Thank you, Mr. Chairman. Good morning everyone. I want to convey special greetings to the workers and the unions.
Appearing today to talk about a community and try and explain to people that there is no logic to what is happening now is quite a responsibility. I will try to discharge it as best I can.
First of all, I would like to give you some background. The Town of Dolbeau-Mistassini is part of the Regional County Municipality of Maria-Chapdelaine. It comprises 12 towns. The population of that RCM is 27,000 and Dolbeau-Mistassini has a population of approximately 15,000. As will already be clear to you, that leaves about 12,000 for the 11 other towns. We constitute the commercial centre and have the hospital and school that serve the entire community. Industry in Dolbeau-Mistassini provides a living to workers from the 11 other municipalities. It is truly a very important community.
Dolbeau-Mistassini covers an area of some 40,000 square kilometers. It's as large as Switzerland. Ninety-five per cent of its surface area is covered with forest. Indeed, more than 70% of the economy in our RCM is based on the forest. We have the largest commercial forest area in Quebec. Some 3 million cubic meters of wood are harvested in our area. Our slogan is: “Maria-Chapdelaine, a generous nature to share the future”. Large quantities of wood, bark and chips are sent all across Quebec. We have always accepted that, except that now, our community which sprang from the forest, which has lived and still lives off the forest, wants to continue to do so. But there is something illogical happening: our plant has been shut down.
From its beginnings in 1927 until its indefinite closure on August 24, the paper mill has always been profitable. Even last year, a profit of $45 million was expected.
As you mentioned a little earlier, the company owners sold their cogeneration plant to Boralex in 1998, which weakened the mill. The company sold it, and yet today, the company is saying that it's unhappy about that. Its managers, who brought the company to the point where it is now, are talking about restructuring. I must admit that scares me.
AbitibiBowater says it is still interested in forest operations in our area and in the Dolbeau-Mistassini sawmill. And yet we are aware of no operational or investment plan. AbitibiBowater is prepared to talk, but only based on a highly restrictive non-competition clause. That kills any possibility of recovery or even of selling the paper mill, because AbitibiBowater owns 80% of the wood in the Saguenay—Lac-Saint-Jean area. Anybody interested in buying the plant would be facing a non-competition situation. Furthermore, whatever happens, it would be forced to ask AbitibiBowater for chips and bark. To which the company will reply that it is willing to sell, but at the price that it has set. That means that two plants are now endangered—both Boralex and SFK Pâte in Saint-Félicien, which makes pulp. The fact is that AbitibiBowater, or the previous companies, had sold those plants with promises and supply guarantees that they effectively ended with Bill C-36.
We are living amidst the resource and we cannot allow ourselves to be dispossessed without reacting; we cannot accept the idea of a closure as part of a financial restructuring carried out based on highly debatable rules. As I stated a little earlier, the plan closure will have wide ranging effects at the municipal, educational, business and social levels. It is an especially serious catastrophe for a single-industry town and RCM. As I mentioned earlier, 12 towns are affected.
I would like to briefly address the real estate market. Right now, a lot of houses are for sale. Some 300 people to be exact, and that is a very significant number. We are now in a buyer's market, as opposed to a seller's market. There will be very significant repercussions for the municipal budget. Dolbeau-Mistassini is a regional centre for services, business, and so on. Day in, day out, we are concerned about what people will do. They've never had a problem, but they have no other way of making a living. As a result, our health and social services centres have been responding for a number of months now. We don't understand how this kind of legislation could allow a company to jeopardize other companies. It seems that, based on this logic, in order for a bankruptcy to occur, the people who own the sawmills or sawmill equipment, or the workers, have to fail as well. That is totally unacceptable. We cannot accept the idea that a company could file a financial restructuring plan without unveiling its operational and investment plan.
The President of AbitibiBowater told you earlier that other plants will be shutting down four or five years from now. That means that people who think they are secure today will go through what we are going through now, because of people who have made sure that this company would end up this way.
Yet people are rewarded for succeeding in causing so much harm. How can anyone, at the cost of a financial restructuring, allow a company to jeopardize an entire community? The community is worried. We are convinced that September 14 and the subsequent steps are only part of a process for the company which, with the blessing and complicity of an entire system, will trot out its emergence plan, which I call a “resurrection plan”. We are being held hostage by a company that has the benefit of a monopoly. We are also concerned that our sawmill will cease operations because the company has shut down its planing units. So, they will have to dry the wood, load it onto trucks and haul it.
In closing, Mr. Chairman, at the present time, fiber is being left on the forest floor which, barely two years ago, was being processed. The company decided to leave it in the forest, because it doesn't want to process it; it would result in too many chips. One has to wonder about the FSC environmental standard. At the present time, local chips, bark and logs are travelling hundreds of kilometers, whereas in our area, everything is shut down.
Today I am sounding the alarm bell for a single-industry region and appealing to you, Mr. Chairman, and everyone present. The plant back home, which is at the centre of the resource, has no right to shut down. So, we are here today to make you aware of that.