To the editor,
I am writing to clarify the situation regarding Resolute Forest Products' property assessment appeal, and to correct errors in an article published by tbnewswatch.com on July 16, 2015.
The forest products industry has undergone significant negative economic changes in the past decade. Reduced demand and a failure to become cost-competitive have led to the closure of many pulp and paper mills in Ontario and throughout North America and, more specifically, has resulted in decreased production at the Thunder Bay pulp and paper mill.
The Province's Assessment Review Board has acknowledged the impact of these changes to our industry in a series of recent decisions: Substantial reductions in the assessed value of the Espanola and Dryden mills, 60 per cent and 72 per cent respectively; as well as the recent ruling to reduce the assessed value of the Thunder Bay mill to $32.6 million.
The reduction for the Thunder Bay mill reflects the fact that large portions of the mill, including paper machine No. 4, the deink pulp mill and kraft mill A, have been decommissioned and will not return to service.
Last week's article implied that Resolute's 2013 taxes were based on a $41 million assessed value when the company paid taxes based on a $74 million assessment. Additionally, the article points out that non-residential industrial tax revenue has dropped from $25 million to $5 million over the past decade.
However, the article fails to mention that Thunder Bay's industrial base has shrunk dramatically, in part due to the closure of several pulp and paper mills and sawmills, and changes in provincial legislation, which removed grain elevators out of the industrial class.
Furthermore, the industrial class is only one of the non-residential classes, with the commercial segment being much larger.
Resolute embraces its responsibilities and obligations as a corporate citizen in the City of Thunder Bay.
We certainly believe that we should pay our fair share. But that fair share should be based on commonly applied and accepted principles. This issue is not new.
We have been raising concerns about the property assessment with the City for about six years. We compete in a fiercely competitive global pulp and paper industry, and a fair and equitable property assessment is one of many factors that ensure the facilities are not put at a competitive disadvantage, which can ultimately compromise our viability.
Terry Skiffington,
Resolute Forest Products site manager, Thunder Bay operations
