Promises made and Promise Broken.
This is a letter I sent to council members and city staff last night. I'm asking them to intervene with the Province, the Premier and our local MLAs. Why, you might ask? Because the city has been lobbying for real tax change and fairness since 2016. That includes the industry paying its fair share. It's not the case today, and the solution proposed by the Province falls far short of its promises and doesn't address the critical issue. Residents and businesses pay the majority of the city's tax, and the industry continues to be subsidized. It's a broken system that needs to be fixed, and our local MLAs need to put their constituents first.
Good evening Council,
I'm writing tonight to ask for your urgent action on Bill 117, An Act Respecting Heavy Industry Property.
The city has been lobbying The Province of NB for comprehensive tax reform since the work began in 2016. Premier Higgs and all local MLAs made verbal and written commitments for comprehensive tax reform. The city of Saint John plays a vital role in the Province and has been disadvantaged for years.
The facts are well known, and we must redefine a mutually beneficial relationship to include urgency, openness, proactive and transparent engagement, a focus on outcomes and accountability for all involved. That is, in my opinion, not the case today.
Urgent intervention is required, and an appeal to the local Ministers, the Premier and the Minister of finance. The third reading is scheduled for Wednesday of this week.
Our challenges were well known and acknowledged, and commitments were made to address regional disparity and the lack of fairness in the current tax system regarding heavy industrial taxation.
Bill 117 falls far short and does little to address the lack of fairness in the relationship with heavy industry and the commitments made to Saint John.
While I appreciate the relationship is complex and must be nurtured, this must not come at the cost of what's in the best interest of citizens and sustainability. I was shocked to see the city's response to the legislation last week and expected a more vocal representation of the legislative gaps and the proposed solution.
During the election campaign of 2018, when Premier Higgs presented to the council, he said the following "Providing more autonomy for municipalities to control their revenue stream, taxation levels that are fair and equitable across the board with other municipalities and that includes industry. If we're not getting a fair tax dollar from industry and it's different than other provinces, then we need to deal with that. We want to encourage businesses to invest, but having fair taxes similar to other provinces, won't deter investment at all."
In September 2019, the CSJ presented to a committee of the Legislature and asked a series of questions related to taxation fairness and the lack of transparency on the treatment of Heavy Industry taxation. "Does this make sense?" The lack of equity and fairness was evident, and these questions remain unanswered.
Today I took the time to watch the first and second reading of the legislation in the Legislature and the whole discussion in committee. The total number of sites impacted across the Province is 100. With current tax rates and assessments, the entire new revenue would be $3.5 million, estimated at $1 to 1.5 million for SJ. This falls far short of the commitments made and is not fair. Of course, the CSJ is accustomed to changes to assessments with little to no consultation. With the legislation coupling the multiplier to the residential tax rate, these same industrial sites will also receive a discount as the city implements its long-term financial plan.
While members of the opposition brought forward the historical concerns of the CSJ, the Minister responded at one point that he had received a note from the Mayor thanking him for the legislation and signalling agreement. Why would council and staff accept pennies on the dollar and not hold our Premier and MLAs accountable for their commitments?
This is not what the city asked for, what was committed and needs to be addressed. At best, this is a political attempt to check a task off a list.
I'm asking the council to signal its lack of support now that full details are known. I remain supportive of industry, but not without balance. The long-standing argument of trickle-down economics is flawed and incomplete.
Thank you
Don Darling
