U.S. congressman voices concern about paper mill subsidy
CBC News
Posted: Sep 26, 2012 10:45 PM AT
Last Updated: Sep 27, 2012 7:34 AM AT
The former NewPage mill closed in September 2011. (CBC)
A Maine congressman is questioning whether Nova Scotia violated any trade agreements when it promised financial aid to help reopen the Point Tupper paper mill.
The provincial government is providing nearly $125 million to help Pacific West Commercial Corp. restart the idle mill.
Mike Michaud sent a letter to United States Trade Representative Ron Kirk asking him to examine the details of the deal in case it's inconsistent with the North American Free Trade Agreement or Canada's World Trade Organization commitments.
“I want to get all the facts on this deal and make sure Canada is living up to its commitments under current trade laws. The massive financial package put together for this mill has raised a lot of questions. As a former papermaker, my chief concern is about the impact these actions could have on Maine’s mills and workers," wrote Michaud in a release.
The former owner of the mill, NewPage Corporation, will be one of the new owner's main competitors.
In his letter Michaud said, "Maine’s paper industry believes the size and scope of Nova Scotia’s assistance is likely to lead to a decreased market share for the state’s mills."
"It is my hope that any violations by Canada of its trade agreement obligations resulting from the Port Hawkesbury deal can be worked out expeditiously and without having to engage through protracted, formal procedures that require Maine’s mills to first demonstrate injury before they can be initiated."
Earlier this week Premier Darrell Dexter said he's confident the province's deal with Pacific West could withstand any free trade challenges.
Dexter said much of the government's funding did not go to Pacific West, but was used to support woodland contractors and silviculture programs.
Share Tools
Latest Nova Scotia News Headlines
- Sydney `hackathon` challenges techies
- Cape Breton techies are building computer programs from scratch in Sydney`s first hackathon. more »
- Worker falls in ocean in Digby accident
- RCMP in Nova Scotia are investigating after an excavator and its operator plunged into the ocean Saturday. more »
- Rescue attempt over for New Brunswick fishermen
- The rescue attempt for two missing fishermen has been called off in New Brunswick, hours after one body was found. more »
- Roundup of Bluenose Marathon street closures
- Thousands are gearing up for this weekend's 10th annual Bluenose Marathon and motorists are being advised of street closures. more »
Must Watch
Top News Headlines
- Rescue attempt over for New Brunswick fishermen
- The rescue attempt for two missing fishermen has been called off in New Brunswick, hours after one body was found. more »
- Spectator killed at Edmonton Jeep event
- A 20-year-old woman died Saturday during an event for Jeep enthusiasts held in a parking lot just west of downtown Edmonton. more »
- Astronaut Chris Hadfield adjusts to 'earthling' life
- Canada's space ambassador, Chris Hadfield, is still readapting to life on this planet after spending 146 days in zero gravity as commander of the International Space Station. For now, though, he's taking his homecoming one step at a time. more »
- Afghan legislators block law protecting women
- An Afghan legislator says conservative lawmakers have blocked approval of a law that aims to protect women's freedoms, saying parts of it violate Islamic principles. more »
- Luck changes for $3.2M lottery winners from Cape Breton
- Worker falls in ocean in Digby accident
- UFO sightings in Canada in 2012 doubled previous record
- Blue Nose Youth Run draws thousands
- Sydney `hackathon` challenges techies
- Sailor fighting cancer says AWOL charges dropped
- Sailor with cancer charged for being AWOL over sick day
- Rescue attempt over for New Brunswick fishermen
- Man sentenced to 7 years in Spryfield shooting

