Now back to the important issues...The Merger...

Danny said yesterday he thinks the merger of Abitibi and Bowater may be a good thing - and Kathy Dunderdale said the union says it does not expect the merger will affect Newfoundland and Labrador.

Let's look at what industry analysts are saying:

These two quotes from the Globe and Mail online:

"It's more a cost-reduction story than a revenue-enhancement story."

The Bowater-Abitibi merger should "theoretically reduce capacity and improve the real price of newsprint," Mr. Rowland said.

The article talks about the real concerns in the pulp and paper sector - competition with China - quality and changes in paper products and reduction in demand.

There is no question that BowaterAbitibi - if the regulatory bodies approve the merger - will be reviewing all assets in the new company. If the analysts are correct and the objective is to reduce capacity - we should be out of the gate early.

Considering one of the two new headquarters will be in Quebec - we can expect the lobby to keep capacity there will be intense - equally true of Ontario.

We need to start our lobby efforts now - for both Stephenville and Grand Falls - Windsor. Next week is too late - and burying our political heads in the sand will not help.

There are positives in both mills that we should be promoting - and government should be pro-active and not re-active as it relates to discussions with the company. With all the by-elections on the go - particularly in Port au Port - you had better get some action and commitments from all the candidates. They are all just keeping their heads low and hoping the announcement will just fade to the background.

Get some real answers now - before it is too late. We must have our research done - we have to know what our competition in Quebec and Ontario are planning to offer.