Vale gets billion-dollar federal loan. What?

NEWS RELEASES

UNITED STEELWORKERS

CANADIAN TAXPAYERS FEDERATION

***************************** Harper government empowering Vale’s contempt for Canadian working families

TORONTO - Stephen Harper’s Conservative government is condoning attacks on Canadian working families by awarding $1 billion in financing to mining giant Vale, the United Steelworkers (USW) says.

“It is shocking that the Conservative government would reward a foreign corporation that has provoked two of the longest and most-bitter labour disputes in Canadian history,” said Ken Neumann, the USW’s national director for Canada.

The financing announcement comes as Brazil-based Vale again refused to offer a fair deal to workers at Voisey’s Bay who are in the 15th month of a strike.

“It is an insult to the workers in Labrador and to Canadians who think the government should stand up for working families,” Neumann said.

“For 12 months, Vale attacked the workers and communities of Sudbury and Port Colborne. They continue to refuse to offer a fair deal to their Voisey’s Bay workers.

“It is unacceptable that the federal government, after 15 months of sitting on the sidelines and making unhelpful comments while Canadian communities are ravaged by Vale, is now offering this massively profitable multinational a billion dollars in financing.”

“Canadians should be outraged that the Harper government is financing a foreign corporation that has earned billions off our natural resources while wreaking havoc on our working families,” said Wayne Fraser, the USW’s director for Ontario and the Atlantic provinces.

“Small wonder that Vale feels no need to offer a fair deal to its Voisey’s Bay workers,” Fraser said. “Vale is trying to starve out these workers and has recruited scabs – all of which appears to be condoned by Harper’s government.”

The Conservatives’ tacit support for Vale includes refusing to hold the company accountable for job and production cuts, despite commitments made when Vale was allowed to buy the former Inco Ltd.

As well, in the midst of the labour disputes Vale provoked with its Canadian workers, Conservative Industry Minister Tony Clement actually praised Vale for supposedly rescuing Inco – and the communities where it operated – from economic ruin.

Clement had to backtrack when he discovered the Inco operations were extremely valuable, profitable and sought after by many corporations other than Vale.   ***************************** Scrap $1 billion Vale 'loan': Taxpayers Federation

TORONTO - The Canadian Taxpayers Federation (CTF) is calling on the federal government to scrap a $1 billion loan announced today by Export Development Corporation to Vale Inc. of Brazil.

CTF Federal Director, Kevin Gaudet, said: “If corporate welfare worked at creating jobs, every Canadian would have two by now. This loan should be scrapped and fast.”

Gaudet said: “Why are Canadian taxpayers lending precious money to a firm that says it already has so much excess cash.”

Vale is a multi-billion multi-national corporation headquartered in Brazil.

Their financial statements for 2009 reveal a very profitable net income of $5.5 billion (U.S.) down from $13.5 billion and $12.6 billion in the two prior years.

On September 23, 2010 Vale announced a share buy-back program for its excess cash.

The CTF asks the government to scrap the loan and to lift the veil of secrecy on the deal, answering a few important questions:

- How much will Vale draw off the loan and when?

- How is the loan broken down: repayable vs. conditionally repayable vs. non-repayable?

- What are the repayment terms and conditions if any?

- When is the loan due?

- What is the interest rate?

- What, if any, loan covenants does the agreement include?

- What is the remuneration of senior corporate and Canadian executives?

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