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Carbon tax draws criticism from area politicians

Local municipal politicians are speaking out against the provincial carbon tax. The Town of Westlock passed a motion Jan.
Town of Westlock mayor Ralph Lergier says that municipalities are under more strain since the province cut the grant in-lieu program last year.
Town of Westlock mayor Ralph Lergier says that municipalities are under more strain since the province cut the grant in-lieu program last year.

Local municipal politicians are speaking out against the provincial carbon tax.

The Town of Westlock passed a motion Jan. 9 to send a letter to Premier Rachel Notley, Environment and Parks Minister Shannon Phillips and local MLA Glenn van Dijken about the impact of the carbon tax on the municipality.

Council had received a letter from Town of Whitecourt mayor Maryann Chichak asking the premier to consider municipalities and non-profit agencies as revenue neutral, and hold extensive consultation and engagement about the use of the tax revenue.

'I totally agree with the Town of Whitecourt," Coun. John Shoemaker said at the council meeting. 'It is going to have an impact on municipalities and I think we should send a similar type of letter."

'Ultimately, we as a municipality don't want to place a tax on a tax," Coun. Murtaza Jamaly added. 'We essentially have to pass that tax cost onto our ratepayers again."

Mayor Ralph Leriger said Chichak's point on fund dispersal could affect how the town pays for projects.

'I think that's important to see what the municipality's actual needs are, in terms of making their facilities more energy efficient, instead of trying to squeeze your project into the parameters of a grant that's been decided for you," he said.

Less money, more pressure

Leriger later added on Jan. 12 that more consultation with municipalities about their priorities and how to disperse funds was a significant point he would like included in the letter.

'We're hearing a lot of rumours and conjecture around the potential for energy efficiency programming and grant funding that municipalities can receive," he said.

'There's little to no details about that that have been provided ... I think municipalities need stable funding, not access to grants. Grants, from my experience, force people to try and shoehorn their community into a pre-determined set of criteria that often is a difficult fit."

He noted that municipalities are under more strain since the province cut the grant in-lieu program last year, which gave municipalities a grant for property tax-exempt buildings, like seniors housing and provincial buildings.

'We have a lot of tax-exempt buildings in this town, which we have to provide services for and the rest of us who are not tax exempt share in the cost of those services," he said.

'Now we find ourselves paying a carbon tax on the very fuel we need to purchase the service and plow snow too for those facilities that are not paying taxes.

'The expectations on municipalities, especially small urban ones, continue to grow and grow and grow and we have limited ability to create additional revenue to look after those responsibilities."

'Stupid" decision

At the Village of Clyde last Monday, Hi-Way 9 transportation wrote a letter to council explaining that they would be adding a 0.8 per cent carbon surcharge on all freight deliveries for shipments in Alberta starting Jan. 1.

Reading that, village deputy mayor Nat Dvernichuk expressed his frustration with the carbon tax downloading costs onto businesses and local customers.

'This is the stupidest thing that could have ever happened in a province, especially in this province, when people have no jobs, massive layoffs in the City of Edmonton, massive layoffs in the province all around," he said.

'Let's put a carbon tax on, on what? Carbon dioxide coming out of the vehicles? I guess so. We're going to be paying this tax as a village and as a municipality. Everybody is going to be."

Dvernichuk also criticized the lack of experience of many MLAs and ministers in cabinet for implementing the tax, as well as how the revenue would be used.

'It's not being designated to anything that's going to clear up pollution - that's what I've heard," he said. 'It's probably going to go into general revenues and be squandered like the rest of it. And rebates for what? Don't take it from us to give it back?"

Carbon tax rebates

The provincial carbon levy came into effect Jan. 1.

Rebates were mailed out by the Canada Revenue Agency starting Jan. 5 and will be sent out as often as a quarterly basis, depending on the amount. The rebate is based on the 2015 income tax and benefit return, and might be listed as 'provincial payment, CANADA" on direct deposits.

The province says it expects to collect $9.6 billion over the next five years.

Certain fuels, such as marked gas and diesel used on farms will be exempt.

Small businesses will also see a break with the small business rate getting a cut from three to two per cent.

A new energy efficiency rebate program is in the works, but details and eligibility haven't been released.

One such program that will be available is the on-farm energy management program, which assists producers with purchasing energy-efficient equipment or monitors, like lights, pumps, meters, boilers, heaters and low-energy livestock watering fountains.

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