Worthington Properties Issued Orders In Mackenzie

Friday, January 23, 2009 09:53 AM

Mackenzie, B.C. - The Provincial government is taking over the financial responsibility of the former Pope and Talbot pulp mill in Mackenzie in an effort to keep the mill safe and protect the community.

Worthington Properties has been issued a set of orders from the Ministry of the Environment that require Worthington properties to carry out certain functions around spill prevention. “It also give us the ability to step in and ensure those actions are taking place” says Minister of Forests Pat Bell. He adds that Worthington properties has not paid its staff at the mill for some time, “There was an imminent risk of staff leaving and unionized workers leaving the premises and leaving it in a state that would have caused immediate risk to the environment.”

Bell says the owner of the mill, Dan White, says he still intends to operate the facility but doesn’t have the cash flow right now.

Bell has high praise for the union members, “Carl Bernasky has been very good we have been communicating on a regular basis over the past few weeks, Tom Bugner, the General Manager of the mill, has also been very, very good. l am confident we have taken the right steps, this is a highly unusual step to take, Worthington has indicated to us they have no fiscal resources to either pay their employees or to maintain the site. They have also indicated they have continuing interest in the site but over the next weeks and months I am sure we will see that unfold.”

Bell says the orders are for a pollution and spill prevention. “It says there is an imminent risk of spill and it lets the Ministry of the Environment to step in and make sure that spill does not occur.”

Bell says the workers have been assured the province will pick up the tab for their wages and the Province will try to recover that money from Worthington in the future.

There are a number of orders that can be issued, but Bell says this order gives the Province the tools necessary to prevent a spill. The main issue is that if the workers walked , the power engineer would have had to take down the boiler, and without heat, there was a real danger of chlorine tanks and lines rupturing “There’s over a million litres of chlorine on the site, those tanks could have easily ruptured and exposed chlorine to the environment which can become gaseous immediately and create significant risk to health in the Mackenzie area. Also the mill is very close to Williston Lake so all sorts of potential for black liquor, green liquor and so one, could have entered the lake system.”

There are just under 50 workers on the site and with the weather heading into a deep freeze again, there will be high gas and power bills in addition to the employee wages to cover. “The costs are not insignificant” says Bell.

When Worthington Properties of Edmonton purchased the mill it indicated it would operate the former Pope and Talbot mill “as a going concern.”

The Mayor of Mackenzie, Stephanie Killam says Worthington Properties has yet to pay the taxes on the property and the amount is in the $2 million dollar range. Killam is very proud of the workers who have stuck it out this far "It shows their committment to the community, not to themselves, but to the community."

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Posted on Friday, January 23, 2009 09:53 AM in News by 250 News

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Comments

Posted by: Andyfreeze on January 23 2009 11:16 AM

And so it begins.
Why do these opportunists buy these properties if there is no money to do anything with them?
Seems far to many times it ends up a disaster and more disappointment for those who are so hopeful.
Very sad indeed.

Posted by: Jem on January 23 2009 1:55 PM

When the bigger companys need help the goverment bails them out, when the smaller companys need help they can go bankrupt and the goverment is going to go after them with everything they have. Thats the way life is.

Posted by: camoose on January 23 2009 3:07 PM

Free enterprise at it's best. Go for all the subsidies it can get and buy a mill at rock bottom prices then don't pay the employees and the taxpayers will pick up the bill. if this mill ever gets going again the BC Government should put a lien on it to recover the taxpayer's money being spent. I'm not holding my breath on that one though. I guess the taxpayers will be paying and paying and paying.

Posted by: Bankrupt In Mackenzie on January 23 2009 4:09 PM

Why is it that the minute Governments are aware of issues that could damage their reputation in any way they are on it like flies to you know what, just to make sure mud does not get slung their way. Governments actually support the sale and shut down of the province by letting big corporations and industry control the employment in B.C. So what if people are unemployed and losing everything they have worked for.
The forest industry and mining industry deserve the same sort of focus and support in relation to being allowed to operate and keep people employed that a potential environmental spill does don't you think.
It is apparent that the controlling parties of the country would rather see the mass's of the country blessed with poverty rather than wealth.

Posted by: seamutt on January 23 2009 9:54 PM

I agree camoose, hey Yama you out there. Free enterprise, grab the money and run, let the taxpayer pick up the mess.

Posted by: eiowe on January 24 2009 10:46 AM

can you say skeena ? another money pit for the government at least the employees bought the harmac mill now thats something for a community to be proud of. mayor killian worthington is not the only one not paying taxes alot of us sawmill workers did the same what amazes me is all the folks trying to stick it out in mackenzie how do you run a pulpmill without chips ?????? is the gov gonna supply them too get real people

Posted by: Mercenary on January 24 2009 11:40 AM

Well, the pulp mill could have a viable source for chips if it came down to it (and it will) The East Fraser chip plant is still running so they could possibly pick up a contract to supply the pulp mill.

Worthington definitely needs to step up and take responsibility for their mess. If it means paying workers to keep the mill warm until the chemicals can be cleaned up properly then they need to do it. If they can't or won't run the mill then they need to step aside and let someone else have a go at it. There is no money left in Mackenzie to purchase the mill such as what happened to Harmac.

Posted by: Resident on January 24 2009 12:12 PM

I do not think anyone could realistically believe Worthington would be able or even capable to restart a pulp mill without a chip contract in place. Given the fact neither of the majors, Canfor or West Fraser expressed an interest in the pulp mill also would lead one to believe the mill would never restart. Worthington picked up the mill at what was then believed to be a fire sale price. Given the cost of keeping the mill in a warm condition through the winter months if the mill had been given to Worthington for free it still would not have been much of a deal.
Unfortunately the taxpayer now is on the hook for maintaining the mill which will cost millions more than Worthington initially paid for the property and little likely hood the monies spent by the government to maintain the mill will ever be recovered.