Some County residents fume over mill tax break
CBC News
Posted: Sep 25, 2012 9:18 AM AT
Last Updated: Sep 25, 2012 4:11 PM AT
Pacific West says it will hire 300 people to work in the mill and another 400 will be needed to work in the woods if the deal is ratified. (CBC)Some people in Richmond County accuse their local council of selling out after it ratified a tax break for the company buying the former Newpage paper mill on Monday night.
The council and Pacific West have agreed to cut the mill's bill in half – from $2.6 million a year to $1.3 million.
This comes days after Pacific West announced the deal to reopen the mill was dead. Hours later, the company called the province to restart negotiations. A new agreement was reached Saturday night.
'The alternative – as we know – would have meant no tax dollars' —Steve Sampson, Councillor
Harold Mury, a resident of West Arichat, is accusing Pacific West of playing a game. He was furious when council voted to accept the deal.
"You know what I think of it? Every one of them is pretty god-darn stupid. Because what they're doing here, they're not looking after the people of Richmond County. They're looking after the outsider."
Mury said he can't afford to pay more taxes. Council has said a deal with Pacific West would result in higher payments for residents.
"The next time around, they're going to want more and more. Who's going to pay? It's us!"
Nap Sampson was also angry with the tax cut for the company. He said he has no faith that the new mill owners will stick around.
"They get 'X' amount of dollars from the government. As soon as that's gone, they pull out and we're fixed with the burden," he warned.
Council says deal was necessary
The deal with Pacific West is an about–face on the part of Council, which battled the company in Supreme Court just two weeks ago, arguing a tax break would be devastating for the community.
The court sided with the County. At the time, Richmond estimated a 26.5 per cent increase in residential taxes if Pacific West was allowed to pay its initial request – $400,000 annually.
It's unknown how much of an increase people will see on their taxes following this $1.3 million agreement. The rate won't go up until the next budget year.
But councillors said the tax break is a good deal for both Pacific West and taxpayers.
Councillor Steve Sampson said the agreement is only in place for three years – it will be reviewed again in 2015. Sampson said turning down the deal was not an option.
"The alternative – as we know – would have meant no tax dollars, and the effect that that would have had on programs and services in Richmond County was much more serious."
Pacific West issued a release Monday night just minutes after Richmond County voted to accept the deal.
"We are grateful to the members and leadership of Richmond County Council for the important role they are playing in ensuring the mill is restarted as soon as possible," it read.
"We want to be an integral part of the success of the Strait Region for years to come. We are proud to be here and we are confident that we can make this mill the most competitive mill in North America."
If Nova Scotia's Utility and Review Board allows the sale of the mill, Pacific West could be calling people back to work this weekend.
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