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Government removes tariff on resin
By Don Crosby
For The Standard
On June 20, Bruce/Grey/Owen Sound MP Larry Miller announced the removal of a 6.5 per cent federal tariff on resin, the material used in the making of plastic bottles.
“The American government does not have a tariff for most imported resin, consequently this amendment makes our policies comparable and allows for Canadian businesses to compete more effectively with American businesses,” said Michael Rowe, chief financial officer for Ice River Springs.
“With the removal of this tariff, Ice River Springs will now be able to compete on a level playing field both in Canada and around the world,” Miller said during an announcement at Ice River Springs bottling plant in Feversham on Friday. Miller is credited with working for the past two years on getting the tariff removed.
“It’s not government’s responsibility to be pouring money into business. We just give them the tools to compete internationally. This is one of those tools,” Miller said.
Rowe said that the company’s competitive position was being hurt by the 6.5 per cent tariff on resin being imported into Canada compared to its competitors Nestle, Coke and Pepsi, who all also sell bottled water. Those companies were manufacturing the bottles in the U.S. and shipping them to Canada. The tariff doesn’t apply to manufactured products.
“We contacted Larry Miller’s office to ask if he could assist us to find out if the tariff could be removed. Not surprisingly, the wheels move slowly in the bureaucracy but Larry demonstrated a firm grasp of the issue and the potential impact on our business and jobs in the riding.
He worked with several cabinet ministers to help get their attention and make sure that this tariff would be removed,” said
Rowe, adding, “we commend his tireless effort on this file.”
Sandy Gott one of the owners of Ice River Springs said the cost of resin, which is imported from Asia, had risen by 35 per cent over the past two years and the removal of the tariff would reduce production costs and result in 30 jobs remaining at the Feversham plant which would have been lost if the production facility was moved to the U.S. Ice River Springs makes its own plastic bottles.
“If we had looked at possibly moving that injection part of our pre-forms to North Carolina and shipping those pre forms back to Feversham to be blown into bottles we would have saved the 6.5 per cent duty because it’s not applicable to manufactured products.
Having this duty removed we can maintain those injection blow moulding jobs in Ontario,” Gott said.
Grey Highlands Deputy-Mayor noted that Ice River Springs is one of the largest taxpayers and employers in the municipality.
“This will continue to help them still call Feversham their head office,” said David Fawcett.
Grey County Warden Kevin Eccles praised the company for being a good corporate citizen and maintaining a strong presence in the area.
The company employs about 300 people in Canada and about 400 companywide including other Canadian operations and those in the U.S.
Sandy Gott said the company makes the moulds for bottles at the Feversham plant and supplies the North Carolina operation.
The use of resin used in making plastic bottles represents the second largest component in the processing of bottled water, said Paul Bonwick, who looks after government relations for the company.
“It’s a really proud day today for Larry Miller, Ice River Springs as well as the entire manufacturing industry in Canada. It sends a clear sign that federal government is working with the manufacturing industry,” said Elizabeth Griswold, executive director of the Canadian Bottled Water Association.
The water bottling industry sold 2.1 billion litres in 2006 for a total sale of $731 million, Griswold said.
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