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Winnipeg

Manitoba business braces for carbon tax coming Monday

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Carbon tax imposed on Manitoba starting Monday With the feds imposing the carbon tax on the province on Monday, Jon Hendricks finds out what has some local businesses worried .

Expect longer lineups at gas stations across Manitoba this weekend. On Monday, the federal government will impose its carbon tax on our province, and it won't just increase the cost at the pump.

Natural gas prices will also be subject to the levy. And that will impact Shelmerdine Garden Centre, which heats two acres of greenhouses using natural gas.

"Definitely that scares us in terms of the costs to our heating bills," said Chad Labbe, the co-owner of Shelmerdine. "We're always looking at ways to mitigate how much area in the building we're heating at any given time. We're changing our schedule in our plant production."

Manitoba Hydro says commercial customers will see increases in the range of 15 to 30 per cent.

Manitoba Premier Brian Pallister worries the tax will make our businesses less competitive.

"What we're getting here is less," said Pallister. "Less money, less security, less confidence in our economy. This is a dangerous initiative they're taking."

Curt Hull from Climate Change Connection says putting a price on carbon is an essential first step to fight climate change.

"We need kinds of signals that will move us away from that dependence. If the cheapest solution is always fossil fuels, other than altruism, what's the mechanism that gets us to move in that direction?"

The federal government plans to offer partial relief from the tax for businesses. And that includes greenhouses.

According to the Department of Finance website, commercial greenhouse operators can get an 80 per cent rebate for their natural gas usage. The relief is supposed to be upfront through the use of an exemption certificate. Farmers will also get a break from the tax for fuels used in tractors, trucks and other farm machinery.

There will also be targeted relief for rural and remote residents.