Government admits taxpayers on the hook for hundreds of millions in clean-up costs

Premier Danny Williams admitted earlier today that the province is likely on the hook for hundreds of millions of dollars in clean-up costs related to Abitibi, and this figure will continue to rise as legal costs, NAFTA challenges and maintenance costs of the accidentally expropriated mill have yet to be tallied, said Opposition Leader Yvonne Jones.

Yesterday, 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, it now appears taxpayers will have to pay out hundreds of millions of dollars in clean-up costs.

“The Premier admitted today that we are likely on the hook for the environmental clean-up of former Abitibi sites,” said Ms. Jones. “This does not include the compensation that we have to pay Abitibi for their brick and mortar assets that were expropriated, the NAFTA challenge currently before the courts, the mounting legal bills from court losses and the continuing costs of securing and maintaining the former Abitibi mill in Grand Falls-Windsor that was accidentally expropriated.

“Today’s admission from the Premier that we are indeed responsible for clean-up costs is in direct contradiction to the messaging of both the Ministers of Environment and Natural Resources who continuously stated over the past few weeks that we would not be responsible for these costs. This is just another example of a government that is out of touch with reality and misleading the public to cover-up their own mistakes.”

Jones noted that this entire file has been shrouded in secrecy and important details have been hidden during the process. 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, hasn’t completed their due diligence in completing environmental inventories, and has refused to provide a breakdown of legal expenses and professional fees paid out to law firms and consultants on this file.

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