Last time I checked these LNG terminals were being built in Kitimat and Prince Rupert not in Terrace…why would Terrace be getting any sort of profit sharing from these terminals? Shouldn’t any profit being shared be left in Prince Rupert & Kitimat?
I just find it comical that the City of Terrace is putting together a “shopping list” (including a new roads, a new hospital, new overpasses ect) when the terminals are not even being built in their city.
IMO PR and Kitimat should be directing and leading ANY dialogue regarding these LNG terminals…and Terrace should butt out!
I don’t think it’s profit sharing, is it? Probably just increased taxes from people living in Terrace and working in Kitimat. And big projects in Kitimat in general have a positive impact on Terrace and the whole region, with suppliers and other related businesses based in Terrace, etc.
Terrace is obviously just more on the ball than we are here in Prince Rupert, why not ask for kickbacks? most likely, they will get them. I haven’t seen any progress in Prince Rupert as a result of the port expansion when it comes to infrastructure and community minded projects. Just a huge pellet tower, inaccesibility to once beautiful places and muddy potholes. Even the shoreline out at Ridley is dotted with the ugliest trailers you have ever seen. sad.
I suspect that Terrace council’s argument is that while an LNG plant will bring some positive impacts there, the plant will be outside of their tax base, and put added pressure on community services and infrastructure. So they’re looking to the province to provide some kind of revenue share to make up for any shortfalls.
Whether that is a sustainable argument or not, who knows, but yes they are on the ball, representing the interests of their community. It’s too bad that the Prince Rupert council isn’t more proactive about getting more benefits for the city.
So Terrace is asking for royalties from the government essentially?
I assume Kitimat and Rupert would still be seeing a huge majority of the benefits from these LNG plants from other sources (taxes, employment ect)…I wonder if that will play a part in how royalties are divided to both cities?
[quote=“bthedog”]So Terrace is asking for royalties from the government essentially?
I assume Kitimat and Rupert would still be seeing a huge majority of the benefits from these LNG plants from other sources (taxes, employment ect)…I wonder if that will play a part in how royalties are divided to both cities?[/quote]
The province collects resource royalties and can enter into sharing arrangements. Terrace council appears to be arguing, for instance, that LNG development in the region will put pressure on their hospital, so their taxpayers should not disproportionately bear the cost. They probably have some numbers to back that up. Whether the Terrace council has made a strong argument or not is hard to say, but they’ve made a case that the government will have to respond to.
I wouldn’t assume that resource revenues will be shared with Prince Rupert, particularly if they don’t make a case. Maybe this place will get so much from property taxes that there will be no need for a share of resource revenues from the province.
If the council does make a case, though, hopefully it will be stronger than their position on RTI. Prince Rupert opposes the privatization of the business. Why’s that? Just because? They also want a share of the profits from the business. The city gets property taxes (or grants in lieu). Why should the city get a share of profits as well? Just because? The resolutions are in the minutes posted online.
The council does not seem to be very good at providing justifications for their positions. They think that the city is entitled to something so they tell other levels of government that. Maybe there’s a feel good that comes with doing that or the appearance of activity, but if they don’t provide a rationale or justification (like Terrace seems to do) it’s all just posturing. At times this council seems to operate more like a lobby or protest group than as a local government working with other levels of government.