.
Search
Email this article Discuss this article

Business could be forced to Hub

Proposed trucking permit costs will cause Yellowknife prices to skyrocket

Thorunn Howatt
Northern News Services

Yellowknife (Aug 22/01) - Some Yellowknife businesses say proposed truck permitting costs could force them out of town.

"It will be cheaper to do business in Hay River than Yellowknife," said Howard Nowell from Acklands Grainger.

"Lupin doesn't buy a thing from Yellowknife anymore," he said.

A proposed plan for truck permitting fees was outlined last Monday by representatives from the territorial government's transportation department. They said construction on Highway 4 into Yellowknife could be completed about six years sooner than the 10-year plan if revenue is collected from commercial vehicle operators.

"It's not a tax. It's not a toll. It's a permit," said transportation planner Greg Cousineau.

A bill that would make the permit law will have its third legislative reading in November. It suggests that truckers hauling commercial loads pay a permitting fee to travel on the territorial highways. The revenue would be used to upgrade highways.

Passenger vehicles would be exempt from the fee.

"Let's face it, commercial vehicles cause more damage," said Cousineau.

Many are arguing that added trucking costs will be passed along to Yellowknife consumers via an increase in cost of goods.

"People are going to start getting in their pickups, going down south, going shopping and filling up their pickups from the south," said Kelley Tanner, from Weatherby Trucking.

"Being a small business we can't afford to eat those costs. We'll have to pass them back," she said. "I can't believe people aren't getting more upset about this."

The program will cost $1.8 million just to administer. The government panel envisions a call centre where trucking firms would call to organize permits. Freight trucks would be policed round the clock.

"We already pay an enormous amount of royalties to the NWT government," said Chris Hanks, an environmental specialist from BHP Diamonds. "In any other jurisdiction in Canada the government would make sure the infrastructure was there."

The proposal's impact study estimates $17 million per year in permit revenues -- paying off highway construction in 10 years.