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Politics

Third Swing At Canada Carbon Tax Analysis By PBO

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Let’s Hope for Solid Hit from the PBO’s Third Swing at Carbon Tax Analysis

The “corrected” analysis by the Parliamentary Budget Office of the carbon tax and rebates is due soon. One hopes it will get more things right in this third crack at evaluating the government of Canada’s assurance that most Canadians will receive enough from the carbon tax rebates to cover their cost of paying the tax.

Reporting in 2022 and in an update last year, the PBO analysis confirmed the government assertion so long as induced economic effects from the carbon levy are not included. However, once the economic damage from the levy is included, the PBO concluded that the rebates fall short of keeping family budgets whole. 

The PBO’s conclusion was seized on by Conservative politicians and others to justify calls to revoke the carbon tax. Now, more knives have come out. The NDP says it would scrap the tax on households and put the burden on large emitters, but it does not yet explain how it would square that with the current big-emitter carbon tax. And BC, where carbon taxing began in Canada, has said it would drop the tax if Ottawa removed the legal requirement.

Much is at stake with this third PBO swing.

After the second report, the PBO admitted that its analysis had included, in addition to the carbon tax on households, the tax on large emitters as well. The economic impacts had been taken from work passed over to the PBO by Environment and Climate Change Canada (ECCC), which included the effects of the tax as applied to both industrial and household payers. The budget officer said the error was small and had little consequence for the analysis and promised a corrected version this fall. 

The Canadian Climate Institute estimates that 20-48 percent of the emissions reduction by 2030 will come from the levy on large emitters compared to 8-14 percent from households. Given the scale of the large emitters tax, it is likely that it has significant economic effects on any forecast. Fixing this should not, however, be the most consequential revision to its analysis. 

The PBO’s first two efforts had an analytical asymmetry. It measured the economic cost originating in the tax, exaggerated as it turned out, but did not attempt to capture the economic benefits (not to mention any health gains) from the effects of the household carbon levy in mitigating climate change. Put differently, their work was, in effect, based upon the faulty premise that climate change brings no economic damage. The massive and growing costs of cleaning up fire and flood damage and adapting to the many other consequences of global warming bear evidence of such costs. The PBO could and should do its own analysis of those climate change costs and, hence, the benefits of mitigation. Or it could more easily tap into the substantial body of available literature.

Lowering Canada’s Gross Domestic Product

In Damage Control, the Canadian Climate Institute estimated climate change would lower the Gross Domestic Product by $35 billion from what it would otherwise have been in 2030; the impact would rise to $80 to $103 billion by 2055. Through cutting emissions, the household carbon tax will reduce this cost. International literature is rich, and the PBO could review it for applicability to Canada. As but one example, Howard and Sterner’s (2017) meta-analysis on the impacts of climate change concluded most studies underestimated them. Their preferred estimate points to a GDP hit of between 7 and 8 percent of GDP if there are no catastrophic damages and 9 to 10 percent if there are. Conceptual thinking is also advancing. Consideration is being given to there being “tipping points” where a certain degree of climate change may have much more non-linear dramatic economic effects. Some, like Stern and Stigliz, even question the worth of comparing an economic outlook with mitigation action against a status quo baseline as the PBO has done. They argue that without mitigation, there may not be a sustainable economic outcome. 

Finally, those still inclined to think that a corrected Fall 2024 PBO report will provide ammunition to “axe the tax” need to ask themselves two questions.

First, is there value in the emissions reduction resulting from the household carbon tax? The Canadian Climate Institute concludes that the 8-14 percent contribution to emissions reduction by 2030 will grow in later years. Even with the tax and all the other policies announced to date, there is a 42-megatonne gap in Canada’s 2030 emissions reduction target. More than 200 Canadian economists signed an open letter asserting that “carbon pricing is the lowest cost approach because it gives each person and business the flexibility to choose the best way to reduce their carbon footprints. Other methods, such as direct regulations, tend to be more intrusive and inflexible, and cost more.” If not the household carbon tax, then what else?  

Let us hope the PBO’s third carbon tax report gives evidence to form a more balanced perspective. For The Silo, Don Drummond/C.D. Howe Institute.

Don Drummond is the Stauffer-Dunning Fellow in Global Public Policy and Adjunct Professor at the School of Policy Studies at Queen’s University and a Fellow-In-Residence at the C.D. Howe Institute.

Gaming

Legalized Sports Betting Is A New Job Market In The USA

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A few years ago, on May 14, 2018, the Supreme Court decided to back New Jersey’s bid, allowing any state in the US to legalize sports betting. The Supreme Court overthrew PASPA – Professional and Amateur Sports Protection Act of 1992 –  a law that was supposed to define the legal status of sports betting throughout the States.

However, PASPA didn’t ban sports gambling, it just didn’t permit the states to allow it. Passing the law ultimately resulted in creating an underground virtual monopoly over a multi-billion dollar industry.

Strong Case Against PASPA

The infographic below points out some facts regarding the illegal cash flow in the betting industry before the overturn of PASPA. As it turns out, the government of the state of New Jersey presented a strong case against PASPA, and it seems that participants of the hearings were worried that the law would restrain the States’ rights to raise revenue.

The American Gaming Association estimated that American citizens illegally wager more than $150 billion each year on sports betting. Until PASPA was struck down, Nevada was one of the only four states that permitted sports betting (Delaware, Oregon, and Montana also had an immunity). However, Nevada’s legally wagered money covered up for only a small portion of the total sum wagered on betting activities throughout the States (less than 4%).

Before PASPA was abolished, the Congress had the rights to mandate the forms that intrastate commerce states may regulate. However, by doing so, they didn’t manage to eliminate the sports betting market. They’ve just driven it underground.

New Beginnings Will Bring New Changes

On July 31st, 2018 ,Adam Silver, commissioner of the NBA, has teamed up with MGM, creating the first partnership between a major sports organization in the US and a gambling operator. The goal of this historic partnership is to preserve the integrity of the game and spread the global presence of the NBA.

MGM’s partnership with the NBA is only the next logical step in the development of this potentially booming industry. The process of accepting betting as a part of sports culture in the United States has begun.

The Cash Flow in Gambling is Tremendous

According to Oxford Economics, there is a lot going on under the table. Apparently, the numbers from the report project that the legalization of sports betting could increase the US annual GDP up to $40 billion.

Also, legalizing sports can help the US economy to keep the money within the States and help prevent domestic casinos to go bankrupt. Moreover, the newly-formed legal gambling system could create employment opportunities for more than 125,000 people.

When all of this is said and done, a typical worker in a reformed sports betting industry would have an average salary of approximately $48,000. In fact, this is only the beginning of economic benefits coming from legalized gambling in the US. Advances and technological innovations in online betting services will also have a strong impact on the economy.

A Bond Between Technology and Gambling

The United Kingdom has been the world’s leading online sports gambling market for many years now. UK mobile industry currently covers around 60% of the country’s sports betting market. The UK gambling market should serve as a blueprint for the future of sports betting in the US because mobile betting via smartphone apps would bring billions of dollars worth of revenue.

It is a known fact that technological developments make sports gambling far more entertaining. It’s much easier to place a bet for NBA Primetime Saturday game from your favorite recliner than having to drive to the casino at last minute.

It is only a matter of time before the mobile betting market in the US becomes the world’s largest. This somewhat bold statement doesn’t come as a shock if we take into consideration the potential influence of US powerhouse economy on the expansion of mobile betting industry.

To sum it all up, legalized sports betting in the US is a huge win for the US tax revenue, employment, and the entertainment business. Take a look at the nifty infographic below courtesy of our friends at NJ Games. For the Silo, Onur Unlu. 

Economic Impact of US Sports Betting NJ Games

Finance

How Sixty Percent Of Consumers Have Changed Shopping Behaviors Due To Covid

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Global Consumer Spending to Plunge by 8.6% to $44.3trn by end of 2020

The coronavirus pandemic has changed almost every aspect of people’s daily lives, and consumer spending is no exception. The uncertainty of the COVID-19 crisis caused considerable changes in consumer habits, forcing them to cut down their budgets and prioritize spending.

According to data presented by StockApps.com, the coronavirus outbreak is expected to cut global consumer spending to $44.3trn in 2020, an 8.6% plunge year-over-year.

$4.2trn Drop in Spending Amid COVID-19 Crisis

Falling consumer spending has significant effects on overall Gross domestic product (GDP) growth, considering it accounts for almost 70% of GDP.

Before the COVID-19 crisis, global consumer spending has witnessed steady growth for five years in a row, revealed Statista, IMF, United Nations, World Bank, and Eurostat data. In 2015, it amounted to over $41.5trn. Over the next twelve months, this figure rose to $42.5trn and continued growing. Statistics show that in 2019, consumers worldwide spent a total of $48.5trn, the highest amount in a decade.

However, the coronavirus crisis triggered a sharp fall in 2020, with global consumer spending expected to plunge by $4.2trn year-over-year. Nevertheless, statistics show the following years are set to witness a recovery, with consumer spending growing by 20% to $53.5bn in 2022.

Statista data also revealed that Switzerland represents the leading country globally, with over $40,000 in consumer spending per capita in 2020. Luxembourg ranked second with around $5,000 less than that. Iceland, Denmark, and Norway follow, with $34,300, $25,800, and $25,600, respectively.

60% of Consumers Changed their Shopping Behavior

The Mc Kinsey & Company survey showed consumers became increasingly cautious with their spending in 2020. Even after countries lifted lock-downs, many consumers still see their incomes fall, forcing them to reduce budgets and change shopping habits.

Statistics show that increased time spent indoors led to significant growth in consumer spending on groceries, household, and home entertainment. Brazil, South Africa, and India lead in this category, with up to 30% consumer spending growth. Major consumer markets like the United States, United Kingdom, Germany, and China witnessed around 15% grocery shopping growth in the first half of the year.

However, with consumers being mindful of their spending and turning to less expensive products, 2020 has witnessed a plunge in clothes and accessories, outside entertainment, services, travel, and transportation spending. Respondents in all countries said they cut down spending in these categories between 20% and 50%.

The McKinsey survey also revealed the COVID-19 outbreak triggered a significant change in the shopping mindset. More than 60% of consumers globally have tried a different brand or shopped at another retailer during the crisis, mostly for convenience, value, and quality.

In China and the United States, over 75% of consumers reported trying a new shopping method, and 60% plan to stick with it post-crisis. The United Kingdom and Germany follow with 71% and 54% of consumers who practiced new shopping behavior. In Japan, where lockdowns weren’t imposed, only 33% of consumers changed their shopping mindset. For the Silo by Jastra Kranjec.

Featured image- Wicker basket by George’s Baskets.

Finance

Violence Against Women Costs Lesotho South Africa $113 Million USD Annually

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Lesotho–South Africa relations - Wikipedia
Lesotho, South Africa- Commonwealth member.
A recent Commonwealth report has revealed violence against women and girls costs Lesotho more than $113 million (about 1.9 billion Lesotho loti) a year. The report estimates the total cost, including loss of income and expenses associated with medical, legal and police support, equates to around 5.5 per cent of Lesotho’s gross domestic product (GDP).

The cost of $113 million means each Lesotho citizen loses at least $50 every year to violence against women and girls.The cost of $113 million means each Lesotho citizen loses at least $50 every year to violence against women and girls.

The bulk – $45usd million – is attributed to legal protection, healthcare, social services and learning loss.

This is more than twice the amount – $21 million – Lesotho spent on health, education and energy in the last fiscal year. The report sets out policy recommendations for the health, education, legal and private sectors to better meet the needs of victims, which include: Updating the forms used for collecting data on violence against women and girls; Using digital services to collect and share the data with stakeholders; Training staff responsible for recording, analyzing and sharing data; Developing a broad approach involving all sectors to prevent the abuse; and making strategic shifts to allocate resources to carry out these recommendations.

Commonwealth Secretary-General Patricia Scotland said: “This report proves once again that ending violence against woman and girls is not only the right thing to do but it is also the smart thing to do and beneficial to us all. “Tackling this issue will prevent immense pain and suffering for individuals and communities and will also end the damage this violence does to our economies and prosperity. “As the first report of its kind to focus on Lesotho in this way, our intention is that it should provide the basis for designing more clearly focused national policies and programs, and help ensure that adequate resources are allocated for priorities such as training service providers.

“The findings put a price tag on the endemic scourge of gender-based violence, and demonstrate that the consequences of ignoring the problem are far higher than the cost of taking preventative and remedial action. “By providing the baseline for a series of periodic costing studies and practical intervention, we hope the report will help pave the way towards significant progress on eliminating violence against women and girls, thereby saving many lives.”

The loss of income for women who experience violence due to missed days of work and lost productivity comes to $22usd million annually. Income losses result in less spending which triggers a negative impact on commodity demand and supply of goods and services. Lesotho’s Minister of Gender and Youth, Sport and Recreation Mahali Phamotse said: “Violence against women and girls is a problem in Lesotho which affects national development.“

The report will help Lesotho come up with appropriate strategies that will help eradicate violence against women and girls as we are now aware of its causes and economic implications. “The report calls for immediate action through which my ministry will embark on a project to ensure the protection of women and girls.”

In Lesotho, about one in three women experience sexual or physical violence in their lifetime, similar to the global prevalence rate. The Commonwealth worked with Lesotho’s Ministry of Gender and Youth, Sport and Recreation to conduct the study and produce this report.

This is the second country report completed by the Commonwealth. The first was produced for Seychelles in 2018. Read: The Economic Cost of Violence Against Women and Girls: A Study of Lesotho 

The Commonwealth is a voluntary association of 54 independent and equal sovereign states and includes Canada. Our combined population is 2.4 billion, of which more than 60 per cent is aged 29 or under. The Commonwealth spans the globe and includes both advanced economies and developing countries. Thirty-two of our members are small states, many of which are island nations.

The Commonwealth Secretariat supports member countries to build democratic and inclusive institutions, strengthen governance and promote justice and human rights. Our work helps to grow economies and boost trade, deliver national resilience, empower young people, and address threats such as climate change, debt and inequality. Member countries are supported by a network of more than 80 intergovernmental, civil society, cultural and professional organisations.
 
For the Silo, Snober Abbasi.
Culture

How We Set In Motion Coffee Global Business

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If you are like me- someone who has drunk much more than one coffee in your life, you might be interested in pondering this question: Why do you think the multi-billion-dollar global coffee industry can be a losing business for the growers, whose hands till the land from where coffee starts?

In fact, if you drink 2 cups of coffee a day for one year, you’ll be spending more than the annual income of the coffee farmer in a developing country. To help present to fellow North American coffee drinkers this huge disparity between the farmer and the other key players across the coffee value chain, take a look at the infographic below.

Considering that North America is the biggest coffee consumer in the world, we can make a big dent by supporting the fair trade advocacy that ensures farmers get paid properly. Take a look at the infographic again. It describes how coffee is made from the farm to the mill, to the roasting plant and all the way to the consumer. Here are some of its highlights that show the bigness of this industry:

– 100 M people depend on coffee for livelihood; 25 M of which are farmers

– The U.S. spent 18 B for coffee yearly, equivalent to Bosnia’s GDP

– Coffee is the second most globally traded commodity after petroleum

For the Silo, Alex Hillsberg Web Journalist

 

Here's How You Make Coffee A Billion Dollar Business

Supplemental- How North Americans can help the #fairtrade program

http://financesonline.com/cherry-to-cup-the-economics-of-coffee/

http://financesonline.com/why-fairtrade-should-matter-to-you/

Politics

Ontario Takes Historic Action To Raise Minimum Wage To $15 Hour By 2019

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Fair Workplaces, Better Jobs- $15 Minimum Wage and Equal Pay for Part-Time and Full-Time Workers Part of Plan to Help People Get Ahead in a Changing Economy

May 30, 2017 10:20 A.M.

Ontario is taking historic action to create more opportunity and security for workers with a plan for Fair Workplaces and Better Jobs. This includes hiking the minimum wage, ensuring part-time workers are paid the same hourly wage as full-time workers, introducing paid sick days for every worker and stepping up enforcement of employment laws.

Over the past three years, Ontario’s economy has outperformed all G7 countries in terms of real GDP growth. While exports and business investments are increasing and the unemployment rate is at a 16-year low, the nature of work has changed. Many workers are struggling to support their families on part-time, contract or minimum-wage work. Government has a responsibility to address precarious employment and ensure Ontario workers are protected by updating the province’s labour and employment laws.

To help safeguard employees and create fairer and better workplaces, Premier Kathleen Wynne announced today that the government is moving forward with a landmark package of measures, including:

-Raising Ontario’s general minimum wage to $14 per hour on January 1, 2018, and then to $15 on January 1, 2019, followed by annual increases at the rate of inflation.
-Mandating equal pay for part-time, temporary, casual and seasonal employees doing the same job as full-time employees; and equal pay for temporary help agency employees doing the same job as permanent employees at the agencies’ client companies.
-Expanding personal emergency leave to include an across-the-board minimum of at least two paid days per year for all workers.
-Bringing Ontario’s vacation time into line with the national average by ensuring at least three weeks’ vacation after five years with a company.
-Making employee scheduling fairer, including requiring employees to be paid for three hours of work if their shift is cancelled within 48 hours of its scheduled start time.

The government will also propose measures to expand family leaves and make certain that employees are not mis-classified as independent contractors, ensuring they get the benefits they deserve. To enforce these changes, the province will hire up to 175 more employment standards officers and launch a program to educate both employees and small and medium-sized businesses about their rights and obligations under the Employment Standards Act.
QUOTES

” The economy has changed. Work has changed. It’s time our laws and protections for workers changed too. Too many families are struggling to get by on part-time or contract work and unstable employment. And no one working full time in Ontario should live in poverty. With these changes, every worker in Ontario will be treated fairly, paid a living wage and have the opportunities they deserve.”
– Kathleen Wynne
Premier of Ontario

” These changes will ensure every hard-working Ontarian has the chance to reach their full potential and share in Ontario’s prosperity. Fairness and decency must be the defining values of our workplaces.”
– Kevin Flynn
Minister of Labour
QUICK FACTS

Today’s announcement responds to the final report of the Changing Workplaces Review, conducted by Special Advisors C. Michael Mitchell and John C. Murray, over the course of two years. It is the first-ever independent review of the Employment Standards Act, 2000 and Labour Relations Act, 1995.
The report estimates that more than 30 per cent of Ontario workers were in precarious work in 2014. This type of employment makes it hard to earn a decent income and interferes with opportunities to enjoy decent working conditions and/or puts workers at risk.

In 2016, the median hourly wage was $13.00 for part-time workers and $24.73 for full-time workers. Over the past 30 years, part-time work has grown to represent nearly 20 per cent of total employment.
Currently, half of the workers in Ontario earning less than $15 per hour are between the ages of 25 and 64, and the majority are women.
More than a quarter of Ontario workers would receive a pay hike through the proposed increase to the minimum wage.
Studies show that a higher minimum wage results in less employee turnover, which increases business productivity.
Ontario is proposing a broad consultation process to gain feedback from a wide variety of stakeholders on the draft legislation it intends to introduce. To facilitate this consultation, it is proposing to send the legislation to committee after First Reading.
LEARN MORE

The Changing Workplaces Review — Final Report

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Équité en milieu de travail, meilleurs emplois

Salaire minimum de 15 $ l’heure et parité salariale pour travail à temps partiel et à temps plein afin d’aider les gens à réussir au sein de l’économie en évolution

30 mai 2017 10h20

L’Ontario adopte des mesures historiques afin de créer plus de possibilités et de sécurité pour les travailleuses et travailleurs grâce à un plan pour l’équité en milieu de travail et de meilleurs emplois. Il s’agit notamment de hausser le salaire minimum, de veiller à ce que les travailleurs à temps partiel touchent le même taux horaire que les travailleurs à temps plein, de prévoir des congés de maladie payés pour tous les travailleurs et de renforcer la mise en application des lois régissant le travail.

Au cours des trois dernières années, le rendement de l’économie de l’Ontario a surpassé celui de tous les pays du G7 sur le plan de la croissance réelle du PIB. Certes, les exportations et les investissements des entreprises sont à la hausse et le taux de chômage est à son plus bas en 16 ans, mais nous constatons aussi que la nature du travail a changé. De nombreux travailleurs éprouvent de la difficulté à subvenir aux besoins de leur famille avec un emploi à temps partiel, contractuel ou au salaire minimum. Le gouvernement a la responsabilité d’agir face à la précarité de l’emploi et de veiller à ce que les travailleurs de l’Ontario soient protégés en actualisant les lois provinciales qui régissent le travail et l’emploi.

Pour contribuer à protéger les employés et créer des milieux de travail plus équitables et plus conviviaux, la première ministre Kathleen Wynne a annoncé aujourd’hui que le gouvernement va de l’avant avec un train de mesures inédites, dont les suivantes :

hausser le salaire minimum général en Ontario à 14 $ l’heure le 1er janvier 2018, puis à 15 $ le 1er janvier 2019, ce qui sera suivi par des hausses annuelles correspondant au taux d’inflation;
rendre obligatoire la parité salariale des employés à temps partiel, temporaires, occasionnels et saisonniers qui font le même travail que les employés à temps plein, et une paie égale pour les employés des agences de placement temporaire qui font le même travail que le personnel permanent de leurs entreprises clientes;
élargir le droit à des congés d’urgence personnelle pour inclure un minimum général d’au moins deux jours rémunérés par an pour tous les travailleurs;
faire correspondre la durée des vacances annuelles en Ontario à la durée moyenne nationale en accordant au moins trois semaines de vacances après 5 ans d’emploi avec le même employeur;
rendre plus équitable la planification des horaires de travail, ce qui comprend exiger que les employés soient payés pendant trois heures si leur quart de travail est annulé dans les 48 heures précédant l’heure de début planifiée.

Le gouvernement proposera aussi des mesures pour rendre plus équitable la planification des horaires du personnel, augmenter les congés familiaux et prévenir la classification erronée d’employés en tant qu’entrepreneurs indépendants, de manière à ce qu’ils obtiennent les avantages sociaux qu’ils méritent. Pour appliquer ces changements, la province embauchera jusqu’à 175 agentes et agents des normes d’emplois et lancera un programme de sensibilisation des employés et des petites et moyennes entreprises concernant leurs droits et obligations aux termes de la Loi de 2000 sur les normes d’emploi.

CITATIONS

« L’économie et le marché du travail d’emploi ont évolué. Il est temps d’adapter aussi nos lois et les mécanismes de protection de notre main-d’oeuvre. Trop de familles ont du mal à joindre les deux bouts avec du travail à temps partiel, contractuel ou instable. Aucun travailleur à temps plein en Ontario ne devrait vivre dans la pauvreté. Grâce à ces changements, les travailleuses et travailleurs de l’Ontario seront traités avec équité, toucheront un revenu décent et auront les possibilités qu’ils méritent.»
– Kathleen Wynne
première ministre de l’Ontario

« Ces changements feront en sorte que les Ontariennes et Ontariens qui ont du coeur à l’ouvrage puissent avoir la chance de réaliser tout leur potentiel et de partager la prospérité de l’Ontario. L’équité et la cordialité doivent être des valeurs définitoires de nos lieux de travail.»
– Kevin Flynn
ministre du Travail

FAITS EN BREF

L’annonce d’aujourd’hui va dans le sens du rapport final de l’Examen portant sur l’évolution des milieux de travail que les conseillers spéciaux C. Michael Mitchell et John C. Murray ont mené pendant une période de deux ans. Il s’agit du tout premier examen indépendant de la Loi de 2000 sur les normes d’emploi et de la Loi de 1995 sur les relations de travail.
Le rapport évalue que plus de 30 % des travailleurs ontariens avaient un emploi précaire en 2014. Ce genre d’emploi fait qu’il est difficile d’obtenir un revenu suffisant et compromet les chances de profiter de conditions de travail décentes, en plus de faire subir des risques aux travailleurs.
En 2016, le salaire horaire moyen était de 13 $ pour les travailleurs à temps partiel et de 24,73 $ pour les travailleurs à temps plein. Au cours des 30 dernières années, le travail à temps partiel a augmenté de sorte qu’il représente près de 20 % de tous les emplois.
À l’heure actuelle, la moitié des travailleurs en Ontario qui gagnent moins de 15 $ l’heure ont de 25 à 64 ans et la majorité de ces effectifs sont des femmes.
Plus du quart des travailleurs de l’Ontario recevraient une hausse salariale grâce à l’augmentation proposée du salaire minimum.
Des études démontrent qu’un salaire minimum plus élevé réduit le roulement du personnel, ce qui accroît la productivité des entreprises.
L’Ontario propose un vaste processus de consultation afin d’obtenir la rétroaction d’une grande variété d’intéressés concernant le projet de loi envisagé. Pour faciliter cette consultation, il est proposé de soumettre le projet de loi à un comité après la première lecture.

POUR EN SAVOIR DAVANTAGE

Examen portant sur l’évolution des milieux de travail — rapport final

Politics

Ontario Boosts Transit Funding Across Province Doubles Municipal Share Gas Tax

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Ontario is boosting support for nearly 100 cities and towns across the province, providing them with reliable, long-term funding to improve and expand their local transit systems and offer more travel options for commuters and families.

Premier Kathleen Wynne and Transportation Minister Steven Del Duca were at York Region Transit’s Richmond Hill facility today to announce the new investment.

The province has heard directly from people who are frustrated by their daily commute and from municipalities [Municipalities are often also incorrectly called “County”- though they are legally incorporated as a super-city Ed.]  that are struggling to meet their transit needs. In response to these concerns, starting in 2019, Ontario will be increasing funding for local transit through an enhancement to the existing gas tax program, doubling the municipal share from two cents per litre to four cents by 2021. There will be no increase in the tax that people in Ontario pay on gasoline as a result of the enhancement to the program.

Cities and towns receiving the new funding are able to plan for and make major infrastructure upgrades, buy additional transit vehicles, add more routes, extend hours of service, implement fare strategies and improve accessibility.

Ontario recognizes that commuters need reliable transit options before revenue-generating measures such as road tolls are implemented. For example, the ongoing GO Regional Express Rail project will not be completed and in service before 2024. That is why the province is not supporting plans for municipal road tolls at this time. This new investment, along with Ontario’s $31.5-billion transit and transportation investment across the province, will support more buses in cities like Thunder Bay and Windsor, new LRT lines in Waterloo and Ottawa, and GO Regional Express Rail in the Greater Toronto and Hamilton Area, including SmartTrack in Toronto.

Supporting stronger public transit systems is part of our plan to create jobs, grow our economy and help people in their everyday lives.
QUOTES

” People in communities across Ontario can’t afford to waste time stuck in traffic — we all need better options to get to work and home to our families sooner. This substantial boost to funding for local transit in cities and towns across the province will help them make significant improvements that will have a big impact on people’s day-to-day lives.”
– Kathleen Wynne
Premier of Ontario

” We’ve heard loud and clear from municipalities that they need more sustainable funding for public transit to keep up with the demand to provide more service. By modernizing Ontario’s gas tax program we are helping municipalities improve their local transit service so people can easily get where they need to be.”
– Steven Del Duca
Minister of Transportation
QUICK FACTS

Funding will increase to 2.5 cents per litre in 2019–20, 3 cents in 2020–21 and 4 cents in 2021–22.
This year the province committed $334.5 million in gas tax funding to 99 municipalities [Municipalities are sometimes incorrectly called “County”- though they are legally incorporated as a super-city Ed.] . This amount is expected to increase to about $401.3 million in 2019–20, $481.5 million in 2020–21 and $642 million in 2021–22.
Ontario made its gas tax program permanent in 2013 to provide a stable source of funding for municipalities.
One bus takes up to 40 vehicles off the road and keeps 25 tonnes of greenhouse gas emissions out of the atmosphere each year.
Research shows that every $100 million of public infrastructure investment in Ontario boosts GDP by $114 million, particularly in the construction and manufacturing sectors.
LEARN MORE

Gas Tax Funding for Municipalities
Ontario.ca/BuildON

Available Online

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L’Ontario accroît le financement des transports en commun des villes de l’ensemble de la province
Plus d’options pour les déplacements et amélioration du transport en commun local pour les navetteurs et les familles

27 janvier 2017 09h35

L’Ontario accroît son soutien à près de 100 villes de la province en leur fournissant un financement à long terme stable qui favorise l’amélioration et l’expansion des transports en commun locaux et offre un plus grand nombre d’options aux navetteurs et aux familles.

La première ministre, Kathleen Wynne, et le ministre des Transports, Steven Del Duca, se sont rendus aujourd’hui à la gare de transports en commun de la région de York à Richmond Hill pour faire l’annonce de ce nouvel investissement.

La province a directement recueilli les propos de navetteurs frustrés et de représentants de municipalités qui éprouvent des difficultés à répondre à la demande en services de transport en commun. Pour donner suite à ces préoccupations, l’Ontario augmentera à partir de 2019 le financement qu’il accorde aux transports en commun locaux et bonifiera son programme actuel de financement par la taxe sur l’essence en doublant la part municipale pour la porter de deux cents le litre à quatre cents d’ici 2021. Cette bonification du programme n’entraînera pas de hausse de la taxe provinciale sur l’essence.

Les villes qui toucheront ces nouveaux fonds pourront planifier et entreprendre des rénovations d’importance à l’infrastructure, l’achat de véhicules de transports en commun supplémentaires, l’ajout de circuits, la prolongation des heures de service, la modification de leur structure tarifaire et l’offre de services plus accessibles.

L’Ontario reconnaît que les navetteurs ont besoin d’options de transports en commun fiables, avant même que des mesures génératrices de revenus soient mises en oeuvre. Par exemple, le service régional express de GO Transit est en chantier et ne sera pas opérationnel avant 2024. C’est pourquoi la province ne soutient pas de plans pour installer des péages municipaux en ce moment. Ce nouvel investissement, qui s’ajoute à l’investissement de la province de 31,5 milliards de dollars dans les transports en commun et les transports à la grandeur de son territoire, soutiendra l’achat d’un plus grand nombre d’autobus dans des villes comme Thunder Bay et Windsor, la construction de nouvelles lignes de train léger sur rail (TLR) à Waterloo et à Ottawa, de même que le service régional express de GO Transit dans la région du grand Toronto et de Hamilton, dont le SmartTrack à Toronto.

Le soutien permettant l’amélioration des réseaux de transport fait partie de notre plan visant à créer des emplois, à stimuler notre économie et à améliorer la vie quotidienne de notre population.
CITATIONS

« Les habitants des collectivités ontariennes ne peuvent se permettre de perdre du temps dans des embouteillages — nous avons tous besoin de meilleures options pour nous rendre au travail et rentrer à la maison afin d’y retrouver notre famille plus rapidement. Cette hausse substantielle du financement affecté au transport en commun local aidera les municipalités à apporter des améliorations appréciables qui auront des effets marqués pour les gens dans leur vie de tous les jours.»
– Kathleen Wynne
première ministre de l’Ontario

« Les municipalités nous ont clairement fait comprendre qu’elles ont besoin d’un financement plus durable pour le transport en commun afin de satisfaire à la demande accrue en services. C’est en modernisant le Programme de financement par la taxe sur l’essence que nous aiderons les municipalités à améliorer leurs services de transport régionaux, de telle sorte que les gens pourront se déplacer plus facilement.»
– Steven Del Duca
ministre des Transports
FAITS EN BREF

Le financement augmentera à 2,5 cents le litre en 2019-2020, à 3 cents en 2020-2021 et à 4 cents en 2021-2022.
Cette année, la province s’est engagée à verser 334,5 millions de dollars en financement par la taxe sur l’essence à 99 municipalités. Ce montant devrait augmenter jusqu’à environ 401,3 millions de dollars en 2019-2020, 481,5 millions de dollars en 2020-2021 et 642 millions de dollars en 2021-2022.
C’est en 2013 que l’Ontario a rendu permanent son Programme de financement par la taxe sur l’essence pour ainsi offrir une source de financement stable aux municipalités.
Un seul autobus permet de retirer jusqu’à 40 véhicules de la route et réduit de 25 tonnes par année les émissions de gaz à effet de serre de l’atmosphère.
Des recherches démontrent que chaque tranche de 100 millions de dollars d’investissement dans l’infrastructure publique de l’Ontario fait croître le PIB de 114 millions de dollars, tout particulièrement dans le secteur de la construction et le secteur manufacturier.
POUR EN SAVOIR DAVANTAGE

Financement par la taxe sur l’essence pour les municipalités
Ontario.ca/ONrenforce

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Available in English

Earth

Circular Economy Is New Direction For Waste Free Ontario

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In late Spring 2016, Ontario passed legislation to divert more waste from landfills, create jobs, help fight climate change and lead towards a waste-free province. Currently, Ontario is producing too much waste, and not recycling enough. Over eight million tonnes of waste is sent to landfill each year. Absolute greenhouse gas emissions from Ontario’s waste have risen by 25 per cent between 1990 and 2012 as the amount of waste disposed in landfills has increased.

The Waste-Free Ontario Act  will: encourage innovation in recycling processes and require producers to take full responsibility for their products and packaging, lower recycling costs and give consumers access to more convenient recycling options to help fight climate change by:

-reducing greenhouse gas pollution that results from the landfilling of products that could otherwise be recycled or composted
-overhaul Waste Diversion Ontario into the Resource Productivity and Recovery Authority, a strong oversight body with new compliance and enforcement powers that will oversee the new approach and existing waste diversion programs until transition is complete.

Solid Waste No More

The province will also be finalizing its draft Strategy for a Waste-Free Ontario: Building the Circular Economy, within three months of the legislation coming into effect. The strategy outlines Ontario’s vision for a zero waste future and proposed plan to implement the legislation.
Harnessing the value of waste as a resource is part of the government’s economic plan to build Ontario up and deliver on its number-one priority to grow the economy and create jobs. The four-part plan includes investing in talent and skills, including helping more people get and create the jobs of the future by expanding access to high-quality college and university education. The plan is making the largest investment in public infrastructure in Ontario’s history and investing in a low-carbon economy driven by innovative, high-growth, export-oriented businesses. The plan is also helping working Ontarians achieve a more secure retirement.

QUOTES
“Ontario is moving in an exciting new direction for managing waste in the province. The Waste-Free Ontario Act is an important step in creating Ontario’s circular economy — a system in which products are never discarded, but reintroduced and reused or recycled into new products. Managing our resources more effectively will benefit Ontarians, our environment and economy and support our efforts to fight climate change.”
— Glen Murray, Minister of the Environment and Climate Change

QUICK FACTS
Every 1,000 tonnes of waste diverted from landfill generates seven full-time jobs, $360,000 in wages (paying above the provincial average) and $711,000 in GDP.
Every year in Canada, an estimated $1 billion in valuable resources is lost to landfill.
Eventually the Waste-Free Ontario Act will eliminate industry funding organizations such as the Ontario Tire Stewardship and Ontario Electronic Stewardship.
The Blue Box program is available in about 95 per cent of Ontario households and keeps approximately 65 per cent of residential printed paper and packaging from landfills.

LEARN MORE
Read about the draft Strategy for a Waste-Free Ontario: Building the Circular Economy
Learn more about Ontario’s current waste programs

BACKGROUNDER via Ministry of the Environment and Climate Change
The Waste-Free Ontario Act and Strategy
Ontario has passed the Waste-Free Ontario Act and will be finalizing the draft Strategy for a Waste-Free Ontario: Building the Circular Economy, within three months of the legislation coming into effect.
Together, the proposed legislation and strategy would:
-Foster innovation in product and packaging design that encourages businesses to design long-lasting, reusable and easily recyclable products
-Boost recycling across all sectors, especially in the industrial, commercial and institutional sectors, which will reduce waste and lower greenhouse gas emissions
-Incent companies to look for ways to make their recycling processes more economical while staying competitive
-Shift the costs of the blue box from municipal taxpayers to producers while continuing to provide convenient collection services for Ontarians.
-Develop an action plan to reduce the amount of organic materials going to landfills.

The draft Strategy embraces a vision of “an Ontario where we have zero waste and zero greenhouse gas emissions from the waste sector and where all resources, organic or non-organic, are used and reused productively, maximizing their recovery and reintegrating recovered materials back into the economy.”
Ontario’s vision would be fulfilled with the draft Strategy’s two goals: a zero waste Ontario and zero greenhouse gas emissions from the waste sector. To achieve these goals Ontario would work towards systematically avoiding and eliminating the volume of waste, while maximizing the conservation and recovery of resources. This would also help the province meet its climate change commitments and help Ontario build a low-carbon economy.
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