Abitibi takes axe to Grand Falls-Windsor grant

Abitibi-Consolidated has dealt a blow to the finances of a central Newfoundland town that was built around its century-old mill.

Grand Falls-Windsor has been told that Abitibi-Consolidated will cut its annual grant— which it pays in lieu of taxes— by about 40 per cent.

Abitibi-Consolidated last year turned over $805,000 to the town council. This year, the town has been told it will receive $480,000.

Mayor Rex Barnes said he does not know why Abitibi is reducing its grant, or for how long.

The council has asked company management for a meeting next week.