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Natural Resources
December 14, 2010
Amendments
to Abitibi-Consolidated Rights and Assets Act
Removes Obligation for Compensation
Bill 47, An Act to Amend the
Abitibi-Consolidated Rights and Assets Act, which removes the
compensation obligations of the Provincial Government to pay
Abitibi-Consolidated for any rights or assets they once possessed in Newfoundland and Labrador,
received Second Reading in the House of Assembly today.
"When the Government of Canada provided $130 million to
Abitibi-Consolidated it effectively eliminated the need for our province to
pay any compensation to the company," said the Honourable Shawn
Skinner, Minister of Natural Resources. "The action we are taking
through these amendments will ensure that Abitibi-Consolidated will receive
no compensation from the Government of Newfoundland and Labrador.
Now that the issue of compensation to that company is settled, we can move
quickly to address compensation to the companies which were bystanders to
the action we undertook."
The legislation will now recognize that compensation is outstanding to
the electricity companies CHI Hydroelectric, a subsidiary of Enel, and Fortis Properties. Both held interests in the
Star Lake
and Exploits River hydro projects which were
expropriated through the Abitibi-Consolidated Rights and Assets Act.
The Provincial Government is still in negotiations regarding fair
compensation with these companies and is also discussing compensation with
a consortium of lenders who were involved in these two hydroelectric
projects.
"For 100 years Abitibi-Consolidated had access to land, timber and
water rights in our province, along with a highly-skilled and dedicated
workforce," said Minister Skinner. "Our government acted quickly
to ensure the natural resources of our province were protected before this
company abandoned its obligations to the people of Newfoundland
and Labrador."
The amendments to the Abitibi-Consolidated Rights and Assets Act
clarify that the parties identified in the legislation will be paid
compensation as determined by the Government of Newfoundland and Labrador.
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Media contact:
Ken Morrissey
Director of Communications
Department of Natural Resources
709-729-5282, 685-6612
kenmorrissey@gov.nl.ca
2010 12
14
4:00 p.m.
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