NLIS 2
April 20, 2005
(Fisheries and Aquaculture)
New Ferolle fish plant
set to operate in 2005
The Government of Newfoundland and
Labrador has entered into a leasing arrangement that will see the
company that has been operating the New Ferolle fish plant continue
to do so this year.
As a result of a recent court ruling, the government is now in legal
possession of the fish plant. Trevor Taylor, Minister of Fisheries
and Aquaculture, remains committed to facilitating a meaningful,
long-term private sector outcome. "I am pleased that we have arrived
at a short-term solution for the New Ferolle fish plant. For some
time, we have been concerned about providing stability and benefits
to the community, while protecting government�s financial position,"
he says. "A recent court ruling awarded the plant to government and,
while we look for a buyer, we are going to lease the facility to Ice
Cap Fish Company Limited until March 31, 2006. This means that plant
workers in New Ferolle will continue to be employed for the 2005
season."
Wally Young, MHA for St. Barbe, adds: "I am satisfied that a
reasonable solution has been found. Now we need to work on the long
term, finding a buyer who will come in and operate the plant with a
realistic business plan. In the meantime, this is good news for New
Ferolle."
Under the Financial Administration Act, the government has an
obligation to make every effort to collect monies owed to it. Any
revenues obtained from the facility�s sale will be used to offset
debts owing and will balance the interests of the plant workers, the
community, and the general public. In a judgment reached on March
18, 2005, the Supreme Court of Newfoundland recognized that the
province is owed $771,000 from the payout on a loan guarantee in
1997. As well, the Business Investment Corporation (formerly
Enterprise Newfoundland and Labrador) invested approximately $1.2
million in preference shares of James Doyle (Sr.) and Sons Limited.
There are also significant registered judgments against that
company.
The Ice Cap Fish Company Limited has operated the New Ferolle plant
under lease from James Doyle (Sr.) and Sons Limited for the past two
years. The plant has primarily processed groundfish and pelagics,
and to a lesser extent lobster and snow crab.
Media contact:
Alex Marland, Fisheries and Aquaculture, (709) 729-3733, 690-6047
Wally Young, MHA, St. Barbe, (709) 729-1731
Background information:
2005 04 20
9:05 a.m. |
