Natural Resources
April 7, 2014

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

Provincial Government Reaches Out to Forest Industry Through Agreements

Mr. Speaker, I rise in this Honourable House today to highlight our government’s investment to secure the future of our forest industry in the western region and the entire province for the benefit of residents and communities.

In February, I was delighted to join the Premier in Corner Brook to announce details of a loan agreement for up to $110 million and a power assets and water rights purchase agreement between the Provincial Government and Corner Brook Pulp and Paper Limited.

By investing in the pulp and paper mill, government is reaching out to the entire forest industry and supporting 5,500 people who are employed, particularly in the province’s rural communities in harvesting, sawmilling, and value-added enterprises.

Corner Brook Pulp and Paper Limited is one of the largest private employers in the province and is a strong contributor to the provincial economy. Along with its suppliers, it contributes $124 million annually to the gross domestic product.

With this loan, Corner Brook Pulp and Paper Limited will be able to carry out capital projects that will reduce costs, improve productivity, and increase the paper mill’s competitiveness on the global newsprint market.

The loan is secured by a mortgage and company hydro assets, including the Deer Lake Power Plant and Watson’s Brook Power Plant. The Provincial Government will purchase the power assets, water rights, and all related rights to the power assets for the people of the province if the mill closes.

These agreements are the result of dedicated work by people in several Provincial Government departments who are to be commended for their efforts. They have worked closely with staff at Kruger Inc., the parent company of Corner Brook Pulp and Paper Limited, who are equally enthusiastic about the long-term viability of the Corner Brook operation.

Mr. Speaker, our continued investment in Corner Brook Paper Limited is great news for the forest industry in Newfoundland and Labrador. These agreements will ensure the benefits from our renewable resources will continue well into the future.

2014 04 07                                        3:05 p.m.