Province, Maritimes & Northeast Reach Agreement

SERVICE N.S./MUNICIPAL RELATIONS--Province, Maritimes & Northeast Reach Agreement

Seven municipalities will benefit from much higher revenues due to a policy adopted by the Nova Scotia government respecting assessment of gas transmission pipelines.

The policy will put about $223 million over the next 20 years into the coffers of the municipalities that host the pipeline owned by Maritimes and Northeast Pipeline Ltd. The municipalities are Guysborough, Halifax Regional, Richmond, St. Mary's, Pictou County, Colchester and Cumberland. Municipal property tax will be based on a scheduled depreciation of the pipeline's value, as established by the National Energy Board. This is the practice in other provinces with pipelines.

"This policy ensures Maritimes and Northeast is paying its fair share of taxes, while maintaining Nova Scotia's competitive business and taxation environment," said Service Nova Scotia and Municipal Relations Minister Angus MacIsaac. "As a provincial government we've achieved our goal: fair compensation for municipalities and fair tax treatment for the company."

The new policy will apply only to gas transmission pipelines and will become a regulation under the Assessment Act in early 2002.

"Our municipality is very pleased to have this issue resolved," said Warden Lloyd Hines of the Municipality of the District of Guysborough. "It is important to both the local and the provincial economy that we put this issue behind us and focus on developing the potential of Nova Scotia's offshore industry."

Approximate total revenues to the municipalities over 20 years are: Guysborough $27 million; Halifax Regional $29.5 million; St. Mary's $20 million; Pictou County $49.6 million; Cumberland $51.9 million; Colchester $41.3 million; and Richmond $3.5 million.