Maine blames paper mill lull on N.S. aid /Point Tupper facility has unfair advantage due to tax breaks, U.S. politicians say ERIN POTTIE CAPE BRETON BUREAU /[email protected] @cbnewsreporter American legislators are once again calling out the Nova Scotia government for granting millions in subsidies to a Point Tupper paper mill in the wake of a scheduled two-week shutdown by one of the mill’s competitors. Maine’s Madison Paper Mill will issue layoffs and temporarily halt operations later this month. A partial reason for the shutdown, according to the mill’s management, is an unfair and possibly illegal advantage provided to Port Hawkesbury Paper by Nova Scotia’s government. Both mills produce super calendered paper, a glossy product used for magazines and advertisements. According to an open letter by Congressman Bruce Poliquin and senators Susan Collins and Angus King to U.S. Secretary of Commerce Penny Pritzker, up to $125 million in government tax breaks have allowed Port Hawkesbury Paper to sell its product at prices unsubsidized mills in Maine cannot compete with. “Members of the Maine delegation have previously brought this matter to the attention of U.S. trade representative Ron Kirk, and we understand that the current trade representative, Michael Froman, raised this issue on several occasions with the Canadian trade authorities, the letter stated. “Despite these efforts, the subsidies continue to flow from the Nova Scotia government to Port Hawkesbury Paper, putting U.S. jobs at continued risk. “We respectfully ask that you do everything legally within your power as secretary of commerce to address this issue and put a stop to these unfair subsidies. The consensus for fair and open trade is predicated on having trade rules by which everyone lives. Collins has also stated that the Point Tupper mill is seeking $40 million in additional government aid from Canada’s Forest Industry Transformation Fund. Mill spokesman Marc Dube could not be reached Monday. Port Hawkesbury Mayor Billy Joe MacLean refused comment on the matter Monday, saying it wasn’t his place to discuss Maine politics. “I sought legal advice from the government and from my legal adviser, and they just said there’s no responsibility on our part to answer questions coming out of the U.S., MacLean said. The province maintains proper protocols were followed in delivering an aid package to the mill’s new owner in 2012. “We are mindful of our international obligations and are confident our actions are consistent with them, spokeswoman Sarah Levy MacLeod wrote in an email Monday. Collins, who also raised the issue in 2012, told WLBZ News in Bangor that the next step for U.S. administrators will be to examine all possible remedies, including bringing a case against the Canadian government to the World Trade Organization
Posted on: Tue, 20 Jan 2015 15:22:26 +0000
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