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BC: Kill, Don't Tweak, The Carbon Tax

Author: Jordan Bateman 2012/02/03

A story in the Aldergrove Star caught my eye today, as it examines the negative impact the BC carbon tax is having on greenhouse farmers. Drivers bristle at paying 5.6 cents per litre at the gas pump (soon to be 6.7 cents on July 1), but what these farmers are paying is truly outrageous. From the story:

[Marcus Janzen] runs a greenhouse on Townline Road, and has 20 acres of sweet peppers “under glass.” The facility is heated by natural gas.

“This year, when the carbon tax rises to $1.50 per gigajoule (from $1.25 now), we’ll spend upwards of $175,000 to $180,000 on the carbon tax – that no other jurisdiction pays,” said Janzen.

Labour and energy are a greenhouse operator’s two largest costs, so a heavy energy tax is a burden, he explained. His energy costs have risen 35 per cent because of the tax.

This is a direct cost that Janzen’s California competitors don’t have to pay. Sure enough, this has led some BC companies to a very sensible solution:

Janzen said B.C.-based companies are making huge greenhouse investments in Northern California, because of the present tax regime. “The competitive situation in B.C. is getting to the point where producers feel they’re better off elsewhere.”

He recently expanded his Abbotsford business, but said he won’t be doing so again. “If we’re going to expand beyond this, we’ll look to Alberta and the U.S.”

The BC Greenhouse Growers Association has been lobbying for their members to be exempted from the carbon tax, but there’s an even fairer solution—just axe the tax for everyone


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