Tax deal for Canadian LNG plant draws ire

SAINT JOHN, New Brunswick – Amid a larger-than-usual police presence, protesters gathered in Saint John on Thursday to register their disapproval of a tax deal given for a liquefied natural gas plant.

About 125 people chanted “fair taxation” outside the offices of Enterprise Saint John, the city’s business development agency. A coalition opposed to the tax deal says the agency played a key role recommending the proposal to municipal council.

The agreement locked in property taxes at $500,000, the equivalent of about $404,000 U.S., a year for 25 years for Irving Oil and its partner, Repsol, for the proposed Mispec liquefied natural gas terminal.

It is one of two projects proposed in the Canadian Maritimes. The other, in Nova Scotia, is proposed by Access Northeast Energy Inc. At least four other projects have been proposed in New England. Voters in Perry and Harpswell, Maine, have rejected plans for LNG terminals.

In Saint John, Bruce Court, spokesman for Concerned Citizens for Fair Taxation, said his group was targeting the Enterprise agency because of its role in recommending the tax deal to the city. He said there’s no substance to a report the agency prepared supporting the companies’ demand.

“We also think there is a conflict of interest,” he said. “On the board of directors, you have people from Irving Oil. And you have Mr. Carson [Enterprise Saint John general manager Steve Carson], who was a former Irving Oil employee.

“Who are they going to recommend it for, the Irving empire or the citizens of Saint John?”

Three police vehicles, a dozen uniformed officers and at least two undercover policemen were positioned along the street and near the door to the building that houses Enterprise Saint John’s offices during the protest.

Police spokesmen said the larger-than-normal presence had to do with the volatility of the LNG issue and the fact that students from three high schools were in the uptown area for the day.

“We’re not expecting anything,” said Staff Sgt. Stephen Patterson. “[But] we have gone to the last couple of LNG protests because it’s an issue that some people are taking seriously for whatever reason.”

Court said Enterprise Saint John should be held accountable because the city pumps $406,000 into its coffers annually.

Warning his group “isn’t going away,” he said it will hold members of the legislature accountable for how they vote on the LNG deal if it comes up for a vote. Before leading the protesters to city hall, he announced the coalition will attend Monday’s council meeting to demand those who supported the LNG deal resign.