Low-fibre diet?
The provincial government announces the "framework of an agreement" to keep the Abitibi paper mill in Stephenville running:
http://www.releases.gov.nl.ca/releases/2005/exec/1026n05.htm
Quote:
The highlights of the framework of the agreement are:
The initial term is for a period of three years during which time government and/or Newfoundland and Labrador Hydro will provide assistance of $10 million annually to ACI.
During the initial term, ACI commits to maintaining current production levels at the Stephenville mill and at no point can close the mill.
ACI commits to investing in a new boiler in Stephenville at a cost of up to at least $13 million by December 31, 2006.
Subsequent to the first three years, government and ACI have agreed there will be four renewals of the arrangement for a period of three years in each instance for a total of 12 years as long as the Stephenville mill continues to operate at current production levels.
ACI has agreed to renew its Interruptible B contract with Newfoundland and Labrador Hydro at no cost to Hydro during the initial term of the agreement and the first two years of the first renewal term.
Government and ACI confirm their strong commitment to seeking achievement of a long-term hydro supply solution for the Stephenville mill in conjunction with Hydro.
Oddly missing from the "highlights"? The big issue for Stephenville which so often falls under the euphemistic rubric "fibre supply".
Where is Abitibi going to get its raw material from?
Grand Falls?
Quebec?
Labrador?
posted by WJM @ 10:25 PM
11 Comments:
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There isn't enough material on the island for 3 paper mills.
[will this be deleted also?]
Nope. It's on the issue at hand.
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Look, Liam, I am still waiting for you to post a detailed critique of the government's Abitibi proposal with something a little weightier than "I disagree with the government but hey it's not the end of the world." [Accompanied by the sound of a toilet flushing cash]
Luckily, I ain't holding my breath.
"Weightier" how?
There's not much to say.
The smart long-term move that would guarantee long term stability for at least one mill would be for Abitibi to take the newer gear out of Stephenville and put it in Grand Falls - Windsor.
We need to stop assuming that government can always "save" a plant or a town. Sometimes government has to think about net loses and when to cut the losses.
Accord $$$ should NOT be going into this proposal. If the $$$ is to be spent at all it should be on improving general infrastructure and/or improving our tax and regulatory regimes. Even then, I think Debt reduction is where that $$$ should be going.
What more is there to say?
Well, post that sort of comment on your blog in lieu of slagging the crap out of me and others personally, Liam.
One of things about comments sections is that except for a handful of us, few people really read them. However, if a detailed comment is made on the blog directly, it reaches a wider audience.
Fair points Ed. Though to be fair, I usually at least refer to you by your proper name. You've inflamed matters a fair bit by constantly looking for alternatives to my name.
To Wallace (related to main blog post) -- is it true that there is fibre still coming out of southern Labrador?
I heard this recently from a friend and they seemed to think even Kruger was engaged in this. . . I was under the impression that Kruger was still mostly island-sourced.
I know Abitibi were logging very close to my home town in Buchans and sometimes shipping both east and west . . .
To Wallace (related to main blog post) -- is it true that there is fibre still coming out of southern Labrador?
And central.
I heard this recently from a friend and they seemed to think even Kruger was engaged in this. . . I was under the impression that Kruger was still mostly island-sourced.
I think all three mills are "mostly" island-sourced, but both Corner Brook and Stephenville are getting at least some "fibre" from other sources, including Labrador, PEI, and Quebec.
Liam, I have used alternatives to the name of your blog. I was not aware that you were Christened Responsible Government League O'Brien. (j/k)
On the fibre issue, to the best of my knowledge, Abitibi purchased/were given the old Labrador Linerboard timber concessions in labrador
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