Catalyst Paper Record Greater Net Loss in First Quarter
Changes to post-retirement and benefit plans for salaried employees and retirees were implemented in the quarter, with expected annualized savings of $8 million.
Milestones reached in the company's ongoing drive for more equitable and sustainable municipal tax treatment included an agreement in principle with the City of Powell River signed subsequent to quarter-end. The agreement entailed reduced taxation and pursuit of joint arrangements to meet municipal infrastructure needs that, when implemented, will bring the Powell River mill's annual property tax cost down to $1.5 million. Catalyst is also seeking leave to appeal to the Supreme Court of Canada, following the April 22nd dismissal of its appeal concerning the North Cowichan 2009 tax bylaw by the Court of Appeal for British Columbia. In its decision, the court declined to strike down the tax bylaw, calling the "extreme imbalance" perpetuated by the District of North Cowichan a political problem requiring a policy decision by elected officials. The company accrued for this eventuality and has paid $15 million in outstanding 2009 property taxes, penalties and interest owing to the four municipalities where its mills are located.