Province considers revoking AIM's salvage licence in wake of report on Saint John fire

Public Safety Minister Kris Austin is considering revoking American Iron & Metal's salvage dealers' licence following a scathing report into the massive Sept. 14 fire at the Saint John scrapyard, and has given the company until Dec. 22 to respond.

"I know the residents of Saint John and New Brunswick want us to ensure another fire of this magnitude does not occur," Austin said in a statement Friday.

"We have serious concerns that require urgent attention; however, I will not be making further decisions until I have had the opportunity to review the company's response."

On Tuesday, a provincial task force examining the fire that burned for two days and prompted a city-wide shelter in place order because of hazardous smoke released its report, with 12 key findings.

Among them, it said AIM operations carry a significant risk of explosion and fire, with a high likelihood of future fires at the site, including a material risk that a catastrophic fire similar to that of Sept. 14 could recur.

It also found that AIM's waterfront location, not far from hundreds of west side homes, is "entirely inappropriate given its now known hazards and risks."

Austin said he takes the findings "extremely seriously."

Under the Salvage Dealers' Licensing Act, the minister of Public Safety may suspend or revoke a licence if:

• A licensee has failed to comply with a duty or has otherwise violated the act or the regulations.
• If the licensee has failed to comply with section 12 of the Unsightly Premises Act.
• If it is in the public interest to do so.

"In accordance with the act, a letter was sent to AIM providing the company with an opportunity to respond."

AIM owner and CEO Herb Black could not immediately be reached for comment.

In speaking to reporters Friday, Austin repeatedly declined to comment on what he's looking to hear from the company, or what more he needs to make a decision, given the task force's clear findings.

"As a decision maker, it's very important that I follow the process as it is laid out in legislation," he said. "So we are going to give AIM the opportunity to do that by December 22nd and then we'll go from there."

Austin also declined to speculate whether it's possible the company could once again operate in the same location and in the same fashion.

Pressed on what he has to say to people who, on the surface, can't understand why the province hasn't shut the plant down, Austin pointed out AIM operations remain suspended.

He also confirmed there are legal reasons he can't speak right now, but he did not elaborate.

'The writing is on the wall'

Liberal Leader Susan Holt said it's disappointing the government "won't take action on a clear situation where AIM has violated the terms of their permit."

She suggested the Dec. 22 deadline means "really we're talking January before the government moves on it," because of the holidays.

"I'm sure the people of Saint John are not going to be happy to hear that they need to continue to wait," she said.

Green Party Leader David Coon, however, contends "the writing is on the wall."

"The task force's findings are clear. The actual experience with chronic explosions and constant fires are clear, so they've got to shut it down."

The exact cause and origin of the fire was inconclusive, but Attorney General Ted Flemming, who was a member of the task force, said investigators believe the likely cause was related to rechargeable lithium ion batteries, which were found at the site.

Among the other findings:

• AIM did not, and does not, have an emergency plan capable of effectively responding to the Sept. 14 fire or a similar fire in the future.
• AIM operations are an environmental, health and safety risk to Saint John, surrounding communities and their residents.
• The negative socio-economic impacts of the AIM operations at its present site are unacceptable to the City of Saint John, its residents, and surrounding communities.

AIM is finalizing its own investigative reports

Earlier this week, AIM issued a statement, saying the management team is reviewing the task force's report.

"Concurrently with this review, AIM is also finalizing its own investigative reports while continuing to co-operate fully with regulators with respect to the ongoing investigations into the fire," it said.

The company said it "recognizes that the fire was a serious and trying incident for the Saint John community as a whole" and is committed to regaining the community's trust.

It is "working diligently to concretely take the steps that are necessary to prevent a similar incident from reoccurring," it said, but did not elaborate on what those steps will be.