Mayor to mill: ‘enough is enough’

Wawmeesh G. Hamilton - Alberni Valley News Published: April 30, 2009

Catalyst fired a surprise salvo in its showdown with the city over what it claims are unfair tax rates. The move was the last straw for Mayor Ken McRae. The corporation sent a bluntly worded letter to city council at 4:30 p.m., just hours before Monday night’s city council meeting. Reaction by councillors to the late addition was swift. “I can’t believe a corporation that big would send us a letter at 4:30 p.m., I think this was a big mistake,” McRae said. “This world economic crisis wasn’t caused by the City of Port Alberni, but by corporate greed,” he said. Written by Catalyst CEO Richard Garneau, the letter noted that a consumption–based tax model would spread the tax burden more evenly than the current industrial (Class 4) tax rate. “We already told them that there’s no more money coming their way,” Coun. Hira Chopra said. “We’ve already done everything we can.” If there is any fallout from the company setting and paying its own tax rate, Garneau wrote, then the onus is on the city. “If there is no adjustment in the Class 4 tax rate, council’s decision puts in peril the future prospects of the mill and its long-term viability,” the letter noted.

“Adversaries used to have respect for one another; this isn’t professional,” McRae was overheard saying to another councillor following the meeting. “We’re not going to be...treated like we’re children, they’re going to hear from me about this.” City clerk Russell Dyson confirmed that the letter was received late, but that the issue was significant enough to request adding it to the agenda.

According to Catalyst, Port Alberni’s industrial tax rate is too high, therefore it set a new rate for itself based on services it uses plus 30 per cent. The move would reduce Catalyst’s annual municipal tax bill from $5 million to $1.5 million, and cleave $3.5 million from the city budget. The letter falls on the heels of the company mailing a brochure to Valley households last week. Entitled “Now is the time for reason”, the six-page brochure criticized Port Alberni’s industrial tax rates as unreasonable and unpayable. Repeated calls to corporate relations and social responsibility vice-president Lyn Brown weren’t returned.