The province has announced a $7.6 million carbon tax relief initiative for B.C.’s high-tech greenhouse vegetable and floriculture growers.
“The relief will allow producers to focus on maintaining their competitive edge and building B.C.’s half-billion-dollar-a-year greenhouse industry,” the province said in a release Tuesday.
The B.C. Greenhouse Growers’ Association will administer the application process for $6 million in grants for greenhouse vegetable growers, and the United Flower Growers Cooperative Association (UFGCA) will administer $1.6 million in grants for greenhouse floriculture growers.
The province is providing the temporary funding in recognition of the carbon tax’s impact on the natural gas and propane that greenhouse growers use for heating and carbon dioxide production.
The carbon tax relief will be distributed in 2012 only.
B.C. greenhouses are internationally recognized for their sophisticated, energy-efficient operations – including the use of soil-free growing, integrated pest management, automated climate-control computers and recycled-water irrigation systems.
As a result of their innovation, B.C. greenhouse vegetable producers have among the highest yields in the world.
However, a report conducted as part of the BC Jobs Plan, identified the carbon tax as a significant challenge facing the growth of the sector.
In February, Business in Vancouver took an in-depth look at two local greenhouse growers who had taken their business out of B.C. to avoid the prohibitive carbon tax. (See “Greenhouse growers bail out of B.C.” – Business in Vancouver, February 28-March 5; issue 1166.)
UFGCA chairman John Kerkhoven said, “This decisive action to rebate carbon tax in 2012 enables B.C. flower growers to compete on an even playing field with growers from other countries and provinces.
“A high Canadian dollar, low commodity prices and open borders make competition difficult, but with help like this, our growers can compete fairly and continue to grow the highest quality cut flowers and potted plants.”
