NEWS RELEASE

                                                                                       Office of the Official Opposition

May 18, 2010
For Immediate Release

Loss of appeal of EPA case could cost taxpayers hundreds of millions

The refusal of the Quebec courts to hear the province’s appeal related to Abitibi’s environmental remediation costs could result in the people of the province being on the hook for hundreds of millions of dollars in clean-up costs, says Opposition Leader Yvonne Jones.

Earlier today, the Quebec Court of Appeal refused the province’s request to have their appeal heard in an effort to be a secured creditor in Abitibi’s restructuring. 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. The ramifications of the March 31st decision and the current decision could mean hundreds of millions of dollars in losses for the people of the province.  

“Today’s court decision is very disappointing, but not surprising as government has bungled this entire Abitibi expropriation file,” said Ms. Jones. “The responsibility for these errors and the potential hundreds of millions in costs lands directly on the desk of the Premier. He mismanaged this whole file and the taxpayers are the people who will pay.”

Government accidentally expropriated the AbitibiBowater mill in Grand Falls-Windsor and associated assets and liabilities in May 2009, but it was not mentioned in any manner to the public until ten months later. Since that time, government has missed court deadlines, criticized judges and hasn’t completed their due diligence in completing environmental inventories.

“It appears the only recourse this province now has left is to appeal to be added as an unsecured creditor even though we missed the deadline. Even then it is very unlikely that this province will be successful in recovering any financial losses associated with the environmental mess expropriated by the government.”

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