PICTOU – The province is stepping in to help re-open the Pacific West Commercial Corporation re-open the former New Page pulp mill in Cape Breton.
In a statement released this afternoon, Natural Resources Minister Charlie Parker said although the Canada Revenue Agency did not rule in favour of income tax request from Pacific West and Nova Scotia Power, the ruling did have some positive impact for Nova Scotia. Because of it, the province was able to rework its agreement with Pacific West in regard to opening the mill.
"The tax ruling from the federal government, while it isn't what Pacific West was looking for, will actually mean millions of dollars in tax revenue that the Province of Nova Scotia would not have otherwise collected," Parker explained.
"We are able to use that windfall to create room for Pacific West to earn forgiveness on some of the loan money in the support package already announced. Even with that earned support, the province will still come out a bit further ahead under this deal, with more tax revenue than it would have under the previous deal structure."
The move will allow the mill to re-open.