Nova Scotia’s government is adding almost $118 million in debt to acquire a large tract of private forest land that belonged to Resolute Forest Products Ltd.
   
The deal announced Monday night will give the province control of 220-thousands hectares of forest in southwestern Nova Scotia, along with a power generation plant, the Bowater-Mersey paper mill site and the wood fibre inventory of the defunct paper mill.

Resolute Forest Products Ltd. closed the former Bowater-Mersey paper mill near Liverpool, Nova Scotia, in June, throwing about 320 people out of work.
   
The province says in a news release that it is acquiring the shares of Bowater Mersey from Resolute and the Washington Post Co. Ltd.
   
A policy advisor in the premier’s office says that the acquisition will mean the government will add 117.7 million dollars — the market value of the woodlands — to the province’s debt.
   
The province also says it is going to have to deal with a liability of 118.4 million dollars in pension and severance shortfalls.

N.S. Tory leader Jamie Baillie says there are a lot of unanswered questions about just what the province will do with the land to help revive the forestry industry.