ST. JOHN’S, N.L. — Newfoundland expects professional and legal fees linked to the expropriation of AbitibiBowater’s rights and properties in the central part of the province to total more than $8 million for the fiscal year that is just ending.
The disclosure came in a line item of the 2010 budget estimates.
The province originally expected to spend $373,500 in 2009-10 on professional services related to energy policy in the Department of Natural Resources.
But financial documents released last week indicate the province will instead fork out more than $8.3 million.
The department said the amount will cover the estimated costs in 2009-10 of professional services related to the expropriation of Abitibi timber and water rights in the province, and resulting environmental liabilities.
That includes environmental assessments, legal work and advice associated with Abitibi’s NAFTA challenge of the expropriation, and the timber giant’s ongoing court bankruptcy protection proceedings.
Last week, a Quebec judge stayed Newfoundland and Labrador’s environmental claims against AbitibiBowater.
The cost of cleaning up the five sites in question has been estimated by Abitibi’s bankruptcy monitor to potentially reach into the hundreds of millions of dollars.
Newfoundland Environment Minister Charlene Johnson said last week that the province is now weighing its options on how to proceed.
Newfoundland and Labrador and Abitibi have been at loggerheads since the province stripped the now-insolvent paper giant of its lands, timber and water rights in December 2008.
Abitibi has filed a North American Free Trade Agreement complaint challenging the expropriation.
(St. John’s Telegram)
