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Regional leaders meet to discuss Domtar closure, vow to ‘think outside the box’ for economic stability

ESPANOLA—The Town of Espanola sent out a rallying call to politicians, administrators and economic development stakeholders for the first of what are expected to be regular meetings on the situation at the Domtar Paper Mill, an area employer of 450 which is slated to shut down “indefinitely, but longer than a year.”

The meeting was chaired by Nickel Belt MP Marc Serré.

“It was a very good meeting,” said Mr. Serré. “It involved governments, federal, provincial and mayors and councils getting together to get some answers and take pro-active steps to deal with a situation that effects far more than just Espanola.”

NEMI Mayor Al MacNevin noted that at one point in the meeting it was shared that only 20 percent of the employees at Domtar actually live in Espanola. “Most live in the communities surrounding Espanola,” he said. “This really is a regional issue that impacts a far wider region.”

“This is really an issue that impacts all of Northeastern Ontario,” said Mr. Serré, who pointed out it is not just the employees at the paper mill that are being impacted, but all of the ancillary businesses and workers in the wood lots, trucking firms and other suppliers who depend on the mill for their livelihoods. “The forestry industry is a very important economic driver involving $70 billion and 200,000 workers.”

Mr. Serré noted that the issue expands far beyond the town limits of Espanola and Domtar, with many forestry sectors facing issues that include the unprecedented recent wildfire season.

“There are no quick fixes,” he cautioned, adding that “this is something no government subsidy will fix.” Mr. Serré pointed to the potential in the new economy that might provide hope, including bio-mass, electricity generation and mass fibre construction. He cited what he called the PAPER strategy: people, assembly, pro-active, Espanola, resiliency. “We need to work together to find ways forward,” he said. “The federal government is at the table and so is the province.”

“It is obvious that the Town of Espanola has been extremely active in trying to mitigate the impact of the mill closure announced by Domtar,” said Algoma-Manitoulin-Kapuskasing MP Carol Hughes. “They have been focused on the workers and their families, the economic repercussions that may affect the community and outlying areas, as well as ripple effects to businesses. The intergovernmental stakeholder meeting hosted by the town was another step forward in sharing information on efforts being made and also strategizing on additional action and other possibilities and funding options that may be available or required.”

“It was a high-spirited meeting,” shared MPP Mantha. “There were a lot of action items that need to be followed up.” He pointed to the future of the hydro-electric power dam, “there needs to be clarity of control,” said MPP Mantha. “Will the fibre basket remain with Espanola? That is a question for the MNR. There are currently thousands of loads of fibre sitting on roads across the North—many woodland contractors have not been paid and some have been waiting for over two years now. Will they be getting paid?”

During the meeting it was learned that some 85 employees at the Domtar paper mill in Espanola are eligible for enhanced retirement benefits and many of the skilled tradespeople have already secured employment thanks, due in part, to a number of job fairs set up by Espanola. Some 14 workers will remain at the plant after its November closure to maintain the infrastructure.

Taking part in the meeting were: Douglas Gervais, mayor of the Town of Espanola; Kevin Burke, mayor of the Township of Sables Spanish Rivers; Vern Gorham, mayor of the Township of Baldwin; Trevor McVey, deputy mayor of the Township of Nairn and Hyman; Al MacNevin, mayor of the Township of Northeastern Manitoulin and The Islands; Algoma-Manitoulin MPP Michael Mantha; Nickel Belt MP Marc G. Serré (Parliamentary Secretary to the Minister of Official Languages and Parliamentary Secretary to the Minister of Energy and Natural Resources); Rebecca MacNeil, senior assistant, Office of MP Marc G. Serré; Algoma-Manitoulin-Kapuskasing MP Carol Hughes; Ontario Minister of Natural Resources and Forestry Graydon Smith and his staff; Assistant Deputy Minister Mines, Natural Resources and Forestry Sean McGuire; Ontario Assistant Director Ministry of Environment David Manol; Director, Regional Economic Development Branch, Northern Development, Melanie Muncaster; Executive Director for FedNor Lucie Perreault; Kent Williamson, a policy and stakeholder advisor with the Office of the Minister of Economic Development, Job Creation and Trade; Eric Johnson, vice-president federal government relations with the Forest Products Association of Canada; CAO/Clerk/Treasurer of Nairn and Hyman Belinda Ketchabaw; CAO/Clerk/Treasurer of Baldwin Holly Zahorodny; Clerk/Administrator of Sables-Spanish Rivers Anne Whalen; Northeastern Manitoulin CAO Dave Williamson; Town of Espanola CAO Allan Hewitt, Town of Espanola Clerk Joseph Burke; and LaCloche Foothills Economic Development Officer Louisa Orford.

Also invited to the meeting were regional First Nations leaders Sagamok Anishnawbek Chief Angus Toulouse; Whitefish River First Nation Chief Rodney Nahwegahbow; and Mayor of City of Greater Sudbury Paul Lefebvre, all of whom sent their regrets.

All participants in the meeting congratulated the Town of Espanola and staff for getting the meeting together.

“They did the impossible in a very short period of time,” said MPP Mantha, who pointed out he has been involved in dealing with labour crises such as ones facing Espanola and its workers far too many times. That included his work prior to being elected to the legislature. “They did an outstanding job.”

The Domtar situation will continue to evolve in the next few months, and a number of the participants in the meeting held out hope that the mill can either pivot to a new productive life or that a buyer will be found to take over the existing facilities and get them back to work.

“This meeting was just the beginning,” said Mayor MacNevin. “There are a lot of questions that need to be answered and things to be looked into over the coming months.”

Article written by

Michael Erskine
Michael Erskine
Michael Erskine BA (Hons) is a staff writer at The Manitoulin Expositor. He received his honours BA from Laurentian University in 1987. His former lives include underground miner, oil rig roughneck, early childhood educator, elementary school teacher, college professor and community legal worker. Michael has written several college course manuals and has won numerous Ontario Community Newspaper Awards in the rural, business and finance and editorial categories.