Prices of groceries are expected to rise in the coming weeks with the carbon tax, says Frank Lovsin, founder of Freson Bros., who chairs the board of directors. Above, High Prairie store manager Matt Lovsin, stands in the aisle of stocked shelves.

Richard Froese
South Peace News
Putting food on the dinner table and going out to dine will cost a little more after the new provincial carbon tax went into effect Jan. 1.

“Our prices have already gone up by three per cent,” says Greg Radstaak, owner of Smitty’s and Brandy McCoy’s Pub.

He predicts the tax imposed on fuels for transportation and heating will add at least $450 a month to his natural gas bill for the building.

“I think the timing of the tax isn’t very well thought out,” says Radstaak, a former economic development officer in the Falher and Lesser Slave Lake regions.
“With the downturn in the economy, consumers and small businesses can’t afford any more increased costs.”

People are also being more frugal in their spending habits with the added tax, which hurts business, he adds.

“It decreases demand for goods and services,” Radstaak says.
“You don’t benefit from higher prices and decreased demand.”

Costs will be higher for people in rural areas than in urban centres, he says.

Under the Climate Change Plan, the NDP government encourages people to use public transit more, and walk or bike to work and business.

But that’s not realistic for rural areas, which don’t have public transit, and very few live within walking distance to work, he says.

“It’s unfair,” Radstaak says. “Why should we pay more?”

People in rural regions also typically drive larger vehicles that consume more fuel and travel more, with longer distances, he adds.

Rastaak wonders if that is part of the NDP government’s plan to urbanize the province.

Prices of groceries are also expected to rise as a result of the carbon tax, says Frank Lovsin, founder of Freson Bros., who chairs the board of directors.

“Everything government does affects business and that includes higher prices,” says Lovsin.
“There’s no doubt about it, there’s going to be a cost.”

High Prairie store manager Matt Lovsin deferred comment to management based in Stony Plain.

Although prices did not rise in the first week of the month, Frank Lovsin says it will “probably” happen.

“The worst thing about the carbon tax is that government says it would be a level playing field,” Lovsin says.

He also suggests the funds generated by the tax will be wasted.

“They will use half of the revenue for bureaucratic excesses,” Lovsin says.

Like Radstaak, Frank Lovsin says the carbon tax will also add to the struggling economy.

“This is the toughest downturn in business since the 1980s,” says Lovsin, one of the partners who established the business in 1955 and opened the High Prairie store in 1966 as his third store.
“We can’t control the prices, we have to be competitive in the market.
“We’ve gone through big price increases before, we absorb some, but we pass some on to customers,” he adds.

Besides the carbon tax, Canadians can expect to pay 3-5 per cent more for food in 2017, an increase of as much as $420 for an average family, according to Canada’s Food Price Report released in December.