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News
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Reid says Abitibi closure devastating news for the people
of Bay St. George region December 15, 2005
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Opposition Leader Gerry Reid says he is extremely disappointed with the
decision of Abitibi Consolidated to permanently close their mill operations
in Stephenville. Reid says this decision will have a negative impact on the
economy of the Bay St. George region and the entire province. "I am very disappointed for the workers at the Stephenville mill, as well as the people of the entire Bay St. George region," said Mr. Reid. "While this announcement would never be welcome news, it is more unfortunate that the company made this decision just days before Christmas. "I feel the union at the mill is currently being used as a scapegoat for the closure by both government and Abitibi. Premier Williams put $175 million of taxpayers dollars on the table for the company, yet did not build any securities or clauses into the agreement that would protect the union. With this amount of public money being put forward, government should have demanded that the union would not have to give concessions. I believe the Premier knew that the company would be looking for concessions and refused to protect the workers. "Now that the mill has closed, it is time for government to roll out their plan B. Does this plan include expropriation of the mill? What will be the economic strategy to replace the jobs that will be lost? Will government increase the Municipal Operating Grant to the Town of Stephenville? There are many questions that need to be answered, and I hope the Premier’s plan will be much more substantial than what was offered to the people of Harbour Breton who are still struggling to make ends meet on a few make work programs. "The Premier stated he was all over this file and the Stephenville mill would not close under his watch. Similar to Harbour Breton, the people of the Bay St. George region are now faced with an uncertain future. Government committed $175 million to Abitibi, and I hope this money will be available to help the people of the west coast deal with this devastating closure. There is a mill asset now available in Stephenville, it will be interesting to see if this forms part of government’s economic strategy."
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