Fuel tax break life extended CONSUMERS AND manufacturers of altemate fuels for vehicles can rest easy. The. province late last week said it will extend for at least three more years the lax exempt status for natural gas, methanol and ethanol products. The tax, which could have come in next April, would have placed an 11 cents a litre tax on alternate fuels. But that would have raised the price of a litre of natural gas to nearly 40 cents, making it & much tougher sell for consumers interested in converting their vehicles from regular fuel, says Mike Docherty, the local manager for Farwest Fuels. “The cost to a consumer for converting is $2,681,” said Docherty. ‘If a person now spends between $150 and $200 a month on gas and converts, we're looking at-a nonmal payback period of 27 months.” If the province had gone ahead with the tax, the pay ‘back period would have in- creased to at least 36 tnonths to four years. At that rate, few conver- sions would have taken place, said Docherty. _ While he’s pleased at the three-year exemption exten- sion, Docherty says the in- dustry and consumers will be just as ready to fight when the review comes up next time. ‘Looking at it our way 11 cents represents a 41 per cent increase to our costs,” he said. If a tax was to be in- creased, Docherty con- tinued, it should either be minimal or phased in. ‘The biggest ammunition for no taxes when the ex- emption comes up again in three years will come from the government itself, said Docherty. vince has ordered all of its vehicles converted to alternate fuels by 1998. * Consumers and manufac- turers joined with environ- - mientalists in arguing against the tax on economic and en- vironmental grounds. The tax exmeption policy was adopted by the govern- ment as one way to en- courage people to move away from normal gasoline. THE COMPRESSORS at Farwest Fuels will keep on preparing tax-free natural gas for vehicles thanks to a decision last week by the provincial government. A possible 11 cent a litre tax on alternate fuels will con- tinue for another three years, That's company man- BEST WISHES To Our Friends Hope the holiday is a howling success! See You In The ager Mike Docherty at the compressor station. Altemate fuels are also regarded as environmentally safer than normal gas. Docherly estimates Far- west has converted 700 vehicles to natural gas in the area since 1982, Farwest is the bigges! sel- ler of natural gas for vehicles in the northwest and selfs up to 3 million litres a year. A tax of 11 cents a litre would have represented a potential tax infusion to the province of $330,000 a year just from Farwest’s sales alone. 1982 but shelved for 10 years. ‘When it came up again in 1992 it was put on hold for another five years and thal time period is now up,’’ he said. Atkinson noted that the province now charges be- tween 11 cents and 15 cents a litre for regular gasoline. **BLC. is the only province not to have a tax,” he said. Ontario charges 4.3 cents a litre and Prinee Edward Is- land charges 12 cents a lilre. Environment minister Paul Ramsey said the decision lo B.C. is the only province not to have a tax on alternate fuels. Ontario charges 4.3 cents a litre and Prince Edward Isiand ~;That’s «because: the pro-~ charges 12 cents a Mitre. ' The tax was but one of many areas under examina- tion by the province which is running at a deficit and is cutting expenses and look- ing at additional revenue means to solve its budget problems. Finance ministry official Phil Atkinson said the tax was first considered back in extend the exemption bene- fits the environment. ‘‘The marketplace for these vehicles is still in its infancy and eliminating the tax exemption for natural gas, Methanol-85 or Ethanol-85 could hamper their future development,’’ he said. 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Other restricli sappy eal for deta The Terrace Standard, Wednesday, December 18, 1996 - A? ICBC rates up for review THE COST OF injury claims is threatening to send ICBC auto insurance rates sky high ance the two-year rate freeze ends, Thai’s why the government is starting © Allen will look at accident and fraud prevention, af- now to review ils options. fordability, fairness and service improvement “The number of injury claims has risen by seven per | His recommendalions will include appropriate cent since 1990, while the cost of these claims bas in- penallics for bad drivers, how lo provide’ adequate creased al almost 10 times that pace -- by nearly 80 compensation for victims and ways to speed up claim per cent,’’ says Andrew Petter, minister for ICBC, settlements. The government has appointed Douglas Allen, pri- Allen will submit his report in February. 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