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.