Corner Brook Pulp and Paper gets $90M government loan
Tom Marshall, Newfoundland and Labrador's natural resources minister, says a $90-million business fund announced in the provincial budget in March will go in its entirety to Corner Brook Pulp and Paper as a loan.
Marshall told the house of assembly on Wednesday that the $90-million loan to Montreal-based Kruger Inc., the company which owns the mill, was a wise investment.
"Corner Brook Pulp and Paper is a key employer and a strong contributor to the economy of this province," said Marshall. "The mill is important not only to the west coast of Newfoundland but to the entire province."
The loan represents the largest, single public expenditure on the struggling paper company to date.
Since 2004, the province has already invested $123-million in Corner Brook Pulp and Paper.
Money but no details announced in March
When the 2013 provincial budget was released in March, no details were given about how the $90-million fund would be used.
In the previous year's budget, the fund was worth just $500,000.
On March 28, Premier Kathy Dunderdale said that MHAs might not know how that money would be spent before they voted on the 2013 budget.
However, Wednesday's announcement has come before any vote on the budget.
The loan will kick in when the company finishes negotiations with labour unions at the mill.