Cape Breton, N.S., mayor says new legislation will reduce funding for municipality

Mayor Amanda McDougall-Merrill of the Cape Breton Regional Municipality says the province has failed to negotiate a fair deal for the second-largest municipality in Nova Scotia.

“What has been presented to us and is currently under legislative debate is going to leave the CBRM with less than we have right now,” said McDougall-Merrill.

She says funding will be reduced from $15 million to $13 million under this new legislation.

But the Nova Scotia government claims this new bill will save municipalities between $40 and $50 million annually.

The province says it will cover jail costs and operating losses for regional housing and education; McDougall-Merrill says it doesn't help Cape Breton.

“What the provincial government is suggesting in this bill is that we continue to collect the $4.5 million for corrections and housing and instead use or invest it in how we choose. But the province will still have to pay for those services with your provincial tax dollars,” she said.

McDougall-Merrill says if Bill 340 is passed it would mean a tax hike for CBRM residents, who already have the highest property taxes in Nova Scotia.

But five hours down the highway, Premier Tim Houston says it's a good deal for everybody, and he says other municipalities agree.

“They're very pleased that a government has stepped up and recognized their concerns and is actually addressing it,” said Houston.

Houston says he's not opposed to the CBRM having a separate deal outside of the MOU similar to HRM.

But McDougall-Merrill says when CBRM requested a meeting to discuss, the province refused.

Nova Scotia’s Municipal Affairs Minister John Lohr says the offer is there.

“We did offer to CBRM if they wanted a separate deal to let us know and we would do that and we did offer them a charter, but they didn't indicate they wanted that,” he said.

The opposition says that CBRM should be looked at differently because of their size and population.

“If this isn't an issue that matters to the premier, I certainly think it should be and perhaps if he's actually taken the time to meet with the mayor and council himself, he would hear these concerns directly,” said Zach Churchill, Nova Scotia Liberal Party leader.

Mayor McDougall-Merrill and council plan to travel to Halifax on Monday to speak at the Law Amendments Committee meeting, where they hope their concerns will be addressed.

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