News Release
Office of the Official Opposition

 

 

Grimes asks Minister to release secret agreement with Abitibi Consolidated

March 18, 2005

Opposition Leader Roger Grimes says in light of the confusion that exists over the secret deal government reached with Abitibi Consolidated in December concerning the Stephenville mill, Minister Byrne should release the agreement publicly.

On Wednesday, Natural Resources Minister Ed Byrne said in a Ministerial Statement that government agreed to a request from the company to provide a contribution of $1 million for 60 days to offset power rate increases. Minister Byrne also confirmed that Abitibi Consolidated told him three months ago that they intended to close the mill in Stephenville permanently unless government provided them with this $1 million in short-term funding.

"Minister Byrne is giving two stories regarding this agreement," said Mr. Grimes. "In Wednesday’s statement, he indicated that this money had already been given to the company. However, he has since stated that this money will only be given to the company if certain information is provided to government and guarantees were given by Abitibi to keep the Stephenville mill operational. To clarify the details of this agreement, I am calling on Minister Byrne to release these documents to the public.

"During the last provincial election, this government said they had a long-term solution for the Stephenville mill. With this secret agreement and confirmation that government will not help the company secure a new wood supply in the province, there certainly appears to be no plan in place to help Stephenville. They have had 16 months to bring forth their plan, where is this long-term solution?

"Unless government has been provided with guarantees in this agreement to secure the long-term future of the Stephenville mill, I do not understand why government would put forth this money. We need to see the details of this secret deal now to ensure it is in the best interests of the people of Stephenville, and indeed all Newfoundlanders and Labradorians."

 

Media Contact:
Darrell Mercer
Director of Communications
Office of the Official Opposition
709-729-6151 or 709-687-0477