Executive Council
Municipal and Intergovernmental Affairs

December 12, 2014

Advocating for the People of Newfoundland and Labrador

Premier Expects Federal Government to Honour Commitment

The Honourable Paul Davis, Premier of Newfoundland and Labrador, is in Ottawa today insisting that the Federal Government honour a deal it had with his province related to the CETA trade agreement between Canada and the European Union (EU).

Premier Paul Davis explained that to advance CETA negotiations, the Federal Government came to the province asking for the elimination of a longstanding provincial public policy on minimum fish processing requirements (MPRs require whole fish to be at least semi-processed in Newfoundland and Labrador before export).

The province agreed and in exchange made a deal with Ottawa to create a multi-million dollar fishery renewal fund that would support research, marketing, infrastructure and other renewal throughout the province’s fishing industry. In recent days the Federal Government has acknowledged the arrangement calling it an “agreement in principle.”

The deal calls for the creation of a $400 million fishery renewal fund, with the Federal Government contributing $280 million if the province contributed the remaining $120 million. In a letter to the province in June 2013, federal trade minister Ed Fast acknowledged the deal and explained that the fund would “address industry development and renewal as well as worker displacement.”

Premier Davis said the Federal Government is now attempting to impose conditions that will make it impossible for the province to access the fund.

The Premier and the Honourable Keith Hutchings, Minister of Municipal and Intergovernmental Affairs, are in Ottawa today to meet with Prime Minister Stephen Harper to address the issue.

“Our government negotiated in good faith and we clearly reached a deal. The deal is acknowledged in the correspondence to the province from Minister Fast. And just this week Senator David Wells, speaking on behalf of the Federal Government, referred to it as an agreement in principle. We announced this deal in St. John’s last year and I cannot understand why the Federal Government, if it was concerned with that announcement, was so quiet about it until 17 months later.

“I am in Ottawa today to meet the Prime Minister and I’m asking all Newfoundland and Labrador Senators and Members of Parliament to support Newfoundland and Labrador in achieving what we rightfully negotiated, a $400 million fishery renewal fund cost-shared between the Government of Canada and the Government of Newfoundland and Labrador.”
-The Honourable Paul Davis, Premier of Newfoundland and Labrador

The province is also concerned that Minister Fast is no longer engaged in the file and has not expressed his understanding of the agreement. Minister Hutchings, who personally participated in the negotiations, said the fishery renewal fund agreement is misunderstood by the new federal spokesperson on the issue, New Brunswicker Rob Moore, Minister of the Atlantic Canada Opportunities Agency and Minister Responsible for Newfoundland and Labrador in the federal cabinet

“With all due respect to Minister Moore, the negotiations between the Province of Newfoundland and Labrador and the Federal Government were led by Ed Fast and me. Where is Minister Fast and why is he not speaking to this issue? Minister Moore was not a part of the negotiations or discussions and he doesn’t seem to understand what was agreed.”
-The Honourable Keith Hutchings, Minister of Municipal and Intergovernmental Affairs

Premier Davis emphasized that this deal is about the future of the fishery and the rural communities throughout Newfoundland and Labrador that depend on it. He warned that if the Federal Government does not honour its commitments, then the Province of Newfoundland and Labrador will have to reconsider relinquishing minimum processing requirements and it will have to review other commitments it made related to CETA on energy and procurement for the purposes of regional economic development.

QUICK FACTS

  • As part of the CETA negotiations with Canada, the EU requested that the minimum processing requirements (MPRs) on fish from Newfoundland and Labrador be eliminated.
  • The Federal Government approached Newfoundland and Labrador and asked what it would take to consider changing the province’s long-standing public policy on MPRs.
  • After extensive negotiations, Newfoundland and Labrador agreed to relinquish its MPRs for the EU in exchange for the Federal Government contributing $280 million into a fund for fishery renewal in the province.
  • Now the Government of Newfoundland and Labrador is concerned that because CETA has advanced, the Federal Government is attempting to impose new conditions on that fund that will make it impossible for the province to access any of the funding.

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Media contacts:

Heather Maclean
Director of Communications
Office of the Premier
709-729-3581
heathermaclean@gov.nl.ca
Donna Ivey
Special Assistant, Communications
Office of the Premier
709-729-3551, 699-2402
donnaivey@gov.nl.ca

Kevin Guest
Director of Communications
Department of Municipal and Intergovernmental Affairs
709-729-1983, 730-2320
KevinJGuest@gov.nl.ca

2014 12 12                                     5:40 p.m.