Buyer Backs Out Of NewPage Paper Mill Deal

The Vancouver company that was planning to buy the idle NewPage paper mill in Cape Breton has backed out of its bid, saying its failure to win a favourable tax ruling from Ottawa effectively killed the deal. Pacific West Commercial Corp. issued a statement late Friday saying a favourable tax ruling from the Canada Revenue Agency was a critical factor in ensuring the economic viability of the mill at Point Tupper. The company says that despite the provincial government's efforts to come up with a compromise, both parties decided the tax implications could not be overcome without compromising the long-term competitiveness of the mill. Premier Darrell Dexter issued a statement saying he was greatly disappointed on behalf of the people and businesses in Port Hawkesbury. He says the company's move will be devastating for the mill's workers and their families.