Prices of groceries are expected to rise as the provincial carbon tax increased to start its second year, says Frank Lovsin, founder of Freson Bros., who chairs the board of directors. Above, High Prairie store manager Steve McLeod stands in an aisle of stocked shelves.

Some small business and food retailers say they have been bitten by the carbon in the first year and more on the way.

High Prairie and Area Chamber of Commerce vice-president Tina Ostermeier says some businesses have few options.

“Small businesses have no choice but to increase prices as well as reduce employees’ hours to compensate the increased costs,” Ostermeier says.

“With the increase of the carbon tax, local businesses are finding it difficult to keep their prices at a minimum.”

Carbon tax for some fuels was introduced by the provincial government on Jan. 1, 2017 and levies increased by 50 per cent on Jan. 1, 2018.

“The overhead of most businesses has increased 10-15 per cent, which can take a business from the black into the red,” says Ostermeier, who owns O’s Treats.

“The carbon tax is an increasing cost that most people don’t realize the impact it has on small businesses.”

Living in an area where the weather is extremely harsh at times and not having public transportation for people to ride are just a few of the challenges she notes.

“Heating our homes and businesses is a necessity in our harsh climate,” Ostermeier says.

People and businesses don’t have any choice with transportation, she says.

“We rely on natural resources that fuel our business, as well as our vehicles to get to work,” Ostermeier says.

“We don’t have the luxury of taking a bus or LRT to reduce fuel costs.”

She says the carbon tax is another hindrance for businesses to prosper.

“With the increase in minimum wage, this is another added cost that makes it difficult for a small business to succeed,” Ostermeier says.

Food retailers also took a bite by the carbon tax.

Freson Bros. founder and board chairman Frank Lovsin says the carbon tax has taken a lot of money out of the pockets of consumers although food was just minimal.

“The carbon tax raised food prices by about 2 per cent,” says Lovsin, one of the partners who established the business in 1955 and opened its third store in High Prairie in 1966.

“It’s putting a real squeeze on business and consumers.”

Food is just a small piece of the pie affected by the carbon tax, he says.

“It costs Albertans about $1,000 a year, including an increase in gas and other carbon-based things,” Lovsin says.

He says the carbon tax is filling the coffers of the governments to help reduce the deficits.

“I don’t think there’s any benefit to the carbon tax,” Lovsin says.

“Our governments are becoming more expensive.

“If they would balance the books, it would make sense.”

The tax also puts the province at a disadvantage in the global market.

“Other countries Canada competes with don’t have a carbon tax and we’re putting our business and industry at risk,” Lovsin says.

He also questions why government imposes a carbon tax when

Canada produces just a miniscule 1.6 per cent of the global greenhouse gases and Alberta just a fraction of that.

The increase is the minimum wage is another cost that hurts business, Lovsin says.