Saint John businesses worry about potential water rate hike

Industrial water users in Saint John are poring over a consultant's report thatcalls for significant increases to water and sewage rates in the city.

Saint John residential consumers could see a 21 per cent spike, while industrial customers like Irving Oil Ltd. could be facing a jump of 57 per cent.

Moosehead Breweries appeared to get off a little easier than the oil company with a suggested rate increase of 16 per cent.

Joel Levesque, the brewery's vice-president of public affairs, said, however, thatthe consultant's numbers used in the report are outdated, so thehike would be closer to 30 per cent.

Levesque said that the surge in water rates is not fair, considering the brewery has to treat the water extensively itself.

"We're paying for our water twice. We're paying for what is essentially raw water with a little bit of chlorine in it and treating it ourselves," Levesque said. "The consultant's report seems to make the suggestion that our rates are going to have to pay for a lot more water, clean water, than we really should have to."

The rates would also put the company at an economic disadvantage by continuing to operate in Saint John. Levesque said if the facility was in Moncton, the brewery water rates would be 40 per cent less than what they are currently paying and that would be for completely treated water.

Paul Groody, the city's commissioner of municipal operations, is examining the report with his staff, and will come back with his own recommendations to Common Council.

Sam Robinson, a spokesman for Irving Oil, said the company is eager to discuss the sharp rise in rates.

"We do look forward to meeting with Groody to discuss the water rates study, and in the meantime, we do remain committed to paying fair rates for the water we use," Robinson said.