Ocean Choice agrees to open controversial lobster contract
Amid accusations it is to blame for low lobster prices on P.E.I., Newfoundland-based seafood processor Ocean Choice has agreed to open up its contract with the provincial government.
The contract signed in 2004 gave Ocean Choice a large share of the province's lobster-processing capacity and made it difficult for other processors to enter the market.
'We're not convinced that it's progress, but we'll certainly sit down and listen.' — Blaine Sullivan, Ocean Choice CEO
The company signed the contract with the P.E.I. government when it bought the remains of Polar Foods, which was heading for bankruptcy before the province stepped in and eventually arranged its sale to Ocean Choice.
The contract does not allow the province to issue new lobster processing licences, and any government aid to other processors must be matched with similar aid to Ocean Choice.
There have always been complaints from fishermen and the provincial Liberals that the deal, negotiated by the previous Progressive Conservative government, was too generous. Those complaints have only grown louder this year, with lobster prices at their lowest in 20 years.
"We're willing to sit down and see what the root of these concerns are, and if there's real problems, we're willing to compromise," Blaine Sullivan, chief operating officer for Ocean Choice, told CBC News Monday.
Some fishermen believe lobster prices would be higher if there were more processors, but Sullivan said it's the economy and the market that set the price.
"There's been a constant pressure here, from fishermen, from government, so we're basically saying Ocean Choice doesn't want to stand in the way of progress," he said.
"We're not convinced that it's progress, but we'll certainly sit down and listen if there's interest."
Sullivan said his company has been good for Island fishermen and plant workers.
"We've spent over [$]11 million on capital improvements to the facilities. We've invested over $40 million in total including working capital and including capital improvements as well as purchasing the company. We've paid out to fishers since we got here on P.E.I. in excess of $120 million and we've paid out to workers in excess of $50 million," he said.
Opening up the contract would allow the Liberals, who have long been critical of the 2004 deal, to start from scratch to try to work out a better agreement. They have in the past rejected walking away from the contract unilaterally, saying it would cost a payout of $12 million to $14 million.
Sullivan would not be specific about what the company might be looking for in exchange for opening up the contract. He said everything is on the table.