The only gas station in Rigolet is closing, and no one has a solution
Alyson Samson | CBC News | Posted: April 30, 2019 10:30 AM | Last Updated: April 30, 2019
Labrador community council shutting down money-draining pumps to avoid bankruptcy
Rigolet's only gas station is closing, after more than 13 years of being operated at a loss by the Rigolet Inuit community council.
When the council took over the station more than a decade ago, the intention was that it would be an interim measure, and that a private interest would take over the business. But council has to give it up, said Coun. Chelsea Morris.
"It was supposed to be six months. Now, 13 years later we are so far in the red we cannot handle it any longer," she said.
In a statement released last week, council said it will cease operations of the outlet on May 31, shutting down the only available market for gasoline, diesel and stove oil in the community.
No one has come forward
Rigolet is the only community council in the province that runs a gas station, which are primarily privately owned.
We're hoping that at some point the Nunatsiavut government or the federal or provincial government are going to step in. - Chelsea Morris
"After these 13 years hoping for help, nobody has stepped in and we can no longer take it," Morris said.
But they're still looking for someone to take over the business privately.
"The future is not looking great for us. We're hoping that at some point the Nunatsiavut government or the federal or provincial government are going to step in because we just don't know what to do from here," Morris said.
Morris would not disclose how much debt has accrued over the years through operating the gas station. The Nunatsiavut government has loaned the council money to operate it. CBC has asked the Nutatsiavut government to provide details on how much money the gas station has lost.
"It's a lot, a lot of money," said Morris.
'We literally have no solutions'
The town's financial advisors told them continuing to operate the station would end in bankruptcy.
"We literally have no solutions from beyond this point," she said.
"We cannot put all of our top priorities into this gas station or the rest of the community is going to struggle."
After May 31, tanks will no longer be filled by the council, and until someone takes control the community's options for fuel refills will be non-existent.
"We've had loans from the Nunatsiavut government but as far as that they just want their money back and that's piling on top of the bills that we already have and so we are pretty much just raising our white flag," Morris said.
Lots of talk, but no solutions in sight
Randy Edmunds, Liberal candidate in the upcoming provincial election, says fuel in Rigolet is an ongoing problem.
"I've sat down with AngajukKâks [Nunatsiavut mayors] in the past, I've sat down with town managers, and you know I share the frustration of coming up blank, but at the end of the day the community of Rigolet has to have oil and gas," said Edmunds, who is running for re-election.
He said he doesn't have a solution to the problem right now but will work on finding one.
"Sometimes you find a Band-Aid but you do what it takes to keep the service going," Edmunds said. "If we had the solutions or the answers it would be in place by now."
PC candidate Lela Evans would like to find a private operator to expand the service beyond what's currently available.
"I would find a provider that would come in and take over the gas and perhaps other services as well," Evans said.