Thursday, September 13, 2007

Domtar shares will certainly go up

I have never had much use for Lorne Calvert but yesterday's announcement that the government of Sask. is going to buy the pulp mill that both Weyerhauser & Domtar have concluded is uneconomical just confirms my certainty that the man is a moron. This morning the newscasts are all focussed on whether this will mean new jobs in Prince Albert and what a wonderful thing it is for the P.A. economy. HELLO - has everyone taken leave of their senses? Its about making money. If it doesn't make money it doesn't work. End of story.

This is a pulp and paper mill with a list of problems longer than my arm. They are 1500 miles from tidewater making a product that the world increasingly doesn't want with a labour force that has a history of lacklustre work ethics and underproductivity. What incredible hubris would possess the provincial government to believe that they are wiser than the two largest paper producers in the world. What would possess them to believe that a government run operation could succeed where industry giants had failed?

And what joy must there be in the Domtar boardroom. I can almost hear the discussion now "OK guys - on the one hand we could do a site cleanup - let's say that might cost us 15 or 20 million but its kind of open ended and we could end up on the hook for years to come at the whim of SERM. On the other hand the province will give us $100 million. What should we do?" Gee, I wonder how long that decision took.

The really frightening aspect of this is that the Sask public is probably stupid enough to put this moron back into office because he has "saved the pulp mill". I guess the people truly do get the government they deserve.

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