SAINT JOHN – A controversial property tax deal between the City of Saint John and Irving Oil signed ten years ago is continuing to make waves.
The 25-year agreement involving the Canaport LNG facility has been under renewed scrutiny over the past several months, with calls for it to be scrapped given the city’s precarious financial position.
The deal fixed the municipal property taxes on the terminal to $500,000 per year until 2030. Officials have estimated the annual yearly bill would be closer to $8 million.
Now, city council are asking the Brian Gallant government to get involved.
Councillor Shirley McAlary put forward a motion Monday to go to the province and ask for the deal to be repealed.
She says the city simply can’t afford it.
“I’m not asking for everything I’m just asking for us to at least have a fair share,” McAlary said.
The motion was voted through 7-2.
Irving Oil spokesperson Samantha Robinson provided a statement calling the motion “disappointing.”
“It is extremely disappointing to us that Council would send a strong message to those who are considering investing in our city that it will re-think its support of significant long term projects. Decisions of this type will deter long term investment and prosperity for our city.”
Saint John council has sent a letter to the Gallant government.
In the N.B. legislature Tuesday, PC MLA for the Saint John-area, Trevor Holder spoke out against the motion.
“Our immediate reaction to it is that this is sending a people that Saint John is closed for business,” said Holder. “As someone who’s supported the original tax concession ten years ago, I stated very recently that I don’t regret the decision for a minute.
“We don’t understand why you would even poke this bear and renegotiate everything at this point.”
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