Northern communities that stand to benefit from billions of dollars of investment in the liquefied natural gas industry are raising concerns about the impact the industry is having on their communities.

Even before any of the 18 filed applications has reached a "final investment decision", the magical go-no go point that the province hopes several companies will reach within 18 months, local governments are concerned about being ready for the impact.

From rent evictions to outdated infrastructure to pressure to provide new facilities and programs, communities like Kitimat, Prince Rupert and Terrace are feeling the pressure of the LNG gold rush.

So there was natural skepticism when Rich Coleman, the minister of natural gas development, told a group of municipal politicians at the Union of B.C. Municipalities convention that they need to make sure they don't raise industrial tax rates so high they scare off potential projects.

Stopping short of saying the province will cap industrial property taxes, Coleman said he wants to make sure local governments don't jeopardize a potential $175 billion LNG program by setting industrial tax rates too high.

When the Legislature resumes in October the Liberal government will unveil a fiscal framework that not only includes an LNG industry tax but also a plan for municipal property taxation, Coleman said.

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