Their thoughts are with us, just not their wallet, just yet

The Province is still a big booster for the Port of Prince Rupert, but last weeks provincial budget didn’t include much in the way of financial assistance for the next phase of development.

That’s not a sign of any kind of trouble on the horizon, more it’s an indication that the phase two plans aren’t quite ready for prime time yet.

The Daily featured Finance Minister Carole Taylor’s observations on the development as part of a front page story in Monday’s paper.

FINANCE MINISTER STILL BIG SUPPORTER OF RUPERT PORT

By Leanne Ritchie
The Daily News
Monday, February 25, 2008

Pages one and three

While there was not any funding commitment to Phase II of the Fairview Container Terminal in the 2008 provincial budget, that does not mean the province is not fully committed to developing Prince Rupert as part of the Asia Pacific Gateway.

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Carole Taylor, the province's Minister of Finance, said in an exclusive interview with the Prince Rupert Daily News that the reason there were no funds directed toward the development of Phase II in this year's budget was that the plans for the terminal's expansion were not far enough along to have determined specific funding amounts.

However, to show faith in the development of the Asia Pacific Gateway, the province increased that budget for the Ministry of Economic Development by $40 million.

"This will help us get going on the trade policy," said Taylor.

The province is also pursuing a number of other initiatives that will support development of the Asia Pacific Gateway in this year's budget.

Taylor noted he B.C. government will be reducing the provincial tax rate for ports, sawmills and mines and other large industry.

"We are going to reduce the rate to meet the current rate for commercial business. Right now, these big industrial properties are paying extra tax to us and we know many of them are in industries that are facing some stresses," she said.

"So to try and help them, we will reduce it. That will mean $24 million every year that our major industries will save. That is an important one for all our communities."

Another initiative that will benefit ports is the $30 million Green Port's Initiative.

"It is our plan to electrify our ports so that when ships come in, they will be able to plug in, rather than keep their engines going, which can be quite polluting," said Taylor.

The Prince Rupert Port Authority had planned to offer this service starting with Phase II of the terminal, however this funding could help them move the project forward sooner.

In addition, the province has decided to extend the Ports Property Tax Act, which caps the level of taxation by municipalities on port properties. The province in turn then compensates municipalities for some of that lost revenue.

"For the first time, it will tie it to inflation and there will be an increase every year that will go towards that," said Taylor.

For the past three years, Prince Rupert has been receiving the biggest top-up from the province of all eligible municipalities: $1.38 million.

However, North Coast MLA Gary Coons has expressed concern that although there will be an increase based on inflation, the revenues handed over to the municipalities will continue to be based on 2003 levels of assessment.

Municipalities already must manage hazardous materials and provide policing for ports.
"These costs were downloaded onto communities by the federal government, and now the provincial government is denying them the ability to leverage the revenue they need to meet these obligations," said Coons, earlier this year. "Yet, they have fewer revenue streams than senior levels of government. Really, their only tool is property taxation. The compensation being offered is insufficient. And since it is not indexed to property value, every year it becomes even less adequate. It doesn't cover even half of the potential revenue losses most municipalities are absorbing currently."