Minister Comments on Truckers� Protest

Finance Minister Lloyd Matthews said today that the increased cost of diesel fuel is 100 per cent market driven and is an international problem that is beyond the scope of any provincial government to fix.

"While government understands and appreciates the point of view of truckers who have been protesting the increase in the cost of diesel fuel, it is important to point out that this increase is entirely market driven," said Minister Matthews. "Government has not increased its gasoline tax. There has been no change in provincial gasoline tax since 1994 when the tax on diesel actually decreased by 1.1 cents per litre."

Minister Matthews also noted that the HST applicable to the price of diesel fuel is fully refundable to the trucking industry because of the removal of tax on business inputs which, in effect, reduces the HST rate to zero. "In fact, since 1997, the trucking industry has benefitted immensely from the introduction of the HST and the provision of input tax credits on vehicles, parts and repairs."

Minister Matthews pointed out that oil prices are driven by market forces.

Media contact: Paula Dyke, Communications, (709) 729-0329.

2000 02 22                                                 4:40 p.m.