Notes for Remarks at Sysco Newser

The following remarks were made by Economic Development Minister Gordon Balser at the news conference announcing the sale of Sydney Steel.

Since taking over the Sysco file less than five months ago, I have had many discussions with many people about the steel plant.

While opinions and attitudes vary, one thing most people agree on is that government should not be involved in the steel business.

Today, I am pleased to say we are fulfilling our commitment to be out of the business. And the good news is that we are doing so by announcing a sale to a reputable group of companies.

Rail Associates Ltd. is made up of S&K Steel, the Reserve Group, Titanium Company of Canada, Corus Consulting Ltd. (formerly Hoogovens Technical Services Inc.), Holland Company, Palmer Holdings Ltd., and Amerifund International Finance Group.

They bring a good mix of steel making, management experience and financial resources to the table. This is the result of an extensive nine-month search by ABN Amro, who scoured the globe for potential purchasers.

The agreement stipulates that Nova Scotia will receive $30 million for the plant over the next 10 years. A deposit on $1.5 million is due January 12th. Another $2.25 million is due on closing.

The rest is payable over 10 years, with a balloon payment of $11.25 in the final year.

But even more important than the money is the fact that this agreement keeps workers working and offers Sysco employees the opportunity to make a go of it.

That is good news for their families, for local businesses, for the economy and the spirit of the local community.

Through this sale, we have also managed to avoid the staggering and immediate costs associated with closing the plant.

And finally, it puts an end to decades of taxpayer funding.

Certainly, government maintains certain responsibilities for Sysco. We remain committed to the workers. We maintain responsibility for the pension plan and will ensure that workers are treated with the fairness and respect they deserve.

Over the next 105 days, leading up to April 15th, we will work on a smooth transition to new ownership.

The exisiting board of Sysco will have an integral role to play in guiding the transistion to new ownership.

I'd like to reiterate the premier's comments and thank the workers, the union, the board and the community for their efforts in making this agreement come together.

Thank you and may you have a good new year.