President Bob time warped at the start of the meeting and welcomed everyone to a gathering of the St. James club. A fine was sure to come! This failed to throw us off our game, a fine rendition of O Canada and Rotary Grace under the guidance of Dave Morris. The meeting was then handed over to Sarge Lyle Miller.

 

S.A.A. Lyle was back with us tonight and he started with an introduction of our only guest, Mr. Terry Shaw (Manitoba Trucking Association).

 

 

Nancy Morris reminded all that lobster dinner prizes/ auction items are being collected now.  An option would be to make a cash donation through the club foundation (tax receipt given).

 

Nancy Morris advised that P.D.G. Rick Hubbs has been hosting an exchange student from Belgium.  This student is traveling to Montreal in April. Zoe (student) will be arriving back at the Winnipeg Airport on April 6^th @ 11:50pm. She will need two nights of accommodation (April 6 & 7) before traveling back to The Pas by bus on April 8^th at 10:30pm. If you can host  Zoe for this time period and do the pick-up and drop off, please advise Nancy Morris.

 

President-Elect Mandy reported on the Westgrove Community Garden Project, as well as the Westgrove Breakfast Program. She will contact Troy Caulder from Westgrove to see if more items are required for the breakfast program, at this time. Preferred items Suggested items for the breakfast program include – unsweetened cereal, unsweetened juices, WOW butter, granola bars (nut free), puddings, yogurt tubes. We will start to collect food items over the next few meetings, starting March 26, 2018.

 

Jack Wilson asked about future ‘Fellowship’ plans. Ideas put forth included B.B.Q. +/- car rally. Most in attendance tonight indicated an interest in the car rally. Jack will investigate the logistics of this as a future spring event. Please note: Mandy has volunteered her property southwest of Winnipeg for a post rally B.B.Q.

 

President Bob advised that at the board meeting tonight, prior to dinner, it was suggested to run a ‘surveymonkey’/ online questions to try and match members up with areas in the club`s functions that interest them.

 

Nancy Morris introduced our guest speaker tonight. Terry Shaw is the Executive Director of the Manitoba Trucking Association (MTA). Terry oversees the planning and priorities of the association. Terry is the lead for political liaison, and relations with all levels of government, in both administrative and legislative functions. He is also the lead on media relations and, along with members of the executive, acts as a spokesperson for the industry.

 

Terry is a member of a variety of MTA committees, including the executive and Board of Directors. He also represents the MTA with his involvement with Trucking Human Resources Canada, the Manitoba Employers Council, and the Winnipeg and Manitoba Chambers of Commerce. He is also a contributing editor to the Western Canada Highway News.

 

What is the Carbon Tax and how will it impact us all. What is the benefit? The MTA has some issues with the way that the carbon tax has been structured. The federal carbon tax plan states that the provinces should start at $0/tonne and move up to $50/tonne over 5 years. Going from $0 to $50 represents a 400% increase in just one tax faced by the trucking industry, and by all Manitobans due to the trickle-down effect. In 2018 the tax would be 2.74 cents/litre going to 13.69 cents/litre in 2022 (diesel).

 

This does not take into consideration that here in Manitoba there is already a carbon tax in place, it`s called a `fuel tax`. It is currently $59/tonne. For diesel in Manitoba, if the additional carbon tax was added on to this, at only $25/tonne, the additional tax burden would be $50M/year. The overall tax burden on all Manitobans is projected to be $248M/year. Fuel represents 1/3 of all operating costs for the trucking industry. This would be a massive burden for the industry. There are 28,000 Manitobans working in the trucking industry in the province.

 

Terry was quite adamant that he was not against a carbon tax and environmental programming, but it must be thoughtful and collaborative. That way both the industry and government can achieve their goals. They are certainly not keen on ruining the planet! Instead of talking about a tax, we should look at this as an investment. The investment should lead to the goal being sought, reduce green-house gases (GHG). The MTA has had a plan for this since 2015, a strategic and cost-effective reduction of GHG in the trucking sector. It is the `Greeener Trucking Fuel Efficiency Initiative`.

 

The trucking industry contributes over $2B/year to the provincial economy. It provides a critical service to;

 

Just like these other sectors, trucking already pays its fair share of taxes and other fees such as licensing, permits and so on, approx. $45K/truck/year in taxes and fees before fuel being included.  Manitoba`s economy is founded on trade. About 1/3 of Manitoba`s total GDP comes from trade with other provinces. We also have the 5^th most busy international crossing into the U.S.A. at Emerson.

 

In our personal world, we have many options as to how we will get around in this world. We can walk, bike, drive electric cars, gas cars, large SUV, diesel cars/trucks etc. In the trucking world it is diesel trucks that work on the roads. No other viable options currently. Burdening the trucking industry with an unfocused or unmanageable carbon tax will change nothing as far as GHG is concerned. The MTA provincially and the CTA nationally have both been very active regarding the impact that the industry has on the environment. The obvious and quickest way to reduce GHG is to burn less fuel.

 

As stated previously, diesel is very expensive and represents 1/3 of the operating costs in the trucking industry. The way to burn less fuel is to increase efficiency. Efficiency gains come in two ways;

 

Since 1986, 87% of the efficiency gains have been passed on to the consumer in the form of reduced transportation costs. The industry must also deal with trucks that have a definitive life span on the highway. Ten years seems to be the limit now, with some units being re-tasked off highway after 3 to 4 years. If better technology comes along, the industry will not push back on it.  The industry does not need imposed additional taxes to lead to change. They are already highly focused on fuel efficiency.

 

The industry is already subject to a very wide variety of environmental regulations. Engine technologies have been advancing since the 1990`s in pursuit of pollutant emissions reductions. The first regulations go back as far as 2002. The current environmental regulations are in place through to 2027. These regulations cover the engines, tires and trailers related to fuel efficiencies. The industry is in effect, self policing due to the cost of fuel. The trucking industry has been paying carbon taxes for the past decades in the form of fuel taxes. Increases are coming as soon as September 2018.

 

What can trucking do to improve efficiencies? First would be to remove regulatory barriers or conflict between provinces. There are potentially 10 different jurisdictions that require the trucking industry to follow conflicting rules on the road. The second would be to advance available technology such as the design of engines, tractors, trailers, tires. If one province doesn`t follow along with advances, then it doesn`t matter what is done in the other provinces. The same holds true with travel to the U.S.A.. If the U.S. adopted the same vehicle weight and dimension regulations as Canada, the entire U.S. trucking industry could recognize a 23% increase in fuel efficiency. That would be a massive, positive impact on the environment.

 

Finally, the `Greeener Trucking Fuel Initiative`. This was created in partnership with stakeholders outside of the trucking industry. This initiative provides programming for the trucking industry in three phases with the goal of reducing GHGs. If reduction of GHGs is the goal, then the carbon taxes paid by the trucking industry should be invested back into programming for the industry that will achieve the reduction of those GHGs. The program is designed to reduce the two biggest roadblocks to GHG reduction as previously mentioned;

 

The industry would self-fund through the carbon tax proceeds, with oversight from a governing body to include;

 

Through the three phases to follow, this effort would actually reduce GHGs in Manitoba.

 

Phase 1; Immediate,

- Create an organization to administer technology promotion and a rebate program for those that take part.

-GHG reduction will be realized by using the carbon tax funds paid by industry to support industry incentives that expand and expedite the uptake of currently available efficiency technologies.

Phase 2; Short to Medium Term,

-GHG reduction from simple regulatory change. There are some technologies available today that would help reduce GHGs, but the industry is not allowed to use. They are items such as wide base tires, 6x2 axles and lift axle technologies.

-Weigh scale bypass programs, increase road safety as well as fuel savings = environmental benefits.

-New investment in infrastructure to support wide base tire program as well as the Long Combination Vehicle Network.  Tree planting for wind breaks (also carbon sinks).

Phase 3; Long Term,

-Alternate fuels, automation, platooning

 

This plan was created in 2015 when the expected carbon tax was $2 to $4/tonne. This would see a reduction of CO2 emissions by over ½ million tonnes by 2030. The recent budget calls for a carbon tax of $25/tonne effective September 2018. This is a huge difference. If these proceeds are re-invested into initiatives approved by industry, meaningful to industry, and managed by industry, this would lead to both environmental and economic success.  This entire Green Plan was developed in collaboration with the Provincial Government thinking it was an Environmental Plan, not a Tax Plan.  The Provincial Government no longer has an Environmental Plan associated with this tax.

 

Trucking is a significant part of the provincial economy in and of itself, but in addition, there is 40% of our provincial GDP that is composed of industries that rely on a healthy, cost effective trucking industry. Only 10% of the GHGs in the province come from the trucking industry. The industry is being disproportionately targeted for carbon tax revenues as well as GHG solutions. If the government is serious about GHG reduction, then it must do more than just `take` when it comes to carbon taxes.

 

Of interest is that agriculture, which owns 1/3 of all GHGs created in Manitoba, is exempt from carbon taxes and reduction activities. Also exempt are other large emitters such as forestry and mining sectors.

 

In closing, all that the industry is asking is to have its own money come back to it so that the funds can be re-invested into an environmental plan for the future, reducing GHGs. The math as it stands shows that the trucking industry will be asked to cut its profit margin in half!

 

Terry Shaw, Executive Director – Manitoba Trucking Association

tshaw@trucking.mb.ca  / 204-632-6600

 

Q/A

1.-President Bob, what does the future look like for alternative fuels, electric?

A.-They truly don`t exist yet. Tesla can`t produce the volume required (estimate production at 100,000 in 2019).  Canada has 300,000 trucks on the road. The U.S.A. has 3.3 million. Natural gas, not ready

2.-Darvin Jasper asked if Fuel Cell technology is coming online?

A.-Lots of testing going on. Tesla was looking at Hydrogen as a fuel source. The answer is that diesel is the fuel well into the future. Need to look for efficiencies with it.

3.-Ed Thompson questioned how the fuel taxes work with cross border truck traffic?

A.- IFTA is the agreement that comes into play here. If you travel in a certain jurisdiction, you pay fuel tax to that jurisdiction.

4.-Elaine Thompson asked for a definition of `truck platooning`.

A.-An operator in the first truck with the following 2 trucks very close and automated. There is testing in the U.S.A., not in Canada.

5.- Chuck Crocker asked what the max. length is?

A.- In Manitoba the max. is 3x short trailers. Most common would be the tractor with

2 x53’. In Saskatchewan the max. is tractor with 3x 53’

6.- Dave Morris, what is the Chambers of Commerce doing for the MTA?

A.- Supportive, saying that the government is not living up to its promises.

Terry advised that the original plan was to be revenue neutral for the government. Now the math shows that the government will gain $97million annually.

 

Chuck Crocker thanked Terry for the very descriptive and in-depth presentation. Provided details not overly evident to the average citizen of Manitoba. Terry was advised that a donation in his name would be made to ShelterBox.  

 

Dave Morris was thrilled with the play of the MJHL Winnipeg Blues Hockey team. As of Monday night they were up 3 to 2 over the Portage Terriers in a best of 7 series. The Wpg. Blues won Monday night to finish the series 4 -2 over the Portage Terriers (2-1 in 1^st overtime). The next game for the Blues is in Steinbach. They will be starting a best of 7 Semi-Final series against the Steinbach Pistons @ 7:30pm. On Sunday night, March 25^th, @ 6:30 the Blues will play at home vs the Pistons.

 

Glenda Werbowski was happy to have her family return home safely after a southern vacation. Well tanned but with damaged luggage.

 

Rod Delisle went out to celebrate St. Patrick`s Day on Saturday night. He had a fantastic time while watching Irish dancing.

 

Davin Jasper was happy to have been able to spend the last 3 weeks on the West Coast of Canada. In Victoria they had ~ 3 days of sunshine in 3 weeks, also more snow there than we have here! Darvin had a few words of wisdom to tell by way of a story. His brother-in-law (Sharon`s sister`s partner), had departed on a Caribbean cruise from a Mexican port. He did not feel well during the first day out at sea. He had developed a ‘super-bug’ that required him to be intubated and placed into ICU care. The ship turned around for him to get into ICU care in Cozumel, Mexico. He was there for 11 days (no bed in Ontario to transfer to for that time period). Finally, a Lear jet medical transfer to Kingston, Ont. for more ICU care. Most likely infected on the airplane down to the departure port. The Mexican bill totalled $320,000 (incl. jet). Additional fees are expected!

 

P.E. Mandy Kwasnica had a great time learning in the P.E.T.S. session in Russell, MB this past weekend. Ed & Elaine Thompson were also at the P.E.T.S. session. Elaine was one of the individuals making presentations during the weekend. Mandy was talking about the Westgrove Community Gardens Project while there. Individuals present from other Rotary clubs had great interest in the project and will be in contact with P.E. Mandy to get more details. They may possibly start their own similar gardens project. Mandy`s final comment concerned her new position with Manulife Bank. She was to have a training seminar Webcast. Technical difficulties cancelled that, had the afternoon off on her first day at work (from home)!

 

Chuck Crocker was happy to have had the past week in the Phoenix area. All was great except that he managed to pull his back muscles, this made it impossible for him to play golf.

 

Elaine Thompson was pleased that P.E.T.S. was done, as she had the responsibility of making presentations during the sessions. Also pleased that the trip up to Russell and back to the city was uneventful. No storms or icy highways for her driver to be concerned with, she could relax in the car.

 

Nancy Hansen was proud of the Canadian Paralympic Team winning a record breaking 28 medals for Canada.

 

Ed Thompson, acting as the District 5550 driver, felt that driving on the nice roads up to Russell on the weekend was worth a buck!

President Bob advised that the Lobster Dinner tickets will be available next week. Start selling if you haven`t already.

 

 

Ticket # 614 was pulled this week. Mike Dudar held the match and was eager for the challenge of finding the blue marble. All his determination did not pay off this week. As is usually the case, more money for the taking next week.

 

 

President Bob for his `GPS recalculating` during his opening remarks. Wrong side of the Assiniboine River!