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Tax stays, says Cantelon

By Neil Horner
July 7th, 2008

Even as gasoline prices spiked to over $1.50 in Oceanside Friday, Nanaimo-Parksville MLA Ron Cantelon was defending his government's controversial carbon tax.

The tax, which came into effect July 1, added 2.4 cents per litre for gas, raising the price to $1.42.3 cents Tuesday. However, Friday's jump bumped that up to $1.51.9 per litre.

Cantelon said the price hike was unexpected, but does not represent a reason to back off on the carbon tax.

"I don't see that as a reason to abandon the plan,"he said. "It should only draw attention to the problem.

"It's a disincentive, which the gas companies have accentuated tremendously, and I would hope people would welcome the fact there are tax reductions to compensate for our side of that."

Cantelon stressed the government has no control over the price of gas, except for the carbon tax, but stressed the $100 rebate, along with a tax cut and other incentives, will leave people ahead of the game, despite the carbon tax.

"You'll still have money in your pocket to make choices, and we hope those choices will be to help lower our carbon footprint,"he said, noting as well the recently-announced increases to transit funding in Nanaimo, which he said would also impact on Parksville.

Cantelon said reaction on the street to the carbon tax has been generally positive, despite the pain in people's pocket books.

"I hear people say they're glad we're doing something,"he said.

"Most people know the [latest] gas price increases have nothing to do with the tax. The tax has been overwhelmed. The carbon tax is a pretty small component of the price."

That's not how Alberni-Qualicum MLA Scott Fraser sees it, however.

"All the reductions that were supposed to be obtained by the gas tax were based on $85 a barrel oil,"he said.

"We're at over $140. Since they suggested bringing in a gas tax, the economy has taken a huge hit with the cost of fuel and adding this tax is not facing the realities of what is happening in the marketplace."

news@pqbnews.com




Original Source:
http://www.bclocalnews.com/vancouver_island_central/parksville_qualicumbeachnews/news/24038944.html
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