Resolute threatens town with litigation

Duane Hicks

Fort Frances council opted to defer consideration of a resolution regarding the competitive bidding to find a buyer for the local mill, and demanding Resolute Forest Products comply with the terms of the Sustainable Forest Licence (SFL) for the Crossroute Forest, in light of a threat of litigation from Resolute.
During last night’s regular meeting, Coun. Douglas Judson said council still is committed to facilitating the sale of the Fort Frances mill to the extent of its ability to a buyer that would operate it and restore its economic potential.
“We are working hard to support that outcome,” he stressed.
“This community, and the surrounding communities, have been home to a mill for over 100 years,” Coun. Judson added. “Our forest is linked to it and our past as much as our future.”
Council’s position on this matter is “not about choosing favourites,” Coun. Judson stressed.
“We are not choosing favourites with the potential buyer, Repap, with Resolute, with an operating facility in Fort Frances versus Thunder Bay or anywhere else,” he clarified.
Coun Judson said the resolution that’s been tabled is “about defending the public policy that local forest resources be used primarily to support their surrounding communities–a promise that many feel is at risk in recent actions and developments.
“And this council continues to assert that policy, which is enshrined in the legal frameworks that license our forests.
“However, consideration of this item has been deferred in light of threat of litigation from Resolute Forest Products,” Coun. Judson said.
“Council will be following up with Resolute in respect of their invitation to discuss our community’s concerns further.
“It is with industry and perseverance that we move forward to uphold the best interest of our community, its people, and their forest,” he concluded.
As reported yesterday, Coun. Judson has drafted a resolution
It stated the town should demand that Resolute:
•allow all bidders on the mill the ability to engage in dialogue with government prior to submitting their bid so that they can reasonably prepare for a successful acquisition of the mill;
•allow sufficient time for bids on the mill to be prepared and submitted;
•inform the Town of Fort Frances, in confidence, of the identity of bidders so that the town may engage in discussions with them and provide information that is responsive to the bidders’ plans for the mill properties; and
•comply with the terms of the SFL and engage in a process to provide access to wood fibre in the Crossroute Forest, reflecting such intention in any bid or tender package issued in respect of the sale of the mill.
The resolution goes on to state the Town of Fort Frances calls on the premier of Ontario and the minister of natural resources and forestry to use all measures within their authority:
•to ensure the mill is open for business;
•to provide access to fibre in the Crossroute [Forest] to potential operators of the mill, in keeping with the text of the SFL; and
•to support outcomes for the mill which create jobs and prosperity in Fort Frances and surrounding municipalities and First Nations.