Catalyst Paper’s tax tiff with B.C. municipalities is self-defence against greedy public servants, says the Canadian Taxpayers Federation.

The taxpayers federation, a national organization which criticizes government spending, says staff in North Cowichan, Campbell River and other municipalities are to blame in the dispute for using mill taxes to “hit the salary jackpot.”

“Pulp and paper mills in B.C. are battling tax-gouging municipalities to stay alive,” says an article published last week on the watchdog organization’s taxpayer.com website. “Municipal governments are using their taxing power to rubber stamp over-the-top pay to municipal employees and endangering the livelihood of families in rural towns.

“Municipal governments claim if they lower taxes to industry, they might have to reduce services to citizens. But lower service levels or massive tax hikes are inevitable if the biggest employer in town shuts down.

“Besides, this misses the obvious question – why are taxes so high? A big reason is because many municipal employees have hit the salary jackpot.”

Campbell River Mayor Charlie Cornfield said he hasn’t thoroughly read the report, but said he and city staff are taking it seriously.

“I want to look at the report and see what they’re using for reference material,” he said.

Cornfield pointed out the past few years have been rough for the city.

“If they’ve got validity, great, we’ll have those discussions at budget time,” he said.

Catalyst Paper took its tax bill to court this spring, after refusing to pay $17 million of its $23 million tax bill in Campbell River, and filed similar challenges in Port Alberni, Powell River and North Cowichan.

However, last month the judge dismissed the company’s petition for North Cowichan, ruling the municipal tax rate was set through a fair process, and said the power to change tax rates rests with the municipality, not the courts.

But the fight’s not over yet. Catalyst Paper now has the taxpayers’ federation on its side, and the organization is calling on the provincial government to intervene.

“To stop the rot, the province must step in, cap residential property tax rates and start bringing all other property tax rates down to the residential rate,” says the article by the organization.

The article suggests high municipal taxes may have forced the mill to shut down.

“While property taxes alone will not drive industry from the province, if industry is in trouble, gouging property taxes can be the last straw,” it says.

—Campbell River Mirror