Provincial government to examine FPI and FFAW proposal

The recent proposed agreement between Fisheries Products International (FPI) and the Fish, Food and Allied Workers (FFAW) will be examined in the coming weeks by senior officials in the Government of Newfoundland and Labrador.

Trevor Taylor, Minister of Fisheries and Aquaculture and Minister Responsible for Labrador, acknowledges that this is a complicated issue that deserves time for a careful decision. "The role of a government is to be responsive to the people it represents. This means that we have to consider the views of the fish plant workers and their union. We need to listen to communities such as Fortune, Burin and Harbour Breton. We need to reflect on the importance of FPI being a strong, vibrant operation," said the minister. "But, we also need to balance these considerations with the short and long-term interests of the fishing industry and the province as a whole, particularly our rural areas."

The minister explained that the provincial government will continue to encourage prudent and strategic decisions. "The provincial government has been active in getting FPI, the FFAW and Fortune to work out a deal. I personally have had discussions with all parties involved and will continue to meet with those involved," said the minister. "During the week of February 7, I anticipate that I�ll be speaking in Cabinet about this issue. I will also continue to balance the views of the various people, communities and organizations involved."

The minister added: "We are committed to protecting the best interests of our province�s seafood industry and rural areas. As I have stated before, it would be irresponsible for a minister of the Crown to publicly speculate about the future of a publicly-traded company. We will make a public announcement about how we intend to address this matter in due course."

Minister Taylor also pointed to the complexity of the matter, given that different legal opinions have been received about whether FPI�s proposal to divest its U.S.-based marketing division complies with the FPI Act. The provincial government stated in 2004 that such a proposed transaction would be subject to a free vote in the House of Assembly.

Media contact: Alex Marland, Communications (709) 729-3733 or (709) 690-6047

2005 02 04                     2:40 p.m.