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Jim Letourneau's Blog

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Danny Williams takes on AbitibiBowater

We don't need to travel to sunny climes to find dictatorial governments. Newfoundland's Premier Danny Williams has fired a cannonball the size of Jupiter across the bow of forestry giant AbitibiBowater.

Newfoundland is demanding that it surrender forthwith entitlement to all resources in the province.

Danny Williams is invoking agreements from 1903 and 1905 that state that AbitibiBowater's rights to timber and hydro power are contingent upon them operating a mill in Newfoundland. AbitibiBowater's recent announcement to close the paper mill in Grand Falls-Windsor has triggered some unforseen consequences.

It will be interesting to see how this mess ends.

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