Schumer, in Personal Call, Requests SC Vilsack Assist with Job Creation at Newton Falls Fine Paper; USDA Will Offer Officials to Help Company in Effort to Expand Operations, Create 95 Jobs in North Country

Press Release

Today, U.S. Senator Charles E. Schumer announced that he spoke with United States Department of Agriculture Secretary, Tom Vilsack, and urged him to assist Newton Falls Fine Paper, a New York-based paper company, in its effort to access a federal program that would allow to the company to add nearly 100 new jobs for New Yorkers. Currently, Newton Falls Fine Paper has the opportunity to expand its operations but is disqualified from vital federal aid due to the way the company's ownership share is structured, even though all the jobs created are for Americans and all investment would be spent here. Schumer and Secretary Vilsack had a positive conversation during which Vilsack said that while the task may be difficult, he will put top USDA officials on the case and see if there is a way to allow Newton Falls to expand its workforce through this federal program. Sec. Vilsack said that USDA may be required to engage in a new rule-making or need assistance from Congress. Schumer said that he would do what he could to help in either case, and pressed for quick action.

"We need more jobs here in Northern New York and Newton Falls Paper Fine Paper is a great company that could create jobs right here in the North Country, with access to the proper resources," Schumer said. "Federal dollars that are meant for economic development should be spent in a way that creates the greatest number of jobs in the United States. Since Newton Falls Paper Fine Paper will be spending every nickel right here in New York -- and creating jobs for New Yorkers -- I have urged Secretary Vilsack to craft a creative solution that finds a way to help the company expand its American operation. I am gratified that Secretary Vilsack, though he has acknowledged this may be difficult, has committed to helping us in our endeavor."

Ordinarily, Newton Falls Fine Paper would be eligible for the United States Department of Agriculture's (USDA) Business and Industry Loan Program. The purpose of the B&I Guaranteed Loan Program is to improve, develop, or finance business, industry, and employment and improve the economic and environmental climate in rural communities. This purpose is achieved by bolstering the existing private credit structure through the guarantee of quality loans which will provide lasting community benefits.

Newton Falls Fine Paper has gotten initial feedback from federal officials that it is currently ineligible for the program because a majority share of the company is owned by Canadian and Scotia Investments, and the program's current regulations state that a qualifying company must have a 51% U.S. ownership stake. Even though a majority of the company is owned by Canadian investors, the company is located in St. Lawrence County New York and employs approximately 120 people.

Allowing the company access to federal dollars would allow it to reduce its carbon footprint and expand operations by through the purchase of a cellulosic ethanol boiler to power machines. The company would spend every nickel in New York, and Schumer said he is pushing USDA to craft a creative solution that will green light the much needed economic development and jobs expansion that Newton Falls Fine Paper offers. The new boiler could create as many as 95 green jobs and retain 120 jobs, eliminate the need to burn 4,000,000 gallons of fuel oil, save $5,000,000 in oil and electricity costs per year, and reduce carbon footprint by 45,000 tons/year.

Schumer added, "In this environment, we should be in the business of finding a way to create good jobs for New Yorkers -- especially in rural areas like Northern New York that have been particularly hard hit by the economic downturn. I had a great conversation with Secretary Vilsack and I pledge to keep working on this issue until we bring these jobs to the North Country."

Recently, Schumer met with officials from Newton Falls Fine Paper and the Canadian government in order to learn more about the company's operations and how the federal government can work to ensure that it has the resources it needs to employ more people in New York. The purpose of Schumer's call to Secretary Vilsack was to urge him to craft a solution that will allow the company to access federal resources and to inquire how the company can participate in federal programs designed to grow jobs in the United States. Allowing Newton Falls to participate in the program will give the company access to necessary capital that it plans to use to expand operations and purchase energy efficient equipment that will help the company and reduce its carbon footprint.

Source