The Reminder is making its archives back to 2003 available on our website. Please note that, due to technical limitations, archive articles are presented without the usual formatting.
Jonathon Naylor Editor The Manitoba government has turned down a request to send a deputy minister to funding talks between the City of Thompson and nickel giant Vale. As is the case with Hudbay in Flin Flon, Vale does not pay property taxes to Thompson, instead doling out a yearly grant in lieu of taxes. Discussions are to take place between Vale and the City of Thompson, Local Government District of Mystery Lake and the School District of Mystery Lake regarding the renewal of a letter of understanding that establishes existing arrangements for Vale's grant. Thompson Mayor Tim Johnston had asked Local Government Minister Ron Lemieux to send his deputy, Linda McFadyen, to participate in the discussions. But in a recent letter to Mayor Johnston, Lemieux declined the opportunity. 'The Province of Manitoba was not signatory to the existing letter of understanding,' he wrote, 'therefore, current discussions to renew the letter of understanding can proceed without the province.' Lemieux added that the province would be 'pleased to support the city's discussions' and would 'appreciate if you could keep us informed about your progress.' The current seven-year letter of understanding between Vale and the Thompson entities has been in effect since Jan. 1, 2005 and expires on Dec. 31. It reads: 'In signing this letter of understanding, the parties acknowledge that the voluntary grant-in-lieu of taxes is a gratuitous non-contractual grant made by Inco (now Vale).' Vale has agreed to make grant payments to Dec. 31 unless there is a major development like a shutdown of Thompson operations or 'a substantial reduction' in operations beyond any planned in 2005 or contemplated in the company's current plan. During a 1999 labour dispute between the company and its employees, Inco threatened to reduce its annual grant by $1.5 million over three years. Then-mayor Bill Comaskey estimated that such a reduction would be equivalent to a 10 per cent municipal tax increase. In Flin Flon, Mayor Fontaine has publicly endorsed changes to the grant agreement between Hudbay and City Hall. As a mayoral candidate in 2010, he said he would like to see Hudbay pay a 'steady percentage' or a 'steady sum' year over year, as this 'would be a whole lot easier for us to work with.' As it is now, the amount Hudbay pays varies from year to year. Asked for an update on the situation late last year, Mayor Fontaine said there were no 'major changes or breakthroughs to announce' but 'relations between HudBay and the city are healthy.' '...we will always be talking, and reviewing, and making changes whenever that seems reasonable to all concerned,' he added. _ With files from John Barker, Thompson Citizen
