March 29, 2024

Government helps keep mill functioning

The Mayor of Powell River says the Province has come through in a big way as Catalyst Paper has been given a reprieve from shutting down..
 
Mayor Dave Formosa says while there are still challenges to face, a Judge has ordered shareholders to again vote on restructuring.

Formosa says the Judge made the ruling based on some last minute help from the BC Government, “The Minister of Finance has recommended to Cabinet to do an Order-in-Council to allow the pensioners the ability to not have their funds go into annuity, if they don’t want. They can pull them out and invest them themselves.”

He says the second vote will be held Friday with the first hurdle to come Monday when results arrive.

The move is to keep open three mills in Powell River, Port Alberni, and North Cowichan which create thousands of direct and indirect jobs.

The Province can still do more to help the struggling Catalyst Paper Mills according to the Powell River Mayor.
 
Dave Formosa says making some tweaks to the incoming PST would save the mills millions, “I think it is like, 30 to 40 million dollars a year in extra taxes, but the Government said they are looking at that. Government is also looking at a plan to help integrate and train new workers in the work force because of the high amount of retirees that we are going to see throughout that organization over the next ten years.”

Formosa says the Government could also restore Catalyst’s credit terms on the Hydro front saving another 10 to 12 million. Catalyst has been in creditor protection since January.

CKNW Vancouver News

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