Up front: Municipality doesn’t favour its friends, Lefebure says On stage: Aboriginal Film Fest back for eighth edition
page 3 page 17
For all the news of the Cowichan region as it happens, plus stories from around British Columbia, go to our website www.cowichannewsleader.com Your news leader since 1905
Wednesday, April 11, 2012
Catalyst vote looms
Restructuring: April 23 ballot decides future of Crofton pulp-and-paper mill Peter W. Rusland
News Leader Pictorial
C
owichan mill workers, pensioners and local leaders are sweating bullets about an April 23 vote that could decide the future of Catalyst Crofton’s pulp-andpaper mill. That’s the day Catalyst’s note holders and creditors vote on a proposed restructuring and support plan that could see the pulp giant — employing some 700 union workers, plus salaried staffers, in Crofton — continuing to operate. Stakeholders will also cast ballots on a proposed sales and investor solicitation process order, if restructuring plans for the ¿nancially troubled ¿rm fail to pass. The complex process sees the sales and investor process contain a minimum bid — called a stalkinghorse bid agreement — whereby some note holders assemble a company to buy Catalyst’s assets if restructuring fails, explained the Catalyst-Timberwest Retired Salaried Employees Association. Association member and retired Catalyst accountant Don Swiatlowski, 63, feared his pension will be slashed by more than 30 per cent if restructuring Àops. He ¿gures pensions and bene¿ts of some 1,500 non-union Catalyst retirees could be hit. Catalyst’s Lyn Brown tried to salve Swiatlowski’s fears. “A successful restructuring is in the best interest of everyone,” she said. “We’re doing everything we can to come forward with a solution to mitigate any downside risk to retirees, and to continue to address any shortfall over the long term.” Paul Zarry of Crofton’s 400-member Pulp, Paper and Woodworkers of Canada union, said that despite a recent deal reached by the PPWC and Catalyst, he was concerned about the vote’s fallout on his members still on the job, and PPWC’s retirees. “We could be affected in some way if that (restructuring ) plans fails,” Zarry told the News Leader Pictorial. “We’re playing the waiting game and getting all information possible to our members.” North Cowichan Mayor Jon Lefebure was nervous too, as the mill’s demise would almost certainly spell more tax hikes for local home- and business owners. more on page 3
Andrew Leong
Cedar Villiers, 3, Änds a colour plastic egg during the annual Easter Egg Hunt, sponsored by Cowichan Bay Fire Rescue, at Coverdale Watson Park on Easter Sunday. The Änding of the plastic colour egg entitled the Änder a redemption for a large chocolate bunny.
Feds nail Änal funding spike in passenger railway Vancouver Island Railway: Ottawa providing $7.5 million for repairs Peter W. Rusland
News Leader Pictorial
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epairs on the rundown Vancouver Island Railway are back on track. The federal government announced Tuesday morning it will provide the $7.5-million needed to complete the $15-million restoration of the line between Victoria and Courtenay. The money is contingent on the province providing a total of $7.5 million, an amount it pledged last year. It’s been a year since passenger rail has been halted on the line. Freight traf¿c still operates on
the tracks, but at reduced speeds. Island Corridor Foundation boss Graham Bruce said work plans and bidding for the 225kilometre track ¿x will take about four months, while he waits for a new three-car train expected from Via Rail. “I hope to see construction start in late October or early November, and passenger service recommence by around May 2013.” The provincial government has already spent $500,000 on a bridge engineering study for the track, and now must provide the remaining $7 million for the federal funds to come through. The cash from Ottawa will cover costs such as ballasting work, and replacement for track ties and joints. “The work will address short-term operational issues, with the intention of making the corridor safe again for passenger service,” a federal
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government press release states. For the federal funding, the Island Corridor Foundation had to con¿rm that no further federal investment will be required. “This includes costs associated with repairs to the existing track and bridges, and the costs associated with building a new passenger station in Esquimalt to replace the municipally-owned terminal in downtown Victoria, as well as any other costs that might arise.” North Cowichan Councillor John Koury said he hopes the repairs start soon, and added the upgrades mean excellent opportunities to boost the island’s economy and hike environmental safeguards. “We can put more commuters on trains and take more trucks off the road,” he said. “We’re hoping passenger service returns by next summer so tourists can take advantage of rail use.”