$2.1 Million in Special Assistance Grants Committed
to Impacted Communities in Central Region

Special assistance totalling $2.1 million to help offset the void in budgets of communities who secured grants in lieu of taxes from AbitibiBowater was announced by the Honourable Shawn Skinner, Chair of the Ministerial Task Force, last night (Thursday, October 29) at the Exploits Valley Economic Development Corporation�s annual general meeting. The special assistance will enable the towns of Grand Falls-Windsor, Bishop�s Falls, Botwood, Buchans, and Terra Nova to continue to deliver important services to residents and mitigate the void created by AbitibiBowater�s decision to cease operations in the province.

Since the mill�s closure, the special assistance payments bring the total value of the Provincial Government�s financial investments to in excess of $100 million in the Central Region. These investments have ranged from $35 million in financial benefits to displaced workers to $35 million on infrastructure projects to initiatives targeting long-term economic development.

�Our government recognizes the financial challenges that have been experienced by communities in the central region in the wake of AbitibiBowater�s actions to pull out of Newfoundland and Labrador,� said Minister Skinner. �The $2.1 million in special assistance offsets budget issues for impacted communities. To support those communities, the Department of Municipal Affairs will also work with communities to help develop a long-term sustainable approach to managing their budgets to offset the loss of grants in lieu of taxes that were previously paid by AbitibiBowater.�

Grants in lieu of taxes initially paid by AbitibiBowater were negotiated arrangements between each community and the company. The Provincial Government�s special assistance grants provide each community with three years of transitional funding at the level of 100 per cent of AbitibiBowater�s 2006 grants paid in lieu of taxes in 2009, with additional provisions for 66 per cent in 2010, and 33 per cent in 2011.

�Communities in the province�s central region are actively working to advance initiatives to strengthen and diversify the regional economy,� said Minister Skinner. �This investment marks a positive step in that process, as collectively, we have been able to bridge an identified gap. As a task force, we look forward to continuing to work with our local partners to target initiatives that encourage the region�s long-term growth.�

Transitional funding will include $1.6 million for Grand Falls-Windsor; $218,900 for Bishop�s Falls; $218,900 for Botwood; $27,050 for Buchans; and $1,600 for Terra Nova. Within the central region, no other communities received special payments from AbitibiBowater.

�Our government will continue to work with communities to help identify opportunities to ensure the sustainability of the region, support diversification of the local economy, and assist during this time of transition,� said the Honourable Susan Sullivan, MHA, Grand Falls-Windsor - Buchans.

The Department of Municipal Affairs will issue and administer the special assistance payments.

- 30 -

Media contacts:

2009 10 30                                                    9:25 a.m.