Hearn optimistic on FPI deal, but no quota transfer

Federal Fisheries Minister Loyola Hearn says he believe ways can be found to expedite the sale of troubled Fishery Products International's processing plants, although not through a wholesale transfer of its quotas.

Hearn met Sunday with executives involved in a tentative sale of FPI's assets, as well as from the Newfoundland and Labrador government and the Fish, Food and Allied Workers union.

The FFAW and St. John's-based Ocean Choice which has bid on six of FPI's Newfoundland-based facilities called for the meeting after Hearn said he would not grant Newfoundland and Labrador's demand that it obtain FPI's groundfish quotas.

"The reason the province was looking for the quota was to make sure that the fish that had historically landed in our province continues to be landed there," Hearn said.

"We want the same thing to happen [But] the province was more or less looking outside its own domain completely [of] its own negotiations to find a solution to the dilemma by having us solve the problem. However, we can be a major player here."

Newfoundland and Labrador Fisheries Minister Tom Rideout criticized Hearn for putting the tentative FPI deal on "life support" by refusing to consider transfers of quotas.

Hearn said that would set a precedent, although Rideout said preceding federal government have transferred quotas successfully in the past.

Hearn has proposed instituting conditions that would ensure that quotas now attached to FPI will continue to be landed in Newfoundland and Labrador.

On Friday, Rideout said such provisions are too weak.

The FFAW and Ocean Choice support the Newfoundland and Labrador government's demand.

St. John's-based FPI has also reached a tentative deal with High Liner Foods on its secondary processing plant in Burin.

The FFAW has set a deadline of this Friday for a deal, on grounds that it cannot wait too much longer without jeopardizing this year's fishing season.

The union, representing about 1,700 processing workers, halted a strike last Monday when news of the tentative sales emerged.