Tuesday, April 25, 1967

Now the Premier is making a proposal to the creditors right today or tomorrow or somebody is with his money, and the creditors have got to settle for twenty-five or thirty as the case may be. Whereas here they would have so much money in their pocket, and they would become shareholders and at some time in the future the shares would be of some value and realize one hundred cents on the dollar. This is the dif- ference of his proposal, Mr. Premier.

Honourable Alexander B. Campbell: No it isn’t.

Leo F. Rossiter: “The next point involved is the management of the intergrated operation, and I would forsee a President, Manager in charge of the ship- yard, a Manager in charge of process production, and one control for both companies. This also would involve the appointment of a new Board of Directors. Assuming a Board of five Directors, I think two or three non-political Islanders should be appointed, two appointed, their appoint- ment to be approved by the government. These directors should have

special powers to call meetings and report to the government at any time. The next question of course is the most important one, and one

of working capital. We have, from time to time, suggested figures. However, at this particular juncture I am of the opinion that our auditor,

together with an auditing firm of your choice, should meet and determine your requirements."

Honourable Alexander B. Campbell: That’s an easy way around it. [an F. Rossiter: It is a way around it, good as you can come up with.

“I suggest to free the working capital load on the companies until full production is obtained and in view of the recent delay that the cap-

ital and interest payments of Bathurst Marine and Gulf Garden Foods be postponed until 1970.

The question of postponement payments of interest and capital on the plants can be discussed in more detail on the basis of projected state- ments of earnings to be prepared by our credit auditors and in conjunc- tion with your auditors.

I suggest the subject of the foregoing that the repayment formula will be based on the lesser of twenty-five annual blended payments of principal or interest of approximately three percent gross sales.”

“I am sure if the proper joint representation in the government of the companies and your fivernment remains the federal government, con- siderable benefits could obtained to the area development agency."

I am looking forward to Mr. Mullally’s correspondence in this regard.

“I am sure that you wish to make some alteration to the shipbiuld- ing contract of Janus 20, 1966. We are naturally very concerned that

the shipbuilding subsi y may be changed and adversely effect the cost of building the fleet, and the whole matter should be reviewed.

I have today had discussions with Mr. T. Frost, President of Sea- board Trawlers International Limited, Motormart Limited, P.L. Naviga- tion Inc., the other principal shareholder in Gulf Garden Foods Limited, who has indicated they would be prepared to accept a proposal protecting everybody's rights."

And right today you are walking over everybody’s rights, includin the rights of the shareholders of Gulf Garden Foods, the shareholders of Bathurst arine, walk- ing right over them. Because if everybody’s rights are protected they are probably looked after. I suggest the shares of the com any be made available to the public in an effort to attract investors from the Islan and other regions. Anythig wrong with that, Mr. Speaker? Offerin it to become a public company. You ask me for my views on the future of the p nts. The research I am most familiar with is by W. R. Grace Comps . They have shown that a substantial market switched to indiv- idual quick frozen fi lets in order to obtain the highest possible prices, plant produc- tion must be geared accordingly. The plant must include in its production a wide var-

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