Jun 12, 2008 - 10:42 AM

By Reka Szekely

DURHAM -- Region finance staff are going to spend the summer assessing the economic impact of the GM truck plant closure and how it will affect its revenue.

Finance commissioner Jim Clapp estimates the truck plant closing will mean a loss of nearly $1 million per year for the Region and about the same for Oshawa, in property taxes. Once the truck plant closes, the plant itself is assessed as having next to no value and the property tax take for the Region drops.

"It's probably more problematic in terms of water and sewer rates," said Mr. Clapp.

That loss hovers around $1 million per year as well.

"That could raise the water and sewer rate anywhere from one to two per cent."

The finance commissioner said his staff will consider the economic impact of the closure over the summer and points out it's not just the revenue from GM that may drop, but from its feeder plants as well.

"My understanding is there are suppliers that just deal with the truck plant as well, like Lear in Ajax comes to mind," said Mr. Clapp.

At Wednesday's finance committee meeting, Regional chairman Roger Anderson expressed concern about the cost to the Region in terms of social services as well.

"The impact for us in '08 won't be as hard as it will be in late '09 or '10 when the benefits run out for those that can't find jobs," he said.