The Dexter Government is in negotiations to possibly purchase assets from a shuttered South Shore paper mill, which has Nova Scotia’s opposition parties raising concerns.
Premier Darrell Dexter says the government wants to acquire 222-thousand hectares of timberland belonging to the mill’s owner, Montreal-based Resolute Forest Products.
Dexter says he wants to prevent a foreign buyer from purchasing the lands and processing the timber outside of the province.
Liberal Leader Stephen McNeil says any deal cut by the government would have to come before the legislature for scrutiny.
“We’re talking about a deal that we don’t know how much it’s going to cost the taxpayers of Nova Scotia,” McNeil told the Canadian Press. “I think it’s important that we look at, first of all, what is the cost of this whole deal. If it’s a reasonable amount, and if the buyer can be protected by Nova Scotians than we’ll look at the deal then.”
In June, Resolute permanently closed the former Bowater Mersey paper mill and declared its intentions to sell the mill’s assets to the province. That includes the timberland, the mill, the sawmill and Brooklyn Power, estimated at $120 million.
The deal for the timberland alone is estimated at $100 million.
Progressive Conservative Leader Jamie Baillie says the government can achieve its objectives without spending millions in taxpayers’ dollars.
“I think the role of government here is to facilitate the sale of that land to a responsible buyer, and then to make sure that the proceeds are used for things like the pension,” said Baillie.
The company pension plan is underfunded by about $60 million. The closure put about 320 people out of work.
The province threw Resolute a $50 million lifeline to try to keep the failing mill going in December. Some of the money was spent on land purchases and employee training. The province says the remaining money was either not used or has been returned.
Opposition concerned about $100-million Bowater talks
Desiree Finhert with files from the Canadian Press
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