The province may loosen its grip on a controversial tax and return it to services for which it was created almost a century ago.

Black Press has learned Victoria is considering the release of $7 million from the Insurance Premium Tax to help pay for regional firefighting initiatives.

Since 1921, B.C residents have been paying a tax (now 4.4%) on all property and vehicle insurance plans, generating more than $300 million annually for the province. It was created to pay for the fire commissioner’s office, which received $2.3 million last year.

“The Fire Chiefs’ Association of B.C. continues to object to, perhaps, the misuse of the Insurance Premium Tax,” said Coquitlam Fire/Rescue Chief Gord Buchanan.

A task force report on the issue that urges return of the funds is the first indication the province might relent, at least in part.

Buchanan said it’s too early to guess whether more money will be returned to fire departments and, if it is, how much. But he did say any extra revenue would be “greatly appreciated.”

The money could be used to fund more training and equipment, he said, although implementing a region-wide radio system would could also be a good use. Coquitlam’s firefighting costs would also be reduced in general, leaving an ongoing source of savings to be used elsewhere in the city.

lgerrits@tricitynews.com

– with files from Kevin Diakiw, Black Press