By Patrick Newhook/February 24, 2022
Ferryland MHA Loyola O’Driscoll says he is getting calls from people who fear they may be financially impacted if the province moves ahead with regionalization.
The province released a report on February 2 that looked at regionalization as a way for towns and Local Service Districts (LSDs) to better cope with increasing operating costs in the face of a declining population.
Some people living in unincorporated areas and LSDs fear the report could lead to their areas being swallowed into the boundaries of nearby towns meaning they would have to pay property taxes.
There is nothing in the report that actually calls for that, though the idea has been touted by academics, pundits and some mayors for years.
“We have people calling me that are not in favour (of regionalization),” said O’Driscoll. “Right now they’re not in favour, they just don’t see how it fits in there with their economic times right now… I don’t know how, without getting into some of the specifics of what they (the provincial government) are trying to do, how this is going to help some of these communities. What are the advantages for these communities?”
Ferryland district has LSDs in Mobile, Tors Cove and Calvert, and close on half a dozen other unincorporated communities.
The report found that across the province, “Approximately 6.5 per cent of the population live in one of the 172 LSD’s. LSDs are unincorporated entities, administered by elected committees. LSDs may, but are not required to, provide a limited number of services to residents. LSDs cannot levy taxes, and are limited to cost recovery on a fee for service basis.”
Municipal Affairs Minister Krista Lynn Howell said that the report’s authors “did give recommendations that LSDs are functional and have the ability to provide adequate services but have the potential to incorporate.”
O’Driscoll said he is unsure how regionalization would affect a largely rural region, such as much of Ferryland District.
“There’s a lot to look at and how, basically, is it going to affect all the areas?” said the PC member. “What is it going to mean to them? That’s what we’ve got to find out… Right now we don’t have any answers to any questions.”
The report also discussed the need for regionalization given the population trend in most of Newfoundland. According to Statistics Canada’s 2021 census, Newfoundland has experienced a population decline.
“Community viability, from a taxation and economic development basis, is at significant risk in the province due to several factors,” the report indicated. “Financial demands are increasing, particularly in rural regions, due to things like increasing infrastructure deficits, out-migration, reduced population density and aging populations. It is essential that the province have mechanisms in place to support changing demographics.”
The report also looks at the impact aging populations will have on a community’s ability to run and operate local government structures, pointing to regionalization and regional governments as a way to ensure representation.
O’Driscoll wasn’t able to say if this could benefit the communities in his district. “That’s a question I can’t answer,” he admitted. “But if they’re going to try and implement something like this we need to know the details of what they’re trying to do. So can it help? It may help, but I think we don’t know the details and that’s what we need to get in order to answer the questions we are going to ask them. Where does this go, what’s changing for these people, what benefit is it to these people? That’s some of the basic questions.”
O’Driscoll said the rising cost of living is already a big concern and he is wondering if regionalization will add further costs for some residents.
“How is it going to make it better for these residents? What is regionalization going to do for these residents to make it better?” said O’Driscoll. “That’s the questions that need to be asked. And what causes the problem? They’re the two most important things. What are they going to get that’s going to make their lives better to be regionalized? Those are the questions that need to be asked and they’re tough questions, but we need to have answers on them.”
