Liberal Party of Newfoundland and Labrador
 
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News Release
Office of the Official Opposition

   

 

Reid says government must consider impact on communities and restart negotiations with Abitibi

July 29, 2005

Gerry Reid, Leader of the Official Opposition Leader and MHA for the District of Twillingate - Fogo, says government must take immediate measures to deal with the social and economic impacts should Abitibi Consolidated follow through with it’s proposed closure of operations in Stephenville and scale back of production in Grand Falls - Windsor.

"While government must do everything it can to work with Abitibi Consolidated to prevent the shutdowns this Fall, consideration should be given to setting up a committee to develop an action plan to deal with the impact on affected communities," said Reid. "The loss of over 400 direct jobs in rural Newfoundland and Labrador will have far reaching impacts over the short and long term.

"The Ministers of Human Resources, Labour and Employment and Innovation, Trade and Rural Development should immediately become involved to develop an action plan on a go-forward basis. The mills, logging operations and spin-off industries in dozens of rural communities will be devastated. We must get a better sense of the number of people, businesses and communities that are impacted by this decision and what economic effects may be felt in the local and provincial economy.

"It is essential that government continue to negotiate with Abitibi Consolidated and do everything possible to ensure that both these mills remain open in the province. I believe there is a future for both operations in these communities.

"Government cannot sit back and watch Abitibi walk away from this province without any further talks. The Premier and Minister of Natural Resources had stated on a number of occasions over the past number of months that they had this situation under control. It is now time for government to step in and take action on behalf of these workers and their families."

 

Media Contact:
Jeff Mackey
Communications
Office of the Official Opposition
709-729-6427 or 685-3128