Quesnel City Council will send a letter to the Provincial Government supporting a bid by Quesnel River Pulp to be exempt from paying PST on their energy purchases from BC Hydro.
As Mayor Bob Simpson explained at this week’s Council meeting, it puts them at a competitive disadvantage…
“That is a significant cost plus and as the letter indicates it is a 7 percent competitive disavantage for QRP over any other jurisdiction because no other jurisdiction in north america charges provincial sales tax.”
Simpson says it would save QRP about 2 million dollars a year.
He also says the letter is timely…
“I wanted to bring it forward because the budget is coming forward, there are some indications the gov is moving and if council wishes to send a separate letter from city council directly by way of a resolution that they would like this addressed in the 2017 budget.”
The Cariboo Regional District has already sent a letter as it also impacts the Gibralter and Mount Polley mines.
The City’s letter will also ask that the province to come up with an energy policy where hydro electric power is affordable.
It will also send a motion to that effect to both the North Central Local Government Association and the Union of BC Municipalities.