News

'Green' Budget Taxes Car Sharers

New levy penalizes eco-friendly practice, say critics.

By Andrew MacLeod, 15 Apr 2008, TheTyee.ca

Zipcar

Co-operative Auto Network and Zipcar zapped.

As part of its green budget, on April 1 the British Columbia government began charging people who share cars with a tax that was previously only applied on car rentals.

Car share organizations, where groups of people jointly own vehicles, bill themselves as a cheap, environmental alternative for people who want to avoid owning their own car. B.C. has such organizations in Vancouver (the Co-operative Auto Network and Zipcar), Victoria and Nelson.

Critics say charging them the $1.50 passenger vehicle rental tax is consistent with the contradictions in the province's 2008-2009 budget, which committed to fighting climate change but continued subsidizing the fossil fuel industry.

"I know the Victoria Car Share Co-operative is hopeful the government will recognize this tax is not well applied," said Josh Craig, the VCSC's treasurer and past president. "If the goal of government is to encourage activities that reduce congestion and greenhouse gas emissions, this tax is not really functional. It acts as a disincentive to car sharing."

Back tax considered

For many years car shares operated without paying the tax. Last year staff in the government decided maybe the car shares should pay and considered retroactively charging Vancouver's Co-operative Auto Network some $350,000 for the tax.

Government officials decided not to charge the retroactive tax. They also decided the $1.50 per booking will only apply to trips of eight hours or more, not to every booking as was at one time considered.

"I think for the time being it's a reasonable compromise," said Craig. "It for the time being creates a level playing field between rental agencies and car share co-operatives."

For the Victoria car share the tax will apply to about 13 percent of trips.

"Ideally what all car sharing organizations would like the government to recognize is the PVRT tax is for those who are coming from outside the province and putting wear and tear on our roads," he said. Car sharing does the opposite, he argued. The users are people who live in the province, who pay income taxes and sales tax. The organizations also get people out of cars, reducing their impact on provincial roads.

Tax to yield under $1 million

While it's nice the province did not penalize the agencies as much as it might have, he said, it has done little to support the organizations. The Victoria car share has had grants from municipal and federal governments, Craig said, but not the province.

Excusing car shares from the tax would cost the government very little. The budget said the tax will bring in so little it will have "no material impact" on revenue. A Finance Ministry spokesman said it will be less than $1 million a year.

For comparison, the province has budgeted $11 million in tax breaks for people who buy new fuel efficient vehicles. In recent weeks the government also announced it is putting $15 million into expanding the Scrap-It program which gives incentives to people to get vehicles made before 1993 off the roads.

"It's silly there's any punitive treatment of a more sensible car ownership model," said Gregor Robertson, the MLA for Vancouver-Fairview and a contender to be Vision Vancouver's candidate in November's mayoral election. "It is a more environmentally sensible model. It deserves appropriate tax treatment."

While it's positive the government chose not to apply the tax to shorter trips, he said, they could do much more to encourage more environmental transportation choices. "If they were really serious about encouraging other models there would be incentives for car co-op ownership. There'd be an explicit strategy to get people out of cars, out of single-owner vehicles."

Big subsidy for oil and gas

The missed opportunity is in line with the rest of the government's budget, he added, which includes around $1 billion in subsidies to the oil and gas industry over the next three years. "The contradictions for this government between climate and many other policies they're pursuing are staggering."

The province set a record with its sale of oil and gas rights in 2007. Now it's pushing shale gas exploration, Robertson said.

"There's got to be some accountability for the greenhouse gas emissions," he said. Most of the oil and gas will be exported and burned elsewhere, and won't count as carbon emissions originating in the province, he said. "It's total hypocrisy . . . They can't see the contradiction. The government's getting away with an environmental atrocity."

Despite dressing the budget in green and taking steps to reduce greenhouse gas emissions, the government continues to liquidate the province's natural resources, said Robertson. "You can't operate a business on that premise," he said. "It's complex and it's sinister and it will have devastating repercussions for future generations."

Related Tyee stories:

 [Tyee]

18  Comments:

Login or register to post comments

  • Luke Skywalker

    4 years ago

    BC Natural Gas...

    Quote:
    The province set a record with its sale of oil and gas rights in 2007. Now it's pushing shale gas exploration, Robertson said.

    Other important public policy issues also come into play regarding revenues from the natural gas fields namely: Additional funding sources for health care, education, social services, lower taxation levels, etc.

    Quote:
    B.C. took in $152 million in bonus bids in March to lift gas and oil rights sale revenue to more than $1.2 billion - almost twice the previous record for single year sales

    .

    Quote:
    CALGARY -- The remote and rugged northern fringe of British Columbia is set for a frantic land grab by natural gas explorers, following months of speculation and intensified by last week's announcement of what could rank among the largest gas discoveries in Canadian history.

    Located in northeastern B.C., with the key area centred on the Horn River Basin, very little was known about the play until last Thursday, when Houston-based EOG Resources Inc. said it might have reserves of six trillion cubic feet - the same as Mackenzie Delta, Northwest Territories, and a figure that would increase Canada's total proved reserves by roughly 10 per cent.

    EnCana Corp. of Calgary - which claims the initial discovery of Horn River's potential - and partner Apache Corp. of Houston may also have 6 trillion cubic feet of gas, Apache said in early February.

    Robertson:

    Quote:
    "There's got to be some accountability for the greenhouse gas emissions," he said. Most of the oil and gas will be exported and burned elsewhere, and won't count as carbon emissions originating in the province, he said. "It's total hypocrisy . . . They can't see the contradiction. The government's getting away with an environmental atrocity."

    Kudos to former New Democrat Premier Dan Miller for supporting the Northeast gas industry under his tenure with additional provincial incentives to expand the industry for BC's benefit.

    Of all fossil fuels, natural gas is the cleanest burning and no political party will turn off the provincial cash-flow from that source.

  • G West

    4 years ago

    What would you expect?

    This government is being exactly consistent and, despite all the smoke and mirrors, doesn't really give a damn about reducing greenhouse gases and combating global warming.

    One of their biggest supporters is the New Car Dealers Association of BC, another is the Road Builder's Association.

    You think that Campbell would do anything to reduce the prosperity of those two groups by actually encouraging people to drive LESS and spend money on anything but his beloved highways?

    Dream on. Campbell and his puppet masters want people buying new cars and driving them - not cooperating and staying off the roads.

  • driftwolf

    4 years ago

    Smoke and Mirrors

    The BC government isn't interested in "green" or "ecological" solutions. They are only interested in making sure that the legislation they pass is as profitable as possible for those organizations that will then contribute heavily to allow them to purchase the next election.

    Meanwhile, our "free" press is very quiet about the whole thing, because of course they are owned by the same people who profit from the Campbell largess towards his "friends".

    So we have a mostly ignorant, uncurious population that refuses to dig beyond what the mainstream press wants to report, and a government busy changing the core of BC legislation so that any future governments are hamstrung (more laws passed per month than anywhere else).

    Given these facts, the budget and legislation being passed by the government makes complete sense. They are out to enrich their corporations and their friends, not to benefit everyone in the province. Unfortunately, corruption of that nature is quite legal in Canada.

  • ME2

    4 years ago

    Here we go again....

    Despite the somewhat dubious honour of sharing company with Luke S, and while being in total disagreement with his praise for the anti-environmentalist Dan Miller, I find myself in agreement with him re the gas discoveries.

    I am sure we will quickly be parting company again regarding where Campbell will put the royalties which belong to THE PEOPLE OF BC, as Driftwolf has noted above.

  • realisticman

    4 years ago

  • James Burns

    4 years ago

    unrealisticman the Brazilian

    unrealisticman the Brazilian find is just a drop in the world oil supply bucket. In fact, I believe you've repeatedly ignored this fact in the past despite it being brought up numerous times. And shale oil is about the least efficient method of oil recovery for usable energy, not to mention its extraction is terribly damaging to the environment.

    http://en.wikipedia.org/wiki/Environmental_impact_of_oil_shale_industry

    2008, the year of the right-wing nutbar misinformation gusher.

  • realisticman

    4 years ago

    Old & New NEWS

    The previous story from Brazil that James Burns refers to said their 2007 find was huge. This was 8 billion barrels estimated. Today's new find is estimated at 33 billion. Back in 2005 Brazil's find of 700 million made headline news as 'huge', now we're into 33 billion.

    James, if you read the story of the Bakken field you will see that this is light-sweet crude, not shale as you incorrectly surmise.

    Quote:
    The Brazilian government says huge new oil reserves discovered off its coast could turn the country into one of the biggest oil producers in the world.

    Petrobras, Brazil's national oil company, says it believes the offshore Tupi field has between 5bn and 8bn barrels of recoverable light oil.

    The Bakken oil play stretches across Montana, North Dakota and into Southeastern Saskatchewan. We're talking about some potentially massive reserves of oil, too. The amount of oil in place has been estimated between 271 billion and 503 billion barrels of oil. A recent U.S. Geological Survey (USGS) sets the amount of original oil in place at 413 billion barrels.

    Okay, so how much of an oil boom are we talking about?

    Even if we take the lower estimates, that's still a huge amount of oil, far more than the 36 billion barrels of oil believed to be in Alaska's North Slope.

    As you may have known, I feel the oil sands in Alberta are going to play a significant role in future Canadian oil production. But having said that, remember that the Alberta oil sands are highly viscous and must be heated in order to extract the oil. The process can become quite energy intensive.

    Trust me, there's a world of a difference between the heavy oil in Alberta and the light sweet crude underneath the Bakken play in Southeastern Saskatchewan.

    2008, the year the loony left relented and let hungry people eat crops and stopped stuffing them into vehicle fuel tanks.

  • City Person

    4 years ago

    Biofuels

    Biofuels were never a good idea. I could never understand the left's infatuation with them. It always seemed to me that land taken out of food production for biofuels was not a good idea at all. Now we are seeing the cost of jumping at a poorly researched but popular idea and it is not a pretty sight.

    Funny thing is how small minorities, in this case eco-crusaders, can set government agendas. In the case of biofuels, even Richard Branson was jumping on the bandwagon a few months ago. Governments, wanting to be seen as "doing something" also jumped aboard. The fact they could subsadise farmers at the same time made it doubly attractive.

    We could reduce energy consumption in North America by 30% in ten years is the political and public will were there. However, in our NIMBY society, neither yet exists.

  • G West

    4 years ago

    Trust You? Realisticman...

    You must be kidding.

    And how's that project about feeding the hungry going? How many years out of the last ten has your global vision met the world's food needs?

    Even your cherished UN is now admitting that we're falling further and further behind while the Larcenous Right continues to dine on caviar and fill the air with the fumes of their selfish travel.

    Until the people who've stolen the potential of most of the world's development are forced off their thrones nothing will happen.

    And btw, your purblind faith in China is sorely misplaced...you might care to have a look at Bill Tieleman's blog and see just how responsible that country actually is when someone criticizes it.

    http://billtieleman.blogspot.com/2008/04/death-threats-in-canada-show-what.html

    God help us we never go there. And btw, have you heard about what the RCMP are up to in Ottawa this morning?

  • James Burns

    4 years ago

    Yet more unrealistic

    33 billion barrels is slightly more than a year's worth of current global oil consumption.

    4.3 billion barrels isn't even two months worth of current global oil consumption.

    Why do you even bother with citing these finds unrealisticman? They are next to meaningless.

  • realisticman

    4 years ago

    James

    Not entirely meaningless, James. We could be down to our last 60-80 years supply but someone keeps finding more.

    Driving off for a little dim-sum now.

  • City Person

    4 years ago

    Plus de Change....

    Quote:
    We could be down to our last 60-80 years supply but someone keeps finding more.

    When I was an undergrad, my geology prof was adamant that there were only twenty years' supply of oil left. That certainly scared us then.

    That was in 1969.

  • James Burns

    4 years ago

    City Hack your anecdote

    [OFFENSIVE COMMENT DIRECTED AT ANOTHER COMMENTER REMOVED. -MODERATOR.] your anecdote means nothing. Misremembering the uncited opinion of a nameless geology professor of almost 40 years ago is just empty propaganda. Instead of flim flam try something solid.

    And pollyanna-man try at least a little basic mathematics. Addition, subtraction multiplication, division, that sort of thing. It might help you understand why even a so-called "huge" find once every few decades won't do squat.

    What do you think is going to happen to the world in the lead up to those last few decades of supply? The Iraq war is just a tiny indication of the sort of violence that likely will result if we don't drastically improve the efficiency of our consumption, not to mention find viable and significant forms of clean, renewable energy.

    Of course it's ironic in an article dealing with conservation you both ignore the impact of carbon emissions due to the continued use of petroleum energy resources. Even with our current supply of oil, if we keep consuming it at the rate we are, we will do immense damage to the environment.

  • City Person

    4 years ago

    I agree with you

    Quote:
    Even with our current supply of oil, if we keep consuming it at the rate we are, we will do immense damage to the environment

    Personal attacks aside, I agree with you. There is no reason for us to be wasting a resource like we do. If you look at my first post here, you will see how I advocate conservation.

    However, being involved closely with such things in my work, it is my educated opinion that we are not down to our last few decades of supply. It is estimated that present known reserves are at around forty years. We have reached peak oil from these easy to get, conventional sources. Future supplies will be harder and more expensive to get.

    "Peak oil" does not include sources such as tar sand and shale. Using the Fischer Tropp method, oil can not be profitably made from coal. You can get some excellent information from this trade journal:

    http://www.energybulletin.net/

    Read some of the articles and you will get a good perspective of what is happening.

    All things considered, we Canadians must as a society use energy more wisely. We are profligate wasters. We could, with ease, cut our fossil fuel use in half. All it would take is the political, and public, will to do so.

  • ME2

    4 years ago

    City Person

    OK, I'll be getting around to touring your Energy Bulletin site soon.

    But first I have to finish reading Newt Gingrich's Real Shocking Facts About Marijuana.

  • Budd Campbell

    4 years ago

    ROAD BUILDERS NOT THE ONLY ECONOMIC INTEREST GROUP

    One of their biggest supporters is the New Car Dealers Association of BC, another is the Road Builder's Association.

    You think that Campbell would do anything to reduce the prosperity of those two groups by actually encouraging people to drive LESS and spend money on anything but his beloved highways?

    This is a tired meme, that some people lazily think is "progressive" because they have been instructed to that effect. No one doubts that members of Jack Davidson's Road Builders Assn will benefit economically whenever a highway is built or improved, least of all the construction workers who are employed on those projects.

    In a province with a growing population there's going to be a need for an expanded highway system, just as there is in growing areas elsewhere, such as California. Recently, former Gov Gerry Brown stated that he tried hard not to build too many freeways when he was in office, but he still built three times the freeway mileages as either of the suceeding Republican Governors. Brown clearly intended this as a warmup remark to a possible run for the Governor's office later this year. That's what labour and liberal voters in California will accept.

    But in BC the debate is skewed by special presence of economic interest groups, mainly holders of real estate assets, who stand to benefit economically from not building additional roads, since that will force renters and property purchasers to their doorstep. That this very avaricious group's agenda is overlooked in favour of picking on Davidson and some caterpillar operators is part of the ridiculousness of BC provincial politics.

  • G West

    4 years ago

    Hi Budd

    Still playing that same theme eh? Do you have bad dreams about planners?

    Of course car dealers and road builders have a stake in Campbell's gateway plans - but we've been there before. The absolute idiocy of a 'revenue neutral' carbon tax is the proof that the Road Builders and Car dealers are more important to Gordon than the environment, decent affordable transit and sensible planning are.

    Nothing new about that. The point, in this context, was that a truly green initiative would encourage coops and car sharing to get more vehicles off the road - the taxes this story talks about ain't revenue neutral budd - they gov't is going to hang on to them. It's only the phony carbon tax that will be refunded.

    How come?

    What kind of a meme is that?

    A meme I'd say is pretty damn familiar to anyone who knows how this government operates. To suggest that Gordon and his string pullers aren't avaricious is just silly. This carbon tax boondoggle – when we eventually see the actual bill – is going to be really interesting.

  • Luke Skywalker

    4 years ago

    Budd...

    Quote:
    In a province with a growing population there's going to be a need for an expanded highway system

    Huge number of projects on the books as well as underway with MoT.

    Even Kelowna is planning for a municipal freeway called the Central Okanagan Bypass.

    Quote:
    But in BC the debate is skewed by special presence of economic interest groups, mainly holders of real estate assets

    I disagree with your hypothesis about west side Vancouver interests... during the Vancouver freeway debates of the 1960's that was true, but not today.

    Ya know Corrigan's anti-Gateway stance. But an NRG poll of Burnaby residents from last September showed the following:

    Support expansion of Hwy 1 and twinning of Port Mann Bridge:

    Support: 72%
    Oppose: 21%

    http://www.getmovingbc.com//NRG%20Report%20September%202007.pdf

    • The discussion for this story is closed. No more comments can be added.