Wednesday, November 30, 2005

Blame NAFTA not Liberals

Hey I ain't no fan of the Liberals but Tory Blogger Brent Colbert ( whom I mistakenly called Colby ) misses the point in blaming the Liberals for the job losses at Domtar.

Hmm, Mr. Colbert convieniantly forgets it was the Mulroney Conservatives that brought us the FTA and NAFTA which is directly responsible for these job losses. Tory Revisionist history strikes again. Oh right this Conservative party ain't the party of Mulroney, he just shows up at all their parties and conventions.

Ok blame the Liberals too cause they didn't abrogate NAFTA...
another blown promise..... and now they are cheerleaders for Free Trade equating it with Fair Trade....huh?

Say here's a good message for the NDP........ Abrogate NAFTA save Canadian Jobs. Didn't they have that message once upon a time, hmm when a certain John Turner was fighting the battle of his life?


Justin Kase said...

The major fault of what happened at Domtar was Management. For years, they only had eyes for core buisness and sold or spun off everything else, to pay for their new aquisitions.
Then GWB happened, devalued the US dollar, giving the false impression that the canadian dollar rose, made domtar's paper a little expense, plus the contravailing tarrifs over softwood lumber, and there you have it, a double whammy.

Such a shame, from Forestery Giant to Shrub Dwarf

eugene plawiuk said...

You hit it on the Head see my blog article above Jobs Not Tax Cuts, these guys once again sold off everything not nailed down but didn't reinvest the money in production.

Brent Colbert said...

Well first off, my name is Colbert not Colby, but it is a damn fine cheese.

While it is true that Domtar has been focused on core business I cannot understand how an agreement that is in theory supposed to permit the free flow of goods across the border of our largest trading partner.

If you ask those in the forestry industry they will tell you that high taxes and stumpage fees compared to their US competitors combined with high energy costs and the tariffs that the Liberal government have been unwilling to force the Americans to rescind are the major causes for the troubles in the industry.

eugene plawiuk said...

Opps sorry about that the cheesy name change.

Domtar has nothing to do with stumpage fees it buys processed logs. In Alberta we have the lowest stumpage fees in North America just like we have the lowest taxes and royalty fees for petroleum than anywhere else in the World.

Domtar is using its workers as a capital base to refinance its technology. With the elimination of jobs comes the elimination of costly benefits packages, more so than wages. And this gives management and owners capital for investment. Despite the government subsidies and tax breaks Domatar has already benefited from.