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The Deh Cho Bridge is set to open to traffic this fall. Commercial vehicles heading northbound will be charged tolls corresponding to the number of axles on the vehicle. - NNSL file photo
Government ponders Deh Cho Bridge tolls
Questions remain as to who will absorb costs

Galit Rodan
Northern News Services
Published Saturday, April 21, 2012

NORTHWEST TERRITORIES
Super B-trains bringing fuel from southern Canada could be required to pay a toll of up to $291.25 if the proposed Deh Cho Bridge regulations are enacted.

The proposed regulations set out the toll rates for various commercial vehicles. The rates correspond to the number of axles on the vehicle and vary depending on whether the operator or owner of the vehicle buys a single-use toll permit or enters into a remittance agreement.

For example, under a single-use permit, the owner/operator of a commercial vehicle containing two to four axles would be subject to a toll of $91.25. Under a remittance agreement, the same class of vehicle would be subject to a toll of $75.

The bridge tolls are the GNWT's sole revenue-generating mechanism for recouping the money it has sunk into the project – nearly $192 million for the capital cost of the infrastructure, in addition to the approximately $132 million in interest the government will owe by the time the principal is repaid.

Ben Walker, general manager of the Yellowknife Direct Co-op, said the extra cost accruing to the grocery store would likely not be passed on to its customers.

Grocery prices are set per zone, said Walker, and grocery stories in Yellowknife are set to the Northern Alberta zone price – tolls or no tolls.

Still, consumers may not be able to avoid the effect of the tolls entirely.

"It more likely will be added on to the price of gas because that's more of a commodity item that they add up all the costs to get it here … So gas may go up," Walker said.

Walker said the grocery stores themselves would probably absorb the cost of the tolls but expected they would save at least as much money by avoiding the need to fly in groceries during the fall freeze-up and spring break-up.

"Trust me, I'm not going to miss break-up," he said.

If Walker is ambivalent, Tom Hoefer, executive director of the NWT Chamber of Mines, is not overly impressed.

"I've never seen a toll on a bridge in my life," Hoefer said.

"This is a very unique situation in them proposing that. In other jurisdictions the general revenues that government collects from taxes pay for infrastructure like bridges. And that would have been our preference when we were lobbying on this a number of years ago."

Hoefer said the three mining companies – Diavik, Ekati and BHP Billiton – have paid $100 million in property taxes since 2001. Unlike property taxes paid by homeowners, however, the mines see no return – for example, in water and sewer upkeep.

"It's a windfall tax," said Hoefer of the property tax paid by the mining companies. "I guess our preference would be if they reinvest some of that windfall tax back into the bridge – things like the bridge. You could pay that bridge off pretty fast and not charge anybody anything," he said.

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