Irving Oil - Criticisms

Criticisms

Irving Oil and J.D. Irving Ltd. are private companies that are closely held by the Irving family. As a result, there isn't as much public information available on the company as there would be for a publicly traded organization. Like most oil companies, Irving Oil has a vertically integrated structure, although its structure isn't as comprehensive in its vertical integration as other oil businesses, such as ExxonMobil.

Examples of vertical integration within the "Irving Group of Companies" (as the Irving family refers to their holdings) include the acquisition or formation of businesses along the entire chain of production, from the Irving refinery (an Irving Oil subsidiary) and its retail outlets, to the transportation subsidiaries of J.D. Irving (RST, Midland, NB Southern, Sunbury), to various construction and engineering companies that assist in building, maintaining and expanding the conglomerate's facilities. Further examples of vertical integration within the conglomerate include Industrial Security Ltd. (ISL), the wholly owned security company that guards facilities, as well as industrial suppliers such as Thornes, Universal Sales and Commercial Equipment Ltd. which provide specialty goods and services to its companies.

J.D. Irving, the sister firm to Irving Oil, is a dominant forestry company in northeastern North America, growing trees, harvesting trees and producing lumber, pulp and paper, and various enhanced value products such as newsprint, tissue, and personal care products. JDI also owns Brunswick News which controls most English-language newspapers in New Brunswick.

The Dominion newspaper, an independent Canadian newspaper, has criticized Irving's ownership of the New Brunswick Papers, as well as the papers' journalistic integrity, particularly when reporting on companies controlled by the Irving family such as Irving Oil.

The city of Saint John, where Irving Oil is located, is closely tied to the Irving Group of Companies which are mostly headquartered there. In 2005, Irving Oil received a controversial tax break from the municipality to develop the Canaport LNG (liquid natural gas) terminal; it was apparently negotiated one-on-one with the city's then-mayor Norm MacFarlane. However, this is a very common practice across North America and Europe. Municipalities often negotiate directly with major tax payers such as corporations in order to ensure that these businesses don't move to other cities with more favorable tax conditions.

There was also conflict in Saint John over the proposed construction of a natural gas pipeline that was to cross through a major municipal park. However, it is unknown if there would be any health risks to the community.

There have also been accusations of Irving family political patronage, notably involving Allan Rock and Claudette Bradshaw of the Liberal Party of Canada.