Gas tax uncertain: Peary

Joe Millican - Abbotsford News Published: November 13, 2009 4:00 PM

There is no certainty that the City of Abbotsford will drive forward with a proposed local gas tax in 2010, according to Mayor George Peary. In March, Peary pitched the idea of a two cents per litre gas tax for Abbotsford motorists, raising between $5 million and $6 million per year, which would be plowed back into local roads and transit. With the city now finalizing its budget for 2010, however, Peary told The News this week that he will not be backing the proposed gas tax without financial cooperation from the province. The local bus network is funded by Abbotsford and Mission, through fares, and by the provincial government (through BC Transit). As gas tax negotiations with the province continue, Peary is concerned that if the city introduces the new fuel levy, the province may choose to reduce its share of the funding – essentially downloading some of its portion onto local taxpayers. If that happens, Peary said he is not interested in pursuing the plan further. “If it’s a wash and we can’t demonstrate to my satisfaction that this is going to work, then it won’t happen,” he said.

Peary said negotiations with the provincial government, whose approval the city needs to proceed with the gas tax, will not be completed by the end of the year. Therefore, he is giving city manager Frank Pizzuto until April 1 to reach a suitable agreement with Victoria. In September, Abbotsford-West MLA Mike de Jong said the province would consider a City of Abbotsford gas tax and would “work cooperatively” with the city should it choose to press ahead with the plan. Communities in Metro Vancouver already pay a six cent per litre gas tax, which is used by TransLink to pay for regional transportation projects.