Manitoba's "T" plate operators may soon find themselves with not only a new plate category, but a potential 300-400 percent cost increase in registration fees, meaning either some businesses will be forced to close their doors, lay off staff, or pass that cost onto consumers.
The change comes in the province's Bill 41: The Highway Traffic Amendment Act (Enhanced Safety Regulation of Heavy Motor Vehicles). According to the Bill's explanatory note:
"The amendments establish a new category of heavy motor vehicles to be known as "regulated vehicles" and bring a number of previously exempt trucks into the commercial truck category by repealing the exemptions. That repeal will require those trucks to be registered as commercial trucks."
The elimination of the "T" category means those operators will have to register their trucks as "PSV" or "CT", however, according to the Manitoba Trucking Association (MTA), many "T" plate operators have built their business models on that category.
In Manitoba, "T" plate operators are restricted in their scope of operation.
As MTA Executive Director Bob Dolyniuk explained to Today's Trucking, "T" plates came to be during the time of economic and geographic regulation. "At that time, companies had to apply for PSV rights to own an operating authority for designated lanes, and government controlled the number of operators on a lane or in a region. 'T' plate operators were allowed to operator solely within a city or municipality or within the province if they only hauled designated or exempt goods."
That is still the case today, he explained. "Some of the companies impacted have built their business model on the fact that their trucks are restricted to a city or municipality, or commodity and their rates are structured, in part, on their registration cost. In their cases, their operation has not changed, their market has not changed but their cost of registration will increase 300-400 percent. How do they absorb that?"
The MTA pointed to one company with 10 units that would see its registration cost increase from $6,854 per year to $21,104 per year — a whopping 308 percent increase.
The financial impact from the potential increase would create a wake province-wide. "While there is a cost impact to the operators, some customers will no doubt refuse to pay more and in those cases I suspect if the operator cannot find a replacement customer, trucks will be parked and drivers laid off," Dolyniuk explained. "In other situations where the rates will increase, the cost of shipping goods to rural and northern Manitoba will increase and the consumer will carry the brunt of the increase. There are some commodities that are shipped via 'T' plate operators, such as primary forest products, that will increase the cost of the product and thus make our product less competitive."
Initially, the intent of the Highway Traffic Act amendments was to include all "T” plate operators in all aspects of the NSC. Removing the designation completely is a questionable solution, according to the MTA.
"There was no need for the government to do this. It could have quite easily made legislative amendments to make all “T” plate operators with a GVWR greater than 4500 kg subject to all aspects of the NSC," Dolyniuk said.
The MTA has registered to voice its opposition to the change to the Legislative Committee once the Bill reaches second reading, and is urging any operators impacted by the proposed change to also register to make a presentation. "It's important the committee hear from individual business owners," Dolyniuk stressed.
To register, contact the Office of the Clerk of the Legislative Assembly at 204-945-3636. You can also voice your concern with your local elected officials.
