Government’s handling of mill file with Germany company careless     

Opposition Leader and MHA for the District of Cartwright L’Anse au Clair, Yvonne Jones, says it was stunning news to learn a German company interested in the former Abitibi mill in Grand Falls-Windsor(GFW) is in bankruptcy protection. It once again highlights careless and superficial work by government in not learning and disclosing this information to the public, instead just heightening expectation that this company could be the new owner and operator of the defunct mill in GFW.

Responding to a question from Jones in the House of Assembly last week, the Minister of  Natural Resources acknowledged the government was about to receive a business plan from Lott Paper that outlined their strategy to take over the mill.  It was revealed this week that the company was undergoing its second bankruptcy process.

“This is an incredible development, given that the minister was in the Legislature on June 22 stating that government was working with this company to take over the mill; yet the company had filed bankruptcy protection a week earlier, for the second time since 1994," says Jones. “You have to question how desperate this government is for a good news story when they go off with only half the facts. It also confirms that due diligence is not one of this government’s strengths, as was evident when it accidentally expropriated the mill during the Abitibi proceedings last year. “

“The fact that there was not even a preliminary or ongoing checks carried out on this company are simply unbelievable.  When is this government ever going to get their act together and give the people something concrete?

“I have a real concern when government engages in superficial management of issues and projects, because it has a tremendous impact on the people of the province. I can only imagine the roller coaster of emotions the people of GFW must be experiencing as they go from such prematurely released positive news to the recent revelations that Lott Paper is not able to do business in Canada and has no money to do business anywhere. I also question where MHA Susan Sullivan is and why she has not been more involved. A quick Google check of this company would have disclosed what they were all about. It is time for someone inside of government to start taking seriously finding new industry for GFW.

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