NLIS 7
May 1, 2001
(Fisheries and Aquaculture)
The following statement was issued today by
Gerry Reid, Minister of Fisheries and Aquaculture. It was also read in the
House of Assembly:
I rise today to speak on an issue which
affects Newfoundlanders and Labradorians and the future of an industry which
is the backbone of our province’s economy.
This afternoon, the shareholders of Fishery
Products International elected a new board of directors. The new board will
now lead FPI as has been directed by the shareholders of that company.
This issue has received a great deal of
attention over the past number of weeks as it affects several plants and
hundreds of fish harvesters and plant workers in rural communities around
the province. Many concerns have been raised, and I stand here this
afternoon to reaffirm this government’s commitment to protect the people
of rural Newfoundland and Labrador, especially those directly affected by
the corporate actions of FPI.
In recognition of FPI’s corporate nature,
all interested parties recognized that there was no role for government to
play in the election of FPI’s board of directors. In fact, the leader of
the opposition, Danny Williams, also recognized that government should not
intrude in the situation, and I quote, ‘I think it is an internal
corporate battle. You can’t get involved in exactly what goes on in the
board of directors.’
To get involved would have seriously
undermined the rights of shareholders and potentially devastated the share
value of the company. This would have seriously impacted this province’s
reputation as a place to do business and hampered our ability to attract new
investment.
Now that a new board is in place at FPI, this
government remains actively committed to ensuring the protection of the
current FPI plants and the communities and workers which depend upon them.
We are also committed to ensuring that all of the current plants are
utilized to their fullest potential, irrespective of who sits on the board
of directors today or in the future.
Representatives of the new board have
repeatedly stated their intention to invest in the company and to grow FPI
in a manner which will positively impact the rural communities and people of
Newfoundland and Labrador. This government will hold the board accountable
and ensure that they fulfill their commitments.
In a circular distributed to the shareholders
of FPI, the new board said, and I quote, ‘We realise that FPI’s strength
and potential is derived from its strong partnership with the communities
and people of Newfoundland and Labrador. We do not intend to close any of
FPI’s processing plants...on the contrary, we are committed to reinvesting
and enhancing these facilities. Suggestions made....that we intend to shut
down Newfoundland-based operations are scare tactics of the worst kind, and
are absolutely untrue.’
The new board of directors at FPI have
repeatedly made this commitment to the shareholders of the company, to this
government and to the people of Newfoundland and Labrador. I can assure you
that we will be exceedingly vigilant in monitoring the actions of this
board, so as to protect the interests of the people of this province.
This government, and indeed the people of the
province, must hold this new board accountable for the commitments and
promises which they have made. FPI is a creation of this legislature for the
purpose of maximizing the benefits of the fishing industry for the people
and communities of this province. This government is committed to undertake
any legislative amendments necessary to achieve this end.
Furthermore, I have written and spoken to the
Minister of Fisheries and Oceans requesting that the Government of Canada
confirm its commitment that all current and future FPI quotas are harvested
and processed for the long-term benefit of Newfoundlanders and Labradorians.
We will hold the new board accountable and
will request that they outline for government how they plan to fulfill and
uphold the commitments which they have made to the communities and people of
this province.
2001 05
01
3:25 p.m.
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