Many questions surround Kruger loan money
NDP Leader Lorraine Michael (MHA, Signal Hill-Quidi Vidi) had questions in the House of Assembly this afternoon about the $90 million government has set aside in the Finance budget, revealed today to be destined for Kruger Inc., current operator of the Corner Brook pulp and paper mill.
“After weeks of secrecy, this morning we discovered in Estimates what the $90 million allocated in the Department of Finance budget is for,” Michael said in the House of Assembly. “I ask, what are the terms of this loan?”
“The Provincial Government has invested $123 million in Kruger since 2004 and are now committing to a $90 million loan,” said Michael. “I ask the Premier what collateral is CBPP is offering for this financial support?
“I have seen an internal memo from Corner Brook Pulp and Paper congratulating staff for beating their previous production record in March of this year by 18.5 tonnes a day – reaching a new record of 459.5 tonnes in one day. The company’s general manager called it a great achievement and I agree,” said Michael.
“I ask the Premier, with this excellent workforce achieving these results, will she explain what exactly the $90 million is being offered to Kruger for?”
Michael also noted this is the second multi-million dollar government assistance to Kruger made public this year.
“In early March government gave Corner Brook Pulp and Paper a five year tax exemption valued at $6 million dollars,” Michael pointed out.
“I ask the premier, will she give the House an update of the state of negotiations with Kruger, outlining what else is Kruger asking for in terms of tax breaks, money and benefits?”