Dear Minister King, Jan 31/2012
At a
time when both you and the Premier have made comments recently,
pertaining to what power or right our government has on influencing NL
companies which export our resources, I would like to communicate my
concern on our practice of exporting raw and partially processed fish to
foreign markets.
No doubt in some situations it would be
appropriate for private companies to export raw, or otherwise partially
processed products, out of our province. In this situation the company
makes a profit, provides some jobs here and generally adds to the GDP of
the province. However it is a totally different situation for the
province, our government, our GDP and our people if the bulk, or large
amounts, of these resources are shipped in this manner.
An example of
this point is unfolding right now in our mining industry with the
opening of the new mine in Labrador, where one company bidding for the
contract, wants to ship out raw ore creating 200 jobs, and another who
wants to produce concentrate pellets here creating 1700 jobs. The value
added jobs and economic input into the communities of Labrador by our
processing of the ore , may not provide the company with a big % of
profit, but it will have multiple, far reaching positive affects into
the future of the province, even after the mine is gone.
The
fisheries equivalent to this situation is the shipping out of our
unprocessed and partially processed fish to China and EU countries, such
as that which our province is now facing with the OCI. Naturally a
company that ships out some raw fish, gets a high % of profit, creates
some jobs and adds some value to the province. But shipping out the bulk
of our resource in this manner destroys many more jobs then it creates,
creates little, or zero, value added affect for our coastal communities
and province.
On the other hand a company that processes ashore and
then sells to higher end market’s in places like the USA and UK would
create 100's of processing and value added jobs, and add over all wealth
to our communities and our province. This over all increased value,
provided to our people, would further input and strengthen our
infrastructure, support and lift our coastal towns and spirit.
Dr. Phil Earle
1 comment:
Thank God for Dr. Earle's omnipresent vigilance over what is happening in the Fishery in Newfoundland and Labrador.
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