Dartmouth refinery has cost HRM millions: mayor
Posted May 18, 2012 05:25:02 AM.
This article is more than 5 years old.
The mayor of HRM says millions of dollars and hundreds of dollars hang in the balance as Imperial Oil weighs the future of the Dartmouth refinery.
Mayor Peter Kelly says he’s shocked by the company’s announcement that it is considering selling the facility or converting it to a terminal.
Kelly points out the company was just recently granted a five-year extension of a property tax break granted by the provincial government in 2004 – a deal that has cost the municipality $29 million in revenue.
“If the deal stays in play, until the deal runs out, it will be another $17.5 million,” Kelly told the Rick Howe Show Thursday. “We were told at the time to make them operation effective, or to increase profitability. It didn’t seem to work. Now we’re in a situation where we have 200 full-time jobs and 200 contract jobs at risk. It’s certainly disconcerting for them and their families.”
In a release, Kelly says the province made the wrong call in 2004.
“The province’s approach in 2004 showed a lack of understanding of the need to work with HRM to ensure such decisions truly have a long-term benefit and are not simply to provide incentives the province’s own revenue can’t support,” he said.
Imperial Oil is planning to shop the Dartmouth refinery and related supply agreements to prospective buyers in the coming months. A final decision on the plant’s future is expected in the first quarter of 2013.
Although the original tax break was negotiated by John Hamm’s Conservative government, it was extended by the current NDP government just two months ago – and Premier Darrell Dexter says he has no regrets.
“Anybody who thinks that putting higher taxes in place at the refinery will make it more attractive for sale is really in la-la land,” he said. “This will be a difficult day for a lot of people at that refinery. It will be a difficult day for the community.”
HRM residents in Woodside Thursday also expressed concern about the loss of jobs and the potential impact on the economy, but said they do not want more government money poured into keeping the refinery afloat.
“No, I don’t believe in a bailout, but we have to ensure industry has the right conditions to thrive here,” one man told News 95.7.
“If you bailout something that’s not sustainable or can’t maintain itself than typically you’re wasting taxpayers money,” said another man.
“No. Everyone’s being bailed out and we pay for it,” said a woman.
Company chair and CEO Bruce March said Imperial realizes the importance of the refinery to the local community and that the decision has been a “difficult” one.
However, he said the company remains committed to providing service to its customs and pledged to keep employees and the community updated on developments as the review process moves forward.
