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CTA Ahead of Budget: Carbon Tax Dollars Must Flow Back to Carriers

The Canadian Trucking Alliance asking Finance Minister Morneau to once again show leadership in supporting the trucking sector by reinvesting the billions of dollars the industry will be paying through the carbon tax to help fleets purchase green, carbon-reducing equipment and technology.

CTA said such a move would nicely complement the minister’s announcement made in last November’s Fall Economic Statement to accelerate cost allowances for tractor capital – a longstanding prebudget request by CTA.

“From the beginning of the carbon tax discussions, CTA has consistently stated that any mechanism used to collect revenue under the carbon pricing system must make sense for the industry,” said CTA president Stephen Laskowski. “If the revenues generated from the carbon tax by industry are not used to support faster market penetration of carbon reducing technologies for diesel trucks, then it’s quite difficult for carriers to comprehend what purpose carbon taxation has on our sector.”

CTA says the carbon revenue should flow back to the industry to support the adoption of new equipment like latest, fuel efficient tractors and trailers; aerodynamic devices such as side skirts, wide-based single tires, boat-tails, and a host of other emission-reduction technologies and devices. The former Green Commercial Vehicle Program in Ontario and the current Ecocamionage program in Quebec could serve as a model for a similar program in the listed provinces.

“The trucking industry remains the only freight mode to use equipment regulated for carbon reduction by Environment Canada. The regulation, by its design, recognizes that our sector has very few impactful alternatives to diesel engines,” said Laskowski. “Consequently, if the purpose of the carbon tax regulation is to spur changes in operational behaviour, then there is no real policy purpose for the carbon tax without revenue to support purchases of carbon-reducing equipment.”

CTA also looks forward to reviewing the federal government’s approach in the March 19 budget to training dollars made available to various sectors.

“In light of all the media attention currently being paid to the importance of the trucking industry continuing to produce professional, compliant and well-trained entry-level drivers in the midst of a severe driver shortage, CTA certainly welcomes any announcement by the government that would support the industry on this issue,” added Laskowski.

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