A Mi'kmaq chief is disappointed the Nova Scotia government didn't make a $75-million loan to a pulp mill conditional on cleaning up a polluted waste site in Abercrombie Point.

The effluent lagoon from the Northern Pulp mill is on land that's part of the Pictou Landing reserve.

While the company spends $5 million to scrub away the sulphur smell, it won't spend a cent to clean up effluent in the lagoon, known as Boat Harbour.

Gerard Julien, co-chair of the Assembly of Mi'kmaq Chiefs, said the cleanup of the lagoon has been a longstanding issue.

"We're talking about cleaning up the environment, not only the odour that's in the area but we need to clean up Boat Harbour," said Julien.

Julien wants to know why the NDP isn't tackling the pollution problem. He said the Pictou Landing First Nation has a letter from two ministers in the previous Progressive Conservative government promising a cleanup.

Natural Resources Minister John MacDonell said the NDP made no such commitment.

"At this present time, it isn't one by this government," said MacDonell, adding that he's aware of one letter.

In announcing the $75-million loan on Monday, Economic Development Minister Percy Paris tried to explain why the province didn't insist the company spend some of the money on Boat Harbour.

"The issues around Boat Harbour are long and very technical. We couldn't get involved in those issues because it would take just too much time," Paris said.

Bruce Nunn, spokesman for the Nova Scotia Department of Environment, said the province conducts toxicity tests monthly and the wastewater meets federal toxicity standards.

Northern Pulp Nova Scotia Corp. acquired the mill from Neenah Paper in 2008. Last year, it received a $15-million loan from the province.

The most recent loan is to ensure a supply of wood and protect an estimated 1,700 jobs at the mill and in the forestry industry.