TORONTO — A economic stimulus package to cure Ontario’s ailing economy needs to include both infrastructure spending as well as incentives that would help truckers investing on new equipment again.

That’s the advice Ontario Trucking Association President David Bradley gave to the Ontario Legislature’s Standing Committee on Finance this week.

"We believe that a package of initiatives aimed at stimulating economic activity in the short-term and which is in the long-term competitive interests of the Ontario economy and the environment is warranted," he said. "In addition to a strategic infrastructure program, we believe that there also needs to be a meaningful program of measures introduced to get consumers — both the public and businesses — purchasing again.

Bradley says he recognizes the government is facing demands from many sectors seeking inclusion in a stimulus package, but considering trucking’s role in building the economy and the number of Ontarians employed in the industry, Queen’s Park needs to account for trucking in it’s plans, says the OTA boss.

OTA says its envirotruck can be a curative
for an ailing trucking sector

"Ideally, OTA would like to see Ontario move to a value-added input tax system, preferably by harmonizing with the GST, or through some other mechanism. This is sound tax policy."

But since Ontario does not appear willing to move on harmonization with the GST at this time, and since stimulus is needed now, Bradley called for a temporary exemption-rebate from the Provincial Sales Tax/Multi-Jurisdictional Vehicle Tax for the purchase of new tractors, trailers and fuel efficiency technologies and devices such as auxiliary power units, wide-base low rolling resistant tires, and aerodynamic fairings in the Province of Ontario.

"In today’s tight credit markets this would provide a very helpful injection of short-term capital," he said.

Such an initiative is also consistent with the trucking industry’s envirotruck initiative which is intended to accelerate the penetration of new smog-free engines and currently available and proven fuel efficiency devices and technologies.

Bradley says there is no indication at this time that a recovery in economic activity, which would be reflected in improving freight volumes, is on the near-term horizon. Bradley pointed to a recent survey of OTA members that showed more carriers are pessimistic than optimistic about the next few months.