The following text may have been generated by Optical Character Recognition, with varying degrees of accuracy. Reader beware!

www.insideHALTON.com |OAKVILLE BEAVER |Thursday, April 6, 2017 |30 Oakville Chamber weighs in on cap-and-trade issues I t was not surprising when Oakville busi nesses were surveyed about the Ontario provincial government' s cap-and-trade pro gram, 82 per cent of respondents agreed the plan should have been delayed until its impact on business was fully understood. As the voice of business we get it. We under stand businesses are feeling tapped due to rising costs and burdened by onerous regulations. In fact, the Oakville Chamber of Commerce members believe energy costs are becoming a serious obstacle to doing business and are re porting the price of electricity is undermining business' capacity to grow, hire new workers, and, ultimately, remain competitive. The Chamber has echoed this resounding sentiment of our members and called on the provincial government to delay its implementa tion for one year to conduct an economic analy sis of the cap and trade plan. However, as part of the Province' s plan to re duce its impact on climate change, the govern ment decided to proceed with its implementa tion in January 2017. To be clear, the business community and the Oakville Chamber supports actions to address climate change however, finding the right bal ance between the economy and the environ- S A T ., A P R I L 8 10 4 P # flfu l H O M E M A D E l j | Uk r a in ia n ' FOOD ^; IN H O T L U N C H J_ p ;I p i H O M E -B a K ED | GOOD^ 1 fi M arketplace ment is crucial. U n c o o rd in a te d policies could erode c o m p e titiv e n e s s . For example, when implemented on a provincial basis, the regulations could negatively impact c o m p e ti tiv e n e s s relative to other jurisdictions. This may compel compa Faye Lyons nies to relocate their production to other jurisdictions with little or no policies on carbon emissions, commonly re ferred to as "carbon leakage." Under these circumstances the greenhouse gas (GHG) emissions are simply relocated to another jurisdiction. This weakened competiveness could lead to poor economic and environ mental outcomes. With a new cap-and-trade system, some busi nesses are worried it will be more difficult to at tract investment relative to these other jurisdic tions. According to the Business Council of Canada, "Governments at all levels should commit to a national approach to GHG reductions and car bon pricing. The alternative -- conflicting feder al and provincial targets, plans and policies -- is a recipe for confusion and inertia." The Oakville Chamber believes the govern ment needs to be transparent in its implementa tion of cap and trade policies. To that end, the Chamber encouraged the government to list the new carbon fee on monthly natural gas bills. We believe by not highlighting this charge, one of the measures funding the government' s $8.3 billion cap-and-trade plan undermines the effort of placing a price on carbon in order to motivate consumers to take action and change behaviour. On behalf of our members, the Chamber will continue the dialogue with the provincial gov ernment to try to limit the impact on business competiveness. We also believe it is important to ensure our members understand the program and what it means for your bottom-line. The direct impact of cap and trade depends on the specific characteristics of a business however, most small and medium-sized busi ness, who will not be directly participating in the program can expect to see the impact in the con sumption of energy, electricity and transportation fuel. Indirectly, there will be possible increased costs from suppliers. Natural gas prices are projected to increase by 3.3 cents per cubic meter in 2017 and will be sub ject to an incremental increase of a minimum of five per cent, plus Consumer Price Index (CPI), starting in 2018. Similarly, the price of gasoline is projected to increase 4.3 cents per litre and the cost of diesel by five cents per litre in 2017. This too will be expected to rise five per cent plus CPI adjustment annually. Businesses that release more than 25,000 tonnes of emissions per year are required to directly partic ipate in the cap-and-trade program. At the end of each compliance period, they must hold a quantity of permits equal to the amount of GHG emissions that they have released during that period. Permits can be obtained via quarterly government auctions or in the market, making these businesses directly subject to the carbon price. Finally, whether or not a business is directly impacted by the system, all businesses and con sumers will see rising costs from increased ener gy, electricity and transportation fuel prices. The Oakville Chamber believes the goal of the cap-and-trade system, and Ontario' s climate change strategy, should be to help Ontarians transition to a more carbon-efficient economy on a system that meets the government' s envi ronmental goals while fostering positive eco nomic outcomes. Recognizing Ontario' s businesses are the back bone of our economy, and many businesses have already embarked on sustainability initiatives of their own, the government should consider re warding employers who have already instituted environmental initiatives. Providing businesses with rewards and incentives would support busi ness success while achieving the goal of reducing greenhouse gas emissions. On your behalf, the Oakville Chamber remains committed to working with the Government of Ontario while ensuring that the voice of business continues to be heard on this issue. -- Faye Lyons, Vice President, Government Relations & Advocacy, Oakville Chamber o f Com merce Interlocking & Concrete Specialists whdtifm irn 300 River Oaks Blvd. E at Trafalgar, Oakville 905.337.1400 ST. JOSEPH'S UKRAiNiAN CATHOLiC CHURCH f« Jr Urn Landscaping Ltd · · · · Pebble Concrete · Stamped Concrete Interlocking · Flagstone · Walkways Garage Floors · Patios · Driveways Curbs (French) . Call Mario 905.842.7171 sunmarlandscape.com BAEUMLER APPRO ED