July 19, 1996
(Tourism, Culture and Recreation)

Eagle River Proposal

Upon the closure of the Department of National Defence's fishing camp on the lower Eagle River, the Government of Newfoundland and Labrador saw an opportunity to allow a commercial outfitting operation to be established for the economic benefits to be derived at the local, regional and provincial level.

On January 20, 1996, the Department of Tourism, Culture and Recreation announced a public proposal call for persons interested in establishing a sportfishing lodge on the Eagle River. A comprehensive package with specific Terms and Conditions outlining the development opportunity was supplied to interested parties.

Three proposals were received and assessed by staff of the Tourism Department and Marketing Divisions in consultation with the Department of Forest Resources and Agrifoods. Two of the proposals were from island companies and one from Labrador. The proposal by KGY Group LTD. of Corner Brook was accepted, being judged as the best overall.

KGY's successful bid was disputed at a public meeting at which the staff of the Tourism Development Division and the proponents met with the Eagle River Development Association and the general public in Cartwright on May 30. Sentiment at the meeting indicated that a local Labrador company, the Investment Group, should have been awarded the proposal. The KGY Group has offered to address this public concern by agreeing to a 50/50 split of the quota of 300 salmon granted to the group in their recent bid, provided it were awarded to the Investment Group of Cartwright. This request to share the quota was considered by the government and the province is agreeable to this proposal and will authorize the Investment Group to build a lodge on the Eagle River, at a site agreeable to Tourism, Crown Lands and the Investment Group.

Negotiations are still currently underway. Several meetings have taken place between the KGY Group and various representatives to further discuss the issue of Eagle River. During these discussions, KGY has reiterated their offer to share their annual catch quota on a 50/50 basis with the Investment Group and they confirmed their commitment to hire local staff in the construction and operation of the lodge.