'It's brutal': Erin's Pub owner calls St. John's tax hike a crushing blow

The owner of a Water Street pub says St. John's city council has imposed a crushingtax hike, and Bob Hallett says he doesn't know how his business will find the money.

• Property taxes rise with new St. John's budget

Hallett owns Erin's Pub and says the bar is already struggling because of a downturn in the economy.

When times are tough, "the first thing people do is cut back on entertainment and luxuries," he said.

The city has overspent, it's over-expanded on staff, it's taken on too many projects, it's paying people more than it can afford- Bob Hallett

"So we're in a period of belt tightening and retrenchment, and trying to make the best of it and survive and hang on.And for the city to impose a really massive tax increase, and increase the water tax in this environment, frankly it's insane."

The appraised value of the pub has gone up, so Hallett says taxes will climb by about 20 per cent.

"It means $3,000 to $5,000 a year for us," he told Here and NowWednesday, adding that represents more than a month of revenue and makes it even harder for Erin's to break even.

Cutting back on staff, hours of work and expenses are the only options to cover the extra expense, he said.

Hallett said he feels the business community is paying for poor planning on the city's part.

"I don't think that raising taxes is the correct response to what plainly isa budget problem. You know,the city has overspent, it's over-expanded on staff, it's taken on too many projects, it's paying people more than it can afford."

Hallett said the city's budget increased by almost $100 million between 2011 and 2015, when the population remained stable or went down.

"You have to wonder what kind of leadership, what kind ofcreativity are going on at city hall," he added.

"It's brutal....You'd think they'd be encouraging entrepreneurial activity. Instead, they're crushing us."