Compensation to Municipalities for Property Taxes Owed

Year
2005
Number
B93
Sponsor(s)
Kitimat-Stikine RD

WHEREAS northwest BC communities are owed millions of dollars in property taxes as a result of protection under the Companies Creditors Arrangement Act and subsequent bankruptcy proceedings of Skeena Cellulose Inc.New Skeena Forest Products Inc. SCINSF; AND WHEREAS northwest communities depend on these property taxes to provide essential community services and to meet the municipalities financial obligations to other levels of government and agencies, such as regional district and regional hospital district; AND WHEREAS the Province has a duty and responsibility to assist these communities as well as had a central role in the sale of Skeena Cellulose and a contributing role in the events which followed: THEREFORE BE IT RESOLVED the Union of BC Municipalities petition the Province to compensate the municipalities of Prince Rupert, Port Edward, Terrace, Smithers and New Hazelton for all property taxes owed by SCINSF; AND BE IT FURTHER RESOLVED that the Province take all possible steps to recover these funds from SCINSF and NWBC Timber and Pulp Ltd.

Convention Decision
Referred to UBCM Executive
Executive Decision
Staff to monitor developments and take appropriate action on issue of property taxes owed in light of unique circumstances