AbitibiBowater won't get easy ride, Quebec warns

AbitibiBowater's future cutting rights may be at stake if the company doesn't provide greater clarity about its restructuring plans in Quebec, the province warned as rural regions were hit with more mill closures this week.

"Before we sign on for the next five years we have to negotiate," said Quebec Environment Minister Claude Bchard, reacting to the forestry company's decision to slash more jobs and close mills, announced Thursday.

"I want to meet them, I want to knowwhat is the second phase of their plan, and to make sure they have a good plan, and that Quebec's forests serve for jobs," he said, warning "recess" was over for the forest products company.

AbitibiBowater Inc. is shutting downeight more mills across the continent and slashing an estimated 2,600 jobs, including 550 at the century-old Belgo mill in Shawinigan, Que.

The Donnaconna mill is closing temporarily, and the idle No. 3 paper machine mill in Gatineau will be shut downfor good.

The Quebec government was aware of AbitibiBowater's stated need to consolidate operations over the last year and a half, but Thursday's announcement was completely unexpected and poorly executed, Bchard said.

"The worst-case scenario for workers and all the regions is to get the news a few hours before they launch their press release," and the government was not warned ahead of time, he told reporters in Quebec City Friday morning.

The government will review laid-off workers' assistance programs and will "see if there are any other possibilities," Bchard said, assuring the Liberals will "work hard for these workers."

Opposition leaders were quick to blame the latest round of layoffs on the Liberal government, accusing it of not doing enough to cushion workers from the year-and-a-half-long depression in the forestry sector.

Action Dmocratique du Qubec Leader Mario Dumont demanded the Liberals craft a newemergency plan to help workers.

Parti Qubcois Leader Pauline Marois urged Premier Jean Charest to recoup the anticipated GST cutthrough some form of provincial tax to pay for employment assistance programs.

The federal government did not specify what measures if any it will offer the sector, but said it is aware that Ottawa will have to intervene to prop up the ailing manufacturing industry at large, includingforestry.

Both Finance Minister Jim Flaherty and Labour Minister Jean-Pierre Blackburn refused to elaborate on any measures, when asked about the closures in Quebec City, where they were attending pre-budget consultations.

AbitibiBowater Inc. stock rallied Friday morning following the closure announcements, gaining 14 per cent in value before noon.