Premier Danny ‘Fidel’ Williams
Danny Williams, in a move you’d expect from Cuba, decided to take back timber, water and hydroelectric plants that Abitibi had been given for it’s pulp-and-paper mill in Grand Falls-Windsor.
Mr. Williams moved to revoke AbitibiBowater’s natural resource rights and put its power plants under the control of the province in response to AbitibiBowater’s decision to shut down its pulp-and-paper mill in Grand Falls-Windsor, effective March 28.
The statement from Abitibi:
“Failing an agreed resolution or full and timely compensation, AbitibiBowater is determined to pursue its rights against the government of Newfoundland and Labrador to the fullest extent available in connection with the serious and unlawful infringement of its rights,” David Paterson, the newsprint maker’s chief executive, said in a scathing letter sent Friday to Mr. Williams.
“These confiscatory and hostile actions do no good for the people of Newfoundland and Labrador, their communities, their province or the country as a whole.”
Mr. Paterson informed the Newfoundland Premier that the company had retained “prominent” lawyers, among them experts in constitutional and trade law, to defend its interests. “We have been advised that these actions clearly and unequivocally are illegal.“
Chapter 11 under NAFTA allows companies to invoke binding arbitration against countries that violate investors’ rights. It provides for direct actions against governments, with enforceable awards and no right of appeal. Moreover, Mr. Herman said, the provision gives numerous advantages to an aggrieved investor.
Mr. Paterson said that the company’s rights were violated, and that it is eligible for compensation, equivalent to the fair market value of the assets expropriated. Further, it is alleged Mr. Williams’ actions, as outlined in a bill passed by the provincial legislature, discriminate against the company — prohibited under rules governing NAFTA.
Way to go Danny Boy. You’ve once again hurt Newfoundland… not that companies are lined-up to do business with you.
December 19th, 2008 at 8:09 pm
Danny Williams is the Rick Mercer of politics. A loud mouth with a high opinion of himself and his abilities.
December 19th, 2008 at 9:45 pm
Is that a mirror implanted in his thumb? Well he has to talk to someone.
December 20th, 2008 at 4:19 am
What was Abitibi going to do with forest and power while the plant when it was shut down? If it was going to do something that didn’t do any good for or employ Newfies, I for once might have to side with mouthy Danny.
December 20th, 2008 at 6:08 am
I don’t much like Danny Williams but I’m with him on this one.
It’s my understanding that the company had already closed the pulp and paper plant and then wanted to negotiate the ‘sale’ of water and timber resources back to Newfoundland.
The rights to use these resources had been provided to the company by the people of Newfoundland originally in return for having jobs at the plants and if the plants were closed there should have been no question of ‘selling’ them back. The company had a lot of gall to ask to be paid for resources they never paid for and never owned.
They belong to Newfoundland.
Period.
As far as fair compensation for the buildings, if there is no longer a market for pulp and paper then the buildings are useless and therefore worthless.
Maybe Newfoundland should force them to dismantle the buildings and return the environment to the same condition it was in when they built the mill over one hundred years ago.
I live in Niagara Falls and many companies take advantage of the Niagara River. Should they sell us back the right to use that water if they go out of business?
NeilD
December 20th, 2008 at 7:59 am
I still like Williams unlike most at BT, and he is doing what he has to do. If he keeps NFLD as a ‘have province’ then he will always get my support.
December 20th, 2008 at 11:07 am
You know why this province is heading right back to “have not”. It’s because this buffoon of a premier’s rotten and counter productive attitude and antic’s. Can any of the above “Chavez Cheerleaders” explain to me why anyone
would want to invest there. The fact is you’ll never see the unintended consequences of this clown’s actions.
How long will it be before there is a single entry into this
province. It’ll be called “Checkpoint Chavez”.
Good Luck with that.