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Environment Commissioner’s Recent Comments Concern FONOM

Date published: 
Tuesday, January 26, 2016

 

The Federation of Northern Ontario Municipalities (FONOM) is concerned with comments made by Ontario’s recently appointed Environment Commissioner, Dianne Saxe, about the use of coloured fuel.

 

Coloured fuel is fuel to which a specific type and quantity of red dye has been added. This fuel is exempt from Ontario fuel taxes and is used for industrial purposes. Industries such as forestry and mining as well as our farmers readily use coloured fuel to operate equipment. As many communities in Northern and rural Ontario are dependent on these industries, any changes to the way coloured fuel is taxed will have profound implications.

 

The comments made by the Environment Commissioner, Dianne Saxe, refer to a provincial budget which suggests that coloured fuel consumption is subsidized by $190 million a year, which Saxe claims that the money tends to go to the better off.

 

While the province continues to actively seek opportunities to cut costs and generate revenues to address the Ontario deficit, we are concerned that removing this tax exemption that assists industrial operations would be considered.

 

However, the impacts that this would have in Northern and rural Ontario, regions that depend heavily on industries that utilize coloured fuel must be taken into account. “We are consistently hearing from industries operating in Northern Ontario that the electricity prices are too high which is making them uncompetitive. At a time where the mining sector is struggling and forestry and farming face continuous pressure, this would only hinder their ability to be competitive,” says Mayor Alan Spacek and President of FONOM.

 

“We are calling on the government to take a position on this issue and commit to safeguarding our industries,” continued Spacek.

 

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For More Information:

 

Mayor Alan Spacek

President of FONOM

705 335 0001

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