On May 24, the provincial government introduced the Climate Leadership Implementation Act – also known as the carbon tax – and some involved with local non-profits are concerned the levy may have an impact on their organizations.
“In a time when we need it most, things will be affected,” Airdrie Food Bank Executive Director Lori McRitchie said.
Starting in January 2017, the new carbon tax will be included in the price of all fuels that emit greenhouse gases when combusted.
According to Alberta Environment and Parks Minister Shannon Phillips, revenue from carbon pricing will be invested towards combating climate change using energy efficiency programming.
“The plan will reduce our (greenhouse gas) emissions (that) cause climate change, and it will do so in a way that we can reinvest right here in Alberta,” Phillips said.
“The price on carbon is coming nationwide,” she added. “We chose to do this in a way that benefits Albertans and that’s how we’re moving forward.”
The carbon tax will add costs for individuals, businesses and non-profits in the province.
Businesses are likely to increase prices on goods and services to offset the cost of the new tax, and rebates will be available for residents within certain earning brackets.
However, there will not be rebates or off-setting tax cuts available for non-profits and charities.
According to McRitchie, the food bank’s energy and utility costs are already high from storing and transporting food.
“It will come right off the top,” she said. “We have walk-in coolers and fridges, (so) our utility rates are high.”
McRitchie said she has concerns about the carbon tax’s social impacts on the food bank.
“The need for our services as the food bank in the community will be impacted because there are many, many families right now that are living very close to the edge,” she said. “We’ve already seen (the) need doubled because of the downturn in the economy and this is just going to add to it.”
McRitchie said she fears the carbon tax will affect the community’s ability to support the food bank in a time of need.
“We get no government funding,” she said. “We rely on individuals and families in our community to help each other (and) the ability to be able to reach out is going to be impacted.”
The provincial government defeated an amendment introduced by Wildrose Airdrie MLA Angela Pitt June 7 that would have mandated rebates for registered charities affected by the carbon tax.
“There are a lot of people relying on the charitable sector for day-to-day living,” Pitt said. “The charities are going to have less of a capacity to actually help people.”
But Phillips emphasized tax revenue will be invested into efficiency programs for all sectors of the economy, including not-for-profits.
“To suggest that we are leaving charities or non-profits with nothing is… a false statement…” Phillips said. “Those targeted investments in the non-profit and charitable sector will actually achieve the dual outcome of reducing emissions and costs.”
Still, McRitchie said she feels the carbon tax will not have a good impact on the food bank.
“It’s hitting us where it hurts the most,” she said. “It’s going to increase our need and decrease our support and up our costs. All in all, that’s just a real detriment.”
