In a letter last May to his federal counterpart, economic development minister Keith
Hutchings described minimum processing requirements as the “only policy instrument within provincial jurisdiction that ensures fisheries resources adjacent to the province result in processing jobs in Newfoundland and Labrador.”
For those who do not know what they are, minimum processing requirements are a condition that the provincial government sets on the licenses it gives to companies that process fish in the province. The name says it all: the companies have to process a certain amount of the fish in order to create jobs in fish plants around Newfoundland and Labrador.
There’s been a fairly steady row about processing rules over the past decade as the companies struggle to stay financially viable. There are
way too many plants for the amount of fish available and there are
way too many people in the province drawing pathetically small wages slicing up the fish that comes ashore. Companies can’t process fish profitably here and yet the provincial government insists they keep at bit.
The provincial politicians and bureaucrats
know perfectly well that they need to change their ways. The politicians knew about it when they set about to
destroy the only truly globally competitive fish company in the province. They’ve known about it as the fought over exactly the
same issue with the company the government’s policy favoured over exactly the same issue.
And yet the
politicians persist with their bankrupt idea.