The province of Ontario's planned phase-in for the increase in heavy-truck licence fees has been extended by a year, the Ontario Trucking Association (OTA) announced today.
First announced in March 2012, the 70 percent increase was initially planned to be phased-in over the course of one year — 30 percent in December 2012 and then the remaining 40 percent for December 2013. The government had characterized the phase-in period as "modest" and "gradual."
The OTA disagreed, and asked the province to spread the increase out over a longer period. OTA launched a social media campaign titled "Put the Brakes on the 70% Fee Increase" that provided trucking companies a portal to communicate with their local MPPs on the issue.
The campaign, it seems, was a success. In a letter dated today, Ontario Minister of Transportation Glen Murray wrote:
"I am pleased to advise you that the ministry is adjusting the fee schedule to implement the heavy commercial vehicle validation increase over a three-year period instead of a two-year period. The increase scheduled for December 2013 will now be an intermediate step. The final increase has been delayed by one year with an implementation date of December 2014."
Under the new schedule, the fees will increase by about 22.3% on December 1, 2013 compared to current levels and then by another 6.3 percent in December 2014, OTA said.
"Although OTA had urged the government to cancel the fee increase altogether, this announcement to delay full implementation until 2014 provides carriers with some additional breathing space and allows them time to adjust contracts accordingly," said OTA president David Bradley.
"A 70 percent increase in any expense item is a challenge," says Bradley. "Unfortunately, when it comes to things like taxes and fee increases it's very difficult to shut the barn door after the horses have bolted. Nevertheless, we welcome the minister's announcement; the government has listened to the concerns of truckers, who, under the previous phase-in schedule, were being asked to bear a disproportionate toll of the increase in these tough economic times."
Other scheduled fee increases, like the air brake endorsement practical test, o/o permit replacement, trip permits, will remain unchanged, OTA noted.
Meanwhile, the association said it is still concerned that certain heavy utility trucks — such as mobile cranes, vacuum trucks, concrete pumping trucks and water trucks — are exempt from paying any plate requirements and therefore from paying any vehicle registration fees and fuel taxes. The association estimates the revenue leakage to the province from this runs around $50 million per year.
"These vehicles are commercial trucks too. Charging these types of vehicles ensures that everyone using our public roads pays their fair share," said Bradley.
