OTA Focuses on Economy and Environment in 2008 Pre-Budget Submission

OTA Focuses on Economy and Environment in
2008 Pre-Budget Submission

(January 28, 2008) -- In presenting its pre-budget submission today at Queen’s Park to the Standing Committee on Finance, the Ontario Trucking Association said given the current state of the economy it is imperative that the Government of Ontario encourage private sector investment in efficiency and productivity measures and ensure that the supply chain is reliable and predictable by maintaining recent levels of investment in highway infrastructure.

In making his presentation, OTA President David Bradley reminded the MPPs who hail from all three parties, that trucking by virtue of its role as the province’s dominant mode of freight transportation, is a good leading indicator of economic activity.

"The current situation is not pretty," said Bradley, referring to the drop in southbound trade and the downturn in manufacturing activity brought on by the value of the Canadian dollar, the slowdown in US demand, ongoing border problems and the rise of China as manufacturer to the world.

"Ontario is not going to lower its wages, labour standards and environmental laws in order to compete with countries like China," he said. "We have to be smarter; more efficient; more productive."

Bradley also said that with fuel costs at such high levels, "the industry’s economic goals are more aligned with overall environmental concerns than they have ever been". He called on the province to get on board with the industry’s enviroTruck initiative by providing tax incentives or rebates and removing regulatory barriers to accelerate the penetration of the smog-free\low GHG tractors in 2008-09.

"It is unfortunate," he said, "that it appears talks to harmonize the PST-MJVT have led nowhere as that would have provided the industry -- which is discriminated against in the way its business inputs are taxed compared to most other Ontario sectors -- with significant investment stimulus."

Still, he says a growing number of jurisdictions in the US and Canada have introduced financial incentives to replace older trucking equipment. "It’s an economic and environmental win-win," he said.

- 30 -

The Ontario Trucking Association (OTA) is a business association representing motor carriers operating into, out of and within Ontario. The trucking industry is one of Ontario’s largest employers. Trucks haul 90% of all consumer products and foodstuffs produced and consumed in the province and 80% of Ontario’s trade with the United States. Founded in 1926, the association’s membership comprises trucking companies of all sizes, shipping all types of commodities, from all regions of North America. OTA is a member of the Canadian Trucking Alliance.

© 1995 - 2008, Ontario Trucking Association
555 Dixon Road, Toronto, Ontario
M9W 1H8
Tel: (416) 249-7401 | Fax: (416) 245-6152
Email: info@ontruck.org