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Danny Williams; Need him as PM
Topic Started: Dec 17 2008, 07:00 AM (168 Views)
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Danny Williams is the right man for the job as PM !

http://www.globeinvestor.com/servlet/story...bi1217/GIStory/

Newfoundland seizes assets of AbitibiBowater
OLIVER MOORE


Tuesday, December 16, 2008

Forestry giant AbitibiBowater was stunned and warned of a possible NAFTA challenge after Newfoundland and Labrador moved yesterday to take over its hydro assets and resource rights.

Premier Danny Williams announced legislation to enforce the change four days after the company says the provincial government sent it an e-mail demanding that it “surrender forthwith entitlement to [all] resources” in the province.

Company spokesman Jean-Philippe Côté said the message from Natural Resources Minister Kathy Dunderdale arrived after hours on Friday and demanded a response by midday on Monday.

Mr. Côté said AbitibiBowater sent a reply, suggesting that a working group be created to address issues related to the pending shutdown of a money-losing mill in central Newfoundland. Then came Mr. Williams's bombshell.

“Abitibi has reneged on the bargain struck between it and the province over the industrial development of the province's timber and water resources for the benefit of the residents of the province,” the Premier told the legislature yesterday.

The legislation, which was rushed through the House after the Opposition raised no objections, would give the provincial government control of AbitibiBowater's timber rights, water rights and hydroelectric plants. The company will receive unspecified compensation for physical assets taken over.

The cash-strapped company had been hoping to sell the hydro assets, along with assets in Ontario and Quebec, to help make a crucial debt repayment in March. But any legal dispute with the province would likely drag on well past then.

Mr. Côté called yesterday's legislation a “destabilizing precedent [that] opens the door to some potential Canada-U.S. trade issues.”

The company is legally a U.S. entity, which could make the province's move vulnerable to a challenge from Washington under the North American Free-Trade Agreement.

The Premier quoted century-old documents to the legislature. He cited a 1903 letter from the president of the Anglo-Newfoundland Development Company Limited, a predecessor to AbitibiBowater, and a 1905 lease agreement to argue that the company's rights were dependent on operating a mill in the province.

He said that cabinet has the right to determine compensation.

“If there's no agreement, we will in fact impose an agreement,” he said, according to The Canadian Press. “Under the legislation, cabinet will have the power to say, ‘Here's the formula, here's what the compensation is, here's your cheque.'”

Other companies operating in Newfoundland shrugged off the legislation, including Petro-Canada, which has stakes in the offshore oil projects Hibernia, Terra Nova and White Rose and a piece of the proposed $7-billion Hebron operation.

“[It] is a different sector … and Petro-Canada enjoys a good relationship with the government of Newfoundland,” company spokeswoman Andrea Ranson said.

Husky Energy Inc., majority owner and operator of White Rose, said the Abitibi situation has no impact on its business. It is expanding in the province, and in September committed to spend $130-million exploring and drilling off Labrador.

The paper mill in Grand Falls-Windsor is to close in March after unionized workers twice rejected restructuring plans that involved some contracting out. Hundreds of jobs will be lost as a result.

There was no indication that yesterday's legislation would prevent those losses. But Gary Healey, a Communications, Energy & Paperworkers representative at the mill, called it “an early Christmas gift.”

“If Abitibi's not interested in staying in the province, at least we have something to offer,” he said. “But losing the big employer in central Newfoundland is not what we want. I'm sure if Abitibi wanted to reconsider their plans, they'd be listened to.”

Grand Falls-Windsor Mayor Rex Barnes had a similar reaction.

“We would hope that Abitibi would reflect on what's just happened and come to a resolution with the unions to work this out,” he said.

Less than two weeks ago, Mr. Healey was thinking about a possible move to Alberta. Yesterday's announcement isn't a cure-all, he said, but at least it shows the government is on the workers' side.

Without a mill, the local market for wood will be limited, giving the timber rights little immediate value. But the government's move is still logical, said Keta Kosman, publisher of Madison's Lumber Reporter.

“In the best-case scenario, where somebody comes along and is interested in the mill, the rights will be held by the government,” she said. “If nothing happens and those trees are just left, then they're more valuable when this finally turns around.”

With reports from Konrad Yakabuski and David Ebner

© The Globe and Mail
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Posted Image Brooke
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Hanover, Ontario.

In my opinion Danny Williams is an arrogant, short sighted jackass. I guess that makes him a liberal, LOL.

In all honesty he cut off his nose to spite his face. I don't blame the Newfoundlander's for being upset about losing jobs, it is happening all over these days. The only thing Williams did was ensure that those jobs won't come back and any business that might go to Newfoundland is now rethinking their options.

Way to go Williams, just when I thought you couldn't get any dumber than at the election you go and lower the bar.
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Bradford Ont

Danny Williams is a loud mouthed self serving Millionaire who loves the limelight. He basically Nationalized assets of a publicly traded company. The message he sent out to the business community is "don't risk any investment in Newfoundland". Wether or not Newfoundland residents lose out on potential new jobs won't stop him from living well but he sure didn't think of his constituents. The world is in the middle of an economic crisis and he thinks by kicking business in the nuts that will make everything well again in Newfoundland? Intelligent and strategic leaders try and make an environment that is appealing to new business, not what this clown just did. This is about as strategic as his "anything but conservative" campaign he ran during the Federal election. So now not only does NFLD have premier who is chasing away business but they basically have no representation in Ottawa. I guess he figures Hibernia will make them all rich and they can seperate away.
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Posted Image bigr
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Well ,,,,,,


If a business is moving out but taking the natural resourses with it ,,,, Lumber,,,,,,

and the equipment,,,, what would you have then ?


Nothing , just like in Smooth Rock ,,,,Stugen Falls and some of you guy's in NW ontario might be able to add to this list.

Same with the Oil.


If your going to take the oil out of the ground here ,,,,, then you better process it here as well.

I bet some of these lumber towns that are doing nothing wish a Danny Williams would fight to keep whats remaining.

At least if you "have" a mill there and the wood rights , you have something to offer in the future V.S.


Nothing
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Posted Image Terrym
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Bradford Ont

Picking a fight with one of the few employers and trampling over laws by making new ones will not create a demand for what the mill produced, thats the problem. The mill was in a decline for years and the economy isn't going to get any better so there won't be any more demand for the product. The company never said they were never going to reopen should the economy pickup down the road. AbitibiBowater is a huge employer in the the forestry industry. How much of any new projects do you think Newfoundland will benefit from going forward? Williams played on people's emotions who were losing their jobs for his political benefit. Nobody wishes anybody to lose a job but the forestry industry or any other industry for that matter will likely bypass Newfoundland in the future in fear of having its assets seized. That "one" mill and its timber rights likely cost Newfoundland 10 times that much in potential employment in new projects. Forestry is a moving target that has to relocate as it uses up the nearest forest reserves. It sets up mills where it is economically feasable to transport it as short a distance as possible. That town/mill had reached the end of its profitable life cycle. The same cycle happens in mining towns. When the resource is no longer profitable to produce/exploit they move on to another place and setup shop.
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