Richard Gleeson
Northern News Services

Yellowknife (Nov 19/99) - A new proposal by the federal government has removed some sting from the thorny issue of reducing taxes on Giant mine to help keep the mine operating.

"At least it isn't all on the city's shoulders any more," said Mayor Dave Lovell Wednesday.

The burden Lovell was referring to was the tax moratorium prospective Giant mine purchaser Miramar has requested.

Last month Miramar proposed that it pay no taxes for the Giant property for two years after taking it over, and that taxes thereafter be linked to the price of gold.

Miramar indicated the deal -- and the 50-60 jobs that went with it -- would not be viable without a break on property taxes.

Lovell, Coun. Blake Lyons, city clerk Tim Mercer and finance director Robert Charpentier met with territorial and federal officials and representatives of Miramar yesterday to try to work out a solution to the tax issue.

Asked if the discussion shed any more light on how critical the tax reduction is to Miramar's proposal to purchase Giant, Lovell said, "I think (property taxes) are a deal-breaker for Miramar, but I think other entities might want to pick up the difference."

Lovell said the city was negotiating the tax issue more with the federal and territorial officials in attendance than with Miramar.

Lovell said regardless of the outcome of the discussion, the problem would not be resolved at the meeting.

"I don't have a mandate to settle," said the mayor. "It has to come out and be discussed publicly for that to happen."

Lovell said that discussion could take place as soon as council's noon hour meeting Monday, but would likely have to be ratified at the council meeting Monday evening.

Hiram Beaubier, director general for the Department of Indian Affairs and Northern Development (DIAND), said he suggested a new approach to the problem to Mayor Lovell on Monday. At a closed meeting Wednesday morning, Lovell and council discussed what Beaubier had offered.

"Council gave me a very firm mandate," said Lovell of the Monday meeting. "I know what our bottom line is. Council is speaking with one voice on this."

Neither Beaubier or Lovell would say what was included in the proposal.

Asked if the new proposal addressed council's complaint that the city was being asked to take the financial "hit" to make the deal, Beaubier said, "I think it will."

In a news release issued Thursday, the city noted that if a buyer for Giant is not found, the federal government would pay about $2 million annually to keep the mine in compliance with federal environmental regulations.