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BC FREE PRESS ARTICLES




DO SOMETHING OR CONTINUE DOING NOTHING

This week, BC's Community Services Minister Bill Bennett called the forest companies to his office to ask them "what the hell they're doing" regarding the companies' refusal to pay gouging municipal tax rates, and their decision to take the municipalities to court.

Perhaps we can offer some explanation. Municipalities were given the authority to set their own industrial tax rates in 1984 by the BC government and since that time they have been taxing major industries at 10 - 20 times the rate they charge homeowners. The provincial government has a policy of not interfering in municipal matters so municipalities can pretty much do whatever they want.

In addition, the companies refusing to pay the municipal tax bills have supported Community Services minister Bill Bennett and the the Liberal government for years, despite getting little in the way of tax relief from the province.

So the real question is, "What the hell is Bill Bennett doing?" His government has allowed the gouging to continue with its policy of non-interference. So if Bennett isn't going to address this problem, he should follow his own policy and stay out of it. Let the companies defend themselves.

Or the minister in charge of municipalities should start to take responsibility and do something about the several hundred mini-kingdoms in this province throwing their weight around through the Union of BC Municipalities. The result has been inefficient municipalities, poor regional planning, multiple police forces unable to deal with violent gangs, gouging tax rates....and tax revolts by companies fed up with being gouged.

COURTENAY MAYOR FAILS LEADERSHIP TEST

On the heels of a racially motivated assault on one of his citizens, captured on video, Courtenay Mayor Greg Phelps has refused to join his community's latest anti-discrimination efforts.

Mayor Phelps and Council were asked to support a series of statements on tolerance already adopted by 35 other community organizations and local governments. However, the mayor declined the offer, despite an appalling video showing an assault by three Caucasian men on a single man describing himself as "half black."

Mayor Phelps defended his lack of leadership, saying, “We were told it's just a feel-good document, and I have trouble signing a feel-good document.”

TAX REVOLT SPREADS IN BC

A tax revolt is continuing to gather steam in BC municipalities. Companies are refusing to pay sky-high taxes charged by municipal governments living far beyond their means.

Mercer International, owner of the Zellstoff Celgar pulp mill at Castlegar has joined Catalyst Paper and Timberwest in petitioning the B.C. Supreme Court rather than continue paying never-ending tax hikes. Mercer vice-president David Gandossi says the Celgar mill pays $29.49 for every $1,000 of assessment while residential taxpayers pay $2.44. He feels the tax rate is “egregious, unreasonable and illegal.”

BC's system of government encourages municipal independence which leads to some bizarre and inefficient business models. For example, Greater Victoria is a region of 340,000 people consisting of 13 municipalities, 13 mayors and more than 100 councillors employing their own city managers, planners, clerks, etc. The Victoria Times-Colonist newspaper recently ran a report on staff salaries which run as high as $150,000 - $200,000 per year.

The Union of BC Municipalties has been successful advocating this municipal independence but it's becoming clear some municipalities cannot pay the tab...and neither can the companies within their municipal boundaries.

B.C. Council of Forest Industries president John Allan says, “It’s a recognition that municipal budgets could be tighter, that these companies employ a lot of people and pay a lot of taxes and they are sick and tired of being gouged over and above the services they consume.”

CANADIAN BIKE COMPANY SPONSORS TOUR DE FRANCE TEAM

Canadian bike company Cervelo has entered the Cervelo Test Team in the prestigious Tour de France race which started July 4 in Monaco. Included on the team are Carlos Sastre, last year's tour winner, and Thor Hushovd, a world class sprinter.

Also taking part in the tour is Victoria, BC cyclist Ryder Hesjedal riding for Garmin Slipstream.

The race is of particular interest to fans this year due to the return of 7 time tour champion Lance Armstrong. Armstrong is in a battle with Astana teammate, and former tour winner Alberto Contador, for the position of lead rider. You can follow the competition and Canada's reps daily on the OLN television network. The race ends July 26th.

COMPANY IS CATALYST IN MUNICIPAL TAX BATTLE

Catalyst Paper is mad as hell and they're not going to take it anymore. The BC company is refusing to pay escalating tax rates in Port Alberni, North Cowichan, Campbell River and Powell River. Instead, Catalyst is paying each town a reasonable $1.5 million, not the $23 million total that the towns say the company owes.

Catalyst is also seeking relief from the BC Supreme Court, claiming the tax rates are unfair. Catalyst says it pays 35 per cent of the property tax bill in the towns yet uses only six per cent of the services.

Many companies are in similar circumstances and would welcome a ruling that BC's municipalities must be reasonable in establishing their tax rates. Many BC municipalities have some of the highest taxes in North America, which is discouraging investment during a time of recession.

MUNICIPAL SOCIALISM UNDERMINES INVESTMENT IN BC

Despite winning the provincial election, Gordon Campbell's Liberals will be challenged kick-starting BC's economy.

Many of BC's municipalities have been taken over by left-wing councils which are making life difficult for developers, businesses and investors.

Vancouver already has sky-high development cost charges and the chief planner would like to see them doubled. In addition, he says it's a "myth" that increasing costs to the developer will impact the price of homes. What planet is he living on?

Victoria city council recently denied a permit to a developer who followed all of the rules, and it cost the developer a bundle. The local chamber of commerce says council made the decision "in a vacuum of by-law or a policy framework to support it.” They say council is creating business uncertainty and giving Victoria a bad name for investors and developers.

Campbell River wants to tax a timber company more than 10 times what it paid last year. The company is taking the municipality to court.

Even if the province passes legislation encouraging investment and employment, the rubber hits the road in the municipalties. If they make life an expensive hell for investors and developers, it won't matter much what the BC government does.

This doesn't come as a surprise. It has long been a BC tradition that when BC's socialists, known as the NDP, lose provincial elections, they turn their attention to exerting influence at the municipal level. Unfortunately, it's a strategy that appears to be working.