What Changes at Your Work due to the New Carbon Tax

[ganderblaster]

I want information on unexpected or significant changes at your workplace please. For example a meter of concrete according to a friend of mine in the business is going from $230 up to $300. On a new house build that's significant. The intention of this thread is information only so forum members can anticipate increases. Please keep the political rants, and frustrations out of this thread.

[DevilsAdvocate]

Commercial lease rates for common area costs are going up, our vehicle costs will be going up, our delivery costs will be going up.......
While sales are going down due to customers having less disposable income and/or concern for the economy (negative sentiment--even fearful)......and fewer people with incomes out there. For us the impact is twofold....once to our operating costs and once to sales in that our customer's ability to buy from us is reduced. We will be getting it on both sides of the income statement.

Not a great combination.

Plus the govt iced this S! cake with the minimum wage increases. Blah blah blah from the left......the last increase is not that big....but only the stupid don't plan for what is coming......much bigger wage cost increases in the next two increases.

So its not just one thing but every straw that adds up to break the camels back. But in this analogue, the govt decided to drop the whole barn on the camel all at once.

Means belt tightening........trimming of positions/staff hours, no overtime allowed, no extra hours allowed, no bonuses, no incentive pay...,no etc, no, no, no.

And if it gets any worse, the closing of a store or two or three.
That will mean layoffs.

This carbon tax really is putting the boots to Albertan's when they are already down.

[hillbillyreefer]

Major increases in shipping costs, grain drying costs, water lifting and keeping it liquid costs, Keeping barns and shops heated is going to be much more expensive.
Fertilizer costs will increase substantially.
Labor costs have increased.
The as yet unknown WCB costs are also going to hit producers.
Just one more assault on small agriculture producers, livelihoods will be destroyed by poor government policy.

[Kim473]

Originally Posted by ganderblaster

I want information on unexpected or significant changes at your workplace please. For example a meter of concrete according to a friend of mine in the business is going from $230 up to $300. On a new house build that's significant. The intention of this thread is information only so forum members can anticipate increases. Please keep the political rants, and frustrations out of this thread.

Wow ! 30 % increase sounds like a profit grab by the company. I know all goods are gonna increase but to me, 30% sounds excessive. I would think 10% to 20% would be about right for increases on all goods and services.

Gonna be the " Alberta disadvantage" in the new year.

[ganderblaster]

Originally Posted by Kim473

Wow ! 30 % increase sounds like a profit grab by the company. I know all goods are gonna increase but to me, 30% sounds excessive. I would think 10% to 20% would be about right for increases on all goods and services.

Gonna be the " Alberta disadvantage" in the new year.

This is in a smaller centre so all the raw materials have to be trucked in and then the product trucked out, so that may play into as well vs Calgary or Edmonton prices?

[kevinhits]

Originally Posted by DevilsAdvocate

Commercial lease rates for common area costs are going up, our vehicle costs will be going up, our delivery costs will be going up.......
While sales are going down due to customers having less disposable income and/or concern for the economy (negative sentiment--even fearful)......and fewer people with incomes out there. For us the impact is twofold....once to our operating costs and once to sales in that our customer's ability to buy from us is reduced. We will be getting it on both sides of the income statement.

Not a great combination.

Plus the govt iced this S! cake with the minimum wage increases. Blah blah blah from the left......the last increase is not that big....but only the stupid don't plan for what is coming......much bigger wage cost increases in the next two increases.

So its not just one thing but every straw that adds up to break the camels back. But in this analogue, the govt decided to drop the whole barn on the camel all at once.

Means belt tightening........trimming of positions/staff hours, no overtime allowed, no extra hours allowed, no bonuses, no incentive pay...,no etc, no, no, no.

And if it gets any worse, the closing of a store or two or three.
That will mean layoffs.

This carbon tax really is putting the boots to Albertan's when they are already down.

Wow....Totally hit the nail on the head with this post...This is exactly what I will feel in the next while....You are totally right on with the wage increases. I did not get really hit with the last 2 increases as I paid my staff way more than minimum wage to keep them. The next 2 increases are going to hurt in a big way.

[sjd]

I'm sure there will be lots of fearmongering and maybe attempts to jack up prices.

C-tax on Jan will increase diesel 5 cents per litre. Is this enough to drive up concrete costs 30%. I doubt it. Was concrete 30% more expensive when gas prices were 5 cents higher a couple of years ago?

[dmcbride]

Originally Posted by sjd

I'm sure there will be lots of fearmongering and maybe attempts to jack up prices.

C-tax on Jan will increase diesel 5 cents per litre. Is this enough to drive up concrete costs 30%. I doubt it. Was concrete 30% more expensive when gas prices were 5 cents higher a couple of years ago?

It has nothing to do with diesel.

http://www.macleans.ca/economy/busin...-is-crumbling/

[Okotokian]

Originally Posted by ganderblaster

This is in a smaller centre so all the raw materials have to be trucked in and then the product trucked out, so that may play into as well vs Calgary or Edmonton prices?

The price of diesel is going up a nickel. I hardly think that results in a 30% increase in overall product costs. The tax will likely have an impact on several other production input cost factors, but it's not going to result in any double digit price increases.

[sjd]

Originally Posted by dmcbride

It has nothing to do with diesel.

http://www.macleans.ca/economy/busin...-is-crumbling/

Cement is not going to pay the full carbon tax. Rules haven't even be set yet so plucking numbers out of the air is just that. Rules for industry don't even come into effect till Jan 1 2018 so you are being spun.

http://www.envirolinenews.ca/news-an...ment-minister/

"Adam Auer, director of sustainability for the Cement Association of Canada, also supported protective measures for energy-intensive, trade-exposed industries. “It’s ultimately about protecting provincial interests, protecting jobs,” he said.
B.C.’s transitional financial initiative to protect its cement industry from imported cement not subject to a carbon tax represents “smart policy” that makes sense, as long as such measures are transparent and science-based, Auer said."

[79ford]

The place i work at already been paying carbon taxes in alberta for awhile.... this isnt anything new to them and most of the revenue paid out gets cycled back under the old carbon tax.

The new carbon tax cycles most of the money back on an co2 production intensity basis, 75% of firms will get most money back and ones that can achieve co2 production intensity reductions in a certain amount will get possibly even more money back than goes into the tax.

The last paragraph is positive for companies who plan on producing more or investing for energy savings.... which is what is happening where i am at, some new projects are being considered to lower emmissions intensity and bump production to provide a good production/co2 emmission profile.

The new carbon idea essentially rewards higher production and energy efficiency for large industrial operations. Even if a plant didnt trim emmssions but increased production the subsidy will go up.

Companies that lag have some incentive to improve and companies that improve emmissions or increase production get larger return or even possible positive return on the new tax regime.... if you had a oilsand upgrader and started producing 400 000bbl/day vs 350 000 barrels but produce the barrels more efficiently even with an increase in emmsions the new regime will reward the energy intensity.


Pretty much a non event for where i am at worst case scenario and very beneficial with new investment in energy intensity reductiosn/production increases. Could bring in a few billion in new equipment.