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The minister responsible for Opportunities New Brunswick says his department was not aware of Agropur’s plans to close its operations in Sussex when it gave a grant to expand them in Miramichi.
“We weren’t privy to exactly what their restructuring plan would look like,” Luke Randall told reporters at an unrelated news conference.
The closure of the Agropur dairy operation just outside Sussex is expected by the end of 2028, the company said Thursday, and a spokesperson for Agropur confirmed that will mean potentially 60 jobs lost in the Sussex area.
But with the closure of the Sussex-area plant, Agropur is modernizing its Miramichi location, adding 15 jobs in that area — still a net loss of potentially 45 jobs in New Brunswick overall.
Agropur is also expanding its Bedford, N.S., plant, while closing its Truro, N.S. plant.
Randall was responding to concerns from the Progressive Conservative agriculture critic.
“While I can appreciate that this is a gain for Miramichi and Bedford, it most definitely is a significant loss for Sussex,” said Tammy Scott-Wallace, MLA for Sussex-Three Rivers.
Tammy Scott-Wallace, the PC MLA who represents Sussex, questions how much the province knew about Agropur’s restructuring when it gave them a grant just months ago. (Roger Cosman/CBC)
She pointed to a recent grant from Opportunities N.B. into Agropur’s Miramichi plant for “up to $2.4 million in the form of a non-repayable contribution.”
The news release from the economic development agency announcing the grant in February said, “Opportunities NB is supporting companies with long-term growth plans rooted in New Brunswick.”
In a phone interview late Friday afternoon, Randall reiterated that the department did not know about Agropur’s plans for Sussex.
“We didn’t necessarily get the heads-up from the company as to what their timelines were or what their plans were with sites they chose not to move forward with,” he said.
N.S. premier already celebrating new jobs
When asked if in hindsight his department should have asked more about Agropur’s plans for Sussex before awarding the grant, Randall did not directly answer.
When a company “wants to move forward with New Brunswick … we need to pursue those opportunities,” Randall said.
“We’re in a time of flux and all too often when we don’t engage those opportunities, other jurisdictions are able to grab onto those opportunities of future with a larger company.”
By Friday afternoon, Premier Tim Houston of Nova Scotia was already celebrating the new Agropur jobs for his province on social media.
“It’s fantastic to see businesses like Agropur investing in our province,” Houston wrote of the company’s planned expansion in Bedford, outside Halifax.
Nova Scotia Premier Tim Houston celebrated the new jobs for his province on social media with this post on Friday. (Tim Houston/Facebook)
Randall said that the company closing its Sussex operations and the funding for the Miramichi location were “independent decisions.”
“There would have been a risk of losing both sides in the restructuring,” he said.
Randall said it was his understanding that Agropur has not received any of the grant money yet, because the payments are subject to hitting growth targets.
Asked several times if his department is looking into getting back part of all of the grant, given the impending job losses in Sussex, Randall only reiterated that the two decisions by the company were separate.
On Thursday, CBC News requested an interview with Labour Minister Alyson Townsend, but the request was not addressed and a spokesperson sent an emailed statement instead.
The statement said staff from the department “are available to work closely with the employer and any affected employees to support their career transition,” and workers are invited to reach out to their local WorkingNB office.
Premier wrong about Agropur job increases
Premier Susan Holt cited incorrect information about Agropur’s operations in the province at a news conference on Thursday, incorrectly telling reporters that New Brunswick would end up with more jobs at the company.
“There’s not going to be a net loss of jobs,” Holt said. “There’s actually going to be more jobs with Agropur at the end of the day.”
But according to Agropur, that isn’t true.
When reporters questioned Holt on her statement that there would be no net loss of jobs, she said, “Well, let me check, because our understanding of their growth plans was that they were going to come out with a larger workforce at the end of this process.”