plant produced crab and a small quantity of shrimp on a pilot basis.

Later that same year, due to an unsuccessful merger of Conpak Seafoods and Daley Brothers Ltd., the plant went into bankruptcy. Subsequently, the receiver sold the plant to a group of seven independent companies who have not operated the plant since the time of purchase. 

In January of 2001, the group of seven owners notified government that it had no intentions of operating the plant, and that it would be offered for sale. As a result, the Twillingate Plant Action Committee issued a Request for Proposals for new operators. Notre Dame Seafoods was the successful proponent and were issued a conditional license. I am pleased to say that they were able to finalize sale of the plant on this past Friday.

There are those who have voiced their opposition to re-activating the shrimp license for the people of Twillingate on the basis that it is politically motivated, and that there is over-capacity in the industry.

First of all, the reality is that the northern shrimp resource is the strongest fishery resource in our waters and is likely to remain as such for the next several years, or more. The problems experienced this summer with the shrimp fishery, related mainly to depressed market prices, which are always fluctuating, and are not necessarily indicative of the long term outlook for the shrimp processing sector.

Given the current health of the stock, and the potential for further increases to the total allowable catch, I am confident that there is a place for Twillingate in the shrimp processing industry.

Let me conclude by saying that just as I would not abuse my position as the Minister of Fisheries by showing favouritism to the people of Twillingate, nor can I neglect or disregard this community for fear of being accused of political motivations. 

Thank you.

2001 11 19                            3:05 p.m.