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The New Brunswick government will pay almost $11 million to cover a failed job creation plan by the former Liberal government, CBC News has learned.
The provincial government will buy land and equipment from Norway's Umoe Solar that cancelled plans for a plant in Miramichi.
Umoe Solar said in early 2009 it would take over the former UPM Kymmene paper mill site and build a solar cells plant, which would create 350 jobs in the economically hard-hit region.
UPM, which was the northern city's largest employer, closed in December 2007, leaving more than 500 people out of work.
The company was lured, in part, by a promise from the former Shawn Graham government that its power rates would be reduced to rival Quebec's.
Lower rates for industry later became the centrepiece of the Graham government's plan to sell NB Power to Hydro-Québec.
After the NB Power deal collapsed in March 2010, then-premier Shawn Graham said he would try to keep the promise to Umoe Solar for lower power rates.
"Now we're going to have to look at other innovative solutions on how we can help this company attain those competitive rates with Quebec, and we're in those discussions as we speak," Graham said at the time.
But in May 2010 Umoe Solar put the Miramichi project on hold.
Graham's government promised Umoe Solar that if they didn't go ahead, the provincial government would buy back the property and assets the company bought from UPM Kymmene.
The David Alward government is obligated to keep that promise
The provincial government will buy land and equipment from Norway's Umoe Solar that cancelled plans for a plant in Miramichi.
Umoe Solar said in early 2009 it would take over the former UPM Kymmene paper mill site and build a solar cells plant, which would create 350 jobs in the economically hard-hit region.
UPM, which was the northern city's largest employer, closed in December 2007, leaving more than 500 people out of work.
The company was lured, in part, by a promise from the former Shawn Graham government that its power rates would be reduced to rival Quebec's.
Lower rates for industry later became the centrepiece of the Graham government's plan to sell NB Power to Hydro-Québec.
After the NB Power deal collapsed in March 2010, then-premier Shawn Graham said he would try to keep the promise to Umoe Solar for lower power rates.
"Now we're going to have to look at other innovative solutions on how we can help this company attain those competitive rates with Quebec, and we're in those discussions as we speak," Graham said at the time.
But in May 2010 Umoe Solar put the Miramichi project on hold.
Graham's government promised Umoe Solar that if they didn't go ahead, the provincial government would buy back the property and assets the company bought from UPM Kymmene.
The David Alward government is obligated to keep that promise
