Irving Paper Receives Up to $45 Million in Tariff Relief Funds

Irving Paper on Saint John's east side will receive up to $45 million in tariff relief funds over the next three years from Opportunities New Brunswick, including a subsidy for electricity expenses. The provincial government announced that seven companies will collectively obtain up to $54.3 million during this period. This funding marks the initial expenditure from ONB's $40 million competitive growth fund. Luke Randall, the minister overseeing Opportunities New Brunswick, stated that the seven selected companies submitted proposals to the Crown agency. The funds aim to assist companies in modernizing operations, enhancing productivity, and bolstering long-term competitiveness. Irving Paper, which previously cut production in half and laid off 140 employees due to uncompetitive industrial electricity rates, receives the largest portion. The agreement includes an electricity cost alignment to bridge the gap between industrial rates and a competitive benchmark. Mark Mosher, vice-president of Irving Paper, declined an interview but had previously urged the province to address rising power costs. The funding comes with conditions, including a minimum $15 million investment in capital improvements at the mill over three years and maintaining financial capital ratios. The amount may decrease if earnings exceed expectations, and higher profitability could require repayment of some funds. Irving Paper produces paper for magazines, newsprint, and catalogs, sustaining over 183 jobs and a $206 million yearly payroll amid cost pressures and market fluctuations. Other recipients include Cooke Aquaculture, Organigram, Agropur Cooperative, Marwood, Stantec, and Alliance Sea.​