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Newfoundland government waives Kruger’s tax bill


April 16, 2013
By Pulp & Paper Canada

The Kruger Corner Brook paper mill received a boost from the Newfoundland government recently, when the provincial cabinet quietly extended a tax exemption until at least 2017, reports The Telegram. The St. John’s newspaper estimates the…

The Kruger Corner Brook paper mill received a boost from the Newfoundland government recently, when the provincial cabinet quietly extended a tax exemption until at least 2017, reports The Telegram. The St. John’s newspaper estimates the tax break is worth about $6 million.

According to the paper, in an order in council issued by the provincial cabinet in early March, the government waived the “managed land tax” for a period of five years, from the 2012/13 budget year through to 2016/17.

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Natural Resources Minister Tom Marshall told the paper the tax break has been in place since a previous restructuring effort at the mill in 2009, and the government chose to extend it for five years as the mill struggles to remain financially viable.

“If the paper mill goes down, I’m advised that the sawmills will go down as well,” Marshall said. “It’s not just one plant; it’s the whole industry.”

Marshall said that the company is currently in negotiations with skilled trades workers trying to hammer out a long-term deal when it comes to labour issues.

He added that if the company comes up with a long-term sustainability plan then the government is ready to step in with some sort of financial support.

Neither the Liberals or the NDP objected to the government’s decision to extend the tax exemption for five more years.


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