N.L. To Give Millions To Barry Group

Here is why I think this is a national story; <br />
From their website, 'North Atlantic Sea Farms (NASF) aquaculture operations, NASF is a wholly owned subsidiary of Northern Aquaculture Corporation. Northern Aquaculture Corporation is a private company with its head office in St. John's, Newfoundland and branch offices in Toronto, Canada and Taipei, Taiwan. Established to identify industrial development opportunities in this province.' (They apparently went bankrupt see below)<br />
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Fish Farm Operation Facing Closure<br />
October 4, 2004<br />
It was set to become the largest cod farming operations in the world, but now North Atlantic Sea Farms Corporation of St. Albins is letting go its one hundred and forty employees due to a failed credit arrangement with its feed supplier. For the past few years Shur-Gain has been supplying the feed for the fish at the operation… the company has been getting the feed on a credit arrangement that saw them paying 28 percent interest on top of the price of the feed, but according to one of the company’s investors… Shur-Gain has pulled the plug on the credit arrangement, basically killing the operation. According to Mr. Dobbin the company has shown a profit for three years running… and they expanded this year by one million fish. Mr. Dobbin says the investors have put sixteen million dollars into the operation and says they’re just not willing to put any more in… and he also says the big banks aren’t willing to get involved. According to Mr. Dobbin the Shur-Gain has appointed receivers which he expects will run the company until it can sell its fish to pay off the remaining amount owed to the feed supplier. But after that he expects the company to be sold off for parts… creating a major setback for the local aquaculture industry. (Shur-Gain -A member of Maple Leaf Foods Inc.)<br />
<a href="http://www.ntv.ca/news/viewEntries.php?id=1655">http://www.ntv.ca/news/viewEntries.php?id=1655</a><br />
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The Barry Group - is a subsidiary of a U.S. company but I don't know the details. According to tonights news, the reporters were asking why a loan guarantee was necessary when the Barry Group has plenty of money?<br />
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Here is the national issue, if the provincial governments are willing to put up loan guarantees to multinational companies to buy up Canadian companies. Then the public ends up holding the bag if they don't produce, if they do then the U.S. ends up profiting. How does this enhance the Canadian fish industry or any industry, how many jobs will they create and what kind of jobs? Part-time minimum wage, or full-time, full benefits, long term employment? Why does the government not assist the Canadian company in the first place, why is a feed company allowed(Shur-Gain) to charge 28% interest? <br />
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I think this issue cuts to the problem with foreign ownership, and you only have to look to Alberta's Gainer fiasco to see what loan guarantees can do to an industry and the people's pocket book! <p>---<br>If I stand for my country today...will my country be here to stand for me tomorrow?

I agree, Why are Canadians footing the bill for foreigners to purchase Canadian companies?

At the same time, I see another issue. Fish Farming here in BC is destroying fish habitat. They use nets in the ocean to contain the farmed fish - meaning everything that goes into the nets also goes into the environment.

Sea lice are a major problem for the farmed fish - infestations are so bad that surrounding areas are crawling with them, killing off wild fish at an alarming rate.

Anti-biotics and other drugs in the fish feed are being spread throughout the area, exposing all water-borne life and all life that feeds on it to these drugs.\

The farmed salmon have been tested and verified to be contaminated with Malachite Green, and carcinogenic and neuro-toxic substance used on fish-eggs to prevent micro-organisims killing the eggs. Malachite green is a "zero level" toxin - Canada has banned it completely as there is no safe level of contamination.

Farmed salmon on this coast are actually atlantic salmon. The official line is that atlantic salmon that escape these open-water nets cannot breed and therefore pose no threat to native species. Well, as any recreational angler can tell you, spawning atlantic salmon have been spotted and caught all up and down the BC coast.

Why is the government even allowing open water fish farming at all, never mind FUNDING them!

Why is a provincial government giving a loan guarantee at all to a business that can't get private money below 28%?