Letter: Castlegar and her residents shouldn't cave to Celgar's demands

by Contributor on 02 Dec 2009
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Dear Editor:
 
Celgar’s refusal to pay taxes owed to the City of Castlegar smacks of anarchism, and it’s recent payment of $377,000 to the RDCK is meant to be divisive.

Celgar continues to try to intimidate and coerce the City of Castlegar and its citizens to reduce or eliminate taxes. Hopefully, the city council will strongly resist Celgar’s demands!

Threats of an imminent shutdown of the mill’s operation due to the “burden of excessive taxation” rings hollow. The only reason the mill would cease operations would be due to a long period of unprofitably. Taxes, although part of the equation, are small indeed compared to market forces! Let us not forget that the federal government will be giving Celgar $50-60 million toward their “Green Energy Project.” Where did that money come from?

You guessed it!

TAXES!

The city has made moves to reduce Celgar’s taxes as a show of good faith. Far more than they deserve in my opinion!

I question the silence of our Chamber of Commerce and the business community along with our MP and MLA on this subject. Silence can be associated with acquiescence!

Taxes are essential to the running of a city, all should pay their fair share! Should there be a shortfall, the remaining taxpayers, (you and I), pick up the tab or services will have to be curtailed or discontinued.

The city needs and deserves support, not only from its citizens and businesses, but also from neighbouring communities and cities.

Imagine if Celgar was successful, do you not think Tech Cominco would contemplate similar action (Hello, Trail)?

This letter is not meant as condemnation of Castlegar council but as a letter of support! Hold the line!

Wayne Sutton

Comments

Ethics?

by Jackalope on 05 Dec 2009 at about 10:38.

....and there is ample information out there (including the actual decision) - just search it. For example:

http://www.lexology.com/library/detail.aspx?g=f3382d21-fb93-4835-bad6-b4...

"Due process" is part of a badly broken system

by Kyra Hoggan on 03 Dec 2009 at about 23:50.
I'm all for due process - except when corporate interests use said process to hold the city and its residents economic hostage... for no other reason than because they can.
There's no reason they couldn't have filed suit AFTER paying their tax bill last year, or AFTER having paid it this year ... they knew very well how badly the city would hurt, given their current methods...and I'd suggest to you that was their goal all along.
This was intentional, and malicious - not to mention reckless - in my not-so-humble opinion.
They know full well the 10 per cent is only relevant if and when the city receives it - and they know just as well that four years (the deadline they have until the city can seize their property if their taxes remain unpaid) will cripple the city in terms of services, cash flow, reserves, and more.
And they've even threatened (in a conversation with me, so I know it to be fact) to disregard court rulings not in their favour.
In my book, it's simple extortion.
That they'd do it while accepting, with the other hand, almost $60 million in TAX dollars is offensive beyond words (which is a hefty statement, coming, as it is, from a professional writer).
They cry poverty, trying to foist off a tax bill on citizens who make, on average, $50,000 a year ...while their two top executives were compensated to the tune of half-a-million dollars EACH last year alone.
Clearly, while they're offended by PAYING their taxes, they have no problem accepting, with the hand not currently being used to hold a fiscal gun on the city and her people, almost 20 times the amount they owe ... a bail-out made with tax-payer dollars... in other words, provided by the very people they're willfully hurting with their petty machinations ... in my opinion.
Why aren't the citizens of this city up in arms - those citizens who will have to pay Celgar's dues for Celgar's irresponsible selfishness, until Celgar gets their collective head out of their collective ...well, you get my drift ...
Rarely have I seen a company less community-minded, less deserving of the moniker "corporate citizen", less worthy of a community's support or defense.
It's repugnant.
I think the Conservatives should take a long, hard look at their policy - and not hand out tens of millions of tax dollars to companies that can't be bothered to pay their OWN taxes.
And I think every Castlegar and RDCK resident should be writing to Harper and every relevant minister to tell them so... not to mention Tory candidate of record Stephen Hill.
For that matter, I think every Canadian citizen should do likewise - the message our government is sending corporate Canada is both vile and untenable... and demeans us all as residents and tax-payers alike.
Stop blaming the city and start focussing on the true culprits ...Celgar, and federal government that apparently feels it's okay to reward those who see themselves, it seems, as above the laws the rest of us have to honour - including paying our taxes.
Respectfully,
Kyra Hoggan
 
 

Due Process

by UrbanWorkbench on 03 Dec 2009 at about 21:26.

While I agree with the frustration described in this letter, there is a due process, giving the City the right to collect an additional 10% of all taxes that are unpaid. If after three years of unpaid taxes, (assuming that Mercer doesn't claim bankruptcy in the meantime), the City can by law, put the property to tax sale.

The taxes on this class of property are massive, it is effectively a business tax in the guise of a property tax, and it flows through for the RDCK, school and hospital requisitions as well. It seems that the courts are leaning in favour of the municipalities on issues like this, not because they agree with the municipalities tax rates, but because they don't want to interfere. The ethics, apparently, are for the community to decide.

The City should take the high ground, paying out the requisitions to other levels of government on time and, I'd suggest, presenting a budget to the community that reflects the possibility of a reduced revenue from Celgar. Maybe this will increase the pressure from residents and businesses on Celgar too.

Note to the City - Don't let anyone tell you that this reducing your budget is a response to being intimidated, it is just sound financial planning. State your case in court, if the City wins, the reserves remain healthy; if the City loses, we will not have overspent in a year of uncertainty.