Ocean Choice to reopen books on deal with Polar

By Steve Sharratt

Transcontinental Media

MONTAGUE, P.EI. — Complaints by fishermen and the government alike over a perceived “sweetheart” deal for P.E.I.’s largest lobster processing operation has prompted the company to throw open the books and deal again. “The agreement will be on the table for a revisit,’’ said Blaine Sullivan, chief operating officer with Ocean Choice International.

Sullivan contacted provincial Fisheries Minister Neil LeClair and Development Minister Allan Campbell about the proposal on Monday, June 8.

The deal would allow both parties to re-visit the sales agreement by which Ocean Choice acquired the assets of Polar Foods five years ago and is now taking considerable criticism over the lobster crisis.

Both fishermen and the government representatives have suggested the agreement was harming the lobster industry on P.E.I. “We want to examine ways we might get rid of the clause regarding the issuance of processing licences, which has become such a contentious matter with Island fishermen and the P.E.I. Fishermen’s Association,’’ said Sullivan.

When OCI acquired Polar assets from the former Pat Binns government, the deal included no further processing licences would be granted as a way to stabilize the takeover for OCI. That has drawn considerable rancour from some sectors who say OCI has cornered the entire marketplace.

OCI may process the most lobster, but is one of many Island operations. “I am not convinced that more processing licences will have the beneficial effect on prices paid for their catch that fishermen envision, but in the interests of harmony and good will, I am willing to give it a try; provided we can come to an equitable agreement with the provincial government.”

Sullivan said he will sit down with government to negotiate a solution since the province has stated it would like to be in a position to issue additional licences. “We are very conscious of the global marketing situation and the effect it has had on many aspects of our economy,” he said. “Like every other processor we are trying to work our way through this situation. But when the market for a product shrinks and demand slackens off, those repercussions are felt all along the chain of supply from goods in the marketplace back to those who provide the raw product. That’s simply the way the free market works.”

Company spokesman Jack MacAndrew says Ocean Choice has made a considerable contribution to the economy of Souris, eastern Kings County and the provincial economy since its purchase of Polar Foods. “Ocean Choice has invested more than $40 million in its P.E.I. operations since acquiring the assets of Polar Foods five years ago. The company is now the second largest employer in the province, buying and processing about 20 per cent of the lobsters landed by P.E.I. fishermen.”

MacAndrew said the company has paid out in excess of $120 million to P.E.I. fishermen for their catch.

Ocean Choice has also spent over $50 million on payroll to plant production and administrative staff; has paid about $1 million in provincial and municipal taxes; and has purchased over $20 million in supplies from local and provincial suppliers.

The company provides about nine months employment for its production line employees. A clause requested by the government of the day five years ago also requires the company to process every lobster it buys elsewhere in the Maritimes in its P.E.I. facilities.