Communications Office
Notice To Editors
HRM and UNSM Solid in Position on Taxation
(Wednesday, March 1/2000)-- An article entitled "Halifax May Demand Own Gas Deal" which was published in today's edition of The Chronicle-Herald erroneously stated that the Halifax Regional Municipality and the Union of Nova Scotia Municipalities are at odds over a proposed municipal taxation agreement with Sempra Atlantic Gas.
In fact, Halifax Regional Council approved a motion yesterday to amend downward its proposed pricing agreement to match the proposed rate being put forward by the other affected member-municipalities of the UNSM.
Council's action last evening simply confirmed an agreement that was reached at a meeting of representatives of the HRM Sable Gas Committee and the UNSM in Truro on February 18th. Those talks were based on the municipalities achieving a 20 to 25 year agreement with Sempra Atlantic, which has the exclusive franchise for the distribution of natural gas in Nova Scotia.
"That Council agrees to a 5.47% gross revenue rate of taxation, over 20 years. If 20 years is not acceptable, the gross revenue rate of taxation will be 7% over 10 years"
HRM's original position called for 7 per cent of gross revenues, but this was revised downward to 5.47 per cent in support of the position taken by the UNSM. However, Council has stated consistently that HRM would return to its original proposal of 7 per cent in the event that a long-term agreement could not be negotiated with Sempra.
- 30 -
Councillor Stephen Adams
Chair, HRM Sable Gas Committee
(902) 497-8818
John O'Brie
Corporate Communications Officer
(902) 490-6531
