Barry picks up Harbour Breton plant for $1

The fish plant in the beleaguered town of Harbour Breton, on Newfoundland's south coast, has been sold for $1, CBC News has learned.

Corner Brook-based entrepreneur Bill Barry has purchased the plant, and is assuming full liability for any problems at the plant, including environmental problems.

Fishery Products International idled the plant in 2004, claiming it could no longer afford to operate the plant at a loss.

The workforce of about 350 was formally laid off last year.

Although Barry who owns a number of businesses involved in the seafood industry expressed an interest in taking over the plant in February, the initial plan had been for the town to buy the plant and then lease it to Barry.

That option would have given the town some control over the plant, the largest employer in the community.

As well, the town had been investigating a possible deal with New Brunswick-based Cooke Aquaculture.

"I was shocked," said town councillor Eric Day, who has also represented former workers through the Fish, Food and Allied Workers union.

Day said people in the town learned of the transaction when they were informed Thursday they needed Barry's permission to enter the plant.

"Now we don't have that privilege. As far as I know, this is a done deal," Day told CBC News Friday. "The town has been blindfolded here."

The Barry Group is not disclosing how it intends to use the plant. It had earlier indicated that it wanted to process species such as capelin, in order to make feed for its aquaculture businesses.

Barry Group executive Karl Sullivan told CBC News late Friday the company will have a statement to make in the near future, possibly as early as next week.

FPI, which has been losing money over the last two years, has been attempting to negotiate wage concessions with its remaining unionized workers.