CANADA, August 27 - NOTE: The following is a statement from Premier Tim Houston.

As I took office as a Premier in 2021, I knew I would be inheriting the Northern Pulp file – one of the largest, most complex and highly sensitive legal and economic files this Province has faced.

For many years, the pulp mill in Pictou County was a major exporter, an important employer and an integral part of the forestry industry. Its environmental record and impacts on surrounding people and communities were also part of its well documented history.

In 2020, the mill went idle when the Boat Harbour Act came into force, and the company went into creditor protection. On top of the lost jobs and economic activity, there was a $450-million lawsuit against the Province, outstanding loans owed to taxpayers, and—something that was very concerning to me—the pensions of former mill employees in deficit.

With the fate of the mill sealed, our government negotiated the best possible outcome for Nova Scotians, reaching a settlement agreement with the company in May 2024.

As a direct result of the settlement agreement: -the $450-million lawsuit initiated by Northern Pulp related to the Boat Harbour Act was dismissed -the company conducted a feasibility study of building a new kraft mill in Nova Scotia -the court-appointed monitor oversaw a transparent sales process of the timberlands, which resulted in a Nova Scotia-owned company buying these important lands and keeping the woodlands operation working -revenues from the sale paid for the pension deficit in full, provided $15 million toward closure plan activities on the mill site, and fully covered the amount owing on the provincial loans

We were not guaranteed full payment of what was owed to taxpayers. However, I am pleased to report that, based on the final sale price, the Province has received $102.3 million, which fully repays the debt. The final payment was received this week.

I am also pleased that the purchaser of the lands is a respected Nova Scotian that cares about the province and has always shown a commitment to doing the right thing.

In the coming weeks, the company will begin closure plan activities on the mill site, including removing hazardous materials and demolition of buildings and other structures. The Department of Environment and Climate Change is responsible to monitor those activities as the environmental regulator.

While Northern Pulp remains in creditor protection, we anticipate the court process coming to an end soon. We recognize this has been a long process, more than six years in the making. I am proud that the Province, as a secured creditor in the court proceedings, has accomplished the best result possible for Nova Scotians.

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