Minister Refutes Accusations of Company

The Honourable Kathy Dunderdale, Minister of Natural Resources, today expressed her disappointment in the recent misleading statement of Motion Invest pertaining to interest of the company in the former Abitibi mill in Grand Falls-Windsor.

"Lott Paper approached the Government of Newfoundland and Labrador expressing interest in the mill at Grand Falls-Windsor and subsequently a letter of intent from Motion Invest followed, along with details of how they would like to proceed with reactivating the mill," said Minister Dunderdale. "Our government, acting in good faith, worked with both companies to further explore their interests in the mill. Based upon the letter of intent they put forth we asked for further financial information as well as a business plan. The purpose of this was to ascertain relevant information such as other business and financial partners, financial institutions and details associated with their interest which would then enable us to evaluate the plan comprehensively."

In response to questions on this matter Minister Dunderdale publicly indicated that a company had expressed interest in the mill and was expected to provide the Provincial Government with detailed financial information along with a business plan for operating the mill. The Provincial Government was accused of raising expectations in the province about the future of the former Abitibi mill in Grand Falls-Windsor.

"If in answering the question of the Leader of the Opposition during Question Period I had not been truthful and not provided information about the interest expressed by the company, I would have been criticized for being secretive," said Minister Dunderdale. "At no time have I said that a deal was done, was close to being done or that any form of significant negotiation had taken place. That being said, we owed it to the people of Grand Falls-Windsor to pursue and thoroughly evaluate this expressed interest."

Minister Dunderdale stated that while the companies involved claim not to have provided detailed information and were only seeking to conduct a feasibility study, substantive information was provided to the Government of Newfoundland and Labrador. The proposal put forth included timelines for operations, estimates of employees to be hired, along with a request of financial help from the Provincial Government totaling $52 million.

"While the actions of these companies have been disappointing, this does not in anyway diminish the outstanding fibre resource present in central Newfoundland," said Minister Dunderdale. "Our government is keenly aware of the importance of this natural resource, as I know the people of the area are. In cooperation with area residents we will continue with our efforts to ensure the long-term viability of this region of our province, despite the efforts of the opposition parties who wish to stymie growth in our province."

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Media contact:
Ken Morrissey
Director of Communications
Department of Natural Resources
709-729-5282, 685-6612
kenmorrissey@gov.nl.ca