Government action urged.

An Ontario judge urged the provincial and federal governments to taken more active role in the restructuring efforts at debt-ridden Algoma Steel (ASI). In granting the Sault Ste. Marie steel company a third extension under the Companies' Creditors Arrangement Act to buy more time to restructure its debt repayments, Justice James Farley warned of the dire consequences to the city should the company collapse. As the Sault's largest employer, Farley says the company's failure would spark massive financial obligations for the two senior levels of government in employment insurance, welfare payments and environmental cleanup. In late August, the United Steelworkers of America union halted talks with ASI in revising its labour agreements m an attempt to reduce labour costs, blaming the Ontario government for not participating in a key contract issue involving provincial pension plans.