'I'm very concerned': N.S. government to intervene in Halifax Water rate hike case

The Nova Scotia government says it will wade into the regulatory review of Halifax Water's proposed rate hikes with concerns about affordability.

Municipal Affairs Minister John Lohr said the province will intervene in the review that's underway with the Nova Scotia Regulatory and Appeals Board.

"We just think this is a time when affordability and cost, household costs are significant, and so we'll be just bringing that message to the regulatory and appeals board," Lohr told reporters Thursday in Halifax following a cabinet meeting.

Halifax Water applied to the board this month for two rate increases. The first would raise the average household water bill by 16.2 per cent this fiscal year and the second would raise the average household bill an additional 17.6 per cent next fiscal year.

Halifax Water has said the rate hikes are necessary in the face of a growing deficit and inflation. The utility has several large infrastructure projects in the works.

Will try to 'soften the blow'

"I'm very concerned by this," said Scott Armstrong, minister of opportunities and social development.

Armstrong said his department will look for ways to "soften the blow" for Halifax Water customers, should rate increases go ahead.

"We do have programs in place and if those programs aren't sufficient, we'll have to look at being flexible and putting things in place that will help keep people attached to housing. That would be one of our highest priorities," Armstrong told reporters Thursday after cabinet.

An industry group representing landlords is also intervening in the case. The Rental Housing Providers of Nova Scotia told CBC News earlier this week that higher water rates would lead to higher rents.

Opposition calls for more support for utility, customers

Interim Liberal Leader Derek Mombourquette said the proposed rate increases are "pretty alarming."

"The government is going to have to look at some enhancement of programs to help people," he said.

Mombourquette said the province should be "strategically investing money" to take some of the pressure off Halifax Water.

Lohr said the province has already "invested heavily" in water and sewer projects across the province, and "we continue to do more all the time."

NDP MLA Susan LeBlanc said she'd like the province to consider implementing a low-income water rate.

"People just can't afford more," she said.

"We do have major infrastructure needs, our water infrastructure is aging, so the government could come in at that level and help with the projects so that rates don't have to increase," she added.

The case will go to a public hearing before the regulatory and appeals board in September.