ANNOUNCEMENT 28 Sep 2012

In September 2012, the government of Canada announced a change in private-sector financial support.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE



See the hyperlinked material in the description.


Inception date: 28 Sep 2012 | Removal date: open ended
Still in force

Bailout (capital injection or equity participation)

According to reports in the Canadian press, in September, 2012 the NewPage Port Hawkesbury paper mill in Nova Scotia was sold for $33-million to Pacific West Commercial Corp. of Vancouver, British Columbia. The facility had been shut down. The government of Nova Scotia is providing a $124.5-million aid package over ten years, in addition to $36.8 million it already spent keeping the mill in what is called a 'hot idle state.' The deal also provides for a discount power rate agreement with Nova Scotia Power Inc. The Canadian Taxpayers Federation has criticized the deal, as have the opposition Liberals and Conservatives as well as policymakers in the United States. In response to a complaint from Representative Mike Michaud (Democrat of Maine), U.S. Trade Representative Ron Kirk wrote to the congressman on October 4 pledging to direct his 'staff to confirm whether the information provided in the news reports is correct, on an expedited basis,' and 'to request information from the Government of Canada regarding any assistance it or the Government of Nova Scotia have agreed to provide or plan to provide.' Ambassador Kirk further stated that, 'The United States will also raise the matter at meetings later this month of the Committee on Subsidies of the World Trade Organization.'
The case was still at issue as of early 2015, when members of the Maine congressional delegation raised the matter once again in a letter to the U.S. Secretary of Commerce (see http://www.sjvalley-times.com/view/full_story/26364549/article-Collins--...). 

AFFECTED SECTORS