Province Protecting Municipal, Taxpayer Interests

SERVICE N.S./MUNICIPAL RELATIONS--Province Protecting Municipal, Taxpayer Interests

The provincial government is continuing to protect the interests of municipalities and taxpayers with an amendment to the Assessment Act, said Angus MacIsaac, Minister of Service Nova Scotia and Municipal Relations.

The amendment, which was passed last week as part of Bill 80, enables the six municipalities that host Sable gas infrastructure to negotiate retroactive property tax rates for the gas industry for the years 1999 and 2000. Any agreement would require the consent of the municipalities, the gas and pipeline companies and the provincial government. The six affected municipal units are St. Mary's and Guysborough, Colchester, Cumberland, Pictou and Richmond counties.

"There will be no deal unless the municipalities and the province agree," said Mr. MacIsaac. "And the province will not agree to anything that is not good for municipalities and for all Nova Scotians."

The Assessment Act amendment springs from appeals that both Sable Offshore Energy Incorporated and Maritimes and Northeast Pipeline made to their 1999 and 2000 property assessments. Those appeals dispute whether certain parts of the gas infrastructure are assessable and even challenge the government's right to assess their properties.

"No other industry has ever questioned government's right to assess," said Mr. MacIsaac. "We have no choice but to defend our legal responsibility."

The minister was responding to comments attributed to Guysborough Warden Lloyd Hines in a Sunday newspaper. The report quotes Mr. Hines as saying that the amendment would shift the assessment dispute from the Utilities and Review Board to the six municipalities.

"The provincial government continues to have a lead role in this entire matter," said the minister.

"We were facing many years and tens of millions of dollars in litigation costs with these appeals--money that we could better use for our hospitals and schools," added Mr. MacIsaac. "The uncertainty caused by these appeals has made the municipal units reluctant to lower their commercial tax rates, so the industry hasn't known what kind of tax bill it would ultimately face. This amendment creates an opportunity for the three parties to try to reach an agreement. If there's no agreement, we'll be back with legislation in the spring that removes any ambiguity from the assessment issue."

The gas and pipeline companies have suspended their 1999 and 2000 appeals while the discussions with municipalities and the province proceed.

"We want the oil and gas industry to thrive in Nova Scotia. But we also it expect to pay its fair share," added Mr. MacIsaac.