A tale of two subsidies

Kathy Blunderdale is disappointed in Kruger:

“We met with Kruger officials last week and told them very clearly that this was unacceptable. We reminded the company of the support it has received from this government. In the last two years, we have provided over $30 million in assistance to the pulp and paper industry in this province…”

A year ago, almost exactly, Danny Williams was quoted by Jamie Baker, in the October 24th edition of The Telegram, with regards to the long-term power rates enjoyed by the Iron Ore Company of Canada in Labrador West:

“The half-cent, from our perspective, it’s a renewal of a deal that’s very similar to the Upper Churchill contract,” Williams told The Telegram Monday, suggesting the company is “virtually getting their power for nothing.”

…

“This is a very, very good deal that they had, which is a contract that has been in place, basically, since the 1970s,” he said. “Major industries now are prepared to pay at least two cents from what I understand. A half cent is just not in the ballpark.

“There’s a lot more to this than just turning around, signing on the dotted line and rolling over for a big company.”

At least, thanks to Blunderdale, we now know the size of the “ballpark”.

It’s $30-million big.

At least, that’s how big it is for Corner Brook, and how far the Danny Williams government was willing to “roll over” for that area’s “big company”, Kruger.