Province wants release of secret Ottawa and U.S. Steel deal

Ontario's economic development minister wants to see the details of the close door deal the federal government struck with U.S. Steel after the company broke employment promises it made when buying Stelco.

Those are details that local union representatives and politicians like MP David Christopherson have been asking for since 2011, when the government dropped its lawsuit against the company for breaking production.

In a letter sent to Minister of Industry James Moore, Ontario Minister of Economic Development Brad Duguid asked to government to finally explain what went on between U.S. Steel and Ottawa.

• READ MORE: U.S. Steel Canada to get $185 million loan to keep operating

As the CCAA process continues, it would be helpful for all parties to better understand the details of the 2011 settlement between the Government of Canada and US Steel Corporation related to the companys Investment Canada Act obligations and potential implications for Ontario and Hamilton, Duguid wrote. We fully recognize that there may be legal challenges to releasing commercially sensitive information; however, it would be helpful for all parties if the federal government could share this information with all levels of government to ensure that we are well informed.

Anything that you can do to assist in this matter would be most appreciated.

Last week, U.S. Steel filed for bankruptcy protection with the Superior Court of Ontario, harkening back to a similar move that happened with the former Stelco years ago.

The process allows a company to restructure under the courts protection. If the court cannot approve a restructuring proposal, U.S. Steel would enter bankruptcy liquidation, although there is no hard time limit on how long CCAA protection could last.

In his letter, Duguid said that he has spoken with Mayor Bob Bratina and MPP Ted McMeekin, who are also calling for a release of details.

We will continue to work with our City of Hamilton and federal partners on other matters to enhance the competitiveness of the local and provincial economy through initiatives such as competitive tax policy, removing regulatory barriers, making critical investments in infrastructure and education, and supporting strategic private sector investments, he wrote.

According to court documents released this week, U.S. Steel will start seeking a buyer for the Hamilton steelworks as a "first priority."

U.S. Steel will lend U.S. Steel Canada $185 million plus millions in interest, fees and expenses while it undergoes a bankruptcy protection process, according to the documents but the company wants to make sure it is the first in line to be paid back.