Wynne Government Recognizes the Importance of Cutting the Infrastructure
Deficit, but does so by Increasing Taxes on Construction Employers
TORONTO, May 2, 2014 /CNW/ - The Ontario Sewer and Watermain
Construction Association (OSWCA) is encouraged that infrastructure
investment remains a top priority for Ontario as the Wynne Government's
2014 Budget continues to address the provincial infrastructure deficit,
with a particular focus on transportation infrastructure development.
This is an important strategy to push forward with, as Ontario
continues to struggle with a significant infrastructure deficit and
traffic congestion, which negatively impact economic activity in the
provinces major urban centres. Nevertheless, OSWCA has particular
concerns with the decision to repeal the Fuel Tax exemption for
road-building equipment and with a number of other tax increases that
will restrain private sector growth in the construction industry.
"It is clear the government is focused on shrinking the infrastructure
deficit and improving the significant traffic congestion problems that
we face in the province," stated Cindy McCarthy, President of the
OSWCA, "but repealing the Fuel Tax Exemption for road-building
equipment as a way to pay for it is not practical or acceptable."
OSWCA Executive Director Giovanni Cautillo noted that "the provincial
Fuel Tax is meant to act as a user fee for vehicles on the road, not
for construction equipment operating on a closed worksite. The repeal
of this tax exemption has the potential to cost our members millions of
dollars a year in lost revenue."
The chart below represents a quick analysis of common equipment used in
the heavy civil construction industry and the potential cost
implications per piece of equipment per day.
Consumption Per Days
Operating Cost Increase Per Day
(Diesel Consumption x 14.3 cents per
Volvo 460 Excavator
Caterpillar D6 Dozer
John Deere 700 series
The OSWCA is the voice of the sewer and watermain industry in the
province, representing over 700 member companies, including
contractors, suppliers, manufacturers, and consulting engineers. To
learn more about the OSWCA go to www.oswca.org.
SOURCE: Ontario Sewer and Watermain Construction Association
For further information:
Giovanni Cautillo, Executive Director, OSWCA
firstname.lastname@example.org or 905-629-8658