Feds tap fingers waiting for FPI quota answer

The federal Conservative government is wondering why it has not yet received an answer to its offer to resolve a dispute on Fishery Products International's quotas.

"We're just sitting here waiting for the official request," said Fisheries Minister Loyola Hearn, referring to a May 8 offer that Ottawa presented to the Newfoundland and Labrador government on how FPI's groundfish quotas could be managed.

St. John's-based FPI has a tentative deal to sell five fish processing plants and an offloading facility to Ocean Choice International, another St. John's company with substantial interests in the seafood industry.

Both companies agreed to the Newfoundland and Labrador government's request to have control of FPI's groundfish quotas transferred to the provincial government.

The federal government has rejected that option, but instead made a counter-proposal that would see the quotas controlled by a holding company set up by the province and Ocean Choice. Under the proposal, Ocean Choice would agree to land fish at Newfoundland ports and not process it offshore.

Although provincial Fisheries Minister Tom Rideout said last week that the offer was worth considering, Hearn has not heard a firm reply.

"We need to get this deal put to place. People are sitting there waiting for work, knowing there's a deal in the making," Hearn said.

"But that doesn't put bread on the table."

Rideout said he cannot sign off on the proposal until other aspects of FPI's breakup are in place.

"It's all part of a deal," Rideout said.

"When we're ready, and if and when cabinet signs off, then the world will know. But we're not there yet."

Rideout had said last week that a deal on FPI's quotas could be signed within days. On Thursday, he said he remains equally optimistic.

FPI's directors, who took control of the publicly traded company in a hostile takeover in 2001, have approved selling its assets.

Nova Scotia processor High Liner Foods has a tentative deal to buy a secondary processing plant in Burin as well as FPI's U.S.-based marketing arm. Another deal has been reached to sell a British marketing division.