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Heavy Construction and Taxpayers illustrate huge carbon tax costs

Author: 2017/05/18

REGINA, SK: Reporters got to see just how much a carbon tax will cost heavy equipment operators as the Saskatchewan Heavy Construction Association (SHCA) and Canadian Taxpayers Federation (CTF) filled up some big fuel tanks on Gas Tax Honesty Day.

“It would cost a fortune to pay carbon taxes when we fuel up big pieces of construction machinery,” said Shantel Lipp, President of the Saskatchewan Heavy Construction Association. “Our diesel bills are already big enough, so we do everything we can to be as fuel efficient as possible, but you can’t build a highway with a hybrid.

“If heavy construction contractors are hit with a carbon tax those costs will ultimately filter back to everyone.”

The Saskatchewan government is opposing a carbon tax, but Ottawa is threatening to unilaterally impose a federal carbon tax on the province. The minimum price on carbon will rise from $10 per tonne in 2018, to $50 by 2022, which would increase the cost of diesel by more than 15 cents per litre. If carbon taxes ultimately rise to $300 per tonne as recommended by federal bureaucrats, the per litre tax would soar to 90.2 cents.

At the CTF’s Gas Tax Honesty Day event in Saskatchewan, 2015 Kenworth T880 semi and a Volvo L180G loader were fueled up.

It takes 380 litres of diesel to fill the semi. At $10 per tonne, it would cost $11.43 more to fill the tank. At $50 per tonne, that cost would rise to $57.13.

It takes 1268 litres of diesel to fill loader. At $10 per tonne, it would cost $38.13 more to fill the tank. At $50 per tonne, that cost would rise to $190.65.

Contractors routinely refuel pieces of heavy equipment daily.

“The impact of a carbon tax goes far beyond getting people to bike to work downtown,” said Todd MacKay, Prairie Director for the CTF. “It takes a big engine to run loaders and semis and that takes fuel. And while most of us never fill up those huge fuel tanks, we’ll all pay the price if Ottawa hits Saskatchewan with a carbon tax.”

The CTF’s Gas Tax Honesty report for 2017 can be downloaded here: http://www.taxpayer.com/media/2017-GTHD-EN.pdf


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