Saint John residents received an unsourced “fact sheet” in their mailboxes recently, claiming residential taxes in the city are subsidizing “deals” with heavy industry.
The pamphlet lists Irving Pulp & Paper, Irving Oil and the city’s LNG Terminal as examples of industry getting by with low tax rates, implying if they were raised, residents wouldn’t bear the burden of looming $10 million deficits as much and encouraging them to keep the information in mind during the upcoming municipal election season.
Saint John Mayor Don Darling says the finger’s being pointed in the wrong direction.
“There are a number of citizens in the past few days who have been angry at me,” he says. “I can not change it. Taxation is not an authority of the city of Saint John.”
READ MORE: Saint John Police Force to make over $1M in cuts this year
Saint John Harbour MLA Gerry Lowe agrees that the burden falls on the province.
“We always seem to blame industry,” he says, “but it’s the government that do the assessments. These are assessed values.”
The provincial government has stated that it will evaluate industry taxes in the coming months.
“This work has begun,” says Vicky Deschênes, with the province’s finance-treasury board, “and over the coming months options will be considered to provide additional flexibility and leading to more financially independent communities.”
“We now have a written confirmation from cabinet and this premier,” Darling says, “for comprehensive tax reform so we’re not going to let up.”
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While it was not signed, leaving residents with no idea who distributed it, Global News has confirmed that the Canadian Union of Public Employees (CUPE) delivered the pamphlet.
CUPE has been deadlocked in negotiations with the city over contracts for several unions in Saint John, including the Saint John Police Association.
The city ordered over $1 million in cuts to the police force’s budget, while the union wants wage increases to keep them on par with comparably sized cities.
READ MORE: Saint John council makes 1st comments on 2020 ‘transitional’ budget
CUPE would not provide further comment on Monday, only saying that they would provide further information at a press conference Tuesday morning.
Lowe, who himself has been outspoken on a desire to see higher taxes for heavy industry, says the pamphlet is full of facts.
“Naturally, if industry paid more taxes then the residential tax would be reduced,” he says.
“Everything in it is accurate as far as I’m concerned. I’ve checked the numbers and I’ve dealt with the same numbers before.”
The pamphlet states “residents pay 61 per cent of all the taxes collected and heavy industry pays only 8 per cent!”
“I would like to know who could criticize those figures,” says Lowe.
When reached for comment today, J.D. Irving did just that.
“That number is not correct,” says Mary Keith, communications vice-president for J.D. Irving Ltd.
“Residential accounts for 48 per cent and non-residential accounts for about 52 per cent.”
But Keith agrees there is a flaw – though in the distribution of the taxes, not the amount paid.
“We’re paying amongst the highest taxes in the country, and so we don’t think it’s a matter of whether we’re paying our fair share,” she says.
“It’s the division of where those monies go. In most cases, those monies go directly to the city, in this city it’s a split between the city and the province.”
Residents can expect to see more of the pamphlets, too. CUPE has said this is the first in a series set to be distributed.
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