The provincial government announced today it will provide $2 million to Icewater Harvesting Inc. in Arnold’s Cove, in the form of an equity investment, to support the financing of its new fishing vessel the Cape Dorset.
The money comes through the Department of Innovation, Business and Rural Development.
Alberto Wareham, president and chief executive officer of Icewater Seafood, said the company works hard to provide jobs and other economic benefits to the people of the province.
“Our company has been part of the fishery for generations and we are proud of what we have achieved thus far,” Wareham said.
“The partnership we have developed with the provincial government continues to be an important aspect of our operation and will undoubtedly be an important part of our success in the future.”
Quotas currently used by the company and owned by the province will be utilized more effectively — more fish will be caught with the new vessel capacity. These quotas have been leased from the province since 2004 and are currently valued at between $16 million and $20 million.
“The provincial government has been providing loan guarantees for vessel financing in the inshore and near shore sectors for over 30 years, and recently enhanced the Fisheries Loan Guarantee Program to provide greater opportunity for fish harvesters,” said Derrick Dalley, Minister of Fisheries and Aquaculture.
“By investing in Icewater Harvesting Inc., our government will satisfy the company’s need for new financial support for harvesting operations. In addition, the investment provides improved utilization and security of access to adjacent groundfish resources for the long-term benefit of Newfoundland and Labrador.”
Icewater Harvesting Inc. is a Newfoundland and Labrador-owned enterprise. The company employs approximately 40 people from communities throughout the province. The $2 million equity investment in the form of shares will be redeemed within eight years of the agreement and carries a dividend of three per cent annually.