Yukon trucking company worried about impacts of carbon tax

A freight company in the Yukon says it's worried about the impact of the carbon tax because it doesn't have details on how the rebates will work.

The tax comes into effect on July 1, 2019 in Yukon. 

Sheldon King, president and owner of Pacific Northwest, says his company makes 30 trips a week into the territory, primarily from Edmonton, and four weekly trips between Whitehorse and Dawson City.

King says it's what he doesn't know about the carbon tax that makes him nervous. 

"There hasn't been a whole lot laid out to us on what it's going to look like," he said. "We kinda know how much, but don't know what the rebates are going to be at all, who gets them, how much they get, anything like that."

99.9 per cent of the things in the Yukon are trucked up here. So everything is going to be more expensive.- Sheldon King, president of Pacific Northwest

King estimates he'll use about 3.5 million litres of diesel fuel next year, and roughly calculates the carbon tax will cost the company about $147,000 in the first year. The carbon tax is set to increase in following years.

He says those costs will have to be passed on to the consumer.

"Pretty much everything that comes to the Yukon, the food that you eat at restaurants, that you pick up at the grocery store — 99.9 per cent of the things in the Yukon are trucked up here. So everything is going to be more expensive." 

What about exemptions?

King says he's met with his MLA, Richard Mostyn, and Yukon Premier Sandy Silver to express his concerns, but says he didn't come away with answers. One of his big questions is why some industries, such as aviation and placer mining,  have been given exemptions.

"Air North flies to Mayo and to Dawson City and they haul freight. They don't have to charge their customers carbon tax.

"I haul to those two places as well, as do other trucking companies in Whitehorse — we're going to have to charge our customers the carbon tax. That doesn't seem fair to us."

Silver has assured placer miners that they will be rebated "100 per cent" on the costs they incur operating equipment used to work their claims.

King says the transportation industry is also dependent on equipment that uses fossil fuels. 

"There are no electric tractors that can go up the Alaska Highway 1,989 kilometres from Edmonton, there's nothing invented like that."

Premier working with chamber of commerce

King says he asked Silver how other industries qualified for exemptions. He says he didn't get an answer.  

King's concerns were raised in the Yukon Legislature on Thursday. Silver said the exceptions for other industries came from the federal government. 

Yukon Party Leader Stacey Hassard pressed Silver for details.

"How will these rebates work for trucking companies? Will it be dollar for dollar, the same as the placer industry?"

Silver said he is addressing the concerns of the transportation industry.

"We are happy to be working with the [Yukon] chamber of commerce when it comes to how we will rebate the money that is collected, back to these companies."

Silver has said he has explained "the lion's share" of the carbon tax details but has also said he is still waiting for the federal government to give him more specifics.