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Old Posted Apr 19, 2013, 1:22 AM
Trevor3 Trevor3 is offline
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Join Date: May 2011
Posts: 1,002
This is really just throwing good money after bad.

In Grand Falls we had a mill that had was incredibly outdated but lasted as long as it did because it had power and fibre sources. In Stephenville we had a mill that was among the most efficient in Canada in terms of power and fibre, but did not have its own source of either.

The advantage that Corner Brook has over both of those, aside from still operating, is low labour costs. Employees have taken pay cuts numerous times to keep it afloat and so far it has worked. Long term, it does not have a future. Much has been made about the mill's future in supplying emerging foreign markets in Asia, however, it is possible to grow a tree in South America that takes 70 years to grow in Newfoundland in just 7 years, and process that tree with much cheaper labour and then transport your product a much shorter distance to market. Unfortunately again, Corner Brook primarily exports to the U.S. which is the fastest shrinking market on the globe.

Further, IF the mill were to close it would not devastate the economy as people expect it would. CBPP is down to a single machine operation, from a 4 machine operation in 2005. There are about as many people working in that mill now as the Abitibi mill in Stephenville when it was shut down, and fewer than were working in Grand Falls-Windsor. Both of these places have fared well and Corner Brook, with 3 times our population, should be able to absorb the loss without any sort of significant government subsidies to the local economy. The Corner Brook economy is already diversified as a regional service centre, is trying to become a player in tourism, and just needs to rid itself of a city council that is more interested in buying itself ipads than trying to attract business.

Just to nitpick, because I can already people from CB yelling at you Signal, and I've been on the receiving end of this before, "Corner Brook is Newfoundland's 2nd city because the other two are suburbs of St. John's".

BUT from a political point of view, propping up the mill buys you votes in about 5 seats that "rely" on it.
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