The Prince Albert Mill

QP the last couple of days has been dominated by talk of the mill -- specifically Darryl Hicke's bungling on the doorstep and Brad Wall's shredding of the MOU with Domtar.

Hicke is on the record saying the NDP gave the residents of PA false hope over the mill deal:

"I'm disappointed the NDP gave false hope to the workers at the mill," said Hickie.

He said the memorandum of understanding signed between the NDP government and Domtar was never legally binding and never promised anyone their job back. But that's what the NDP led people to believe, said Hickie.

"It was an election ploy," said Hickie.
(PA Herald, Dec. 4/07)

When paired with the current scandal Hicke's involved in, this becomes the stuff of high comedy:

But even more problematic for Wall is justifying how scrapping the MOU squares with those little cards Prince Albert Carlton Saskatchewan Party MLA Darryl Hickie was handing out on election doorsteps proclaiming: "A vote for Darryl is a vote for the mill open (sic) & people working."

On Tuesday, Wall was eventually forced to acknowledge to reporters outsider the chamber that, if the mill isn't reopened, P.A. voters will be well within their rights to decide that Hickie misled them on this commitment. This isn't good news in a seat that the Saskatchewan Party won by a mere 61 votes.
(Regina Leader-Post, Dec. 12/07)

From what I understand, even though the MOU was riddled with wiggle words, Domtar was serious about opening the mill and was approaching the project in good faith. I don't know if Wall, Hicke, Boyd, and the rest of the Sask Party realize this, but according to the Forest Sector Task Force, the mill is the lynchpin to the forest industry in Saskatchewan -- an industry valued at 1% of the provinces GDP, or $500 million a year. We lost half a percent when the mill closed, so we could very well lose the other half a percent if the industry collapses.

Of course, all of this is lost on Wall, who is only interested in pursuing his three objectives: lower taxes, sell the crowns, and bust the unions. Any issue not tied to those three objectives will be on the periphery. Consider Wall's pre-election statement:

However, Wall said that if he becomes the next premier, work would continue to reopen the mill.

"We want to see a resolution for this. The asset there could be an asset in the forestry industry and there is a role for the government in facilitating that," he said."

We would very much want to sit down with Domtar," he said, and "try to find a way to open that pulp mill. What we will not do is risk - in either grant money or equity - taxpayers' money."

The work that's been done is not lost," he said, if an election is called.
(PA Herald, Oct. 9/07)

And here's a press release from Domtar dated Nov. 30/07:

Montreal, November 30, 2007 – Domtar was informed today that the Government of the Province of Saskatchewan is not prepared to participate in the financing of the redevelopment of the Prince Albert pulp mill as set forth in a Memorandum of Understanding (MOU) signed on September 12, 2007.

Although Domtar recognizes that the Saskatchewan Government remains committed to ensuring the future of northern Saskatchewan’s forest resource, the Government’s decision to withdraw its support narrows down Domtar’s options regarding the Prince Albert facilities.

Consequently, Domtar will terminate all work being done on this project.

At least Wall's being consistent about the MOU.

What Wall and Boyd are not mentioning is that the province is still on the hook for the costs of the environmental clean-up -- which, in fairness, can be tied back to the NDP. But there's also the looming possibility of legal action from Domtar over the cancellation of the agreement, the settlement of which could make Spudco look like -- well, small potatoes.