What they said (IV)

From the Grand Falls-Windsor Advertiser's coverage of Our Dear Expropriation in December 2008:

The province is taking ownership of all hydroelectricity rights from the generating station at Star Lake, as well as timber rights to forests on Crown land.

With Star Lake, the company's fixed assets to generate power will revert to Nalcor, the new parent company of Newfoundland and Labrador Hydro.

AbitibiBowater will get to hang on to the mill itself. About all the company will be left with is the paper mill itself, however they will be given the means to operate the mill until the end of March.

The company would be compensated for any physical assets taken over.

"There was a bottom and a bargain and a commitment between the people and the company that started that mill," said Premier Williams. "Back in the beginning we passed the lands, the timber and the water to that corporation. The bargain was that they would carry on a milling and logging operation.

"At the end of the day they broke that bargain. As a result of them breaking that bargain, we have a right to take back our trees, our water and our lands, and on Tuesday, we did just that."

And a selection of comments on that story:

JAMES SNOW from winnipeg, manitoba writes: your mayor should give his head a shake, abitibi/bowater already decided what the future holds for the province when they announced the closure of the mill on march 28, 2009. as for the expropriation, i think it will end up in the courts. the government should have sat down with the company and work out a deal over assets. this story is spreading like wildfire throughout canada and the united states, and what effect will it have on new buisness coming to the province? only time will tell, either way the TAXPAYER will pay.
Posted 18/12/2008 at 11:09 AM

Jim Smith from ns writes: Don't count your chickens just yet. ABC still has outstanding severance, pension, and shutdown liabilities. You may get the favour returned. Not to mention a NAFTA challenge which is guaranteed. NL's may wind up paying for this mess long after Danny is gone.
Posted 18/12/2008 at 10:21 PM

JAMES SNOW from winnipeg, manitoba writes: don't celebrate just yet folks, if i am reading chapter 11 of the north american free trade agreement correctly, then we are headed for the courts on this issue. it may backfire on the province !
Posted 19/12/2008 at 10:57 PM

Jason Bull from Eastport, NL writes: chapter 11 only applies to federal deals.
the provinces are seperate wrt the resources in question.
Posted 20/12/2008 at 9:47 AM

Billy from GFW, NL writes: To James Snow: glad we have your very highly educated legal mind at work on this one . Who really needs all those legal experts the government has hired. You know I always knew after you finished driving the Zamboni at the rink you were studying to be Perry Mason. Maybe you should come home and represent AbitibiBowater so they can get back their borrowed assets.
Posted 21/12/2008 at 12:22 AM