N.S. NDP says gas tax reduction will not be expanded beyond N.B. border towns

Published Friday July 10th, 2009

HALIFAX, N.S. - Nova Scotia Premier Darrell Dexter says his government's plan to reduce gasoline taxes in communities along the New Brunswick border will not be expanded to the province's other entry points.

The NDP promised during the recent election campaign to reduce gas taxes in the Amherst area to keep motorists from getting fill-ups in New Brunswick, where gas is cheaper.

On Thursday, Dexter said no other area would get the tax break.

The opposition Conservatives issued a statement saying several other communities have their share of cross-border traffic, including Pictou, Yarmouth, North Sydney and Digby.

Tory critic Murray Scott says granting special treatment to communities in northern Nova Scotia will be unfair to other communities that see motorists heading to and from Prince Edward Island, Maine, Newfoundland and New Brunswick.

"If he begins this in the town of Amherst what would be the reason for not doing it elsewhere?" Scott asked.

All of the entry points mentioned by Scott are linked to other jurisdictions by ferry services. By contrast, Amherst is close to the New Brunswick border by car.

"Drawing imaginary borders will always leave someone on the other side of the fence," Scott said. "It will pit one Nova Scotian against another and give an advantage to some businesses over others."

Scott's riding, Cumberland South, includes the community of Springhill, which is a 20-minute drive from Amherst, the one border community that is sure to see its gas taxes decline to match lower prices in New Brunswick.

At least one business in Springhill is worried the community will not be granted permission to lower its gas taxes. Nancy Doucette and her husband Michel own the West End Gas Bar, one of two gas stations in the town.

"It'll kill us," Nancy Doucette told the Halifax Chronicle Herald. "If they just consider Amherst, it will put us out of business in Springhill."

She said the price difference between Springhill and neighbouring New Brunswick towns is usually about eight to nine cents per litre.

Dexter said his NDP government is dealing with "an identifiable problem" in the Amherst area and he declined to say which nearby communities would be excluded from the tax cut.

"I can't tell you that at all," he said after a cabinet meeting. "That will be part of the consultations that take place."

The premier said the issue will be dealt with this fall.

While Dexter dismissed cutting gas taxes at other entry points, deputy premier Fank Corbett opened the door a crack, saying: "At some point, it may be looked at."

Dexter said the system works well in other provinces and the two-tier tax regime should have been set up when gas price regulation was introduced in Nova Scotia.

"As far as I'm concerned, it's a common sense matter," he said. "It's not inventing anything new."

 

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