PC boots are made for walking - away from NL

Just about 6 years ago - the master negotiator who hated "loopholes you can drive a mack truck through" passed over 8 million dollars in the form of an interest-free loan to Terra Nova Shoes a subsidiary of Kodiak Group Holdings. The loan was to be paid over 10 years - bringing us to 2018.

Okay let's get to the basics - did we have a clause stating the business could not be relocated outside the province for 10 years? Did we have a clause that interest would be added to the loan amount if the company left Newfoundland and Labrador? Did we have a clause that all amounts owing would be immediately payable if the company left the province? So Minister Sullivan tells us to stay calm "these loans are very well secured". So Minister you gave the interest-free 8 million dollar loan in 2008 to be paid by 2018 it is now 2014 6 of 10 years already gone by yet you have only collected 1/4of the money back?

At the time of the loan announcement in 2008 the company said the following:



After considering options for consolidation, the company chose to base its Canadian operations in Harbour Grace because of Terra Nova’s strong track record, commitment to quality assurance and customer satisfaction, and productive and dedicated workforce. The expansion will realize the addition of approximately 50 new positions at Harbour Grace, as well as the retention of the over 170 existing staff. To increase capacity, a 30,000 square-foot extension to the existing 70,000 square-foot facility has been completed.
"We are very excited to be expanding Kodiak’s strong business model and culture in this region," said Kevin Huckle, President of Kodiak Group Holdings. "The expansion to this fine facility is a result of the hard work and dedication of the men and women who work in our Harbour Grace footwear plant. This activity reveals our strong commitment to this organization and supports future growth. Kodiak’s investment demonstrates that manufacturing still plays a crucial role in Canada’s economy."


At the time of the loan announcement in 2008 - Paul Oram Minister responsible at the time said the following:

"The company’s decision to base its Canadian operations in Newfoundland and Labrador will strengthen its competitiveness internationally,"  (emphasis added)

Here's what the company is saying now:

The company said it has become too expensive to manufacture the footwear in Newfoundland and then ship them to Ontario for distribution. The plant in Harbour Grace was built in 1971.
"The reality is the high costs to continue operating the Harbour Grace plant have become unsustainable over the past several years," Kodiak president Kevin Huckle said in a statement. (emphasis added)

Here's what Susan Sullivan - Minister responsible is saying now:

"It's very disappointing for us," she said. "We've been working with the company over the last few days to try to see if there's anything that we can do to encourage them to stay, but it seems they've made up their minds, that this is not a place they are able to do business."


So how long has the government known about this?
What did they do to "entice" the company to stay on?

Importantly: Is it possible that there will be people working in a plant in Ontario that is using interest-free money from Newfoundland and Labrador?

What happened to all that savvy in attracting and retaining business?

Once again a long-standing manufacturer/processor - has decided this is not a cost-effective place to do business for them.

Paper mills, fish plants, tech firms, oil refiners, and manufacturers head to the land of the have-not. Any chance to use power to attract industry is being squandered so we can help Canada become "green" and Nova Scotians to get cheaper power. Our proud heritage on the sea - yet where does ship-building go to? Billions in contracts - oh yeah - Nova Scotia.

Perhaps John, Steve, and Paul can create thousands of person-hours of work to tear the facility down. Wait now - we just tore down Stephenville, and we got Grand Falls-Windsor in the wings - that should keep us busy till we have to dismantle Bull Arm.

So should we expect the following slogans?

John - all Nalcor employees to wear Kodiaks
Paul - all Police to wear Kodiaks
Steve - all boy scouts to wear Kodiaks

and you guys had the audacity to crucify Grimes over the only contract without loopholes?

no wait I forgot there is one more contract without loopholes - the Upper Churchill contract.