Lorne Calvert: The Price Of Prince Albert – $99M

KaCHING!
Scroll down for update.
Over a backdrop of taxpayer-funded happy, shiny people government advertising, we find out today Calvert’s opening bid for 3 NDP seats in Prince Albert;

Saskatchewan Premier Lorne Calvert is set to make an announcement about forestry in Prince Albert Wednesday and there’s speculation it could be about reopening part of the city’s closed pulp and paper operation.
More than 300 former millworkers packed into the city’s union centre for a closed door meeting Tuesday night.
Before the mills closed, Weyerhaeuser was Prince Albert’s largest private sector employer. Before the mills closed, Weyerhaeuser was Prince Albert’s largest private sector employer.
While they were saying little afterward, it’s believed they were mulling over a plan by forestry company Domtar and the province to reopen at least part of the mill.

Do I hear 10% government ownership share and a $22 million donation? Going.. going…
A reader writes privately about something that struck me as well. There is no actual announcement of a plant reopening…
and then there’s that sense of deja vu

If this sounds kind of familiar, maybe everyone should remember the
Broe ethanol announcement before the last election. Big sod-turning ceremony near Belle Plaine with Calvert, busloads of children, etc. And then it never happened.


Update: local media was invited to a signing ceremony between Calvert and Domtar for “a memorandum of understanding”… after an announcement that listed a number of “subject to'”s (including building a “world class” facility, whatever that means, and the value of the Canadian dollar remaining at par, and approval by regulatory bodies, etc. etc.), the parties left without holding any formal question and answer with reporters. I’m sure someone will have a total of the crapload of cash they’re (promising) to throw at this, including $32 million in grant money…. plus “equity investments” in the Big River and Wakaweekna (sp?) plants and 10% in Domtar’s pulp mill.
Montreal Lake Cree claim they haven’t been consulted, and until they are, nobody’s getting on their land. Translation: “open that wallet, boys”.
A list of the “subject to’s” ;

  • an engineering study;
  • a feasibility study;
  • a new operational design for the pulp mill;
  • consultation with First Nations and Metis people;
  • approval by Domtar’s Board of Directors and various regulatory bodies;
  • finding an independent third party to finance, build and operate a
    wood sorting and chipping plant.
    Once that’s achieved, Domtar is committed to “make reasonable efforts to
    re-open” the pulp mill.

  • 78 Replies to “Lorne Calvert: The Price Of Prince Albert – $99M”

    1. It’s all about the money folks!
      Turn on the money tap as if it were a manure spreader and hope some of it sticks to the voters.
      “Farming for votes, Saskatchewan style!”
      This ranks right up there with the 40 billion to ‘fix health care for a generation’ by former PM Paul Martin, albeit Lorne has a smaller treasure chest to work with.
      It reminds me of the Communist Party bosses during the Christmas parties back in Czechslovakia when referring to Marxist/Leninist thought after a couple of shots of vodka:
      “We don’t actually believe in any of that rubbish, that is just for the people.”

    2. Its a pretty big money risk for 300 jobs at best. Didn’t the owner’s originally close the plant for a reason, such as it not being viable for the industry in the long run?
      Sigh……

    3. Its a pretty big money risk for 300 jobs at best. Didn’t the owner’s originally close the plant for a reason, such as it not being viable for the industry in the long run?
      Sigh……

    4. What an absolute farce. Only in a Saskatchewan could this happen. Throwing money around and people drooling over the “vision” of these hacks. Millar Western still not cleaned up, sold eh, still in protection eh, many “private” businesses still owed money and not paid. BUT, this is a much better deal. Bend over taxpayers, Lornes going to give the Saskatchewan economy another “boost”.
      Wow, it would be funny if it wasn’t so obviously sad. Would make a good skit for SCTV. Wonder were Sask’s rep comes from, look no further.

    5. Why doesn’t the NDP just pay the 300 or so $40,000.00 a year to sit at home and watch TV? It would be cheaper…

    6. Lorne needs to THINK BIG (thanks Preston), like Dalton;
      -promise not to sign a No New Tax Pledge
      -campaign on his performance
      -campaign on the Future, not the Past
      -bring up the spectre of Mike Harris/Brain Mulroney/Stephen Harper

    7. Same old, same old, you had to have seen this coming a mile away. First it is the dark other side and hidden agendas of the other party and then the spreading of taxpayer’s dollars. Next, we’ll see the union/special interest groups endorsement followed by the bout of amnesia that will strike the sheeple as they go to the polls only to elect the same old crapola.
      Sadly, this is not unique to the prairies as I have seen this everywhere. Kind of sad really, as human nature being what it is that what sticks in sheeple’s minds is what did they do(or can do) for me. That’s as opposed to what is the greater good for the province, city or country.

    8. I wish it could be said that there are real qualitative differences among the parties on this kind of vote buying, but there are only differences in degree (and not very large differences at that). Alleged free enterprise Tory blue Alberta was set to be the magnesium capital of the universe and make billions by processing PCBs after ‘investment’ by our friends in Edmonton. With Alberta getting closer to an election, I wait with ‘bated breath to see the bidding war west of the 4th meridian.
      Whaddam I gonna get?

    9. Interesting poll on the newstalk980.com site on whether the government should invest in the pulp mill again. So far 78% say NO.

    10. Great. With all the additional corn going to ethanol prodution, the cost of everything else is going to continue to go up as well. The Economist terms it, “Agflation” and the National Post had a good cause and effect diagram in yesterday’s issue. For example, because of the subsidies going to bio-fuels, it’s prompting German farmers to forego barley production which is one of the necessities of beer! Ego, the price of beer goes up. And in Brazil, sweet grazing ground for cattle has been replaced with bio-fuel crops, forcing the cattle farmers into more treacherous areas – like next to rivers with pirhanas. Last year farmers there lost 40,000 head due to bites.
      So, I’m going to try and save my planet and the economy by buying regular gas and keeping my tires properly inflated.

    11. Great. With all the additional corn going to ethanol prodution, the cost of everything else is going to continue to go up as well. The Economist terms it, “Agflation” and the National Post had a good cause and effect diagram in yesterday’s issue. For example, because of the subsidies going to bio-fuels, like what’s about to happen in SASK, it’s prompting German farmers to forego barley production which is one of the necessities of beer! Ergo, the price of beer goes up. And in Brazil, sweet grazing ground for cattle has been replaced with bio-fuel crops, forcing the cattle farmers into more treacherous areas – like next to rivers with pirhanas. Last year farmers there lost 40,000 head due to bites.
      So, I’m going to try and save my planet and the economy by buying regular gas and keeping my tires properly inflated.

    12. does anybody think that burning our food is a good idea for replacing oil as a fuel supply a good idea? in the words of homer simpson, duh.

    13. “What an absolute farce. Only in a Saskatchewan could this happen.”
      Don’t kid yourself; McSquinty has been doing exactly the same thing in Ontario for the last several months.

    14. Calvert and McGuinty. Two scumbags, not only think alike their pinched, shallow faces even look alike. Liars not leaders, but the sheeple follow. Unbelievable. And Harper is scary. Huh?

    15. Just a thought Kate, but maybe the Sask Party should run on a platform of fiscal responsiblity and see if they can’t shoot down the NDP for their lack of, rather than trying to outspend them. I haven’t heard a whisper of tax cuts from either party.

    16. Good Day Folks
      I would like to get some details on this event
      If someone in the Know could help me answer the questions below , I would be most grateful
      1. Is this going to be like a joint venture between Domtar and the Sask Gov?
      2. Is it largely going to be a Domtar venture and the province will own shares in the venture totalling 22 million ?
      3. Is the 22 million simply going to amount to a big corporate welfare cheque?
      Thanks folks

    17. Funny … the Domtar press release uses the verb could … “Domtar announced today that it has reached an understanding with the province of Saskatchewan on a plan that could result in the redevelopment of the Prince Albert facility into a Northern Bleached Softwood Kraft (NBSK) pulp mill producing 100% FSC certified softwood pulp for the North American and offshore markets.”

    18. There’s a “rule of thumb” in the Pulp and Paper industry; “if private industry shuts a mill down, leave it shut down”.
      We learned that the hard way, as governments poured millions into the Skeena mill near Prince Rupert, for over twenty years, starting with the NDP’s Barrett government in 1973. When the Socreds took over, they rolled it into a Crown corp., sold it, Repap, from Montreal, ran up over 600 million in debt, then shut it down.
      The Clark NDP government knew better than Repap, and reopened it, against all advice, to protect union jobs, and an NDP seat. They pissed away over 300 million before it sank.
      Industry experts said it was not possible to make the mill viable, and two different political Parties wasted a lot of our money trying in vain to save it.
      One columnist said, when it closed the final time, they could have given every employee a million dollar payout, closed the damned thing, and still been ahead financially.
      Last I heard, a couple of years back, a Chinese outfit was interested in buying it, but never heard if they did.
      Lesson to all Socialists: private industry will NOT close a viable plant down. They know their own industry, and if they back away from it, it’s not because they’re meanies, it’s because there’s NO PROFIT to be made from it.

    19. The Alberta Government is officially, by law passed in the 90’s, OUT of the business of being IN business and it is working gangbusters here.
      Just make the province a good place to DO business and you don’t need taxpayer money to bribe corporations or industry.
      Tax incentives are far more effective than “grants” or outright ownership don’t you think.
      A tax incentive rewards economic acitivity,. Govermebt grants and ownership unfairly subsidizes one business out of revenues from private sector competitors.
      It is NEVER fair – and will ALWAYS be open to pork barrel politics.

    20. I hope the VOTERS outside of Prince Albert will realize that they will be paying a minimum of $100 million up front for this rank opportunistic pork barreling by the NDP. And there will be more first nations settlements. There will be more training of “non-traditional workers.” There will be projects and studies and government paid committees and boards to pay. And, in five to seven years the fake viability will cost too much for even the NDP to sustain and we will be back where we started but about $250 million or so out of pocket and down the drain. No money for nurses but hundreds of millions for votes. Have they no shame?

    21. gotta love that announcement , the pulp mill is going to sell “green energy” to Sask Power.
      Green energy !- the only thing that could out smoke a pulp mill is a smelter.
      what a laugh.

    22. THIS much outrage and all you can pull is a lousy 31 comments?! And of that, there are probably only 25 individuals — one of which is that hack Dave MacLean, who should just go back to living off Alberta’s oil, or whatever it is he’s doing these days. Funny how he left his job shortly after all those fraudulent blog posts were discovered.
      Clearly, it’s only the hard core righties who have an issue with this. Time to resurrect Saskatchewan’s PC party, boys, and turn this ship around.

    23. What I wanna know is, why is it the NDP voting city folk in Sask who are the ones that are always sucked into these dreamy assinine socialist investment plans?
      Most socialists anywhere don’t know their economic butt from a hole in the ground, but as soon as they get elected, they all think that they are the Wayne Gretzkys of industry.
      Throw the NDP commie bums and their failed socialist economics out.
      And get the Sask Party to pass a law that prevents the provincial govt from wasting tax dollars on dumb investment schemes.
      Hayek and Mises would be proud of you then.

    24. What ever happened to the pasta plant in SK which was supposed to be a value-adder to the Durum wheat?

    25. So, are the people of Saskatchewan going to be suckered again. From your reporting, it sounds like they will be.
      It is incredible how little info we are getting here, in the nation’s capital, about htis election. When does it start?

    26. When did whacking down down trees and cutting them up into small woodchips to burn in a power plant become good for the enviroment?
      I guess this is green power since the leaves were green.

    27. One thing I never did understand about the Culvert-commies … they have no problem in handing out corporate welfare checks … yet they disparage free enterprise. It’s completely counter intuitive … give away millions to pad failed ventures in order to reduce the risk to a handful of private firms … yet at the same time create a provincial atmosphere that is unfriendly to business in general.
      Schizophrenic if you ask me.

    28. The problem is that this seems to be the only place where anyone is questioning these announcements in Sask. The only other place will be Gormley if he hasn’t already.
      The local media had a story on how this wasn’t happening fast enough. They interviewed some contractor that was out of work for three years. (How this guy is out of work that long during a so called boom is another question.)
      Of course the local media never ask why is government spending this money after such a track record of failed investments. They didn’t seem to bring up the timing of the announcement either.
      Oh but they did cover the First Nations response to this. They threatened to sue the government because they weren’t consulted. That threat alone will kibosh the whole thing, but that won’t be admitted until after the election.
      But it should be obvious to anyone that knows anything about politics, that this move is to get the Communication, Energy and Paper workers union in PA on side. They are trying to consolidate their base.

    29. I am not understanding some things in this deal, and I will admit I have only in recent times bothered to take an interest. I ask that someone help me out please …
      I ask if I read these things correct, and I will ask a question and would really appreciate an answer.
      The province will own a closed sawmill (Big River). Why would one want to own something that is closed … and will remain so???
      The deal will see the pulp mill only open … but not the paper mill. I know nothing about pulp, nor paper. But, do they not go together? What do you do with pulp? … besides make paper. My simple brain is now equating this with Wheat and Bread. Or possibly Uranium and Nuclear Energy?
      Where and how do we ship this valuable pulp to someone smart enough to do something with it?
      DOMTAR will sell “green energy” to Saskpower. First, I don’t know what “green energy” is, besides what plants do. I look at any pulp plant and I can SEE they consume energy. How do you sell a negative quantity? (I obviously am showing my lack of knowledge here … help?)
      Domtar is giving up its right to the PA Forest Management Agreement (why?) … because what I read was the Province will work to “take it over” . (What does “will work to” mean?)
      Long post … sorry. Would like answers from. Mr. Calvert’s supporters, but will take what I am given as well.
      Rick
      Rick

    30. This really should, no, MUST backfire on Lorne & co. When the F— will the voters of this province get it?

    31. Former Alberta premier(and Edmonton Eskimo)Don Getty is the reason why AB has laws ’bout guvment being in “the business of business”. Getty built the High River magnesium plant and Swan Hills hazard waste plants, both complete failures…enter Ralph Klein the one time tv reporter who ran for mayor on a lark and a bunch of solid folks at the St Louis Hotel who started it all.

    32. Well, keep in mind..its not really 99 million.
      The government will get a portion of that back through income tax, then sales tax via consumption, and corporate or business taxes after that.
      If they hire 400 people back and each employee makes , what is probably a conservative estimate, of 50,000 per year (if wages are anything like before it will likely be significantly more), that would mean that, at the very least the wages would have equalled the investment in about 5 years. Then there are the economic spin offs of having 400 well paying jobs in the region.
      I’m not a huge fan of the government getting involved in this kind of stuff either, because I really have doubts about the sustainability of it all, but it is plausible that even if it only works for a short period, the investment will, at the least, break even.

    33. This is not a symptom confined to Saskatchewan or the NDP. As already been attested to in this comment section it has happened in BC and Ontario. In addition, there are numerous examples of closed plants (pulp/paper/fish/etc…) being re-opened with government money (Lib, PC) in the Maritimes as well. What governments need to learn is if the plants don’t make financial sense for any company to keep open, then maybe they should just stay closed.

    34. When the F— will the voters of this province get it?
      It’s been more than 60 years. Time to give up and accept that Saskatchewan is…well…backward.
      Saskatchewan, Land of the Living Lesson. Never have so few accomplished so little.

    35. If they hire 400 people back and each employee makes , what is probably a conservative estimate, of 50,000 per year (if wages are anything like before it will likely be significantly more), that would mean that, at the very least the wages would have equalled the investment in about 5 years. Then there are the economic spin offs of having 400 well paying jobs in the region.
      Whooee, he’s discovered a perpetual motion machine.

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