The following statement was issues today by Premier Danny Williams. It was also read in the House of Assembly:

I rise today to inform honourable members about recent discussions between government and FPI Limited regarding its proposal to restructure it�s US marketing operations and sell 40 per cent of this entity through an income trust.

The government�s view is that there is legal uncertainty surrounding whether the FPI proposal contravenes the FPI Act. The act serves as a mechanism to protect the interests of Newfoundland and Labrador in regard to the affairs of FPI Limited.

This government takes very seriously our commitment to protect and revitalize rural Newfoundland and Labrador. As FPI has a significant presence in many of our rural communities, government has been vigilant in monitoring this process since FPI announced its intentions.

We have been in constant contact with the company, as well as meeting with representatives from affected communities. Our main priority is to act in the best interests of those communities, plants and workers which are directly or indirectly impacted by FPI.

The purpose of recent discussions has been to identify additional commitments which FPI would be prepared to make in order to raise the certainty that the income trust transaction is in the best interests of the province.

The government has told FPI that it may be prepared to lay these commitments before the House and allow a free vote on a bill which would approve or disapprove the income trust transaction. At the current time the government has not reached a decision on whether the commitments are adequate to bring a bill before the House.

We will conclude this assessment quickly and then advise members of this house and the public whether the house will be reconvened in the near future to consider this matter.

2005 05 19                                      1:45 p.m.