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NLIS 6
September 6, 2001
(Fisheries and Aquaculture)

 


Minister announces the establishment of the "Special Panel on Corporate Concentration in the Fishing Industry"

Gerry Reid, Minister of Fisheries and Aquaculture, today announced the establishment of the "Special Panel on Corporate Concentration in the Fishing Industry." The panel will be chaired by Les Dean, former deputy minister of Fisheries and Aquaculture. Mr. Dean will be joined on the panel by Sam Walters and Harold Wareham, both long-standing and well respected members of the business community..

"In recent years, the forces of global competitiveness have resulted in a bigger is better philosophy in many sectors of the economy, such as the banking, telecommunications and newspaper industries," said Mr. Reid. "This has also been the case in this province's fishery, where a number of significant changes have taken place over the past two or three years."

"When I was appointed as the Minister of Fisheries and Aquaculture back in February of this year, I decided to take a short period of time to look closely at the fishery and the challenges facing the industry," said Mr. Reid. "I have spent the last few months meeting with industry stakeholders, visiting rural communities and talking to people throughout the province about the fishery. Now is the appropriate time to move forward on one of the major issues which is spoken of throughout the industry - the corporate concentration in our fishery. This is a global issue which affects all sectors of business, and in establishing this panel we will be in a position to take a rational and responsible approach to the development of future public policy in our provincial fishery."

The panel is mandated to examine corporate concentration in the fishing industry in Newfoundland and Labrador; that is the consolidation of the fishery into fewer hands. Specifically, the panel shall make recommendations to the Government of Newfoundland and Labrador that are consistent with the government's objective of mitigating any negative social and community consequences which may arise from corporate concentration, while ensuring the continuation of a sound business and investment climate. The panel may also make recommendations on the appropriate role of the Government of Canada and the industry related to corporate concentration.

"This panel is just one component of this government's overall approach to fostering sound fisheries policy," added Mr. Reid. "Other important, ongoing initiatives include the processing licence review, the work of the Independent Panel on Access Criteria, the Atlantic Fisheries Policy Review, our continued strong presence in NAFO, and the implementation of a new
aquaculture strategy. This panel will complement those important initiatives as we continue to develop the fishery for the benefit of Newfoundlanders and Labradorians."

In their deliberations, the panel will consult with key industry participants. The panel's report will be released publicly and tabled in the House of Assembly and will contribute to the development and implementation of a renewed fisheries policy that is consistent with government's overall Jobs and Growth Renewal Strategy.

The provincial fishery has undergone a dramatic transformation since the collapse of the groundfish fishery in the early 1990s. As well, significant structural changes have occurred since the 1980s when the industry virtually collapsed due to the heavy debt load incurred by corporations. 

"We have successfully moved from a groundfish based industry to one based primarily on shellfish, and certainly there have been associated growing pains," said Mr. Reid. "Concerns regarding corporate concentration have become more prevalent and we are very serious about addressing those concerns so as to not repeat the mistakes from the 1980s when government was compelled to intervene financially into an industry which was devastated by debt. This panel will serve to help us better understand the level of corporate concentration in the industry and the associated implications."

Although this will be an intensive piece of work, due to the importance of the issue, it is anticipated that the panel will complete a comprehensive study by October 31, 2001, especially as it impacts so many Newfoundlanders and Labradorians.

See attached backgrounder for additional information.
Media contact: Elizabeth Matthews, Communications, (709) 729-3733, or (709) 727-3438.

2001 09 06                                               12:35 p.m. 

Backgrounder
Special Panel on Corporate Concentration
in the Fishing Industry in the Province

Terms of Reference of the Panel:

The panel is mandated to examine corporate concentration in the fishing industry in Newfoundland and Labrador. Specifically, the panel shall make recommendations to the Government of Newfoundland and Labrador that are consistent with the government's objective of mitigating any negative social and community consequences which may arise from corporate concentration in the industry. The panel may also make recommendations on the appropriate role of the Government of Canada and the industry related to corporate concentration.
In their deliberations, the panel shall consult with key industry participants. The panel, in discharging its mandate, shall take into account the need to maintain, promote and foster a positive overall business and investment climate in the province, for the benefit of the people of the province.

In particular, the panel is mandated to:

1. assess the degree to which corporate concentration, including foreign ownership, has changed over time in the fishing industry in Newfoundland and Labrador, and the degree to which corporate concentration has impacted the structure of the fishing industry;

2. assess the extent to which corporate concentration in the industry is consistent with the Jobs and Growth Renewal Strategy, particularly as it relates to social and community impacts, taking into specific consideration fisheries development objectives and policies including but not limited to: - an economically viable, diversified and internationally competitive industry;

- a sustainable fishery, including a balance between industry capacity and resource availability; - a regionally balanced approach to industry development within the province; 

- the potential negative impacts on people and communities arising from high corporate debt levels in the fishing industry; and 

- an approach which ensures the fishery resources off Newfoundland and Labrador are available for the maximum benefit of coastal rural communities in Newfoundland and Labrador, in keeping with the long standing principle of adjacency. 


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