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Doug Routley column: Hard work by provincial government paying off as Paper Excellence mill sale finalized

The deal secures the livelihood of nearly 600 families.
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Last week’s announcement that Paper Excellence’s acquisition of Catalyst has been finalized is a major win for our region — particularly the community of Crofton, as the deal secures the livelihood of nearly 600 families.

The Crofton mill is an important employer on the mid-Island and has been a central part of Crofton’s community for the past 60 years. This deal is a major vote of confidence in our coastal forestry sector.

This is in stark contrast to a year ago, when punitive U.S. trade duties threatened Catalyst’s operations and worker pensions.

Protecting forestry jobs and pensions has always been a priority of our government.

Back in July, we took action to protect jobs and pensions at the three B.C. Catalyst mills, in case the troubled company decided to liquidate its Canadian operations. In the event of a sale, our amendment to the Pension Benefits Standards Regulation ensured that the remainder of the 2012 outstanding pension obligation would be funded immediately.

That was a worst case scenario. Our goal has always been to keep the mills open, and to protect the jobs that depend upon it.

We have spent months focused on keeping people working, and on getting the competitiveness conditions in place to provide lasting economic stability for companies, workers, and communities on our coast. In January, we set out our Coast Forest Sector Revitalization Initiative to increase the processing of B.C. logs on the coast and to reduce wood waste by redirecting it to B.C.’s pulp and paper mills.

That work has paid off.

Last October’s announcement that Paper Excellence was acquiring the Catalyst operations — finalized last week — was great news for workers in Crofton, Port Alberni, and Powell River, but also for B.C.’s economy. Paper Excellence is in the pulp and paper business and are committed to keeping Catalyst mills operational. They are known for investing in their operations across Canada.

But we didn’t just take the company at their word.

Our government took other actions to help ensure protection is provided to pensions while facilitating the sale of Catalyst. We entered into a pension agreement with Paper Excellence and its subsidiary, under which both companies have provided a written, unconditional guarantee of the outstanding 2012 solvency deficit.

The unconditional guarantee will become payable by Paper Excellence and its subsidiary if the conditions of the Pension Benefits Standards Regulation are not met, even if Catalyst becomes insolvent. In addition, if Catalyst becomes insolvent, the guarantee would allow the plan to make a claim against assets of Paper Excellence and its subsidiary, as well as Catalyst’s assets. This is an additional source of funding protection beyond what is available under B.C. legislation.

Our government is working hard to revitalize our forest industry, and we will continue to do so. We want to go beyond simply protecting jobs — we want to see growth and innovation in the sector so that well-paying jobs are there for the next generation and beyond.

Doug Routley is the MLA for Nanaimo-North Cowichan