Michael demands solid collateral for Kruger loan
NDP Leader Lorraine Michael (MHA, Signal Hill-Quidi Vidi) wants assurances that the Dunderdale Conservatives are acting responsibly with the province’s finances.
“Yesterday the Premier made light of my question about the collateral that Corner Brook Pulp and Paper brings to the table if it gets a $90 million loan,” Michael said in the House of Assembly today. “This government loves to praise itself for its sound fiscal management.
“In spite of all the help from government, the Kruger mill could close in five or ten years’ time after receiving hundreds of thousands of dollars from this government.
“I ask the Premier, is she going to demand nothing less than the Deer Lake Power plant as the collateral from Kruger to cover the $90 million loan?”
Michael says the province should be encouraging the entire industry, rather than just one component, large though it is. “Yesterday the Premier also acknowledged that the province’s forestry industry teeters on the brink of disaster ― by her own admission ‘the forestry industry in Newfoundland and Labrador will collapse without the presence of Corner Brook Pulp and Paper.’ We all hope the mill might continue, but we can’t run away from the reality that it probably won’t without continued support,” Michael said.
“I ask the Premier, what planning is this government doing to create sustainable forestry related industries in this province in case the worst happens, or will her government again be caught flat-footed with no plan?
“Is her government working on other plans or is she content to throw taxpayer’s money at the problem and hope for the best?”