Justice
Natural Resources
April 27, 2010Provincial Government Corrects
Misinformation Regarding Abitibi
The Honourable Felix Collins, Minister of Justice and Attorney
General, and the Honourable Kathy Dunderdale, Minister of Natural
Resources, today corrected misinformation pertaining to the
responsibilities of Abitibi in relation to environmental clean up as
well as the Provincial Government's communication of the matter.
Minister Collins indicated that Abitibi has legislative responsibilities
for any contamination.
"The Environmental Protection Act ensures that Abitibi, as
owner of the site when contamination occurred, is responsible even
though the Provincial Government now owns the site," said Minister
Collins. "As well, the Abitibi-Consolidated Rights and Assets Act,
specifically section 13, indicates that Abitibi-Consolidated remains
responsible for all undertakings made by it in relation to environmental
remediation at any of its former sites. We expect Abitibi to meet these
obligations."
Sections 2 (x) (ix) and 2 (x) (v) of the Environmental Protection
Act state that the "person responsible" at the time a contaminant is
released into the environment is responsible for the clean up of the
site. A "person responsible" includes a former owner. As well, section
13 of the Abitibi-Consolidated Rights and Assets Act specifically
states that "nothing in this act affects the liability of
Abitibi-Consolidated related to undertakings made by it in relation to
environmental remediation."
Currently Abitibi is under creditor protection pursuant to the
federal Companies' Creditor Arrangement Act. It is seeking to
have its environmental responsibilities significantly reduced by this
process. The Provincial Government is legally challenging that position,
arguing that Newfoundland and Labrador environmental protection laws
cannot be disregarded.
"The Leader of the Opposition continues to provide the people of our
province with inaccurate information on the Abitibi file," said Minister
Dunderdale.
"When she states that the assets of Abitibi will cost
the province $500 million she is using the unsubstantiated figure of
Abitibi in its statement of claim under NAFTA. Just because Abitibi says
that is the value of the assets does not make it so. The Provincial
Government is unclear as to how this dollar amount is derived."
Minister Dunderdale also pointed out that she announced that the
Provincial Government inadvertently expropriated the mill and property
in a news release on February 5, 2010. Recent media reports have been
suggesting that the Provincial Government's ownership of the mill itself
only came to light last week during questioning in the House of
Assembly.
"This is totally erroneous," said Minister Dunderdale. "We announced
the fact that we now have legal ownership over the mill and property,
Grand Falls House and the former mill manager's house in early February
when Abitibi informed us they were officially handing over the buildings
to us. To suggest this information is coming to light as a result of
questioning by the Opposition in the House is ludicrous. The information
is publicly out there for anyone to see. On top of that, I did media
interviews at the time providing additional details as to how this
situation transpired."
The release clearly states: "When drafting Bill 75, we erred on the
side of caution to ensure that the hydroelectric facility attached to
the mill was included in the expropriation. By not including descriptive
language to specifically exempt these other properties, the province
assumed legal ownership of them."
The news release indicates that the Provincial Government has no
plans for the properties at this time while legal processes associated
with Abitibi's assets and responsibilities in this province are ongoing.
It also states that, "Our taking custody and management of these
buildings at this time no way reduces, eliminates or mitigates any
responsibilities Abitibi may have in respect to remediation or
environmental liabilities."
The full text of the release can be found at: