New Brunswick's paper mill power subsidy over budget

The power subsidy the New Brunswick government put in place for paper mills has gone over budget by $1.3 million over the last 2 years.

The subsidy gives the province's paper mills a lower cost for electricity, thereby improving the mill's competitiveness with mills in other jurisdictions.

This high energy use tax rebate has cost New Brunswick's taxpayers more than $17.3 million over the past two years.

The biggest portion of those energy rebates has gone to forestry giant J.D. Irving Ltd., which has received $11.4 million for its Lake Utopia mill, Reversing Falls mill and Irving paper mill in Saint John.

That means the three Irving mills have received an average of $15,000 a day in electricity subsidies for the past two years.

Meanwhile, Edmundston's Fraser Paper has received $4.1 million and AV Cell in Atholville and AV Nackawic have split $1.8 million.

The power subsidy program has been extended for another year.

Source:

Paper mill power subsidy $1.3M over budget (CBC)