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Layton slams PM about takeover 'secretiveness'

Posted by Sudbury Northern Life Reporter Bill Bradley Federal NDP leader Jack Layton is slamming the federal government for what he calls secrecy about the deals signed in 2006 during mining takeovers by Xstrata and Vale Inco.
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Official opening of Sudbury MP Glenn Thibeault's office with federal leader Jack Layton present. Also present was Thibeault's legislative assistant Gillian Prendergast (on left) and Andrew Puiras, 16, Lockerby Composite student and fall campaign worker. Photo by Bill Bradley.

Posted by Sudbury Northern Life Reporter Bill Bradley 

Federal NDP leader Jack Layton is slamming the federal government for what he calls secrecy about the deals signed in 2006 during mining takeovers by Xstrata and Vale Inco.

Layton was in town this afternoon (Feb. 17) for the official opening of Sudbury MP Glenn Thibeault's constituency office. He will also attend a town hall meeting for laid off Xstrata workers at the Quality Inn this evening.

Jack Layton on Xstrata Layoffs Up to 1,000 citizens are expected at the town hall meeting, said organizers. Layton will speak on the controversy over the federal government not enforcing a takeover agreement with Xstrata regarding a three year no-layoff clause.

Layton was questioned by reporters about fears in the community about a possible massive Vale Inco layoff.

"We do not even know the agreement made by the federal government with the takeover of Inco by Vale. The Conservatives have not released the agreement. They have to come clean with the community," said Layton.

Layton congratulated both Nickel Belt MP Claude Gravelle and Glenn Thibeault for fighting hard for laid off Xstrata workers.

Thibeault said he had personally stood up in the House of Commons over 30 times for issues such as the Xstrata agreement, while he noted Gravelle had pushed for EI reforms.

Layton also was critical over the federal government's infrastructure program, Building Canada.

"The federal government has failed to deliver on the infrastructure stimulus that we need. The concern we have been raising is the requirement that municipalities have to match the federal funding along with the province. What if the province or the municipality does not have the money to match?"

Layton said taxpayers would be asked to ante up, though many are cash strapped.

In a finance committee document prepared by Greater Sudbury city financial officer Lorella Hayes, she noted that in order for the city to access anywhere from $170 to $255 million in federal funds, the city would have to put up anywhere from $56 to $85 million.

But she indicated that only $15.8 million of debt capacity financing was available for the third option of her proposal. That meant a capital levy of 2.27 per cent would have to be added on top of the 3.6 per cent tax hike and the 5.2 per cent water rate hike for a grand total of a tax hike of 11.5 per cent. The 2.27 capital levy would generate $4 million. A .5 per cent capital levy would only raise just under $900,000.

"This would somewhat curtail the existing capital works program going forward," she noted.

Earlier, city politicians were hopeful the federal budget would not require any capital levy to be added to the 8.8 per cent tax hike.

Timmins James Bay MP Charlie Angus, who was also present for the opening of Thibeault's office, said federal infrastructure money for smaller cities in the north was just being announced.

"They announced the Building Canada program in October. On Friday, the first announcements were made from what I have heard in my area for smaller towns."


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