Fuel tax increase prompts contract renegotiation

James Marshall, from James Marshall Trucking, appeared before County of Stettler council asking to renegotiate his contract.

James Marshall, from James Marshall Trucking, appeared before County of Stettler council at its monthly meeting on Wednesday, Feb. 10, asking to renegotiate his contract.

Marshall is contracted to haul gravel for the county, holding the central-east and southeast contracts. The contract stipulates that he is paid per kilometre, with each kilometre travelled while hauling gravel logged.

In December 2015, the provincial government passed a new tax act, which increased the cost of fuel by four cents per litre, prompting Marshall to appear before council to ask the contract be amended to compensate for the increase.

The contract with the county stipulates the county will pay the “rack price” on fuel, which is a provincially set rate. If the tax had been added within that rack price, Marshall said he wouldn’t have had to come to council to ask for the renegotiation, as it would have been covered automatically.

However, the tax increase is outside of the rack price, which prompted the need for him to appear before council.

Council thanked him for coming, and later in the meeting brought forward a motion to pay the four extra cents per litre, retroactive to the date the tax came into effect. The motion passed.