NDP Tax hit on mills Considering logging trucks haul approx 60 meters + per load and most mills take in 100 to 200 loads per day some more like Plateau west of Vanderhoof. Tolko Armstrong usually ran 100 to 140 laods per day.
With the closing of their Kelowna mill that supply will now be mostly transferred to Armstrong bringing their input to probably 200 loads or better.
So Horgans stumpage jump of $18 on an load of logs hit the with an increase of $18 X 60 meters or $1080 per load, X 200 loads per day equalling aronnd $216,000 less profit daily.
Then multiply that by 21 operating days per month X 12 months annually it comes to in back of the envelope figures approx $54.5 million each year scrubbed from profits.
Then add 5% added cost to the fuel bills. Each log truck for example burns on average 400 liters of diesel per day. A 5 cent carbon tax costs another $20 per day. Annually costing about $4500+ X 100 trucks.making 2 trips per day to bring in the 200 required by the mill. multiply that over 11 months per year and you have another 4 to $5M fuel tax hit. And it is slated to rise to 50cents per liter in the next few years.
The other numerous machines from excavators, Cats, bunchers ,Skidders, processors.Graders and many more used. Would probably average over 200 liters usage per day. so when you begin tallying it all up. Nor to mention the highwat trucks which bring parts, supplies and haul the lumber. Who also have to increase their fees to stay in business.
And this hasn't included the three % payrol tax or the cost of higher environmental rullings. plus other levies which are just another form of tax grab.
What I've mentioned here is just the tip of the Ice Berg It goes far deeper.
And people wonder why mills have shut down or shifts curtailled leaving thousands of workers facing a very uncertain future. Lay the blame right at the door step of who made made all these crippling changes .
None other than the current Provincial NDP / Green supported Government it'self.
Lumber is much higher priced now than it was prior to them getting elected and the mills were able to stay running. Think about it That should tell the story in it self.