Canadian Legislative News

With the election called on September 11, all federal parties are getting their campaigns into full swing. As it stands, the Liberals and the Conservatives appear to have the clearest paths to winning the most seats.

In the heat of the election campaign, political parties have focused mainly on a series of pocketbook measures that carry a significant price tag. From boutique tax credits to spending increases, these promises may add billions of dollars to an already ballooning federal deficit. Of note for fleet, the environment and climate change have also dominated the debate this election cycle with commitments from all major parties to take the necessary steps to reduce greenhouse gas emissions and meet the Paris Agreement’s goals.

Three major parties have revealed their plan to phase out internal combustion engine vehicles in the next 20 years and provide more funding to accelerate the adoption of zero-emission vehicles (ZEV) and develop a strong national network of charging stations. This focus on climate change by all political parties would shape the future policy direction for fleet managers as the transportation and vehicle industry emissions become a greater issue.

The Federal Liberal Party has proposed a luxury tax of 10% on cars over $100,000. However, officials with the Liberal campaign indicated that fleets would not be targeted by this new levy.

The Canadian political landscape has significantly changed since 2015. The new federal ZEV incentive program is good for the electrification of fleets across Canada and the removal of the steel and aluminum tariffs will provide some relief to the industry. There is still a lot of uncertainty around the ratification of the continental trade agreement and the future of the harmonized fuel emission standards between Canada and the United States.

With the environment and climate change being highlighted during this campaign, fleet managers should expect more regulatory and policy changes targeted at the transportation industry and fleets.

NAFA's Canadian Counsel will continue to monitor all political parties’ platforms and engage government and key decision-makers on these issues highly relevant to the industry. Developments in several areas are bound to happen post-election and it will be important for NAFA members to remain informed.