Gas tax hike possible as NDP and Liberals clash over transit plan

NEW WESTMINSTER (NEWS 1130) – Drivers in Metro Vancouver may be feeling the pain at the pump even more as the region’s gas tax might be going up to 18.5 cents per litre and some angry mayors are accusing the provincial government of forcing them to do this.

The increase from the current 17 cents per litre has already been approved by Victoria to help cover transit upgrades as part of the region’s 10-year improvement plan.

The mayors reluctantly approved Phase 2 of the transit plan, and have decided to explore their options for coming up with the $30 million annual gap. Some of them, like Langley Township Mayor Jack Froese, says the NDP government is backing out of a $30 million commitment to Phase 2 while others are angry the province only told local mayors it had chosen this increase as a funding option this week.

Froese proposed a motion to refer it to staff for more consideration, an idea that was rejected. “It’s unfortunate and that’s why I asked for a little bit of time… so we could have a week or so to look at some options. That failed, so now we move forward.”

Maple Ridge Mayor Nicole Read voted against the increase, saying enough is enough.

“This increase in gas tax however small is still going to have a significant impact on people who have the longest commutes and we have to start shifting away from that. So, I felt that it was really important for me to send a strong message on behalf of my citizens.”

West Vancouver Mayor Michael Smith voted for the plan but is upset the province gave so little time to the Mayors’ Council to consider the tax increase. “I am opposed to a lot of the local funding options in the plan, but the bottom-line is you can’t walk away from $7 billion [transit plan.]”

The gas tax wouldn’t be implemented until 2019, adds Smith, who hopes another source if found to fund the plan.

Burnaby Mayor Derek Corrigan, who chairs the Mayors’ Council, voted for the expansion plan. “There are all kinds of pressure on the system to start moving on the 10-year plan and as a result accepting this as being a way to close that gap, was something, I think, the mayors agreed was not perfect — it was something that would allow it to happen.”

NDP reacts as Liberals lash out

The provincial government is responding to the mayors who feel they were forced in this position.

The Minister of Municipal Affairs, Selina Robinson, insists the province is giving the mayors what they’ve been asking for since March.

“What we committed to 40 per cent of the capital plan. We have committed to that and we’ve made that announcement very clear. We’ve been very consistent, as well as helping the mayors close the regional gap.”

She skirted around the question when asked if the mayors asked for a jump in the gas tax. “They asked for a number of tools that would help them close their share of the gap and that’s exactly what we’ve done.”

Robinson acknowledges drivers may be upset.

“There were billions of dollars that were committed to in capital that we said we would do — that’s 40 per cent of the Mayors’ [Council] plan and that we would help them close the gap and that’s what we’ve done. No one is happy with drivers having to pay more gas tax. We’ve given them parking tax. I know that they are increasing fares.”

NEWS 1130 also asked Robinson about the claim the Mayors’ Council was only given a one-day heads up that the tax hike was on the table.

“We’ve had a number of conversations with them over a number of weeks about what the options are, that they got an actual letter is the only significant argument around a day’s notice, but we have been in regular conversation with the Mayors’ Council.”

BC Liberal Leader and opposition leader Andrew Wilkinson says it’s obvious the New Democrats are now looking to make up money they’re losing after removing tolls from the Port Mann and Golden Ears Bridges.

“The whole goal of this NDP government was supposed to be making life more affordable, instead we get a surprise increase in the gasoline tax when we already have the highest gas prices in North America. I mean, come on, wake up NDP and make life more affordable.”

Wilkinson is also recommending a cap on gas taxes after prices in Metro Vancouver recently topped $1.60 a litre for regular.

“It’s going back above $1.60 again, that’s where we’re headed and the NDP are going to make it even higher.”

‘Drivers are tapped out’

The Canadian Taxpayers’ Federation feels both the minister responsible and the Mayors’ Council are to blame.

“You feel like you’re just banging your head against the wall because every time we speak to normal people, like when we have a referendum, they say ‘No’ to new taxes, they say they’re tapped out, they literally can’t afford day-to-day life and then, we have politicians turn around and jack taxes up anyway,” says Kris Sims who speaks for the CTF.

Sims adds the average driver in Metro Vancouver already pays 51 cents tax for every litre of gas.

“Elected politicians are getting more and more out of touch with average people who are just trying to get to work and trying to live their lives. It’s very frustrating and I hear from people every day who are at their wit’s end who can’t pay anymore.”

Sims adds the tax hike doesn’t need to happen to fill the gap. She suggests the Mayors’ Council dedicate 0.5 per cent of their future municipal revenue growth to transit to make up for it.