Sweeney calls on government to drive down costs for drivers in upcoming budget
March 23, 2007

George Sweeney, MHA for the District of Carbonear-Harbour Grace and Opposition Critic for Government Services, says that drivers in this province deserve a fiscal break with fee reductions and taxes and he is encouraging the provincial government to drive down motoring costs in the upcoming budget.  

AThe cost to drive these days has risen a tremendous amount over the  past few years and this government is  responsible for some of those increasing expenses,@ says Sweeney. The Liberal MHA points out that in 2004, the Tory government hiked the costs of both motor vehicle registration and driver=s license  fees, forcing consumers to ante up more even before heading out on the road. 

ATo begin with, both of these fees should be reduced to at least what they were before this Tory pick-pocket government  raised them the first chance they got in their first budget.  The cost of auto insurance also needs to be dealt with and I am once again urging government to erase the tax on insurance and not wait until the completion of a provincial fee review. 

AThis provincial government has refused to reduce the special 15 per cent tax on insurance premiums and on the resale of used cars.  This is a very deceptive and tricky approach to taxation because while it is an equivalent amount, it is not referred to as a GST or HST.  

Sweeney also points out that this province pays some of the highest gas taxes in Canada and relief for residents can be provided if government took the initiative to lower the provincial gas tax. AThis is money that would go directly back into the pockets of drivers. 

AMany drivers are finding it increasingly more difficult to keep up with the high cost of driving, including maintenance costs, fees, registration, insurance and the outrageous  high gas prices they face.  Basically, drivers are being gouged by an array of costs and it is time this government moved towards creating a smoother road for them by providing fee decreases and tax breaks. The budget next month should roll out some much-needed relief for drivers, which would also be beneficial to both the tourism and transportation sectors.@

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Media Contact:
Kim Ploughman
Caucus Communications
Office of the Official Opposition
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