Nanaimo's mayor doesn't like special deals

Nanaimo's mayor, John Ruttan, does not think it is likely the city will charge Harmac's pulp mill a lower municipal tax rate in exchange for access to the mill's plentiful water rights and effluent systems.

These are the details that are within the deal Catalyst Paper reached with Powell River. Catalyst Paper will treat the city of Powell River's liquid waste using the mill's effluent system in exchange for a lower property tax rate.

Ruttan does not expect that Nanaimo will reach a "special deal" with Harmac.

Talks have been ongoing for years over joint use of Harmac's water systems by the city, the Snuneymuxw First Nation and the mill.

"If we made a special deal with Harmac and lowered its industrial tax rate while leaving the tax rates of all our other industrial taxpayers the same, I expect we'd be facing some court challenges."

"Besides, Harmac officials have indicated that they are pleased with the city's strategy in recent years to drop our industrial tax rate by more than 50% to bring them more in line with the current economic environment in the city and B.C. We'll look at the deal between Catalyst and Powell River, but I don't like special deals."

~Mayor John Ruttan

Read more:

Mayor cool to Harmac water-for-taxes deal - Despite arrangements in other communities with Catalyst, it's unlikely local pulp mill can get same bargain (The Daily News)