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Natural Resources
April 17, 2013

The following statement was given today in the House of Assembly by the Honourable Tom Marshall, Minister of Natural Resources:

The Provincial Government Pledges $90 Million Loan to Corner Brook Pulp and Paper

Mr. Speaker I am pleased to stand and inform this Honourable House that the Provincial Government plans to assist Corner Brook Pulp and Paper Limited with a $90 million loan.

Corner Brook Pulp and Paper is a key employer and a strong contributor to our economy. The mill is important not only to the west coast, but the entire province. Government has clearly stated that we will provide support only when negotiations for a new contract are concluded for all eight unions at the mill.

Budget 2013 sets aside $90 million in the form of a loan to provide support to Corner Brook Pulp and Paper to help the company address challenges in the industry.

Mr. Speaker, this financial assistance to the paper mill in Corner Brook, a major employer of the region, is in the best interests of the people of Corner Brook and indeed the entire area.

This loan will enable Corner Brook Pulp and Paper to become a low cost producer. Our investment will strengthen the company, which has been a long-standing, good corporate citizen in Newfoundland and Labrador. It will also help ensure the long-term security of our integrated sawmill operations which are the backbone of the sawmilling sector.

The Provincial Government has invested $58 million in Corner Brook Pulp and Paper from 2004 to 2012 in various projects. This amount does not include Power Purchasing Agreement sales of $65 million which provides a source of revenue for the paper mill.

Corner Brook Pulp and Paper employs an estimated 610 full-time and casual workers in the mill, forestry operations, and Deer Lake Power. It is the sole paper producer in Newfoundland and Labrador and one of the largest private employers in western Newfoundland.

Mr. Speaker, this is a responsible decision for continuing to build a vibrant economy in Newfoundland and Labrador. This is in the best interest of our people and our province.

2013 04 17                                2:15 p.m.

 
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