The party is over
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Updated: November 04, 2009 9:31 AM
I know what it’s like to be laid off - it happened to me in 1982 following the closure, ironically, of the Eurocan sawmill.
But at the time I was solo and had a bit of money in the bank.
So I cannot imagine what it will be like for couples with kids and a mortgage to support.
But I can easily imagine what city council is going through.
Eurocan’s tax bill this year was $4.72 million.
Because of the timing of the closure, the city dodges the bullet when it comes to next year’s taxes.
But as I understand it, it is going to lose that revenue in 2011.
And there is no white knight about to appear over the crest of the hill in the meantime to rescue it.
The best bet for a new industry at the moment looks like Kitimat LNG but, assuming it does go ahead, the tax benefit will go to the Haisla because it will built on their land.
Theoretically, council could bring down a budget next year which ignored the impending crisis and decided instead to deal with the problem in 2011 when the roof falls in.
I very much doubt we will see that considering recovering the lost tax revenue from Eurocan - assuming spending as normal - would require a near 30 per cent tax increase.
And 2011 is an election year.
So logically we should see the long knives brought out during next Spring’s budget process with all but essential capital spending ditched and departments’ operating budgets frozen, if not cut.
It will be a new, and unpleasant, experience in Fat Cat City.
But council will have no choice.
And they thought this year’s budget process was tough!
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