Da Legal Stuff...

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Tuesday, March 24, 2009

Abitibi Negotiations Break Off - "Demands too high" Says Industry Minister

From the CBC today:

Compensation talks between N.L. government, AbitibiBowater break off

Last Updated: Monday, March 23, 2009 5:40 PM NT

Newfoundland and Labrador's Deputy Minister said Monday that talks between the provincial government and AbitibiBowater have broken off because the government's offer of compensation for the expropriation of the company's assets is too low.

The two sides had been trying to settle on a price for all of AbitibiBowater's physical assets in the province, except the mill in the central Newfoundland town of Grand Falls-Windsor.

Deputy Premier Kathy Dunderdale won't say how far apart the two sides are, but the pulp and paper company wants $300 million from the government.

Dunderdale told the house of assembly on Monday that there is no way she's willing to pay that.
"At this point in time, talks have broken off between the government and Abitibi," she said.

AbitibiBowater spokesperson Jean-Philippe Côté said Monday he is surprised that Dunderdale made the situation public but confirmed the company walked away because the government offer was "way too low."

AbitibiBowater is still willing to negotiate a compensation price, however it is also pursuing a legal challenge under the North American Free trade agreement.

Dunderdale won't say what the government offered except that it is short of the $300 million the company wants.

"We are not going to pay more for the asset than we think it's worth," she said. "So, we have determined a range of value for those assets. And, you know, we can't go beyond that just in order to settle."

Talks are also on hold regarding severance pay for loggers in central Newfoundland.

While AbitibiBowater has no legal obligation to pay any severance at all, the government has been pressuring the company to pay it anyway as it did when it closed its mill in Stephenville.


Ussr said...

OH my GOD the Balls on these Mainland Basket Cases !!!

You came in with nothing and now you can simply leave with that, while the getting is good.

"Republic Of"

NL-ExPatriate said...

All of the accounts I have read on the Hydro plant are that it cost somewhere in the range of 50 million to build.

Mark said...

Let's just hope those mainland bastards keep coming in here with nothing. That's how we'll build our economy.

Ussr said...

Question: How can " a Government" sell what it doesn't OWN.

A Totally Differant Plain Perception of Reality !!!

too special for me Patriot !!!

" Republic Of "

Anonymous said...

mainland bastards

why all the anger Mark?

Just because they come from the mainland doesnt mean you have to call them Bastards.Kinda harsh dont you think.

Winston Smith said...


Why are you so syntax-challenged?

Has DW liberated Newfoundlanders from the apostrophe, too?

It's hard to keep up with that Dangovt. You just never know what the 8th Floor will cook up next.