Federal Gypsum filed for bankruptcy last Friday and owes around $32 million to more than 90 creditors, including an $8 million loan from the province.
Angus MacIsaac says while market problems that led to the closure of the Point Tupper plant still exist, the downturn in the U.S. housing market and the high Canadian dollar "are not permanent conditions." (
MacIsaac wasn’t specific, but says the province will do whatever it can to ensure the facility becomes operational again, something he says he’s confident can happen.
The US housing boom is over. Finished. The era of suburban developments that require cheap oil in order to be livable is also coming to an end.
We have to make investment decisions based on new realities, not failed business models. It worries me that our Deputy Premier, who is responsible for provincial economic development, is operating under the assumption that the global financial meltdown is just a temporary blip. Things are much more serious than that.
Our government should not gamble taxpayer dollars on a bet that the US housing market will recover.