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Mill's requested tax cut would be devastating |
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Mill's requested tax cut would be devastating, says mayor
By Paul Rudan
Mirror Staff (Campbell River)
Jul 08 2005
City council has steadily reduced taxes for Campbell River's largest employer but it's not enough for NorskeCanada.
The pulp and paper company operates Elk Falls Mill and paid
approximately $8.1 million in property taxes last year to the City of
Campbell River. According to Mayor Lynn Nash, NorskeCanada wants that
total reduced by half.
A $4 million cut would be devastating," the mayor said Thursday.
On Monday, NorskeCanada issued a press release stating its property tax
burden impedes major reinvestment" to its B.C.-based facilities. Last
year, the company paid about $32 million in property taxes to six
communities in southwestern B.C.
We're fully prepared to pay our fair share to support community
infrastructure but we are also pointing out the realities of a
competitive marketplace," said Russell Horner, NorskeCanada president
and CEO, in a news release.
According to Horner, property taxes in B.C. are twice as much per tonne
of product" than other regions of North America. However, as Nash
pointed out, taxation is based on property assessment, not production,
which is the responsibility of the province.
We have no control over assessment - Mr. Horner is lobbying the
provincial government," said Nash who warned the province not to meddle
with municipal powers of taxation. That would be a dramatic
infringement on municipalities to manage their affairs. I feel so
strongly about this because we are sensitive to our industrial
citizens."
As an example, Nash said that 15 years ago Elk Falls Mill paid about $9
million in property taxes which accounted for 62-63 per cent of the
municipality's revenues. That total has been reduced to 30 per cent
with the goal of reaching 25 per cent.
Nash said there is room for tax cuts and improvements in property
assessment but the reductions are not happening fast enough for Horner.
Every time he can shave a dollar off the bottom line, he'll do it," Nash said.
The mayor acknowledged that NorskeCanada competes globally, and mills
in other countries, such as China, pay far lower labour costs. However,
he also noted that quality of living is important in attracting
professionals - such as doctors, teachers and mill workers - to
Campbell River.
They expect quality amenities and venues for entertainment - you need these to attract highly-skilled professionals," he said.
NorskeCanada has challenged the province over property assessments. The
company recently lost in B.C. Supreme Court when it appealed
assessments at Elk Falls Mill for the years 2000 through 2003.
Company lawyers argued that Courtenay-based property assessors did not
give them credit for a pollution abatement when secondary effluent
piping was installed at Elk Falls. The supreme court upheld the
assessment but NorskeCanada could challenge the ruling.
We may appeal," said Elk Falls spokesperson Carole Dodds who refused to
answer any further questions and abruptly hung up the phone when asked
to elaborate on the work conducted at Elk Falls.
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