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Reid pleased framework agreement appears reached with
Abitibi, but thinks it is far from perfect October 26, 2005
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Opposition Leader Gerry Reid says that he is pleased a framework agreement
appears within reach with Abitibi Consolidated on their Stephenville
operations, but feels that giving the company $150 million over 15 years
shows that this potential agreement is far from perfect. "I am very pleased that it appears the 300 workers in Stephenville will still have jobs once this process is over," said Mr. Reid. "While I am pleased for the people of the Stephenville region, it bothers me that the people of this province will have to give $150 million over a 15 year period to a multinational corporation that just reported profits of $99 million in their third quarter report. It also disturbs me that the company, even though they appear to have accepted these terms, are still looking for concessions from their employees. "I have to ask the Premier why he dragged the people of Stephenville through this process when he could have given the company exactly the same deal two years ago. There is nothing new or innovative in this deal that points towards a long-term solution to the energy problems at the mill. It appears money is being spent to put a temporary band-aid on a problem that will eventually need to be directly addressed. "While it appears no agreements have been signed, I hope the Premier will ensure safeguards are built into any potential deal. The proper assurances and penalties should be put in place to ensure that Abitibi is not able to break their commitments without penalty. For example, if the economics of the pulp and paper industry improve over the course of this agreement, is there a provision to ensure any potential subsidy given by the province will end? Will government ask the company to put forth their mill asset as a penalty? The Premier must also explain what any potential deal could mean to other industrial customers in the province, and most importantly the electricity rates paid by the consumers of the province. "While this potential agreement is less than ideal, I am pleased that it appears the people of Stephenville will still have their jobs at the end of the process. I look forward to a full disclosure and a full analysis of all the options presented to government during this negotiation. I also look forward to seeing the fine print of any potential deal before it is actually signed."
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