Just the facts: Abitibi expropriation blunder

Expropriation – December 16^th, 2008

Government called an emergency briefing with the Opposition parties to ask for support in passing legislation to expropriate AbitibiBowater’s assets. During the briefing, the premier stated that without passage of the legislation during that afternoon session, the people of the province could lose timber and water assets used by the company. An opportunity was provided to Members of the Opposition to ask questions directly to the Premier, Minister of Natural Resources, legal representatives and other officials. During these briefings the Official Opposition was assured that the mill and associated assets, along with environmental liabilities, would not be expropriated and would not cost the people of the province.

Commitment for Environmental Inventory – March 24, 2009

Government committed on March 24th, 2009, that an inventory of all environmental liabilities associated with AbitibiBowater’s former properties in the province would be completed by the Department of Environment. The Minister of Environment stated in the House of Assembly that “our department is doing an inventory of all the environmental issues. That could range anywhere from logging camps to bridges and to the mill itself. Certainly, the mill will have to undergo an environmental assessment process through the decommissioning of their mill, as was done in Stephenville. The member can rest assured that all environmental issues will certainly be addressed.”

Accidental expropriation of the mill and associated assets – May 2009

Government discovered in May 2009 that they had accidentally expropriated the AbitibiBowater mill in Grand Falls-Windsor and associated assets and liabilities. This fact was recently confirmed by the Minister of Natural Resources under questioning in the House of Assembly on April 27^th, 2010. Even though this mistake was discovered last May, it was not mentioned in any manner to the public until ten months later. This is another in a long list of examples that show this government’s lack of openness and accountability.

Loss of Data Room Case in the Quebec Courts – November 9^th, 2009

Government stated that they would be looking to recover the cost of severance payments to employees, taxation and environmental claims. However, a judge in Quebec ruled against the province’s claims and ordered government to pay AbitibiBowater’s legal costs. Sections 53 to 62 of the judge’s ruling state that the province provided no evidence to support claims for taxation, severance and environmental claims.

Government responds to Data Room Case loss – December 9^th, 2009

Government made no announcement that they had lost the Data Room Case in the Quebec courts. When asked about the case in the House of Assembly, the Minister of Justice was less than forthright with this information. He stated on December 9^th, 2009, “Mr. Speaker, with regard to the action CCA claims of monies owing to the Province, the position of the government is that we are not pursuing these claims because there are insufficient funds. We figure there are insufficient funds with Abitibi to compensate for those claims.”

At no time did the Minister indicate that the case had been lost.  In actual fact, government had pursued the case, they lost the case and were ordered to pay all legal fees of AbitibiBowater.

Government press release assuming control of mill assets – February 5^th, 2010

Government finally reveals that they assume ownership of the mill and assets in a vague Friday afternoon press release while the Premier is undergoing heart surgery in the United States.

Loss of EPA Case in the Quebec Courts – March 31^st, 2010

Government loses its second case in the Quebec courts. The judge states in section 202 of his decision that “in all fairness, a regulator can hardly pretend to realistically order that a person responsible carry out actions upon properties that it no longer owns” The Judge also stated in section 208 that “The province, as owner and occupier of the lands, is clearly a person responsible under section 99 of the EPA.”

Despite government’s assurances that the people of the province would not be on the hook for environmental liabilities, the courts are saying something very different. Government has indicated that it will appeal the recent court decision, but the ramifications of the current decision could mean hundreds of millions of dollars in losses for the people of the province.  

Government indicates no environmental inventory or costing developed – April 22, 2010

Supporting documents:

Data room decision November 2009

EPA decision March 31, 2010

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