District of Port Edward, B.C., terminates partnership with Sun Wave Forest Products after Chinese company fails to begin operations at Watson Island pulp mill

Liling Tan

Liling Tan

PRINCE RUPERT, B.C. , January 16, 2008 () – The District of Port Edward took the first step towards officially ending its partnership with Sun Wave Forest Products on January 8, giving the first three readings to rescind the bylaw that enabled the agreement.

Under the partnering agreement, Sun Wave was to have commenced operations by December 31, 2007 and to continually use the land at Watson Island for operation.

Since those conditions were not met the district is terminating the agreement, which comes with some repercussions.

“The District of Port Edward takes the position that in view of Sun Wave’s failure to meet its obligation under the partnering agreement, Sun Wave is not entitled to retain the benefit of the Tax Exemption for the years 2006 and 2007…As a result of this termination, the Tax Exemption for the years 2008 and for the balance of the term of the partnering agreement will not be made available to Sun Wave,” reads the bylaw.

The taxes owed total more than $269,000, and Mayor Dave MacDonald said the mill not operating is upsetting.

“One thing that upsets me is the fact that we are in the same position that we were in years before in that we have to pay tax to other levels of government on behalf of Sun Wave, and we have argued to other levels of government that it is not right that we have to pay tax for those that don’t pay their taxes,” he said.

“It’s not fair to those who do pay their taxes on time.”

The bylaw to rescind the partnering agreement will be given fourth and final reading at an upcoming council meeting.

* All content is copyrighted by Industry Intelligence, or the original respective author or source. You may not recirculate, redistrubte or publish the analysis and presentation included in the service without Industry Intelligence's prior written consent. Please review our terms of use.


About Us

We deliver market news & information relevant to your business.

We monitor all your market drivers.

We aggregate, curate, filter and map your specific needs.

We deliver the right information to the right person at the right time.

Our Contacts

1990 S Bundy Dr. Suite #380,
Los Angeles, CA 90025

+1 (310) 553 0008

About Cookies On This Site

We collect data, including through use of cookies and similar technology ("cookies") that enchance the online experience. By clicking "I agree", you agree to our cookies, agree to bound by our Terms of Use, and acknowledge our Privacy Policy. For more information on our data practices and how to exercise your privacy rights, please see our Privacy Policy.