News Release

Kelly Says Provincial/Municipal Responsibilities Must be Clearly Defined

(Friday, March 2/2001)-- Mayor Peter Kelly said today that he can appreciate the Province's delicate financial situation, but it cannot continue to download its fiscal responsibilities onto the backs of the municipal taxpayer.

Mayor Kelly said Halifax Regional Municipality is willing to work with the Province to help it find a solution to its financial difficulties, but the most appropriate way to resolve this issue is through a clearly-defined governance structure-not by using property tax dollars to finance its proposed Equalization Fund for municipalities.

"There must be a firm delineation to make it perfectly clear to everyone just what services the Province will be providing; and what services will be the responsibility of the municipal units. The current situation of the Province downloading on municipalities each year cannot continue. We are getting tired of not knowing what new costs we will have to face every time the Province changes the rules, " he said.

The Mayor said it was unfortunate that the provincial government chose not to follow the recommendations of its own Municipal-Provincial Roles and Responsibilities Committee, which it established three years ago to address the very issues that remain in dispute today.

"The Province appointed the Committee, we participated in it, and contributed to it during the past three years. Yet this week, the Minister comes out and announces the arbitrary decision to establish an Equalization Fund-- without any prior consultation with the H-R-M, " he said.

Mayor Kelly said HRM recognizes that some municipal units, such as the Cape Breton Regional Municipality, are experiencing difficult financial times, "but to use property tax dollars for Equalization payments is fundamentally wrong. There are better ways to resolve this issue."

The Mayor said Regional Council will be meeting with local MLAs next week to discuss the issue of municipal services and their costs. In addition, it will be pressing for further meetings with the Province " to clearly determine which level of government has the responsibility to provide-and pay for-- each of the various services to the taxpayer."

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Mayor Peter Kelly
(902) 490-4010