News Release
Kelly says Province Taking Inconsistent Approach with Municipalities
(Thursday, October 18, 2001)-- The Province's intermittent and inconsistent approach
in dealing with municipal finance issues makes it extremely difficult for local governments to manage their financial affairs, let alone try to improve them, Mayor Peter Kelly said today.
Mayor Kelly cited the Province's decision to charge municipalities for the cost of Assessment Services and recent changes to the (municipal) Equalization Formula as two prime examples of the Hamm government's unwillingness to deal openly, frankly and in a timely manner " with those who will be paying the bills."
The transfer of Assessment Service costs to municipalities amounts to about $12 million annually. HRM's share will be about $4.3 million. The provincial Equalization Formula plan to take money from financially stable municipalities and give it to those experiencing financial difficulties could cost HRM as much as $16 million annually.
Mayor Kelly said it has been more than a year since the Hamm government announced its decision to charge municipalities for Assessment Service costs and the matter still remains unresolved.
Earlier this year, the Province announced its plans to amend the Equalization Formula. After much public outcry and eventually a request from the Union of Nova Scotia Municipalities for an opportunity to respond to the changes, the Province did agree to consider alternative means of raising the same amount of money from the municipal governments. So far, the Province has not responded to the UNSM submission.
"The Province's arbitrary approach, its indecisiveness and its failure to even respond to our concerns makes the entire situation intolerable. This government is trying to balance its books on the backs of the municipalities," he stated.
Mayor Kelly added " How can we (municipalities) possibly manage our financial affairs when we have this inconsistent approach to municipal affairs by the provincial government?"
The Mayor said -- "whether the Province likes to admit it or not"-- Halifax Regional Municipality is the economic engine of Nova Scotia's economy, and by continually robbing it of its ability to manage and improve its financial position, ultimately prevents Nova Scotia from reaching its true economic potential.
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Mayor Peter Kelly
(902) 490-4010
