Saint John councillors who want tax deal repealed hopeful after minister's comments

Saint John city councillors who voted to repeal a multi-million dollar property tax concession on land leased to the Canaport LNG development are mostly welcoming comments from Liberal Energy Minister Donald Arseneault.

Arseneault, speaking on CBC Information Morning's political panel aired Friday,saidthat the Gallant government is open to approving the change, even if it is not until after May's municipal election.

"It's definitely moving in the right direction and I'm very, very hopeful now," said Ward 3 councillor Gerry Lowe, who has been one of the leaders of the repeal effort. "The interview, I watched it this morning, (it) made me very hopeful."

In wide-ranging comments during thepolitical panel, Arseneault said the Gallant government is still reviewing the request from the city to end the LNG tax concession, but said heis personally interested to see how Saint John voters treat the issue in this spring's municipal election, in case new councillors take a different view on repealing the tax break.

"There will be a new council in place (in May) and they will have to revisit this issue," he said. "I just think it's a very important issue for the city to have a proper discussion around that."

Concession worth millions per year

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 US$12.25 million per year in rent from the property.

Lowe says he's happy to seek re-election on the issue, whileWard 2 councillor John Mackenzie, one of seven to vote in favour of repealing the tax break in December, says airing the issue during the election will help dispel a misunderstanding that the city is trying to break a signed deal with Irving Oil.

"There are people out there who thought that it was a contractual obligation the city was under," said Mackenzie about the tax concession."Most people I talk to, once they realize there wasn't a legal contract, there's a lot of support for (repealing) it."

Ward 4 councillor Ray Strowbridge says he disagrees with the province waiting until after the election to make a decision on the city's request, but doubts it will make a difference.

"Anyone who has talked to me about it has said they were fine with us passing the motion asking for it to be repealed," said Strowbridge. "I don't think its going to be an election issue at all."

Blake Armstrong, who is not on council, but is the first in the city to have launched a campaign to win a seat this year with his roadside signs already up, says he has no doubt the public will endorse city council's attempt to kill the LNG tax deal.

"I think it's a no-brainer they'll say yes," said Armstrong.