For example, Turtle Mountain School Division will be hit in different ways. Superintendent Tim De Ruyck said they are still assessing how it will impact them overall.
“We know it will have an effect,” De Ruyck stated. “We’re still cracking numbers in regards to heating the buildings.”
That is because gas and diesel are not the only areas to be hit with the carbon tax. For example, it has raised the price of natural gas by 3.91 cents a cubic litre. The superintendent said the division’s buildings are heated by a combination of natural gas and electricity, it might take some time to figure out the full impact.
As for their transportation numbers, they will obviously increase. De Ruyck said they were looking at cutting a couple of bus routes this upcoming year, but with the current routes at 20, the changes would cost them an additional $14-15,000 on fuel prices.
“We did know it was coming, and through budget deliberations we knew we had to make slight reductions, but they were not specifically for carbon tax. We will have to make it work, but it will take a tight budget.”
He said there is added concern as the tax is to gradually increase. Plans are for gas to go up a total of 11 cents by 2022 and diesel by 13.7 cents. This means no relief for a while.
Currently, the division has 20 buses on routes and six spares. De Ruyck said they have tried to make them more efficient over the years. In the past, diesel was cheaper than gas, but this has changed. The division made the decision to buy gasoline-run buses in the future. The difficulty there is this only happens when they are actually replacing them. At this point, only three or four are actually gas.
De Ruyck added some divisions have moved to propane buses, which TMSD has looked at. There are some logistic problems to that, as they cannot fill the tanks without someone else present. As well, propane is also going up 3.10 cents a litre. The issue is hard to escape.
Another way the division is trying to mitigate the issue is with different vehicles for their extracurricular trips. They are working on purchasing an A-2 bus, with the idea of getting another in the future. De Ruyck said they cost about two-thirds what a school bus does and have similarities to a handi-van. They can seat close to 30 people and would be cheaper to operate for trips for bands, sports teams and the like. The superintendent said they cannot replace their fleet with them, as they do not perform well on gravel roads, particularly in the winter, every little bit helps.
“We’re looking at every avenue we can to realize savings,” De Ruyck explained.
If they get two A-2 buses, one would stay in Killarney, the other in Boissevain.
In some cases, the carbon tax will not have a heavy impact. For example, farmers using coloured fuel will not be subject to it. As well, citizens can apply for a tax rebate starting this year that is fairly substantial ($170 for single people). Whether or not it or other rebates give back 90% of the cost remains to be seen. The other 10% of the tax is to go to schools, Indigenous communities and other projects.
De Ruyck said he is glad farmers are getting a break, but he has not yet seen the same for school divisions. It is difficult, as they cannot change some of the facts of their operating.
“We simply have to run buses, and bring students to schools. We can’t just stop doing that.”
These are facts businesses are also running into. Robert Dyck of Goodon Industries is not at all thrilled with the changes. They produce post frame buildings, and in Border Town Metals, corrugated steel. This means a lot of transport of materials in and finished products out.
“We have 14 trucks on the road when we get going,” Dyck said. “It adds up to a big number.”
He estimated the gas/diesel increases would add $6,000 a month to the transportation bottom line. This is very significant, and obviously, Dyck is not pleased.
“It’s always something. They don’t seem to want to stop. All we want as businessmen is for government to create an environment that will create growth. The private sector grows the economy.”
Although there are rebates in some cases, no one has seen them for businesses yet. As well, increases in transportation costs have inevitable impacts on prices of goods. If those prices go up, the goods transported – be they manufactured, groceries or whatever – will inevitably rise. Since everything comes from somewhere, everything is impacted.
When asked how long it would take for their costs to go on products, Dyck said “about five minutes.” They have contracts out that will be honoured, and thereby they will take a hit, but it will impact prices soon. He said he is glad farmers get a break on fuel, but that alone will not help them if the costs of buying things like bins, buildings or equipment changes due to the tax. As for the business, they just have to adjust.
“The only thing we can do is try to be as efficient as we can.”
De Ruyck says much the same. It will take serious budgeting to make it work, especially when there are so many variables. The carbon tax is a tax. What happens if the market drives up fuel prices? There are so many considerations.
“A lot depends on what kind of winter you have,” De Ruyck explained. “If it is cold, then your natural gas costs go up.”
He added they are in better shape now because of the recent changes in Boissevain and Killarney Schools, as they are now more energy efficient. As for whether the carbon tax will help the environment, De Ruyck said if you ask ten different people, you get ten different opinions. It is difficult, he said, when there are not really fully developed alternatives available.
The story is not necessarily finished. Both Ontario and Saskatchewan are challenging the tax in court, and a federal election is slated for October, with the Conservative Party opposing the tax. However, Dyck said he is not sure anything will make a difference.
“Once a tax is in place,” Dyck said, “it is awful hard to cut that addiction.
by PAUL RAYNER, Recorder staff