November 13, 2006

ASSOCIATIONS

Call for incentives to help meet emission standards

Patricia Williams

Staff Writer

OTTAWA

The Canadian Construction Association (CCA) has reiterated its pitch for financial incentives to help firms replace outdated equipment fleets as a way to achieve federal goals under the Clean Air Act.

In a recent letter, CCA “encouraged” Environment Minister Rona Ambrose to work with her colleagues at Finance Canada to implement an accelerated capital cost allowance for off-road diesel engines and equipment that meet the government’s new emission control standards.

“The Canadian construction industry is dominated by small businesses, which have little excess capital to be able to turn over their equipment and vehicle fleets at an accelerated rate,” said association president Michael Atkinson.

“Therefore, CCA believes the federal government can help to ensure greater penetration of these lower-emitting vehicles through a ‘carrot’ approach. An accelerated capital cost allowance would provide a welcome incentive for consumers of diesel-powered equipment and engines to acquire the newer, less-emitting equipment — since they may not have the means otherwise to procure this expensive equipment.”

The letter is a follow-up to the association’s pre-budget submission to the Commons standing committee on finance.

In mid-October, the government unveiled a notice of intent to develop and implement regulations and other measures to reduce air emissions — otherwise known as the Clean Air Act.

Those measures include amendments to existing regulations that would cut emission levels from off-road diesel engines and equipment. These are similar to changes being introduced by the Environment Protection Agency in the United States.

Jeff Morrison, CCA’s director of government relations and public affairs, told Daily Commercial News the association believes an accelerated capital cost allowance would constitute “a good complementary measure” to the Clean Air Act.

Asked if CCA is optimistic that the government will in fact act on its recommendation, Morrison said: “That’s the $64,000 question. We’re going to talk with government officials and politicians about this idea. We hope they will be receptive to the message.

“Clearly, if the government is serious about improved air quality from our sector, they will have to offer some incentive to expedite fleet turnover.”

The association sent a copy of its letter to federal Finance Minister Jim Flaherty.

It has been working with the federal government for some years to develop strategies to lower the industry’s “already low levels” of greenhouse gases and other emissions.

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