NLIS 4
January 17, 2002
(Fisheries and Aquaculture)
Government to establish joint committee to examine FPI issues
Gerry Reid, Minister of Fisheries and Aquaculture, today released written correspondence to Fishery Products International Ltd. (FPI), the Newfoundland and Labrador Federation of Municipalities, and the two opposition parties in the provincial legislature. The minister is requesting that all parties come together, so as to allow the parties to thoroughly examine FPI's proposed acquisition of Clearwater Fine Foods.
"As promised by Premier Grimes earlier this week, the province has undertaken to convene a meeting involving FPI, union representatives, the Federation of Municipalities and all political parties, so as to garner a better understanding of the proposed Clearwater Fine Foods acquisition," said Reid. "FPI has a significant impact on the well-being of rural Newfoundland and Labrador, and it is important that we do not fall into the trap of politicizing the issues surrounding FPI. By coming together and working cooperatively, we will ensure that we all understand the proposed deal and assess whether it is in the best interest of the people of province. This approach will best serve FPI workers and their communities."
Minister Reid plans to convene the meeting in the coming days.
NOTE:
The following letters are included with this release:
� a letter from Minister Gerry Reid to Mr. Derrick Rowe, dated January 16, 2002.
� a letter from Minister Gerry Reid to Mr. Earle McCurdy, dated January 16, 2002.
� a letter from Minister Gerry Reid to Mr. Randy Simms, dated January 16, 2002.
� a letter from Minister Gerry Reid to Mr. Danny Williams, dated January 16, 2002.
� a letter from Minister Gerry Reid to Mr. Jack Harris, dated January 16, 2002.
Media contact: Elizabeth Matthews, Communications, (709) 729-3733, or (709) 727-3438.
2002 01 17
4:15 p.m.
January 16, 2002
Mr. Derrick H. Rowe
Chairman of the Board
Fishery Products International Ltd.
70 O'Leary Avenue, P.O. Box 550
St. John's, NF
A1C 5L1
Dear Mr. Rowe:
I am writing further to our meeting on January 14, 2002 at which time the Premier, along with the Deputy Premier and myself, clearly outlined the Government's position regarding the groundfish investment proposal your company presented to the Fish, Food and Allied Workers' Union (FFAW) on January 9, 2002.
As we indicated in our meeting, the proposal presented to the Union last week is at such variance with FPI's previous commitments that the Government is prepared to take any and all measures necessary to ensure that the company acts in the public interest. To repeat, we find FPI's current proposal to be totally unacceptable.
The Government's view is that FPI must start over and develop an alternative groundfish investment plan. The company must also demonstrate to the Government that any efforts to introduce efficiencies and new technologies respects the commitments FPI had made, and that it recognizes FPI's important role as an employer in rural Newfoundland and Labrador. We expect that you and your company will work directly with the Union and the communities involved in the development of this alternative plan.
While the Government's strong preference is to see FPI start over with respect to its groundfish investment plan, failing that we will take whatever action is necessary, including
legislative measures to hold FPI to its commitments. This could include, among other options, introducing into the FPI Act the type of oversight provisions contained in the 1983 Newfoundland Fishery Restructuring Agreement.
When we met, we also briefly discussed FPI's proposed acquisition of Clearwater Fine Foods Inc. In light of the developments of this past week, the Government believes it would be timely for representatives of all three parties in the provincial legislature, the FFAW and the Newfoundland and Labrador Federation of Municipalities to meet privately, and in-confidence, with the FPI Board Committee on Corporate Governance, chaired by Mr. Rex Anthony. This will ensure that, collectively, we understand the structure of the proposed deal so that we may collectively assess whether the transaction is in the public interest. I trust that such a meeting can be arranged in the coming days.
I am confident that you understand clearly the position of the Government of Newfoundland and Labrador on these matters of such importance to the people of the province. I strongly encourage you to proceed quickly to work with the Union and the communities involved on an alternative groundfish investment plan respecting the interests of the plant workers and rural communities who depend on FPI for their livelihood.
For your information, I have copied this letter to the Leader of the Official Opposition, the Leader of the New Democratic Party, the President of the FFAW and the President of the Newfoundland and Labrador Federation of Municipalities.
Sincerely,
Gerry Reid
Minister
c.c. Mr. Danny Williams, MHA
Mr. Jack Harris, MHA
Mr. Earle McCurdy
Mr. Randy Simms
January 16, 2002
Mr. Earle McCurdy
President
Fish, Food and Allied Workers
P.O. Box 10, Cormack Building
2 Steers Cove
St. John's, NF
A1C 5H5
Dear Mr. McCurdy:
For your information, attached you will find a copy of a letter I have sent to Mr. Derrick Rowe, Chairman of the Board for Fishery Products International Ltd., which reiterates Government's position on the groundfish investment proposal presented by FPI on January 9, 2002.
When the Premier, along with the Deputy Premier and myself, met with FPI on January 14, 2002, we also briefly discussed FPI's proposed acquisition of Clearwater Fine Foods Inc. We believe it would be appropriate and timely for all three parties in the provincial legislature, the FFAW and the Newfoundland and Labrador Federation of Municipalities (NLFM) to meet with the FPI Board Committee on Corporate Governance, chaired by Mr. Rex Anthony. This will enable FPI to fully explain the proposed acquisition, and will ensure that we, collectively, can understand the proposed deal and assess whether it is in the public interest.
I am sure you will agree that this issue is too important to be politicized. It is my view that we should undertake this initiative together in the best interests of the workers and their communities. I am optimistic of a positive response from FPI and I ask that you consider participating in such a meeting along with representatives of the three parties in the provincial legislature and the NLFM.
I am striving to set up a meeting as soon as possible with FPI.
Sincerely,
Gerry Reid
Minister
Attachment
January 16, 2002
Mr. Randy Simms
President
Newfoundland and Labrador
Federation of Municipalities
460 Torbay Road
St. John's, NF
A1A 5J3
Dear Mr. Simms:
For your information, attached you will find a copy of a letter I have sent to Mr. Derrick Rowe, Chairman of the Board for Fishery Products International Ltd., which reiterates Government's position on the groundfish investment proposal presented by FPI on January 9, 2002.
When the Premier, along with the Deputy Premier and myself, met with FPI on January 14, 2002, we also briefly discussed FPI's proposed acquisition of Clearwater Fine Foods Inc. We believe it would be appropriate and timely for all three parties in the provincial legislature, the FFAW and the Newfoundland and Labrador Federation of Municipalities (NLFM) to meet with the FPI Board Committee on Corporate Governance, chaired by Mr. Rex Anthony. This will enable FPI to fully explain the proposed acquisition, and will ensure that we, collectively, can understand the proposed deal and assess whether it is in the public interest.
I am sure you will agree that this issue is too important to be politicized. It is my view that we should undertake this initiative together in the best interests of the workers and their communities. I am optimistic of a positive response from FPI and I ask that you consider participating in such a meeting along with the FFAW and representatives of the three parties in the provincial legislature.
I am striving to set up a meeting as soon as possible with FPI.
Sincerely,
Gerry Reid
Minister
Attachment
January 16, 2002
Mr. Danny Williams, M.H.A.
Leader
Progressive Conservative Party of
Newfoundland and Labrador
P.O. Box 8700
St. John's, NF
A1B 4J6
Dear Mr. Williams:
For your information, attached you will find a copy of a letter I have sent to Mr. Derrick Rowe, Chairman of the Board for Fishery Products International Ltd., which reiterates Government's position on the groundfish investment proposal presented by FPI on January 9, 2002.
When the Premier, along with the Deputy Premier and myself, met with FPI on January 14, 2002, we also briefly discussed FPI's proposed acquisition of Clearwater Fine Foods Inc. We believe it would be appropriate and timely for all three parties in the provincial legislature, the FFAW and the Newfoundland and Labrador Federation of Municipalities (NLFM) to meet with the FPI Board Committee on Corporate Governance, chaired by Mr. Rex Anthony. This will enable FPI to fully explain the proposed acquisition, and will ensure that we, collectively, can understand the proposed deal and assess whether it is in the public interest.
I am sure you will agree that this issue is too important to be politicized. It is my view that we should undertake this initiative together in the best interests of the workers and their communities. I am optimistic of a positive response from FPI and I ask that you consider participating in such a meeting along with the FFAW, representatives of the three parties in the provincial legislature, and the NLFM.
I am striving to set up a meeting as soon as possible with FPI.
Sincerely,
Gerry Reid
Minister
Attachment
January 16, 2002
Mr. Jack Harris, M.H.A.
Leader
New Democratic Party of
Newfoundland and Labrador
P.O. Box 8700
St. John's, NF
A1C 4J6
Dear Mr. Harris:
For your information, attached you will find a copy of a letter I have sent to Mr. Derrick Rowe, Chairman of the Board for Fishery Products International Ltd., which reiterates Government's position on the groundfish investment proposal presented by FPI on January 9, 2002.
When the Premier, along with the Deputy Premier and myself, met with FPI on January 14, 2002, we also briefly discussed FPI's proposed acquisition of Clearwater Fine Foods Inc. We believe it would be appropriate and timely for all three parties in the provincial legislature, the FFAW and the Newfoundland and Labrador Federation of Municipalities (NLFM) to meet with the FPI Board Committee on Corporate Governance, chaired by Mr. Rex Anthony. This will enable FPI to fully explain the proposed acquisition, and will ensure that we, collectively, can understand the proposed deal and assess whether it is in the public interest.
I am sure you will agree that this issue is too important to be politicized. It is my view that we should undertake this initiative together in the best interests of the workers and their communities. I am optimistic of a positive response from FPI and I ask that you consider participating in such a meeting along with the FFAW, representatives of the three parties in the provincial legislature, and the NLFM.
I am striving to set up a meeting as soon as possible with FPI.
Sincerely,
Gerry Reid
Minister
Attachment
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