'Golden opportunity' in FPI breakup, Williams says

Fishery Products International's assets can be sold to other bidders without harming communities that rely on the ailing company's plants, Newfoundland and Labrador Premier Danny Williams says.

"I see the next 30, 45 days as a golden opportunity to do some things that are very dramatic but very positive, without imposing any hardship on people in the interim," Williams told reporters Monday.

Williams said he would prefer that St. John's-based FPI's local assets— a collection of largely idled groundfish and shellfish plants— be sold together.

Williams, however, did not endorse keeping the company intact altogether. FPI is entertaining at least one offer— from Nova Scotia processor High Liner— for its lucrative U.S.-based marketing and value-added division.

Williams said he is concerned about how the bidding for FPI— which has involved a bid from the Corner Brook Barry Group, St. John's company Ocean Choice, and an internal bid led by existing FPI managers — will end.

"I do get quite concerned when a complete fragmentation takes place," Williams said.

"I would like to see a process take place whereby there is some consolidation in Newfoundland and Labrador [of] the assets, but if every little piece gets sold over hell's half-acre, then I don't think that's in the best interest of the people of the province."

Industry at turning point

The anticipated sale of FPI assets comes at a turning point in the Newfoundland and Labrador fishery.

Williams' government has been negotiating with the federal government on licence buyouts and other issues, and a review of harvesting and processing capacity is also underway.

"There's a real opportunity here in the whole milieu of a restructuring," he said.

FPI has had a mostly turbulent ride since a hostile 2001 takeover, engineered by Clearwater Foods principal John Risley.

It has blamed its woes on issues such as labour costs, currency exchange problems, competition from low-cost producers in China and diminishing supplies of fish.

FPI, which announced earlier this month thatit was entertaining offers for its ships, plants and other assets,has enlisted a consulting company to reviewthe bids.

Provincial legislation known as the FPI Act governs the company, a former Crown corporation founded in 1984 from the wreckage of three troubled companies.

The provincial government has said FPI can choose the bids it likes best, but that the FPI Act gives it final say on the sale of assets.

Williams said it's likely that the days of a flagship company in the Newfoundland and Labrador fishery are at an end. However, he said, the best interests of the industry could be served through competition between a series of mid-sized companies.