Saint John seeks answer on repealing Canaport LNG tax deal

Ten weeks after voting to repeal a multi-million-dollar property tax concession at the Canaport LNG development, Saint John council has still heard nothing from the Gallant government about whether it will approve the request.

It's a delay that's beginning to make Saint John Coun. Gerry Lowe nervous although he says he's reluctant to speak out.

"Anything makes me nervous when you don't get a positive answer back right away," said Lowe.   

"If they're leaning toward doing something for us you wouldn't want to upset the situation. It's a tough call but it is annoying waiting and waiting and waiting."

Getting information from the Gallant government on the status of Saint John's request to end the LNG property tax break is not easy. 

In an email on Friday, Jennifer Graham, a spokesperson for the Department of Environment and Local Government, said no one was available to speak on the issue and would confirm only that the idea is still being looked at.

"The formal request from the municipality to repeal the legislation is being given due consideration by government," wrote Graham

But Green Party Leader David Coon says time is running out to have the matter dealt with during the current legislative session. 

MLAs were told on Thursday, the legislature will not be sitting for the next six weeks and when it returns in late March the assembly will have only 12 more sitting days to deal with legislation before shutting down again until next fall.

"If they're only providing for three weeks sitting time until summer then really they can't bring too much legislation through in that period and get it done," said Coon

It is already too late to enact anything that would take effect before the provincial government sends out this year's property tax bills on March 1.

Question about upcoming election

The delay in dealing with Saint John's repeal request is in stark contrast to how the province handled its initial request to grant the tax concession.  

In 2005, the legislature quickly drafted, debated and passed a special law allowing the LNG tax break in 108 days following the city's request. 

Lowe said he hopes the provincial government is not just waiting to see if scheduled municipal elections on May 9 changes Saint John council enough to undo the request

"If something is justified it should be OK instead of waiting for an election to see which one is on who's side and where everybody goes," said Lowe.  

"It just should be done."

The tax concession freezes property taxes at the LNG site at $500,000 per year until 2030. 

It saves Irving Oil $7.5 million per year in annual municipal property taxes on land it leases to the Canaport LNG development.    

Under terms of that lease Irving Oil earns $12.25 million US per year in rent from the property.