Does Risley want another piece of Newfoundland and Labrador?

Just two days away from the "vote" - and I am thinking about FPI. This once king of "seafoods" companies gone from our rural communities - gone from the memories of our politicians - as well.

John Risley - the "Danny" slayer has done what media and opposition could not. Risley has taken Danny on and won.

On Friday FPI issued a news release - advising of a special meeting of shareholders. On October 22nd - the shareholders will vote on the sale of FPI assets. The get-together will also be used to discuss the future of FPI. The release says in part:

FPI intends to transition from an operating company engaged in the harvesting, processing, global sourcing and marketing of seafood products to an investment and holding company.

So now that our politicians have allowed the company to moan and groan its way out of commitments to our communities - and at the same time making some millionaires of a select few - what are the boys going to do with the money? What exactly does the statement above mean? An investment and holding company?

Why not let John Risley answer that question. The Montreal Gazette attributes the following quote to Danny's conqueror:

"our historical business has been the seafood business and our future business will be something other than the seafood business"

Apparently the name of the new company will be FP Resources Ltd. What now - will they come after energy investments? Do they want a piece of the Lower Churchill? How about Labrador uranium? Or maybe gas projects? Will they suck the good out of other resources in Newfoundland and Labrador and then change-up again?

And in a twist of irony - FPI announced today the appointment of a new director - another "Newfoundlander and Labradorian" - Mr. Graham Roome - who started his career with the "Lake Group" - one of the fish companies that had to be rescued by the formation of FPI - when we the taxpayers became the owners. Talk about having sea-legs - apparently Mr. Roome who went from Lake to FPI in Bonavista - to Clearwater - and then back to FPI - is doing a hell of a lot better that our fishermen.

Danny - Tom - Gerry - Loyola - and Loyola - "hook line and sinker". Way to go Risley - no wonder you and Ches Penney have the personal wealth you have.

Eliminate Low-Margin Products

I'm left to wonder - how I should take a message from an FPI News Release this week. If I'm a shareholder - and I'm not - I would be delighted. But if I'm involved in the fishery - the words would spell gloom and doom. I would be angry.

Beverly Evans - Chief Financial Officer - of FPI said this of the company's over 6 MILLION DOLLAR QUARTERLY PROFIT:

"Profitability has improved through the execution of our strategy to eliminate low-margin products from our portfolio"

FPI's profits are up 3 1/2 MILLION DOLLARS from the same quarter last year.

Understand - that this news - while great for shareholders - is a reflection of human suffering in Newfoundland and Labrador. Communities in peril - fighting for their existence - people packing up and moving away before they lose everything.

When Beverly talks about eliminating low margin products - to you and me those products - in reality are people and communities. And all that to ensure that when Ches Penney - Nova Scotia and Iceland Corporates take over the company - they will not be the villains.

How do they all sleep at night? It's takes a special breed to fill your own arse pockets while you watch families and communities suffer. That is the mark of a "successful" business person - not necessarily a "good" one.

This is where the government of Newfoundland and Labrador had some control - had the ability to operate with a 2 million dollar profit instead of a 6 million dollar one. The shareholders should have been and should be the people of the Province - until some corporate entity would have accepted a couple of million a quarter - and communities and people (society) could have carried on.

You see this is not a swipe at the corporate elite - it is their swipe at us. The government neither has the vision nor the guts to do what's right. This will be another Williams' legacy.

Closer to home - Fish Lobbyist

Newly minted Conservative MHA Keith Hutchings - he was just a provincial lobbyist for the Association of Seafood Producers - ending 2007-01-12. He was lobbying on behalf of these employers to the Workplace Health and Safety Commission. Do voters know this? Does Trish Dodd and the Injured Workers Association know this?

When on with Randy Simms - Simms asked tell us a bit about yourself - he did not say -I am or was just a paid lobbyist for the Association of Seafood Producers. In that wonderful fishing district of our province - and Keith who claimed that the fisheries collapse is tough but you know aquaculture is the way of the future. Gee - where did he get that theory from?

Does the fact that he lobbied for the Seafood Producers Association have any bearing on his opinions round the caucus table?

Why not ask people we elect or who want to be elected - who were they working for. Why not ask those people we pay?

You see the red-herring of a blogger not identifying who they work for - is just that - raise the invalid - to hide the valid.

You see Keith worked for Loyola Sullivan when he was PC leader - did he ever work for the WHSC? Loyola - whose brothers are involved with Seafood Producers!

I guess Keith had great contacts within government.

Once again - I ask - what are the MHA's for or the MP's - get a lobbyist.

Maybe the Independent and Ryan Cleary could do some research on what a lobbyist is - who they work for - how much they are paid - and what they are lobbying for.

FPI must be purchased by the Province

If Fisheries Minister Tom Rideout was in anyway accurate in reflecting ongoing talks with FPI and their "committee" analysing options for the sale of the company's assets - a new level of arrogance has entered our fisheries industry.

That is very hard to do considering the pompous actions of many of our processors in the past. Not too long ago FPI and the Barry Group proceeded on with a sale of the Harbour Breton plant - had already started renovation work on the plant - before government sanctioned the sale. The government clearly embarrassed negotiated a position where the contract was dated reflecting the actual time government gave the two parties its "permission".

We know one of the parties in the current tangle is FPI and if one of the other is the Barry Group - it would be normal that they proceed on despite legislation or the protests and threats of the Minister.

In either case - the break-up of this company is sinister enough with respect to the new board and whatever objectives they claimed to have had - and the objectives they actually reached. There are far too many secret negotiations going on here - in what ultimately could lead to a new level of monopolization in an industry that is already controlled too much by the corporate sector.

We also have to deal with the lucrative marketing arm and offshore assets as well as the quotas currently held by FPI.

For all these reasons - it would be prudent for the NL government to buy out the shares of the company at a negotiated value that more clearly reflects an average of share value over the past 3 years. After that is done an open and transparent process can begin including the determination of what ultimately we want our fishery to look like - including federal legislation - the dispensing of FPI assets - a new federal-provincial plan on management - and meaningful public discourse with stakeholders and the people of the province.

When the corporate fishery was in trouble before - the Crown stepped in and slowly privatized the newly formed company (FPI) - with appropriate legislation to protect the taxpayers investment. It is time to repeat the process.

Currently the only thing we are driving is a process of escalated share value for some of the same people who have torn the company and rural Newfoundland and Labrador apart.