CALLING ALL MOTOR CARRIERS & OWNER-OPERATORS:

Help Put the Brakes On the Government's 70% Vehicle Plate Fee Increase

Contact Your MPP Today
As you know, the Government of Ontario is in the process of increasing commercial vehicle licence fees by 70%, which already started with a 30% increase on December 1, 2012. The remaining 40% is scheduled to take effect on December 1, 2013 (unless you help do something about it). It’s true these fees have not been raised in 24 years, but 70% in such a short period is a whopping increase, especially during these difficult times.

Have Your Say
The Ontario Trucking Association has been fighting to have the increase reduced. However, in the meantime OTA argues the fee should at the very least be phased in over a longer period. OTA's proposals are receiving consideration from the government, but it is important that OTA’s efforts are buttressed by individual carriers who directly contact the appropriate ministers.

It's Easy
OTA is making this easy for you. All you have to do is enter the information below. You will then be prompted to hit send. When you do, the message copied at the bottom of this page will automatically be emailed to Ontario Transportation Minister, Hon. Glen Murray, and the Ontario Finance Minister, Hon. Charles Sousa.

Dear Minister,
 
In March 2012, the Government of Ontario announced it was introducing "modest and gradual" increases in driver and vehicle licence fees, which it pointed out, had not increased in several years. However, the reality is the increases for the trucking industry are NOT modest - heavy commercial vehicle validation fees are going up 70%! Nor are they gradual - the entire 70% increase is being introduced over a 12-month period. The first 30% kicked in on December 1, 2012. A second increase (40%) is scheduled for December 1, 2013.

Only politicians could call a 70% increase over 12 months "modest and gradual." An increase of this magnitude would be hard to manage in robust economic times, let alone during the current period of sluggish growth and continued uncertainty. The trucking industry simply doesn't generate margins that allow it to easily absorb such increases and we can't simply pass these costs along to our customers, many of whom have their own competitive struggles.

The government says the fee increases are necessary "to ensure provincial roads and bridges remain safe and in good repair for future generations." We have heard that before. But the fees revenue is not dedicated to infrastructure maintenance; like everything else, it all goes to general revenues. In fact, your government's own estimates for operations and maintenance under the provincial highways management program are forecast to decline in 2012-13 compared to both 2011-12 and 2010-11.

Finally, the increases were justified as part of the government's commitment to eliminating the provincial deficit in keeping with the Drummond Commission - even though what Drummond actually called for was "a civilized dialogue on alternative methods to finance infrastructure." I support eliminating the deficit and paying my and my company's fair share of taxes and fees. I understand that the commercial vehicle plate fees were perhaps due for an adjustment. But not by 70% and not in one fell swoop. No trucking company could run its business that way.
 
Also, there are many types of trucks on our roads and highways (e.g., mobile cranes, vacuum trucks, concrete pumping trucks, street sweepers and water trucks) that are exempt from paying vehicle registration fees (and fuel taxes too), creating a revenue leakage running into the tens of millions of dollars. This is not fair. Why should some companies be hit with a 70% increase in licence fees while others pay zero?

The government has also made much of the fact it is "ahead of its targets for lowering the deficit" so the province has room to maneuver. I am urging you to introduce measures in the 2013 Ontario budget to avoid my company being hit by another 40% increase in licence fees this December by creating a more protracted schedule for the fee increases and by requiring all heavy commercial vehicle owners to start paying their fair share.

I understand the Ontario Trucking Association has made reasonable proposals in this regard and I urge you to give them the utmost consideration. I look forward to hearing from you soon.