Minister Provides Statement on Corner Brook Pulp and Paper Limited

The Honourable Jerome Kennedy, Minister of Natural Resources and Minister Responsible for the Forestry and Agrifoods Agency, made this statement today following the Kruger Inc. announcement of a rejection of the company’s proposal to apply funding relief measures to pension plan deficits at Corner Brook Pulp and Paper Limited.

“Our government is disappointed, and concerned with the rejection by union members of funding relief measures proposed by Kruger Inc., and what this may mean for the future of the mill in Corner Brook.

We are facing a grave situation, one which could potentially lead to the closure of Corner Brook Pulp and Paper Limited. Kruger is now reassessing the viability of its operations in Corner Brook. This obviously could have very serious ramifications for the employees and the entire Corner Brook area.

We strongly urge the unions at Corner Brook Pulp and Paper to work with Kruger to help secure the long-term competitiveness and future viability of the mill. Pension issues are solely a matter between unions, retired workers and the company, and I can not encourage the unions strongly enough to commit to working through this with the company. Corner Brook Pulp and Paper has been a key employer for the region and a strong contributor to our economy for many, many years and we certainly want to see that continue.”

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Media contact:
Heather Maclean
Director of Communications
Department of Natural Resources
709-729-5282, 697-4137
heathermaclean@gov.nl.ca

2012 05 18                               2:10 p.m.