Tuesday, December 8, 2009 CBC NEWS:
A pulp mill in B.C.'s southern Interior has just received $40 million from the federal government to build a green energy plant, even though the company refuses to pay its local municipal taxes bill. Mercer International has been withholding $3.2 million worth of taxes it owes the City of Castlegar, claiming the rate tax on its Celgar mill is too high. The withheld taxes represent 40 per cent of Castlegar's municipal budget, leaving the local council seriously short of cash this year. "From my personal point of view it's left me with many sleepless nights — how I and city council can get through this," said Mayor Lawrence Chernoff. The new green energy plant at the mill will help the town in the long term, the mayor said, but right now he needs them to pay their taxes. "From our point of view it's great cause — it's a green project and to get that up and running [would] re-solidify Celgar's position in the community," Chernoff said. "On the other side of the coin, if you're getting $40 million from the taxpayers of Canada, would you look after the $3.2 million you owe the citizens of Castlegar?"
Company officials would not comment on the story when contacted by CBC News, but the company is due to appear in court early next year to fight their city tax bill. In July, Mercer told the city the tax rate is unfair given the economic climate, and they have asked the courts for a judicial review of what it claims is an "unreasonable tax rate." The Catalyst pulp and paper company is also refusing to pay its taxes, affecting several South Coast municipalities, including Campbell River, North Cowichan, Powell River and Port
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