Despite opposition reservations around the expropriation of the mill in Grand Falls-Windsor by the Newfoundland and Labrador government, expropriating the assets of this area of the province was the right thing to do, according to Susan Sullivan, MHA for Grand Falls-Windsor-Buchans.
"We expropriated, in my opinion, for all the right reasons and I believe we would do it all over again today if we had to do that, I believe we would do it all over again tomorrow," Ms. Sullivan said. "And it's because it is in the best interest of the people of Grand Falls-Windsor and central Newfoundland and the whole of the province. We now have back our timber rights, we have our land, we have our hydro electricity generating plants, and therefore that means we have a future and we have hope for the future and prosperity and optimism. I absolutely believe that we did the right thing and I would stand against anyone toe-to-toe and argue that that was the right thing to have done. I believe that history is going to prove that as well."
She said the Newfoundland and Labrador government had to act quickly in order to expropriate because they knew AbitibiBowater was on the brink of going bankrupt.
"The mantra of this government always has been no more give aways," Ms. Sullivan said. "So we are not giving away our resources and we are not letting anyone walk away with them either.
"But it is a good thing for this area that we now have resources to work with that will take us into the future, that will provide that sustainability and that self-reliance that we have always known here."
She added it is going to take some time, especially since investors haven't been as quick to move over the last 12 to 18 months because of the economic recession.
There are plans for the expropriated assets and property. In terms of fibre resources, the government is trying to find the right use of that fibre. Ms. Sullivan said the government is looking at long-term use of that fibre at a difficult economic time when investors have been reluctant to invest, but she believes it is out there, it's just a matter of waiting it out and finding the right investment.
"In terms of the mill itself and the two buildings that we expropriated, inadvertently, until the legal processes are over we really don't have any plans for that right now," Ms. Sullivan said.
She said in terms of the hydro power, she believes there will be a use for it, it's just a matter of working diligently to find the use.
"In terms of the power, absolutely, good, green energy power in this province is extremely important and I believe that this province at some point in time is going to be viewed as a warehouse for power," the Ms. Sullivan said. "So the use of our power here will very much be a part of that as well. But we also believe in adjacency and so if companies are looking to come and invest here, then that power is available to them to invest here as well.
Ms. Sullivan said there has been some skepticism around the topic, adding she heard someone on a radio talk show on Friday who said the mill was closed down so that Vale Inco could have access to the power.
"Nothing could be further from the truth," she said. "First of all, we don't have the transmission lines that could take the power from here anywhere past Sunnyside to start with. And the second ludicrous part of that particular argument is that what company comes in here and invests millions of dollars in the hopes that a mill is going to close down so they might be able to access the power?"
She said she was recently asked whether or not she thought the expropriation was going to be viewed in the end as a blunder for Premier Danny Williams and the government.
"And I said the legacy of this province has been, in my opinion, since this government has come into power, that there is a new spring in our step, that we are proud of who we are as Newfoundlanders and Labradorians, and that we feel that we have a right to stand up and take our place again," she said, adding the premier has negotiated brilliant deals in the Atlantic Accord, the White Rose Extension, Hibernia South and Hebron.
"I think history is also going to show that the expropriation of our rights here in this province is going to be part of that same legacy because it shows such vision and such courage. It's a tough thing to do to say that we're going to take on a big corporation, that we're going to probably have to enter into a NAFTA challenge as well, I think when the history books are finally written on this it is going to show that this will be part of the legacy of this government."
She said in spite of the opposition right now, who she feels has changed their minds and seems to want to run away from the topic, she believes it will be shown that the expropriation was not a blunder.
"That this has been opportunity presenting itself and we simply have to continue to knock on all the right doors to bring that opportunity to a point where we have results for the people of the area and I believe that we are going to do that," she said. "I think the important piece about everything that has gone on is that history is going to show that what we did was the right thing, was the right move, and that future generations are going to benefit from government having taken back these resources that belong to the people of the province."
Ms. Sullivan said as for the cost, the only number the government knows firmly is with regard to severance, which in the end will be somewhere around $43 million when everything has been paid.
"In terms of what a NAFTA (North American Free Trade Agreement) challenge might be, in terms of what the remediation costs might be, we don't know that, and we need to keep in mind that we still don't know where that fall out might be," she said.
She added the Quebec courts did not in the government's estimation give them a fair hearing. The legislation in this province according to the environmental protection act says the polluter pays, not the owner, but the person or group that made the mess and left the mess ought to return the lands to the same state in with they relieved them.
She said the Quebec court decided not to hear that part of the argument but simply to look at what the government's claim might do to AbitibiBowater if they are trying to restructure. She said the Quebec court saw the claim as a liability to a company that is starting to restructure.
"We really don't know exactly what those remediation costs might be and neither have we ruled out going to the Supreme Court of Canada," she said. "When a Quebec court can make a decision that says we are going to supersede and we are going to ignore your provincial legislation and your provincial laws of environmental protection, that ought to send a shiver right across the whole of this country to say that this could happen to you as well."
Ms. Sullivan said the government is still looking at its legal options and are not settled on a decision yet.
"In terms of it all and where it might fall out, is there a price tag that we can put on the future of or area or the province and of the province in general, I don't think so. I think it is important that my children and your children and my grandchildren and your grandchildren have a future here in this province of Newfoundland and Labrador."
All the right reasons
Susan Sullivan, Grand Falls-Windsor-Buchans MHA, believes the expropriation of the mill in Grand Falls-Windsor was in the best interest of the area, central Newfoundland and the province in general.Krysta Colbourne photo
-
-
Published on
May 27, 2010
- Published on June 22, 2010
-
Krysta Colbourne
Local MHA believes expropriation positive for everyone
Despite opposition reservations around the expropriation of the mill in Grand Falls-Windsor by the Newfoundland and Labrador government, expropriating the assets of this area of the province was the right thing to do, according to Susan Sullivan, MHA for Grand Falls-Windsor-Buchans.
"We expropriated, in my opinion, for all the right reasons and I believe we would do it all over again today if we had to do that, I believe we would do it all over again tomorrow," Ms. Sullivan said. "And it's because it is in the best interest of the people of Grand Falls-Windsor and central Newfoundland and the whole of the province. We now have back our timber rights, we have our land, we have our hydro electricity generating plants, and therefore that means we have a future and we have hope for the future and prosperity and optimism. I absolutely believe that we did the right thing and I would stand against anyone toe-to-toe and argue that that was the right thing to have done. I believe that history is going to prove that as well."
- Rate
- Top of the page
Comments
-
- Tom
- - June 28, 2010 at 16:19:57
Patty,
Are you the last remaining supporter of Susan Sullivan? A relative or retired school teacher perhaps? -
- Patty
- - June 28, 2010 at 16:19:56
All you people are mostly Danny haters and not willing to give him or his government a chance. Municipal Matters is a prime example from what I read there. As for getting worst I don't think so as we are in the second year of the closure and things are going just fine except for the few who like to see the town go down the pipes tp prove their point. Dream on there no alls!!!
-
- Ken
- - June 28, 2010 at 16:19:56
First of all Susan the timber rights as far as I know were all to revert back to the Crown in 2010 regardless. So you seized nothing/did nothing.
This was negotiated by the paper company and your then Minister of Natural Resourses. What the company needed was your support to convence the unions that a restructuring of the business was critical in order for it to survive. Did your dept. offer the services of a conciliation officer to help the company/union process? NO. Why not?
You simply jumped on the govt. bandwagon and sold out a 100 year old business for the sake of giving Danny and the legal gang in St. John's a hydro wharehouse ( as Danny calls Nalcor). You stood silent and watched as equipment was taken from the mill as late as Christmas and did nothing.
You did not represent the hundreds of non Abitibi people who have been affected by this loss and even today still sing the Danny tune that the polluter pays and this was the best thing since sliced bread.
I hate sliced bread and I am so dissappointed in your leadership on this issue. You were bought for a mere cabinet post. What a shame you had such potential.
You and Skinner gave security jobs to the union guys without even a job posting or interview process. This is your responsibility but you stood silent.
At a time when Central Newfoundland needed a voice to challenge those in St. John's yours was lost.
What a pity for us all. -
- Gerard
- - June 28, 2010 at 16:19:47
Toe-to-toe...eh!! Rather confrotational isn't it Susan. You're starting to sound like somebody else!! I'll resist the urge to address much of the BS in this article to deal with just the power issue. There are many people now employed producing power on the Exploits. What exactly is being done with this power? I can only assume it isn't being dumped somewhere?? Nalcor's press release a while back stated that the Exploits generation was allowing the resevoirs to build up! How do you store hydroelectric power generating capacity....build up resevoirs! Bay D'Espoir power is available to the whole island!! Anything that reduces consumption of power from that particular facility does one of 2 things. It allows a reduction from the mega polluting Holyrood plant or/and stores water at that facility for generation when needed. Therefore electricity generation on the Exploits River does create available energy for the Avalon, maybe indirectly by shunting capacity down the line, but it does create energy capacity for the WHOLE grid. People are catching on to just how uncredible you are!! BTW I always had a hop in my step and you and your crowd can't claim any responsibilty for that. Good luck with the Legacy stuff!
-
- Tom
- - June 28, 2010 at 16:19:42
Ken,
I am sure that anyone from the central area with at least half a clue would agree with you 100%. People should visit http://municipalmatters.ca/geeklog/public_html/
For interesting details from posters regarding Susan Sullivan and more. -
- Wayne
- - June 28, 2010 at 16:19:40
It seems to me that you people have all the answers. Come out from the shroud of first names and reveal yourselves. As for Ms. Sullivan she will have no problem getting re-elected. She is no miracle worker. She is doing her best considering the circumstances. Time for most that come on this site to read a copy of positudes. You get nowhere being negative. It seems nothing is good enough for some.
-
- joe
- - June 28, 2010 at 16:19:40
Facts:
1. Actual cash value of Exploits generation expropriated = approx 30 million annually.
2. Due to the low risk associated with hydro earnings (essentially a utility) the price earnings multiple is quite high - at a minimum PE ratio of 10x the expropriated assets (if purchased in a normal transaction) would have fetched a sales price of about 300million. This is reinforced by the fact that the replacement costs of the hydro assets expropriated is between 300 - 400 million.
3. Unless the cleanup costs and any court ordered payment under the NAFTA challenge exceed 300 million in aggregate, then the expropriation can be considered a sucess for the Province in terms of net recoverable value expropriated.
Opinion:
1. If the government was truly seeking a new large-scale operation, it would have expropriated ALL assets intentionally - not accidentally. It would have then offered the bundle of assets (including the huge hydro advantage) to potential commercial suitors.
2. The William's government, with its trademark no more give-aways has no intention of offering a 30million hydro advantage to a new commercial enterprise. This would undermine the very cornerstone of the government's popularity base.
3. With a fiber base of only 290,000 meters (the 2009 Expression of Interest) there will be no paper production in GF-W. This fiber could only support the production of just over 100,000 tonnes of newsprint (or some other mechanical pulp product) making it easily the smallest type facility of this type in the world...at a time when paper mills are getting larger to capture economies of scale.
So what's really going on? -
- Gerard
- - June 28, 2010 at 16:19:39
Minister Sullivan, in my prior post, I stated that unless papermaking is brought back to GFW, then the expropriation will never be considered a success, at least in Central. I also forgot to mention that the chance of our three voiceless MHA'S being elected again next year, probably won't be successfull as well.
-
- Gerard
- - June 28, 2010 at 16:19:35
Minister Sullivan, the only way that the expropriation will be considered a success in the history of NL, and be part of the same legacy as the Atlantic Accord, White Rose, ect, is to bring a new operator to the mill and begin another century of making paper. The mill should never have stopped operations, and only did so because of greed,hidden agendas, and lack of leadership on all parties involved. When government discovered they owned the mill was the time to look for new operators, instead of hiding the truth and watch as valuable papermaking equipment was being removed from our mill. Through Luck or Destiny, GFW is given another chance to be a Paper making town, and regain it's reputation of making the best newsprint in the world, and now premier Williams is given the chance to do everything possible to make this happen. Our children and grandchildren do deserve the right to live in this great place, so show some leadership like the politicians of Meckenzie, B.C. are doing and bring back paper making to OUR TOWN of GrandFalls-Windsor, then, and only then will the expropriation be considered a successfull legacy in the William's government.
-
- Geoff
- - June 28, 2010 at 16:19:34
The truth lies in the comments section, doesn't it? Despite the stacked callers to Open Line and their ridiculously similar talking points, it is clear that the people of Grand Falls-Windsor can see the truth.
The union executive? They have jobs at the plant.
The rank and file? They got their severance. So you won't hear much (on the record) from the workers.
The town council? Strangely silent, either for partisan reasons or because they're afraid of getting the St. Anthony treatment.
But the people of the town know the truth about the bungled expropriation. They also know that you can't lose an industrial plant, with its 700 jobs, and not feel severe economic impact - despite the silly reassurances and lame diversification strategies of Shawn Skinner and his government.
Things will get worse before they get better, and this government is going to feel the anger of the Exploits region, come election time. -
- Dennis
- - June 28, 2010 at 16:19:23
I've been following this story fairly closely, and I'm unclear where the perceived opposition is coming from. The expropriation itself received widespread support, both politically and among the people (I thought it was great...still do). The only regret I've been hearing/reading about is that the politicians didn't read the law they were enacting closely enough to know what it was they were enacting. I think that's a fair requirement for our politicians to follow when making laws of the land. I'm disappointed to see Ms. Sullivan state that she ...would do it all over again today ; I believe there were lessons here to suggest that some things be done a little differently.
-
- Micky
- - June 28, 2010 at 16:19:20
Susan, when the history books are written you will be recorded as the biggest mistake the electors of this district have ever made and your leader the biggest failure of all premiers.
-
- Tom
- - June 22, 2010 at 17:35:32
Patty,
Are you the last remaining supporter of Susan Sullivan? A relative or retired school teacher perhaps? -
- Patty
- - June 22, 2010 at 17:35:31
All you people are mostly Danny haters and not willing to give him or his government a chance. Municipal Matters is a prime example from what I read there. As for getting worst I don't think so as we are in the second year of the closure and things are going just fine except for the few who like to see the town go down the pipes tp prove their point. Dream on there no alls!!!
-
- Ken
- - June 22, 2010 at 17:35:31
First of all Susan the timber rights as far as I know were all to revert back to the Crown in 2010 regardless. So you seized nothing/did nothing.
This was negotiated by the paper company and your then Minister of Natural Resourses. What the company needed was your support to convence the unions that a restructuring of the business was critical in order for it to survive. Did your dept. offer the services of a conciliation officer to help the company/union process? NO. Why not?
You simply jumped on the govt. bandwagon and sold out a 100 year old business for the sake of giving Danny and the legal gang in St. John's a hydro wharehouse ( as Danny calls Nalcor). You stood silent and watched as equipment was taken from the mill as late as Christmas and did nothing.
You did not represent the hundreds of non Abitibi people who have been affected by this loss and even today still sing the Danny tune that the polluter pays and this was the best thing since sliced bread.
I hate sliced bread and I am so dissappointed in your leadership on this issue. You were bought for a mere cabinet post. What a shame you had such potential.
You and Skinner gave security jobs to the union guys without even a job posting or interview process. This is your responsibility but you stood silent.
At a time when Central Newfoundland needed a voice to challenge those in St. John's yours was lost.
What a pity for us all. -
- Gerard
- - June 22, 2010 at 17:35:16
Toe-to-toe...eh!! Rather confrotational isn't it Susan. You're starting to sound like somebody else!! I'll resist the urge to address much of the BS in this article to deal with just the power issue. There are many people now employed producing power on the Exploits. What exactly is being done with this power? I can only assume it isn't being dumped somewhere?? Nalcor's press release a while back stated that the Exploits generation was allowing the resevoirs to build up! How do you store hydroelectric power generating capacity....build up resevoirs! Bay D'Espoir power is available to the whole island!! Anything that reduces consumption of power from that particular facility does one of 2 things. It allows a reduction from the mega polluting Holyrood plant or/and stores water at that facility for generation when needed. Therefore electricity generation on the Exploits River does create available energy for the Avalon, maybe indirectly by shunting capacity down the line, but it does create energy capacity for the WHOLE grid. People are catching on to just how uncredible you are!! BTW I always had a hop in my step and you and your crowd can't claim any responsibilty for that. Good luck with the Legacy stuff!
-
- Tom
- - June 22, 2010 at 17:35:10
Ken,
I am sure that anyone from the central area with at least half a clue would agree with you 100%. People should visit http://municipalmatters.ca/geeklog/public_html/
For interesting details from posters regarding Susan Sullivan and more. -
- Wayne
- - June 22, 2010 at 17:35:07
It seems to me that you people have all the answers. Come out from the shroud of first names and reveal yourselves. As for Ms. Sullivan she will have no problem getting re-elected. She is no miracle worker. She is doing her best considering the circumstances. Time for most that come on this site to read a copy of positudes. You get nowhere being negative. It seems nothing is good enough for some.
-
- joe
- - June 22, 2010 at 17:35:07
Facts:
1. Actual cash value of Exploits generation expropriated = approx 30 million annually.
2. Due to the low risk associated with hydro earnings (essentially a utility) the price earnings multiple is quite high - at a minimum PE ratio of 10x the expropriated assets (if purchased in a normal transaction) would have fetched a sales price of about 300million. This is reinforced by the fact that the replacement costs of the hydro assets expropriated is between 300 - 400 million.
3. Unless the cleanup costs and any court ordered payment under the NAFTA challenge exceed 300 million in aggregate, then the expropriation can be considered a sucess for the Province in terms of net recoverable value expropriated.
Opinion:
1. If the government was truly seeking a new large-scale operation, it would have expropriated ALL assets intentionally - not accidentally. It would have then offered the bundle of assets (including the huge hydro advantage) to potential commercial suitors.
2. The William's government, with its trademark no more give-aways has no intention of offering a 30million hydro advantage to a new commercial enterprise. This would undermine the very cornerstone of the government's popularity base.
3. With a fiber base of only 290,000 meters (the 2009 Expression of Interest) there will be no paper production in GF-W. This fiber could only support the production of just over 100,000 tonnes of newsprint (or some other mechanical pulp product) making it easily the smallest type facility of this type in the world...at a time when paper mills are getting larger to capture economies of scale.
So what's really going on? -
- Gerard
- - June 22, 2010 at 17:35:06
Minister Sullivan, in my prior post, I stated that unless papermaking is brought back to GFW, then the expropriation will never be considered a success, at least in Central. I also forgot to mention that the chance of our three voiceless MHA'S being elected again next year, probably won't be successfull as well.
-
- Gerard
- - June 22, 2010 at 17:35:01
Minister Sullivan, the only way that the expropriation will be considered a success in the history of NL, and be part of the same legacy as the Atlantic Accord, White Rose, ect, is to bring a new operator to the mill and begin another century of making paper. The mill should never have stopped operations, and only did so because of greed,hidden agendas, and lack of leadership on all parties involved. When government discovered they owned the mill was the time to look for new operators, instead of hiding the truth and watch as valuable papermaking equipment was being removed from our mill. Through Luck or Destiny, GFW is given another chance to be a Paper making town, and regain it's reputation of making the best newsprint in the world, and now premier Williams is given the chance to do everything possible to make this happen. Our children and grandchildren do deserve the right to live in this great place, so show some leadership like the politicians of Meckenzie, B.C. are doing and bring back paper making to OUR TOWN of GrandFalls-Windsor, then, and only then will the expropriation be considered a successfull legacy in the William's government.
-
- Geoff
- - June 22, 2010 at 17:34:59
The truth lies in the comments section, doesn't it? Despite the stacked callers to Open Line and their ridiculously similar talking points, it is clear that the people of Grand Falls-Windsor can see the truth.
The union executive? They have jobs at the plant.
The rank and file? They got their severance. So you won't hear much (on the record) from the workers.
The town council? Strangely silent, either for partisan reasons or because they're afraid of getting the St. Anthony treatment.
But the people of the town know the truth about the bungled expropriation. They also know that you can't lose an industrial plant, with its 700 jobs, and not feel severe economic impact - despite the silly reassurances and lame diversification strategies of Shawn Skinner and his government.
Things will get worse before they get better, and this government is going to feel the anger of the Exploits region, come election time. -
- Dennis
- - June 22, 2010 at 17:34:46
I've been following this story fairly closely, and I'm unclear where the perceived opposition is coming from. The expropriation itself received widespread support, both politically and among the people (I thought it was great...still do). The only regret I've been hearing/reading about is that the politicians didn't read the law they were enacting closely enough to know what it was they were enacting. I think that's a fair requirement for our politicians to follow when making laws of the land. I'm disappointed to see Ms. Sullivan state that she ...would do it all over again today ; I believe there were lessons here to suggest that some things be done a little differently.
-
- Micky
- - June 22, 2010 at 17:34:43
Susan, when the history books are written you will be recorded as the biggest mistake the electors of this district have ever made and your leader the biggest failure of all premiers.
.jpg)
.jpg)
.jpg)
