Federal fisheries minister Loyola Hearn's letter today to his provincial counterpart Tom Rideout, right, puts the blocks to the provincial government's plans to acquire - free of charge - groundfish licenses currently held by Fishery Products International (FPI).Hearn said Thursday he would not agree to Newfoundland and Labrador's demand to take over the groundfish quotas from St. John's-based Fishery Products International, which has reached tentative agreements to sell its plants to two other companies.The decision apparently came as something of a surprise to Rideout.
"I have always stated that those who fish should hold the quota, not governments or anyone else," Hearn said
"In other words, those who run fishing enterprises, large or small, should not be subject to third parties telling them what to do."
It shouldn't have.
A letter provided to media earlier this week - by Rideout or his office - made it clear that Hearn wanted to "ensure that the federal minister's discretion is not fettered" or perceived to be fettered and that Hearn was "concerned about any precedents that this may have for other fisheries."
What CBC news refers to as federal "conditions" on a quota transfer really don't appear as such. Rather they simply expressions that the federal government would wish to see the FPI matter resolved as quickly as possible, and that a solution to the current FPI problem would ensure, as CBC put it, that "landings stay in Newfoundland and Labrador and that the plan have endurance over time."
Rideout has never clearly explained the public policy behind putting groundfish quotas under control of the provincial government except to ensure that the provincial government could dictate where and how the fish were to be processed. it appears the goal was to enable the provincial minister to spread the quotas out and ensure as many fish plants were kept open as could be supported by the quotas, with the fishplant workers depending on a combination of work and federal employment insurance payments for income.
Under the Rideout scheme, highly lucrative shellfish quotas would stay with the companies purchasing FPI assets.
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