Richard Gleeson
Northern News Services
Yellowknife (Aug 08/01) - The proposed highway toll will push up the cost of living, but not even the government has an accurate idea of what the total impact will be.
The government plans to introduce the toll next year, assessing it based on truck configuration and number of kilometres travelled on NWT highways.
| Going up
Anticipated annual increases for a family of three living in Yellowknife:
Total $164 Increases by item: |
Transport Minister Vince Steen said he believes companies operating mines and gas wells can write off much of the additional transport cost in their calculation of royalties owed the federal government.
The rest of the toll will be borne by consumers who will absorb costs passed on by trucking companies and retailers.
Government estimates based on average consumption and using historical transport data indicate it will cost a family of three an extra $164 each year for gasoline, groceries and heating fuel in Yellowknife once the toll is introduced.
"It's as good as we can do with the information we collect regularly," said Finance Minister Joe Handley of the estimates. "But it's an average. There is no one amount we could have that would reflect the impact on everybody."
Of three centres surveyed, Yellowknife will be hit the hardest, the government calculates. By comparison, the price of the three basic commodities will rise by $28 in Inuvik and $19 in Hay River.
Much of the fuel shipped to Hay River comes in by rail. All but 10 per cent of the fuel shipped to Inuvik is barged in. Only the last 165 kilometres of the highway drive from the south to Inuvik is on NWT highways.
The toll will have no impact on the annual federal grant the government receives. When resource royalties are paid to NWT governments instead of Ottawa, the highway toll will need to be rethought or scrapped, Handley said.
"This is definitely viewed as a temporary measure to help improve the infrastructure, and help us get along until we do get the resource revenues."
