Cape Breton Regional Municipality pulls out of economic development network

The Cape Breton Regional Municipality has withdrawn from a fledgling, island-wide economic developmentnetwork, citing unwieldy administration and unexpected costs.

The seven-month-old regional enterprise network (REN)was created to replace multiple regional development agencies defunded by the previous Conservativegovernment.

The Cape Breton REN was composed of CBRM, and Inverness, Victoria and Richmond counties. The Town of Port Hawkesburyplanned to join nearby municipalities on the mainland.

'Cumbersome'

CBRMMayor Cecil Clarke told CBC News the municipality withdrew because "the process around the REN was becoming cumbersome."

"In the whole process, Business Cape Breton was representing the interests of theCBRM and a lot of the delivery for the other three municipal units was being done by the Cape Breton Partnership," Clarke said.

Because the municipalities were contracting the services of the two agencies, HST had to be charged, said Clarke. That meant municipalities were spending "tens of thousands of dollars" that did nothing to create economic development.

CBRM will continue funding Business Cape Breton with $125,000 a year.

Streamlined

"What changes is it's streamlinedand more efficient," said Clarke.

"So it was just a burden of administration, a lot of meetings from an oversight committee to a board and it was just a challenge to bring all the pieces together."

The othermunicipalities will maintain the REN, with theCape Breton Partnership providing services, said Clarke.

He said co-operation between the municipal units will not change.

He hopes anisland-wide municipal conference in the fall will produce anagreement "that just builds on the collaboration and co-operation, but a different structure was required."