Point of Privilege Resolution No. 1-02A 

WHEREAS, the main purpose of graders and tractors in an RM is to build and maintain roads for agricultural operations; and

WHEREAS, all RM’s are required to purchase clear diesel which is more costly than purple diesel;  

THEREFORE BE IT RESOLVED, that SARM lobby the Provincial Government to authorize RM’s to use purple diesel for municipal purposes.

Response From Hon. Eric Cline, Minister of Finance:

I appreciate the rationale for the request to use tax-free marked diesel fuel in road building and maintenance equipment. Rural municipalities play an important role in ensuring we have a safe and reliable transportation system. The recent economic slowdown combined with other factors, such as lower oil and natural gas prices, has created fiscal pressures for the Province.

Allowing rural municipalities to use tax-free marked diesel fuel in their equipment would reduce the Province's revenues. It could also set a precedent for similar requests from other sectors. As a result, less money would be available to fund health care, education and other essential programs and services. Although I understand your concerns, we are not able to remove the tax on fuel used for building and maintaining roads at this time.