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| For Immediate Release Minister Acknowledges Grain Elevator Problem
QUEEN’S PARK – Today in the Ontario Legislature Ernie Hardeman, Oxford MPP and PC critic for Agriculture, Food and Rural Affairs, asked for a written commitment to solve property tax problems for commercial grain elevators. Minister Duncan blamed MPAC despite the fact that property tax classifications are determined by provincial regulations that are under his Ministry. “Today we are joined by the Ontario Agri Business Association. For eight years they have been asking your government to classify grain elevators correctly as commercial instead of industrial since the grain isn’t being manufactured, produced or processed,” said Hardeman during the question. “This change would have a positive impact on local businesses and jobs.” Minister Duncan acknowledged that he was aware “of the ongoing issue with respect to the classification of these”. However, he attributed the problem to MPAC rather than acknowledging that the problem is a regulation under the Assessment Act, for which he, as Minister of Finance, is responsible. Ontario Regulation 282/98, under the Assessment Act specifically says that “elevators used to receive, store, clean treat or transfer feed for livestock or grain” are included in the industrial property class. PC MPP Marcel Beaubien studied the classification of grain elevators and in 2002 in a report entitled, Property Assessment and Classification Review, concluded that grain elevators should be classified as commercial. Grain elevators are used primarily for storage and there is no change to the appearance or end us of the grain. "The property tax issue has been significant for the commercial elevator sector and these classification changes are urgently required for the economic sustainability of Ontario's agricultural and rural economies,” said Dave Buttenham, Ontario Agri Business Association. Grain Farmers of Ontario have also asked the province to take steps to return commercial grain elevators to the “commercial” property tax classification. “Two months ago the people of Ontario sent a message that this government wasn’t working for them. Today it is clear that is still the case,” said Hardeman. “It’s an indication of the lack of action on this issue when after eight years the Minister of Finance isn’t even aware that the problem is in the government, let alone his Ministry.” - 30 -
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