The government of Nova Scotia is taking drastic steps to preserve a local paper mill providing pulp and paper to local printers. These Print companies provide printing services to Halifax and the surrounding area.
Nova Scotia Premier, Darrell Dexter, made the announcement recently that the government are funnelling more than $20 million to help protect the wood supply until September, while the mill waits to be sold to Pacific West Corporation. The province has already chipped in $27.3 million, since last fall, in an effort to keep the mill's sale ready; a relief for Nova Scotia's pulp and paper industry.
While opposition has called into question the legitimacy of continuing to fund the half empty plant and believe the funds would be better spent funding essential services, the Premier’s announcement represents a strong commitment on the part of the Nova Scotia and Halifax governments to help the mill’s operation run while the buyer tries to find a way to keep the mill viable.
Making the mill financially viable is a noble task. Court appointed monitor and managing partner of Ernst & Young in Halifax, Matthew Harris notes that claims against the mill are higher than originally anticipated. However, NewPage Port Hawkesbury is also estimated to contribute more than $200 million per year to the Nova Scotia economy and employs more than 600 people in its plant.
The alternative to keeping the mill going would be to see the plant torn down and jobs lost or transferred to a different jurisdiction, resulting in millions of dollars of lost economic activity.Get a Free Quote for Print
