Harper says Abitibi deal best feds could get, hints Ottawa won’t pay in future

The Canadian Press ~ The News
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The AbitibiBowater paper mill in Grand Falls-Windsor. Telegram file photo

TUKTOYAKTUK, N.W.T. — The prime minister says a $130-million settlement with AbitibiBowater over Newfoundland and Labrador’s expropriation of some of its

assets was the best the federal government could get.

But Stephen Harper says Ottawa will create a mechanism to reclaim money lost through international trade agreements should similar provincial actions occur in the future.

Premier Danny Williams says Newfoundland and Labrador won’t reimburse the amount needed to settle claims that his government illegally seized some of the paper giant’s assets.

The bankrupt company filed a $500-million claim under the North American Free Trade Agreement after the provincial government expropriated its paper mill, as well as its water and timber rights, in central Newfoundland in 2008.

Harper, who’s on a tour of the Arctic, says he does not intend to get the money back from the Newfoundland and Labrador government.

Organizations: AbitibiBowater

Geographic location: Newfoundland and Labrador, Ottawa, Abitibi TUKTOYAKTUK Arctic

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Recent comments

  • Frank M
    August 27, 2010 - 09:15

    None of our NL MP's have commented on the federal payment to Abitibi? Where are Siobhan Coady and Jack Harris?

  • Pierre Neary
    August 26, 2010 - 15:52

    No way PM Harper is going to let 130 million slide without a side deal with the Premier. Do the PM now own NL??