Lab City, Wabush willing to explore amalgamation

Labrador City is willing to work with neighbouring Wabush on a proposal to explore turning the two mining towns into one.

Labrador City Mayor Graham Letto said the two towns have agreed to ask the Newfoundland and Labrador government to order a study on whether amalgamation is feasible.

Both town councils say residents will be fully consulted before any moves are made to merge the towns, which are only a few kilometres apart.

One contentious issue could be taxation, as taxes in Wabush are almost double that of the rate in Labrador City.

But Letto said there are more important issues for residents of the two towns to consider.

"You know, there are other things besides money," said Letto.

"There's [the issue of] availability of land. … Labrador City is land-poor. Wabush, on the other hand, has a quite significant inventory of land."

Wabush Mayor Jim Farrell, who pitched the idea to Labrador City earlier this month, said amalgamation may help the neighbouring towns better manage services like recreational facilities.

To save money, the Wabush council, which is anticipating job cuts next month at major employer Wabush Mines, is closing its arena in May and is cutting services at its recreation centre.

Labrador City, which has more than 7,400 residents, is significantly larger than Wabush, with a population of more than 1,700. Both towns were incorporated in the 1960s and were essentially built to serve neighbouring iron ore mines.

Merger inevitable: resident

David Pardy, who grew up in Wabush, said amalgamation seems inevitable.

"I've lived here all of my life, and it was always two different towns, [but] since the schools changed over a few years ago, when I graduated, everything has been pretty well one community anyway," he told CBC News.

Howie Pickett said taxes may be higher in Wabush, but for a good reason.

"I'm a Wabush boy," he said outside a Labrador City coffee shop. "Our town does twice the job of cleaning the roads as this town does. You get what you pay for."

Labrador City resident Amanda Ford said money issues will likely determine whether citizens will back what the two councils want to do.

"I don't think it's such a bad idea, but when you talk about, when you get to the point of taxes, then you are going to have people complaining, because they pay more taxes in Wabush than we pay in Lab City," she said.

"Which way are they going to go — are they going to raise ours or lower theirs?"

A formal presentation will be made to the Newfoundland and Labrador government in February.