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High property taxes discouraging Crofton investment: |
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High property taxes discouraging Crofton investment: NorskeCanada
By Angie Poss
News Leader (Duncan)
Jul 06 2005
High property taxes are discouraging major industrial operations from
reinvesting in B.C. communities like Crofton, say executives at
NorskeCanada - an announcement that comes just a few months after North
Cowichan began shifting taxes away from the Crofton mill.
The pulp and paper company released a statement Monday saying its
$31.3-million property tax bill in the province is impeding investment
here when other communities are trying to attract large companies.
We're fully prepared to pay our fair share to support community
infrastructure, but we are also pointing out the realities of a
competitive market," said president and CEO Russell J. Horner in the
media release.
In a move designed to reduce the municipality's reliance on industry,
North Cowichan council reduced the tax rate for heavy industry by one
per cent for 2005, shaving $46,000 from tax bills.
We have made a commitment to look every year at how we can shift that
tax burden from heavy industry to residential," said Mayor Jon
Lefebure, adding the municipality has no target number in mind.
They have recognized that NorskeCanada pays a disproportionate amount
of the tax burden," said Don McKendrick, Crofton Division's
vice-president, of the tax shift.
North Cowichan makes efficient use of tax dollars, said McKendrick, but
his operation still pays a disproportionately high percentage of tax
revenue.
We're paying about twice what we would pay in Eastern Canada and other jurisdictions," he said.
NorskeCanada paid more in taxes last year at $32 million, which Horner
calls about twice as much per tonne of product than the North American
average.
Along with tax relief, provincial funding for improved road and
transportation systems to help the Vancouver-based company get its
product to market could help encourage reinvestment, said McKendrick.
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