Gas prices hurting small businesses

BY BILL BRADLEY

Small businesses are getting hit hard by rising energy costs, said a representative of the Canadian Federation of Independent Business. 

Vincent Godin spoke to the media at a mobile Scotiabank small business display at Algonquin Square last week.
“The price of fuel is hitting everyone,” he said.

“It does not matter what business you are talking about. The individual who puts a tomato on a sandwich is feeling the price rise with transportation costs going through the roof.”

Transportation companies are being impacted even more than other industries, Godin noted.

“For truckers, how can they predict what shipping their next load is going to cost them when prices can jump overnight?”

Consumers are also being pinched by rising gasoline and home heating costs. This means they have less money to spend, said Godin.

The Federation of Independent Business is fighting back.

“We have written a letter to the federal government asking them to review the federal excise tax on fuel. Maybe we can see some reductions there.”

When the price of gasoline retails at a dollar per litre, total taxes add up to 30 cents. That includes excise tax (10 cents), GST (five cents), and Ontario tax (15 cents), according to a CFIB fact sheet.

“There was a 1.5 cent per litre tax put in place when governments ran deficits. We have not run a deficit in years,” he said.

Godin said when the Liberals were in power, they declined to reduce federal taxes on gasoline.

Finance Minister Ralph Goodale said if that happens, the oil companies would just raise their own prices to equal the difference, Godin contended.

“That shows there is price fixing and collusion by the oil companies. Let’s deal with that,” said Godin.

Another recent concern is carbon taxes.

“As of July 1, a carbon tax was implemented in British Columbia. That adds an additional 2.4 cents (on top of 30 cents of tax if gas was $1 per litre). That tax will rise to 7.2 cents (8.3 cents for diesel) by 2012. Now the federal Liberals are talking about a nationwide carbon tax system if elected.”

Godin admits the Liberal carbon tax plan does not tax gasoline but other fossil fuels such as home heating.

“What are people on fixed incomes going to do  if they have to pay up to 45 per cent more for natural gas announced today?”

What happens to small business if oil hits $180 to $200 a barrel by 2009 as some analysts predict?
“Then we will have a serious problem on our hands,” said Godin.