Manitobans are facing a 23% federal carbon tax hike that came into effect on April 1. As much as we would all like to thank this act as an April fools joke, the past couple of days have proved the direct opposite as the tax increase has support from Premier Wab Kinew and his Manitoba NDP government. This means that every household and industry in Manitoba will feel the effects of the NDP carbon tax prices.
The rising cost of fuel will affect industries such as farming and truck hauling, as well as our personal lives, including fueling up our cars and grocery shopping. Manitoba truckers, who bring most of our goods from the farms and factories to our tables, will take the brunt of this hit as this will limit truck routes to the far North and may even eliminate some. Local companies not only haul in Manitoba but across North America. The cost hikes will be passed on to customers, which will affect every Manitoban, regardless of their location.
The carbon tax hike will result in increased food prices, increased fuel costs, and increased heating costs for all Manitobans. The tax is set to keep rising until 2030, costing more money to live, year by year. The government has not provided any long-term affordability plan to address the issue, which has left many concerned about their financial future.
Thompson, as well as the surrounding Northern communities, are predicted to take the brunt of this hit as heavy reliance on tucking may begin to limit due to their new unaffordable expenses. The truckers who bring goods to Thompson from other parts of Manitoba and Canada will be affected by the tax hike and result in increased costs of transportation leading to an increase in the prices of goods in Thompson and put a great deal of strain on the pockets of the residents.
The farming industry is prime example of pinnacle concern to the carbon tax effects as farmers in Thompson rely on natural gas and propane to heat their barns and dry their grain. The increase in carbon tax will lead to an increase in the cost of production, which will affect the cost of raising livestock. For instance, a soybean crusher paying $150,000 per year in carbon tax today will pay $185,000 starting April 1, 2021.
Manitoba’s pork industry is a significant contributor to the economy, with over 22,000 people employed in the sector and an annual contribution of more than $2.3 billion, 624 farms exporting to more than 30 countries, making Manitoba is the largest supplier of hogs in Canada.
The cost of living in Thompson has already proved to be hardly manageable for residents as the town has a population of about 13,000 people, and the majority of the residents are middle-class families. The increase in the cost of living will affect the residents' ability to pay for their basic needs, such as food and heating. The government has not provided any plan to address the issue, which has left the residents of Thompson concerned about their financial future.
The carbon tax hike will also affect the environment in Thompson. With being located so far North, many residents in and around to more rural areas rely heavily on natural resources. The increased cost of fuel and heating might lead to an increase in the use of wood which might lead to an increase in the carbon footprint of the town. The government has not provided any plan to address the issue, which has left great concern about the environment.
The carbon tax hike has been a controversial issue, with seven premiers of different parties asking Justin Trudeau to withdraw his proposed carbon tax hike, which will put a financial burden on hardworking Manitoba families. Currently, Wab Kinew has not yet publicly joined them, but instead, he is diverting attention from the topic by talking about the temporary gas tax holiday. However, the truth is that the 23% increase in the carbon tax will result in a price of $0.17/liter for fuel. It's not only more expensive than the provincial gas tax, but it's also permanent, unlike the NDP's temporary measure.
Manitobans are looking for a long-term affordability plan from Kinew as he stated in a recent interview that though they allowed the Carbon Tax to fall on Manitoba they plan to compensate that expense with extending the cut on fuel tax;
“What we did today at the Provincial level is we announced that we are going to extend the fuel tax exemption by three more months. So on January first of this year, we cut the Provincial fuel tax to zero” Said Kinew, “We committed to doing that for the first six months of the year. But as we got closer to budget day we’d seen the various challenges around the pipe line issue that we’ve all been living through the past few weeks, the Carbon tax, rising cost of living, interest rates still being high, we looked at each other around the Government table and we said ‘let’s extend this fuel tax holiday for three more months at least, so we can help the average Manitoban’”
In conclusion, the carbon tax hike will have a significant impact on the residents of Thompson, Manitoba, and the rest of the province. The tax hike will affect industries such as farming and trucking, as well as our personal lives. The government has not provided any long-term affordability plan to address the issue, which has left many Manitobans concerned about their financial future. The residents of Thompson, in particular, will be affected by the tax hike, which will put a strain on their pockets and the local economy. The government needs to address the issue and provide a long-term affordability plan to mitigate the effects of the carbon tax hike on the residents of Thompson and Manitoba.
~Matthias J. Johnson is a Local Journalism Initiative reporter who works out of the Thompson Citizen. The Local Journalism Initiative is funded by the Government of Canada.
