Residents call on city to prep for AIM lawsuit outcome

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A group of residents is calling on the City of Saint John to prepare for all possible outcomes of a legal battle over the future of American Iron & Metal’s waterfront scrapyard.

Some of that work could include the city undertaking independent soil testing, shaping relocation plans for the scrapyard, and advocating for stiffer regulations if the facility reopens at its current site.

AIM is currently seeking a court order to quash Environment Minister Gary Crossman’s decision to suspend the company’s approval to operate its industrial metal shredder at its Gateway Street scrapyard. That suspension was handed out in the aftermath of the company’s massive scrapyard fire in September.

Amid the legal action, the City of Saint John – which doesn’t regulate the scrapyard nor is the company’s landlord – should be doing prep work for three possible outcomes: closure, relocation or resumption of operations at the facility, according to representatives of Liveable Saint John who appeared before city council’s public safety committee Wednesday.

“We have the province who are in the middle of a court case, (Port Saint John) who is the leaseholder. Both the port and the province are not really able to say very much because they’re both involved in this legal case,” said Raven Blue, of Liveable Saint John.

“We feel that the city is in a unique position because they are not a regulator where they can take some leadership on this issue.”

Saint John Coun. David Hickey, who is chair of the public safety committee, said he’s been pleased so far with the city’s leadership, citing four letters and “numerous meetings” the city has had with provincial officials over AIM since 2018.

“I think any return to business as usual or business as close to usual at this site is a failure of government at every level,” Hickey said.

Earlier this week, Premier Blaine Higgs said he doesn’t expect AIM to reopen its waterfront scrapyard despite the company’s legal action.

“I don’t see (the scrapyard) operating again in the port,” he said. “I think there’s enough history of what we learned and certainly with that major fire it’s just not an acceptable location for it.”

A provincial task force – made up of Higgs government and Port Saint John officials – arrived at that conclusion in December following its investigation into AIM’s operations in the wake of the massive fire in September.

At least 181 explosions and 22 fires have been reported at the west side scrapyard since shredding operations started in 2011, according to the task force’s report. Two contractors have also died in workplace accidents at the scrapyard.

In its lawsuit, AIM alleges Crossman relied “excessively” on an investigation produced by a task force where there was a conflict of interest present. The company argues its landlord, Port Saint John, shouldn’t have been involved on the task force investigating the fire.

The facts are pretty clear, pretty understandable that it’s not a safe location, it’s not a safe operation, and we will prove that in court.

Blaine Higgs

None of the allegations contained in the lawsuit have been proven in court, and the Province of New Brunswick has yet to file a statement of defence. Officials with AIM didn’t return a request for comment as of deadline.

Members of council’s public safety committee approved a motion Wednesday for city staff to review Liveable Saint John’s recommendations and return with a report.

Community feedback being gathered

In late December, Public Safety Minister Kris Austin revoked the salvage dealer’s licence for the west Saint John scrapyard, citing the findings of the task force’s investigation.

However, Crossman did not revoke the scrapyard’s approval to operate, leaving the door open for the shredder to resume operating if the suspension is lifted.

Liveable Saint John has been holding public meetings and collecting survey responses to gather feedback on the impact of AIM operations.

“My home overlooks the harbour and AIM,” city Coun. Barry Ogden said Wednesday. “I see it every day, and I can smell everything coming from it and I can hear everything coming from it.”

Operations have been at a halt since the fire, with the permitted exception of vessels – including one this upcoming weekend – picking up piled-up scrap material from the facility.

Earlier this week, Higgs said he wasn’t surprised to see “pushback” from the company over the suspension of its approval to operate.

“I didn’t expect it would be easy,” he said. “I don’t see that it will be a short argument because I’m sure AIM will fight it with everything they can, but I think the message is clear in their ability to operate safely in the harbour. It’s not there.”

When asked why the environment department didn’t permanently revoke the scrapyard’s approval to operate in September, Higgs said there is a “process to follow.”

“The facts are pretty clear, pretty understandable that it’s not a safe location, it’s not a safe operation, and we will prove that in court,” he said.