On UPM's permanent closure: flushing money down the drain
As I've said a thousand times before on this blog, short-term government subsidies tend to only help failing companies limp along, like the $5 million Lord's government gave [in assistance packages] to keep the UPM paper mill in operation beyond 2006. But in the end, market forces always tend to have the final say on such matters.
In addition, since the $5 million dollar loan was handed out without any conditions, the province can't recoup it now that the mill has permanently closed. Nothing like flushing taxpayers money down the drain once again in NB...
In addition, since the $5 million dollar loan was handed out without any conditions, the province can't recoup it now that the mill has permanently closed. Nothing like flushing taxpayers money down the drain once again in NB...
...via corporate welfare.
2 Comments:
Now that it is closed, the local 689 must push the government to expropriate the facility and sell it. These mills are still viable and profitable. Don't kid yourself.
Secondly we must push even harder to get these assholes to stop cutting. Paul Orser says, "no decision on the sawmills has been made yet." But we know this to be false as all they just want is our wood.
Respectful decorum anon, respectful decorum.
As for your comment, if the mills were still viable and profitable, then they shouldn't need to be propped up by government to survive.
My thinking one the matter is that there are many other budding industries on the rise globally, maybe this just isn't one of them (or the timing isn't right?)
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