Offer incentives to buy cleaner engines, Bradley tells finance committee

OTTAWA (June 4, 2002) — The federal government should consider using fiscal incentives to ease the dramatic cost burden of introducing of cleaner-running diesel engines into the vehicle fleet, Canada’s top trucking industry lobbyist said.

Appearing in pre-budget hearings held by the House of Commons’ Standing Committee on Finance, Canadian Trucking Alliance chief executive David Bradley said incentives would encourage equipment buyers to purchase newer engines sooner. New federal rules announced last month by Environment Minister David Anderson are in lock-step with standards in the United States which mandate the use of cleaner diesel truck engines starting Oct. 1.

In order to meet lower emissions targets, most heavy-duty diesel engines have been redesigned and are expected to cost $3000 to $6000 more than current engines. Buyers who are unfamiliar with new features also worry that the engines will cost more to operate and maintain. As a result of the anticipated costs, some fleets have been “pre-buying” current models while others have indicated that they plan to slow the turnover of their existing fleet, Bradley explained.

“It is in everyone’s interest to ease barriers to the introduction of the latest engine technology,” said Bradley. “Given that fleet owners will see significant cost increases as a direct consequence of new government regulations, CTA believes it is entirely reasonable that a fiscal incentive, such as accelerated capital cost allowance be introduced to attenuate the impact.”

Bradley also called on the committee to re-visit the issue of driver meal deductibility limits. He said they should be aligned with meal deductibility rules in the United States. The Canadian limits were reduced as a deficit fighting measure several years ago. Bradley says that with the country’s finances on a solid footing “the time has come for the government of Canada to correct this fiscal injustice.”