Thursday, April 9, 2009 06:44 PM
Today's hot spot: Danny Williams
Mathew Ingram
Every day there seems to be at least one story (and in recent weeks, many stories) that really get our readers steamed. Today, one of the big topics of discussion is the move by Danny Williams, the premier of Newfoundland and Labrador, to seize the assets of Abitibi-Bowater, a U.S pulp and paper conglomerate that is closing its mill in Grand Falls. According to Mr. Williams, this breaches the conditions under which the company was given rights to the resources in question -- that is, timber-cutting rights -- and therefore the province is well within its rights to take the assets back.
Opinion seems divided on whether this is a smart move by a premier who cares deeply about jobs in his province, or a Hugo Chavez-style move by a dictatorial regime that doesn't feel it is bound by legal agreements, and is risking a trade war with a large U.S. entity. Not surprisingly, the former opinion is held by many residents of Newfoundland and Labrador, who took issue with writer Konrad Yakabuski's criticisms of Williams and his recent moves. At last check the story had over 150 comments, most of which seemed to agree with the premier's decision. Here's a selection of them:
-- F.B from Montreal
writes: "I doubt very much that Rio Tinto (Alcan here) would keep their hydro assets if they had to shut down their smelters. No way in my humble opinion. As for the "bold and reckless" Mr. Williams, history will show you that comments in Quebec were of that kind if not worse. That Quebec nationalisation could not be finance in NY for instance, it was. Norway is no Chavez, yet they manage their own resources with respect for the future of their citizens.
As for Chavez, like it or not depending on were we stand, he's none the less a vivid reminder that imperialism has moral limits in South America. Your conclusion is tempting, for instance what did colonialism brought in terms of wealth to England versus what it brought to Newfoundland. It cannot be taken into account of course, it's just that we have to be careful with any societies past. With Mr. Williams stand there is also a message to his people that he's breaking away more and more from a certain past; of how Newfoundland was treated in many occasions. Not easy, uncertain but honest.
This is why I'm fully behind this Province as an individual." Posted 17/12/08 at 5:58 AM EST
-- Kathy H from Canada writes: "They were never Abitibi's resources. They were on lease - they broke the terms of their lease. The landlord took back the rights to that lease. End of story. More leaders in this country should have Danny's cojones. Government subsidies to most large companies in this country have been greater than any benefits they provided. Do the math on the american car companies." Posted 17/12/08 at 6:10 AM EST
-- Josh Taylor from Dublin writes: "You are missing the point. These are public assets used by the company to run a mill. No mill, no assets, simple. The mill had some high costs, but our wood and power was not one of them. The only valueable asset is a hydro dam. Since the grid is public you can hardly expect them to get royalties on a public asset after they leave the province. As for Quebec and Abitibi, it is a Quebec based company that is why they did not pull the assets. If they had left the province you could bet the hydro power would be gone. This is nothing short than Danny bashing. You hate to see Newfoundland and Labradorians stand up for ourselves because you don't think we deserve to. It says a lot about your opinion of us." Posted 17/12/08 at 6:31 AM EST
-- NL Patriot from Republic of Newfoundland writes: "Mr. Williams may be acting differently that many other premiers in this country but the rest of the country doesn't have our history and the memories of all the give aways this province has been either stupid enough or forced into. That being said, Abitibi NEVER owned those water ways and forestry rights. They leased them for the sole purpose of operating a Mill. They are not allowed to sell the power because they don't have a right to sell it. Once that company decided to close it's doors they sealed their fate with these assets. Also the government offered to work with that mill to keep it open but they refused. Also the mill is falling down and the company took all profits generated at that mill and used them to upgrade other facilities outside our province. They had free use of this land, trees and water for over 100 years, I think they have been fairly compensated and we will further compensate them for the hydro plants." Posted 17/12/08 at 6:33 AM EST
-- Mike Power from Canada writes: "eaven forbid a multi-national corporation should be held to an agreement : "....The Lessee shall be entitled ...to have, use and enjoy for its milling and logging business.... Have you followed the news over the past few weeks? Abitibi-Bowater is getting out of the milling and logging business in Newfoundland. Yakabuski is just another mouthpiece for big business. G&M sticks this inflammatory piece of garbage on the front page to toady up to the Bay St. types. Williams is simply enforcing the agreement. What reasonable person (businessman or otherwise) would argue that?" Posted 17/12/08 at 6:36 AM EST
-- JM from Dublin writes: "I fail to see how this move would sour busines investment in the province. The government revokes the rights of a hundred year old deal where the business benefitted hugely from the terms. If Abitibi no longer want to continue to maintain their invenstment that's their choice but they can't expect to continue to profit from the terms that benefit them and face no reprecussions from ignoring everything else. The only pity is that there are not more politicians and governments that are willing to take from big business when those companies no longer want to honour a commitment made to the people and communities who invested in and supported them." Posted 17/12/08 at 6:54 AM EST
-- Dan Lowell from Vancouver writes: "What "business investment"? There's a credit crunch. Remember? The private sector is rapidly idling resources so the public sector has to fill the gap. South of the border in "free enterprise" America the federal government is busy nationalizing banking, autos, insurance, credit markets, etc. trying to invigorate economic activity. but when a Newfoundland Premier does this it's wrong? Double standard at work." Posted 17/12/08 at 7:16 AM EST
-- Bobby Burger from Canada writes: "These resources that the various mill owners enjoyed were part of a quid pro quo arrangement. The province was willing to allow these to be used in return for jobs and taxes. When the jobs and taxes disappear so too should any water or timber rights. When and if the newsprint industry in Canada ever improves, contracts negotiated between the producers and the provinces in which they operate should spell out clearly that access to resources is available only as long as certain levels of employment is provided and taxes are being paid. Good for Williams." Posted 17/12/08 at 7:21 AM EST
-- Steadfast NL from Canada writes: "Funny how someone such as Mr Williams is either doing the right thing or is a power hungry premier.This is a provincial resource that was given to the paper mill to use as long as they were in operation. They are closing down and wanted to sell the power to the province.How dumb do these people think the province as a whole would be to allow this to happen.This premier said no more give-away's when he became our leader. Stick to your guns Mr Williams.This province has lost to much and big business doesn't own any one province or its people." Posted 17/12/08 at 7:28 AM EST
-- The Lanark Centrist writes: "How many people actually read the contract? Newfoundland doesn't have to compensate Abitibi for it's mills or anything to do with the pulp and paper business. They will have to compensate the Company for it's hydro electric fixed assets, but they'll decide how much to pay.... probably use generally accepted accounting practices for annual depreciation in order to come up with a figure. That's fair. I'm not normally a fan of Danny Williams, but do agree with the action he's taken here. If Abitibi is unhappy, their anger should be directed at their lawyers, the ones who didn't do their due dilligence prior to Abitibi purchasing the Company, and finding out the full terms of the lease. I can see lawsuits happening here But Danny won't lose...he did his due diligence" Posted 17/12/08 at 7:31 AM EST
-- John Stanton from Canada writes: "Resources are owned by the people, and companies get to operate, and make money, in the people's jurisdiction only so long as they serve the people's interests. This seem's pretty sensible. Instead, what we see are corporate robber-barons mis-managing their companies and the people's resources, then demanding hand-outs from government under the threat of plant-closures, and then, after receiving the fruits of their black-mail, either closing the plants anyway, or demanding more money. And time and time again, governments fall for it, and the people get scr*w*d. We need a Danny Williams in Ottawa to break this pattern. Go Danny" Posted 17/12/08 at 7:40 AM EST
-- Forty Sum from Canada writes: "Way to go Danny -- about time somebody took a stand. The companies close and move any time they want, profitable companies or otherwise. Time they understood their is something other then their own pocket books." Posted 17/12/08 at 7:47 AM EST
-- Patrick Shaw from Markham writes: "Some have wondered where the idea of Corporate Social Responsibility may head in a tough economy. Danny has answered loud and clear. The Premier has shown that Newfoundland won't tolerate a wavering of the intent or the commitment. This is a great example of a company being held accountable to the public owners of the resource. Shareholders get their say everyday; now the real owners have spoken." Posted 17/12/08 at 8:07 AM EST
-- Bill Short from Niagara writes: "As an Ontarian, I would like to say to all of the Newfoundlanders that I am envious that you guys have a premier with a backbone. Hopefully his actions will set a precedent for the rest of the provinces, we've been giving away our resources for too long." Posted 17/12/08 at 8:32 AM EST
-- Happily Retired from LupinLand writes: "Maybe, just maybe, Danny Williams is the future of politics in Canada. Wouldn't it be great if our elected representatives, nationally, provincially, and locally, would place the well being of their constituency above those of the power brokers. Now that so many CEO's and senior executives in so many companies have shown their true colours (and some even ended up in jail for it), I think that the time is ripe for a Danny Williams to take the leadership initiative and demonstrate that politicians who put the people first can be wildly successful. As for souring business investment in his province, serve notice that only companies willing to demonstrate honesty and integrity need apply. You don't need the crooks anyway" Posted 17/12/08 at 8:45 AM EST
-- Eric Johnson from Tampa, USA writes: "Good old government thievery. Seizing assets like this does nothing to protect the workers. Nor does it do anything to make the operation profitable. It will be a drain on tax payers and businesses will not invest in Newfoundland if their property can be taken because they are trying to make a profit rather than meeting a government's socialist expectation of paying people for work not needed. Newfoundland just screwed itself big time." Posted 17/12/08 at 8:50 AM EST
-- Percy from NL writes: "A private company breaks its century-old lease agreement and people think that they still have the right to control the water, forestry, and land (3 times the size of PEI) resources of NL. This facility generated huge profits from the use of NL resources. These profits were used to build more modern facilities elsewhere. Virtually none of these profits were used to modernize this facility; resulting in it becoming unprofitable. So let Abitibi move on and control those resources in jurisdictions where their more modern facilities now exist. Our water, forestry, and land resources do not belong on the asset sheet of a company which used them to generate huge profits and that then broke its lease agreement and walked away from this province. They rightfully belong to the people of NL." Posted 17/12/08 at 10:06 AM EST
-- Anne Johnson from Kingston writes: "Williams has shown principled leadership. He did exactly the right thing. Federal politicians need to forget about "bailing out " the automakers, who will just take the money and move the jobs anyway; instead they need to purchase the assets of the Canadian of the auto companies . The government should tell them what the purchase price will be and allow them to operate the plants. I am opposed to any bailouts that do not place control of assets in government hands on behalf of the taxpayer who is footing the bill. I mean banks want collateral for loans...the "promise of jobs" is not collateral...factories and equipment are. Maybe we could even buy the rights to a couple of designs (the fuel efficient ones) and let the autoworkers figure out how to build good cars that their neighbours will want to buy: that is the kind of help I want to see. Danny Williams has demonstrated that it is possible for governments to stand up to corporations that are not by any stretch corporate "citizens." I hope that Newfoundland will now be able to use this capacity to its own benefit rather than shareholder benefit." Posted 17/12/08 at 10:47 AM EST
-- Heather Gordon-Hall from Kitimat writes: "Very thought provoking article. Here in Kitimat the long promised RT Alcan smelter modernisation with consequent reduction in workforce of 500 plus is apparantly "on hold" yet again, the reason this time is tough economic times. But we have seen over the years a variety of different excuses paraded before us. In the mean time, the public resource, namely BC rivers and water power, have been just handed over to the company by the province with no guarantees of jobs or smelter upgrades for that matter. Just promises and always good intentions. The previous contract of cheap power for jobs and the creation of communities in the Pacific North west is no longer honoured or even valued by the current provincial government. RT Alcan milks the asset and reaps the benefits of BC cheap power through its lucrative power sales contracts, and Kitimat continues to bleed jobs and population. I agree with Mr Yakabuski, that Mr Campbell is no Danny Williams, he has no courage in the face of multinational demands,and he is an incompetent steward of BC public resources. He acts more like an RT Alcan director, rather than premier of a province. I'll take Mr "Chavez" Williams any day over the sell out politicians we have here on the west coast." Posted 17/12/08 at 1:00 PM EST
-- Andy Guenette from Asheville, NC writes: "I've never been a fan of Danny Williams, but in this case, I support his government's decision. Bilateral agreements need to be respected by both parties." Posted 17/12/08 at 1:39 PM EST