May 21, 1998
(Fisheries and Aquaculture)

The following statement was issued today by John Efford, Minister of Fisheries and Aquaculture. It was also read in the House of Assembly:

I am pleased to announce today government's decision with respect to the community fish plant at Lawn, one of only three remaining government-owned processing facilities on the Island portion of our province.

Over the years, this plant was leased to a number of companies, but it has been idle since 1994 because of the impact of groundfish moratoria.

I am happy to announce that government is selling the Lawn facility to Grand Atlantic Incorporated, the company that owns the fish plant in the nearby Town of St. Lawrence. Essentially, the Lawn plant will now be integrated with the St. Lawrence operation, which employed an average of 250 people per week in 1997, with employment peaking at times to more than 500.

This divestituture will be beneficial to the economies of the towns of Lawn and St. Lawrence and the surrounding region. Grand Atlantic, having invested several million dollars or more in refurbishing the St. Lawrence plant to permit the processing of snow crab primarily, is actively pursuing the diversification of its operations into other species. Access to the Lawn facility will therefore further strengthen the role which it will play in the local economy, given prospects for the recovery of 3Ps cod.

Grand Atlantic's operational plans for Lawn will not only enhance the viability of the St. Lawrence plant but will also provide additional jobs for plant workers from Lawn, exclusive of approximately 75 workers from Lawn who have already received employment at St. Lawrence. Initially, an additional 20 plant workers will find employment at Lawn, where the principal emphasis will be on the production of salted fish. In this context, Grand Atlantic will invest approximately $500,000 in the refurbishing of the Lawn plant without assistance from the province. It is anticipated that the workforce at both locations will total upwards of 500 in 1998, thereby having a major economic impact on the region's economy.

It is government's full intention to remove itself completely from the ownership of community-based fish processing facilities, and to see the industry driven fully by private sector investment. Government's decision with respect to Lawn is fully consistent with this policy objective. It is also consistent with government's regional fish processing objectives in that the combined operations of both plants will ensure that the regional processing capacity is optimized.

1998 05 21                  2:20 p.m.