Feds, N.L. inch closer on pact over FPI quotas

Newfoundland and Labrador, and the federal governmentare moving closer to an agreement that could end the squabbling over the quotas of the province's flagship seafood processing company.

The province which has insisted on taking control of Fishery Products International's groundfish quotas is considering a federal proposal designed to ensure that fish caught under those quotas would be landed and processed inside the province long after FPI is sold.

The provincial government, which retains some control over the former Crown corporation through the FPI Act, has refused to approve a sale until the quota condition is met.

Provincial government sources described the proposal as a good one.

Federal Fisheries Minister Loyola Hearn told CBC News neither side wants to reveal details that may jeopardize the talks.

"It would be very easy to throw a monkey wrench into it by saying something that somebody might take incorrectly," Hearn said Monday.

"All I can say is, each time we met, and each time others met without us, things seemed to move further ahead. Being the eternal optimist, I'd be expecting things will come together very soon."

The talks come as FPI's unionized plant workers prepare to vote on a new tentative agreement with Ocean Choice International, which is aiming to buy five plants and an offloading facility.

Members of the Fish, Food and Allied Workers union will vote on the tentative deal, which was reached Friday night, on Tuesday. President Earle McCurdy had little comment on the tentative package.

"I'm not anticipating any problems, but it's not done, so other than saying there's a tentative agreement and we'll vote next week that's as much as I can say," McCurdy said.

FPI has made tentative deals with Ocean Choice and with High Liner Foods, which wants to buy FPI's secondary processing plant in Burin.

Because of the FPI Act, the provincial government may veto the sale of any major asset.

Hearn sent his latest proposal to the provincial government last Tuesday.

Hearn had refused to turn over control of FPI's groundfish quotas to another level of government.

Since the latest proposal was made, there have been high-level talks, proposals and counter-proposals.

Sources say it significantly toughens the conditions of FPI's groundfish licences and would force a buyer, such as Ocean Choice, to land and process that fish at plants in Newfoundland.

Proposal described as 'very helpful'

Provincial sources described the proposal as "very helpful" and "very close" to what they need to give the sale of FPI a green light.

However, sources say the province is seeking even more safeguards before it signs off on anything.

Allan Moulton, who represents workers at the FPI plant in Marystown, said employees there areeager to return to work. FPI has idled that plant for about a year and a half.

"People were just wondering would there ever be any end in sight," Moulton said.

"It has been an extremely difficult set of negotiations, complicated by, I guess, not knowing from one day to the next who you were going to be bargaining with and further complicated by the issue of the quota."