OVERVIEW
Driven by tight budgetary positions over the past few years, governments have undertaken many initiatives in an effort to better define their core activities and evaluate the most appropriate service delivery mechanisms. Subsequently, the development and implementation of a number of public sector initiatives, including privatization, have ensued. The successful divestiture of several publicly owned and operated businesses to the private sector have resulted from the privatization initiative. These businesses cover a wide array of sectors such as information technology; manufacturing; agrifoods; accommodation and foods; ship building, repair and fabrication. The following profiles briefly outline a history and current focus of selected businesses.
NewTel Information Solutions Ltd.
NewTel Information Solutions (NIS) was formed on October 13, 1994 when NewTel Enterprises Limited and two other partners purchased Newfoundland and Labrador Computer Services. NIS is currently the largest full-service information technology-based company in Atlantic Canada. Previously focused on servicing the public sector needs of the local market, this organization now explores the local, national and international scene for business. The Company employs more than 350 people.
Newfoundland Hardwoods, a Division of IPB-WPI International Inc.
On August 18, 1995, Newfoundland Hardwoods was sold to Wood Preservation Industries (WPI). The new owners proceeded to upgrade the facility which now produces utility poles for local companies. It also sells a variety of wood products for marine construction and is expanding its product base in other areas such as kiln drying and pressure treating lumber. The Company employs approximately 28 people at peak production.
Hotels
Five hotels were sold to the private sector in late 1995 - early 1996. Four of these hotels were purchased by Fortis Properties Corporation, who immediately resold two of the properties. Approximately $4 million has been invested in the two remaining hotels, located in St. John's and Corner Brook. Significant renovation has occurred with investment aimed at positioning the hotels in the upper mid-market range and maximizing the business segments to which the hotels appeal. Results have been realized from the investment with occupancy rates having improved significantly at both locations. Further improvements are planned for 1998.
St. John's Dockyard
On April 25, 1997, Marine Atlantic sold the land and assets of the St. John's dockyard to St. John's Dockyard Ltd., a company jointly owned by the Burry Group of Clarenville and the Penny Group of St. John's. The shipyard currently operates as a traditional ship repair facility but has recently entered into a joint venture with other partners and founded the Atlantic Services Group consortium. The consortium is currently pursuing contracts related to the offshore oil industry and Voisey's Bay construction activity. The repair facility currently employs more than 100 people.
Newfoundland Farm Products
On October 6, 1997, an agreement between Newfoundland Farm Products Corporation (NFPC) and Integrated Poultry Limited (IPL) was signed detailing the divestiture of the NFPC plant in St. John's to IPL. The agreement set in place the framework for IPL to restructure and modernize the broiler chicken business, creating a vertically integrated company more competitive in the North American chicken industry. The company employs approximately 268 people.
Marystown Shipyard
Friede Goldman International Inc. (FGII) acquired the Marystown Shipyard Limited on January 1, 1998. FGII is a leader in the design and engineering, new construction, fabrication, retrofit, repair and modification of offshore drilling rigs. The Company plans to upgrade the facility which currently employs about 730 people. For more information, readers are directed to the manufacturing section.
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