Alberta: Spud plant decision a hot potato

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Spud plant decision a hot potato

Delay in expansion of french-fry plant in Taber has a political impact on Klein

By BILL KAUFMANN, SUN MEDIA
CALGARY -- The political hot potato landed in Klein's lap on the first full day of the provincial election campaign when french-fry maker Lamb-Weston Inc., of Taber, announced it was postponing a $50-million expansion.

"Of course it's a concern and that's why we're trying to come to grips with the situation," said Klein.

The premier said Agriculture Minister Ty Lund will meet with company officials later this week to discuss the problem.

"I can understand them shelving the plan for expansion at this time until there is absolute certainty those power rates are going to subside. I can understand their concern."

Lamb-Weston Inc. manager Gary Cuddeford said projected power costs forced the company to move its plans off the front burner.

"We're faced by a number of economic inputs," Cuddeford said. "The company has decided to delay plans indefinitely."

Klein's political foes have argued the government's approach to electricity deregulation has put Alberta businesses at a competitive disadvantage.

"This may be just the start of others making that type of decision," Liberal Leader Nancy MacBeth said yesterday.

But Klein reiterated his stance that 4,600 megawatts of new power will come on stream within four years - 1,600 in the near future.

"Ty Lund will hopefully convince (Lamb-Weston) officials that the situation with natural gas and electricity is a short-term difficulty," he said.

The Tory government has already announced $4.1 billion worth of rebates and credits to cushion Albertans from the rising cost of electricity and natural gas.

Klein bristled at opposition assertions the Tories have minimized their mismanagement only through windfall energy revenues and giveaways.

He said the government was able to tame its deficit in the mid-1990s despite much lower energy prices at the time.

"Through that time, we've been able to reduce taxes, we managed to reinvest significantly in the priority areas of Albertans ... that can hardly be construed as mismanagement," he said.

Meanwhile, Energy Minister Steve West yesterday sent a letter to federal Finance Minister Paul Martin urging Ottawa to eliminate the GST on natural gas bills. That levy is forecast to suck $215 million in revenue from Alberta this year.

Canoe

-- spider (spider0@usa.net), February 14, 2001


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