Local MLA seeking help for Catalyst Paper

[The Invisible Man]

This Alberni Valley Time's report says Alberni-Pacific Rim MLA Scott Fraser is insisting the provincial government take action to help secure the future of Catalyst Paper, and the more than 300 jobs the company holds in Port Alberni.

Should the government help Catalyst Paper? Will a government bail-out serve only to prolong bankruptcy of the multi-national corporation? How many more corporate bail outs can the average taxpayer afford?

[TomW]

Nope its time to close the vault on bail outs, especially one that will probably end up just delaying the eventual outcome. That money can be better used in retraining programs and such.

[Possum]

This is another ploy by old "Smiles For The Camera" to pretend he is actually doing something for this riding. He promised two elections ago that he would move to the riding if elected. The lying Arse-ma-dink still lives in Oceanside; down the street from a friend of mine and right close to the school just north of Qualicum. I could post his address if his favorite defender keeps trying to claim that our MLA lives just outside the riding.

[The Invisible Man]

On the heels of Alberni-Pacific Rim MLA Scott Fraser's request that the province take steps to aid struggling Catalyst Paper, the company has sent its own official request for aid to Victoria and Ottawa.

On Jan. 31, Catalyst applied for creditor protection, allowing the company, which owns the Port Alberni Catalyst Paper Mill and facilities in Powell River and North Cowichan, to continue operating while the company works towards restructuring its capital.

This report has it all.

[Possum]

At some point it would be nice to see the realities of the bailout. Would it be better or worse for the area if Catalyst was to stay open. I would rather it would but in reality can we afford to keep it afloat?

[The Invisible Man]

The report says the Port Alberni operation alone contributed $39 million in wages and benefits for 315 employees, generated 1,270 spin-off jobs, $255 million in spin-off economic activity, $10.5 million in spending with local businesses and paid $4.7 million in property taxes last year.

Should we believe the company's take on it? Maybe we should ask for an independent review to weigh each of the two options?

I think the survival of business should not depend on government bail outs. If the business is not making it then change needs to occur from within the business. Maybe their product is no longer something that people want? Maybe competition can provide a product of equal quality for less cost? Maybe it's time for Catalyst Paper to face the reality of the Canada/US free trade agreement and accept that unless the company diversifies into other areas it will no longer be a top competitor in the global paper market?

Economists have failed Canadian taxpayers miserably! When the economy is in a crisis the government should look at fiscal policy and increase government purchases of goods and services. The government should not tighten its belt because families are tightening theirs, they should be spending. Government officials who are tight with businessmen – and almost all of them are – tend to be prejudiced towards views that put business confidence at the center of our economic problems. The government should continue to allow the strongest business prevail and the weakest to die off. That's how the capitalist system we live in works. How dare government and business think they can choose to fall outside of that system when things don't go their way!

[booboo]

hmmmmm....Me thinx the best thing fer Catalyst would be for WFP to take it over...just the Mill here that is....piss on the other ones...if Catalyst went down APD and Somass would be in the bite for getting rid of Chips and Hog...kinda makes sense to have all 3 mills together...Catalyst has no Timber Base of it's own..has to buy all it's fibre on the open Market...lots of it barged in as well...Western has Timber Supply..well what's left out there anywho....seems like a good match ta me...................

[hedder]

Definitely no bailouts. I hate government bailing out failures, the market should dictate their survival, as it should be with others. They've been bought out before, if that's what needs to happen then, let 'er roll!

Booboo has a good idea, I say we go with that...lol. All in favour say "eye"...

Motion Passed!

Let's drink....ok...coffee for booboo

[The Invisible Man]

"Eye!" I second your motion hedder. I'll also drink to it (the booze kind ha ha). Booboo's idea is good! WFP should get on it in a jiffy. Maybe they could get the paper mill at a rock-bottom price?

[Possum]

But WFP would have to agree to quit burning 45 tons a day of fictitious tires. I cannot believe how many local doofi believe that stupid rumour.

[The Invisible Man]

Here are some good thoughts on capitalism that I thought should apply to Catalyst Paper and any other private enterprise looking for government bail out money:

Capitalism requires the freedom to succeed and the freedom to fail.
Hard work and good decisions should be rewarded. Perhaps more important, bad decisions should lead to failure—openly and publicly. Economist Allan Meltzer put it this way: “Capitalism without failure is like religion without sin.”

Capitalism requires government to enforce the rule of law. This requires maintaining a level playing field. The privatization of profits and socialization of losses is completely unacceptable. [Government bailouts] undermine equal treatment, reinforcing the perception of a system tilted in favor of the rich and powerful.

Capitalism requires businesses and individuals be held accountable for the consequences of their actions. Accountability is a key ingredient for maintaining public faith in the economic system. The perception—and the reality—is that virtually nobody has been punished or held accountable for their roles in the financial crisis.

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