A lawyer for Nova Scotia's Richmond County argues the prospective buyer of the idle NewPage paper mill can't change a tax agreement through court action. Bruce Clarke said in Nova Scotia Supreme Court today that only the provincial legislature has the right to amend a tax agreement set out in legislation.
The prospective owners of the idle Port Hawkesbury paper mill say they have made three offers for a new tax deal with Richmond County and none have been accepted.
The impasse has reached the courts.
On Tuesday, a Nova Scotia Supreme Court judge will rule on whether the company has the right to break the existing tax agreement reached in 2006.
Creditor protection period has been extended for another month – until September 28, 2012.
Nova Scotia Supreme Court justice John Murphy refused to approve $2 million in spending requested to restart the idle mill. The request was filed yesterday after business hours, which did not give time for other stakeholders to respond. Pacific West Commerical Corp. was willing to put up $500,000 and was requesting $1.5 million from the provincial funds used to keep the mill operating. Justice Murphy said, ”I’m not satisfied the circumstances justify the extent of the exemption (of required notice).”
