Naked Truths

Steel the show: Manning MacDonald recalls how Sysco was a key election issue in 1999.

In continuing the discussion about Sydney Steel, and its future leading up to the 1999 election, it surprised nobody that it would become an election issue.

The Tories under Dr. John Hamm were riding high in the polls and were poised to upset the MacLellan Liberal government.

There were many issues that were being hotly debated as we moved closer to the election date.

The Tories needed a lightning rod issue to put them over the top. That issue was Sydney Steel. The problem of what to do with Sysco remained ours before the writ was dropped in 1999. The opposition were killing us politically with their constant attacks on the continued operation of the plant by government. These attacks were fuelled by the media who were just as relentless in calling for an end to public ownership of the money-losing operation. It became impossible to continue to support the plant. We had to sell Sysco or close it down.

The issue of closure was an option I was not prepared to recommend to our government. I had promised steelworkers the plant would remain open under the MacLellan government. I can recall telling cabinet that as the minister responsible I would continue to actively pursue a sale and the plant would have to reduce its workforce to about 400 — down from 800 — and concentrate on rails only.

It was generally felt that was the only way Sysco would be attractive to potential buyers.

What to do with the 400 who were being laid off became another problem that had to be dealt with.

We started discussing an exit strategy with the unions and management, which would include pension enhancements and retraining programs.

In continuing to discuss Sysco options I reported to the premier and cabinet that should a sale not go through before the 1999 election, we would continue to pursue the sale after the vote if we won.

I am sure most will recall the infamous post card that was sent out by the Hamm Tories during the 1999 campaign. It read Close Sysco, Open Hospital Beds. The Tories won a majority government, and half the promise on the post card was delivered. The end came swiftly for Sydney Steel under the new Hamm government and the stateof-the-art equipment sold off. Many still argue that a smaller, leaner rail operation in private hands could have been successful had the plant equipment been preserved. Sadly we will never know the answer to that question.

Sydney Steel was not the only reason the MacLellan Liberals lost in 1999, but it helped. The Liberal brand during the 1990s was too damaged to survive any longer than it di d thanks to the Savage years.

Simply put, the MacLellan Liberals had no chance.

It is interesting to note here that the federal Liberal government headed by Jean Chretien was also having its brand problems in Nova Scotia, with every sitting Liberal MP losing their seats in 1997, including powerful Chretien loyalist and senior minister David Dingwall.

The loss of Dingwall’s seat to the NDP turned out to be devastating for Cape Breton as the coal mines closed shortly after. Dingwall’s support for the coal industry and MacLellan’s support for the steel plant were unwavering until they left office and that is the realities of politics and the naked truth.