BERNARD LORD - HERE WE GO AGAIN!!! WILL ANOTHER NEW GROUP OF PROTESTERS BE BORN???

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Cabinet may veto power rate hikes: Lord
Last updated Feb 7 2006 10:52 AM AST
CBC News
Premier Bernard Lord says his cabinet may veto a proposal to hike power rates by 12 per cent if he can be convinced the added cost will devastate New Brunswick's heavy industry.

Lord is in Helsinki, Finland this week to meet with the owners of a struggling mill operation in Miramichi. The UPM Miramichi mill recently closed for three months, temporarily laying off 450 people. The mill's owners have instructed management to turn a profit in 2006 or face a permanent shutdown.

Lord says a proposed 12 per cent rate hike from NB Power is causing the most worry for the mill's Finnish owners. The Public Utilities Board is hearing arguments for and against the rate hike this week in Saint John, and will make a decision soon.

* FROM FEB. 2, 2006: NB Power CEO talks tough on rate hikes

But Lord says whatever the PUB decides, cabinet has ultimate control over power rates in the province. "We can decide to say no to the decision of the PUB, and reverse the decision, or do something else," he said. "And I'm keeping that option open for the government because I am concerned what it will do to the industries in New Brunswick."

Electricity rates aren't UPM's only concern. Even without a power rate hike, managers must find a way to shave 12 per cent off labour costs before the mill reopens May 1.

Municipal, business and union leaders from Miramichi accompanied Lord to the meeting in Finland. They talked with UPM executives for more than five hours, but could not convince them to remove the profit ultimatum from the mill.

Lord admits the situation is critical, and says his government will do all it reasonably can to help – but that may not be enough. "They don't want to stay in Miramichi if they continue to lose money."

But Chris Allison, president of the local union, says the government can do more to help make up for the 12 per cent reduction in labour costs. "I was kind of hoping the government would give us the 12 per cent."

The UPM Miramichi facility has not turned a profit in 11 years. It is UPM's only Canadian mill, and its most expensive.