The Atlantic Chamber of Commerce says proposed legislation to let the Cape Breton Regional Municipality offer tax incentives is unfair and will create an "unlevel playing field."

On Thursday, Premier Stephen McNeil's government introduced a bill that would amend the Municipal Government Act to let CBRM sell lease land for less than market value and offer tax incentives to private companies.

Both changes are intended to help the municipality attract a container terminal.

In a letter to the premier dated March 14, the chamber said it "fears the consequence" of such an approach, saying other municipalities will be forced to seek equivalent powers to remain competitive.

'Race to the bottom'

"If the province opens this door we can expect municipalities will, of necessity, join the race to the bottom and adopt the destructive practice of providing tax exemptions and giveaways," wrote CEO Sheri Somerville.

The chamber said it opposes artificial incentives to attract new business.

"Any business that can only survive because it gets preferential treatment, whether it's tax concessions or free land, is not likely to be sustainable in the long term," said Richie Mann, chairperson of the chamber.

Amanda Mombourquette, executive director of the Strait Area Chamber of Commerce, says businesses will choose to locate in the Cape Breton Regional Municipality over other locations due to the changes. (Submitted by the Strait Area Chamber of Commerce)

Mann is also president of the Strait Area Chamber of Commerce, which likewise opposes the legislation. Mann is also the vice-president of marketing for the Melford International Terminal Project, a private consortium working toward a container terminal in the Strait area.

"From a business point of view, and a chamber point of view, it's about a level playing field," said Mann. "And if you put your Melford hat on, it's about the same thing."

"If you're in a situation in a municipality where your hands are tied in terms of those types of incentives, there's no question a business will head to CBRM to look for those incentives as opposed to locating elsewhere," said Amanda Mombourquette, executive director of the Strait Area Chamber of Commerce.

Clarke says others should join in

CBRM Mayor Cecil Clarke said he doesn't see the legislation as pitting one region against another.

"It is a specific opportunity we're developing for Sydney," said Clarke.

He added he'd be happy to see similar provisions extended to other municipalities.

Clarke said incentives have been offered in the past in Nova Scotia to attract or retain businesses such as Port Hawkesbury Paper and Irving Shipbuilding in Halifax.

However, Mann called that argument a "red herring," saying those investments were good for all of Nova Scotia. He said the proposed legislation flies in the face of the Ivany report, which encourages municipalities to work together to achieve prosperity.