Wabush tightens belt as layoffs loom

Residents of a Labrador mining town facing significant job losses will not have to pay more next year in property taxes, although Wabush will cut some recreational services.

Wabush Mines will lay off about 160 workers by February to cope with a slump for its iron ore. The company is by far the largest employer in Wabush, one of two mining towns in western Labrador.

The Town of Wabush will close the town arena in May, and will reduce operating hours at the town's recreation centre.

Coun. Terry Curran, chair of the town's finance committee, said council is asking staff for suggestions to prevent those cuts from having to be implemented.

"If we shift some money around, maybe we can change some of the decisions," Curran said.

"If a committee formed by staff and employees of the town and town council can come up with different ways, areas to save money and if priorities can be changed, we'd certainly be more than happy to look at that."

Like other municipalities, Wabush is required by law to pass a balanced budget.

About a quarter of the town's $4-million budget is earmarked for the recreation centre and arena.

Meanwhile, Curran said councillors are also going to take a hit. They will not accept remuneration for the first four months of 2009.

Council is also trimming spending on travel, training and special events.