About 20,000 more people are getting cheaper fuel in Alberta through farm fuel benefits than there are farmers.
According to Statistics Canada’s recent census, Alberta has 49,431 farmers, but 60,000 people are registered to receive fuel discounts with the Farm Fuel Benefit program.
As well, Statistics Canada found that 9,971 Alberta farmers have income less than $10,000, making them ineligible for the fuel discounts.
“It’s appalling there are so many of these ineligible permits running around,” said Hugh McDonald, agriculture critic for the Alberta Liberal party.
Last year provincial auditor Fred Dunn highlighted the discrepancy between the number of farmers and number of people receiving the farm fuel benefit and recommended the government improve how it administers the program.
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In his annual report, Dunn recommended that Alberta Agriculture officials, who administer the program, verify the information in application forms and require applicants to regularly renew their registration to assure their continued eligibility.
Dunn also recommended the provincial government conduct an audit of the program, which was last done in 1997.
“It tells me the auditor general is absolutely right,” McDonald said.
“It’s a program that is totally out of control.”
The Farm Fuel Benefits Program includes a distribution allowance, which reduces the cost of marked diesel fuel by six cents a litre and costs the government about $34 million a year.
It also includes a fuel tax exemption, which allows farmers to buy marked fuel without paying the provincial fuel tax of nine cents a litre and marked propane without paying a propane fee of 6.5 cents a litre. This program costs about $72 million a year.
“We let millions of dollars slip through the government fingers and it’s not fair to taxpayers and it’s not fair to eligible farmers,” McDonald said.
During question period in the provincial legislature, Alberta agriculture minister George Groeneveld acknowledged the issue should be dealt with, but said it may not have been dealt with earlier because of the drought and BSE crisis, which knocked farmers back in the past few years.
“It’s kind of tough to get out there and really chop at that particular stage of the game. I know that’s not an excuse,” said Groeneveld, who added he uses marked fuel.
He said he goes home and works at the family cattle business with his son on weekends and feels he is entitled.
“I honestly feel that I qualify driving my half ton around with marked fuel in it.”
