Minister clears record on Opposition remarks

Mines and Energy Minister Lloyd Matthews, who led the file on reaching a tentative agreement with Inco on the Voisey�s Bay project, today replied to a number of criticisms put forward by the leader of the opposition.

"Government is eager to debate the Voisey�s Bay Project in public and in the House of Assembly," said Minister Matthews. "Furthermore, we have a responsibility to ensure that people are presented with factual details about the Statement of Principles negotiated on their behalf and with their best interests in mind."

The processing guarantee
"Over the life of the project, which will extend beyond mine production at Voisey�s Bay, all nickel will be produced to a finished product in the province. Sections 21 and 22 of the Statement of Principles guarantee this commitment.

The security measures
"We have excellent security measures in place to ensure that Inco lives up to its commitments. Aside from the fact that it would be uneconomical for Inco to not live up to its guarantees after investing close to $3 billion in the project, we can stop movement of concentrate from the province, or in the absolute worst case, suspend or cancel its mining lease.

Fiscal benefits for the province
"Mr. Williams said that the Statement of Principles gives Inco a major tax break that Premier Grimes said it would never receive. As a matter of fact, government is proposing changes to the Mining and Mineral Rights Tax Act that would see this province receive $90 million more in taxes than it would have under the current system of taxation.

Keeping the commitments
"Government made commitments to ensure that processing to a full nickel metal occurred in the province. We have absolutely kept that commitment, because we have concrete guarantees."

Minister Matthews said that he welcomes debate on the Voisey�s Bay project, and will continue to put the facts of the Statement of Principles before the people of the province so that they can reach their own conclusions.

"It is absolutely essential that people have factual information. Whether individuals like the deal or not is for them to decide. However, they should have the opportunity to decide based on real information strongly grounded in fact."

Media contact: Darrell Mercer, Communications, (709) 729-5777.

2002 06 14                               5:35 p.m.