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City
of Saskatoon helps local cycling businesses Background: On September 1, 2005, the Canadian International Trade Tribunal (CITT) recommended that the Government of Canada impose a 30% surtax on certain bicycles primarily imported from developing countries. The CITT issued its recommendation in response to a complaint filed by two companies, Raleigh and Procycle, that already are protected by two layers of Canadian border protection – an unusually high 13% customs tariff that is applied to every bicycle imported into Canada and antidumping duties that have been imposed on bicycles from Taiwan and China for more than a decade. The new surtax will hurt our locally owned, independent bicycle dealers. These are the businesses that sell the bicycles affected by this tax. These are the shops that sell the bikes that we ride. In response to this threat to independent bicycle dealers and the tens of thousands of cyclists they serve, Saskatoon's bicycling industry asked for Saskatoon city council's help in opposing this unfair tax. Here is the correspondence that transpired on this issue, followed by links to sites with more infomation. Letter to Saskatoon City Council: His Worship the Mayor and Members of City Council: RE: Surtax on Imported Bicycles On September 1, 2005, the Canadian International Trade Tribunal (CITT) recommended that the Government of Canada impose a 30 percent surtax on certain bicycles imported primarily from developing countries. Saskatoon's independent bicycling businesses and their more than 120 employees request the support of Saskatoon City Council in urging the federal government not to impose this tax because it is not in the public interest. The CITT issued its recommendation in response to a complaint filed by two companies, Raleigh and Procycle. These companies are already protected by two layers of Canadian border protection — an unusually high 13 percent customs tariff that is applied to every bicycle imported into Canada and antidumping duties that have been imposed on bicycles from Taiwan and China for more than a decade. The independent bicycle dealer is crucially important to the future of the Canadian bicycling industry. It would not be in the public interest to add a third layer of protection for the following reasons:
Saskatoon's local bike shops are the cycling lifeblood of the community. The staff and owners of these shops are dedicated to cycling for sport, recreation and transportation. They volunteer their time to local clubs, they sponsor or organize events and they support local charities. Anyone who relies on their bicycle also depends on their independent bicycle dealer for parts, service, advice and reliable bicycles. The CITT recommendation, while focussed on mass bikes, actually increases the cost of all imported bikes (including children's bikes) priced below about $650. This will cause sales to drop, and jobs and business to be lost. The CITT recommendation is opposed by other Canadian bicycle manufacturers, the Bicycle Trade Association of Canada, Canadian municipalities, independent business owners, and thousands of cyclists. In response to the legitimate concerns of the industry and Canadian cyclists, the Canadian Bicycle Manufacturers' Association (whose sole members are Procycle and Raleigh) has hired one of the top lobbying firms in Canada, Earnscliffe Strategy Group. This firm includes former Liberal cabinet ministers, the former Chairman of the Liberal Party leadership campaign, and other former Liberal Party insiders including senior advisors to the Hon. Prime Minister Paul Martin. This city's cycling businesses request that Saskatoon City Council write to the Federal Ministers of Environment, Health, International Trade, Sport, Finance, Transport, Infrastructure, Public Health and Families, and to the Members of Parliament representing Blackstrap, Saskatoon-Humboldt, Saskatoon-Rosetown-Biggar and Saskatoon-Wanuskewin constituencies, to express support for local businesses and strongly urge the government not to impose this tax. The bicycling organizations and their employees represented by the signatures below respectfully request Saskatoon City Council to pass the following resolution at its next Council meeting: THAT WHEREAS: THEREFORE BE IT RESOLVED that Saskatoon City Council shall send a letter to the Federal Ministers of Environment, Health, International Trade, Sport, Finance, Transport, Infrastructure, Public Health and Families, and to the Members of Parliament representing Blackstrap, Saskatoon-Humboldt, Saskatoon-Rosetown-Biggar and Saskatoon-Wanuskewin constituencies, strongly urging the government not to impose this tax. We hope that you will support the foregoing resolution and help Saskatoon's bicycling businesses continue to serve the 160 competitive cyclists, 2700 cyclists who cycle to work , and125,000 casual and recreational cyclists who make up the 180,000 bicycle owners in Saskatoon. Additional background information is appended to this letter. Should you wish to discuss any of the foregoing prior to the City Council meeting, please do not hesitate to contact any of the organizations shown below. Sincerely, Saskatoon’s Bicycling Industry:
Cover Letter to Saskatoon City Council: November 21, 2005 His Worship the Mayor and Members of City Council: RE: Surtax on Imported Bicycles I am writing to express my support for Saskatoon's bicycling industry, whose 10 businesses with more than 120 employees request City Council's help in opposing a proposed 30 percent surtax on bicycles. There are 365 club cyclists in Saskatoon, 2700 cyclists who cycle to work , and 125,000 casual and recreational cyclists who make up the 180,000 bicycle owners in Saskatoon. All of these citizens will be harmed by this new tax if it is implemented. For parents, this tax will result in a $45 – $55 increase in the price of a typical children's bicycle — for every bicycle purchased in the family. For the average commuter bicycle, this surtax will raise the price by about $150. This tax does not help the bicycle dealer. It does not help our citizens. It simply makes bicycles more expensive for the average person. Thank you for considering the request made by Saskatoon's bicycling industry. Yours sincerely, Darrell Noakes, President Correspondence received from Saskatoon City Council: From
the: December 5, 2005 Mr. Darrell
Noakes, President Dear Mr. Noakes: Re: Proposed Surtax on Imported Bicycles (File No. CK. 1915-1) City Council, at its meeting held on November 28, 2005, considered your letter dated November 21, 2005, with respect to the above matter. Council passed the following motion:
I have attached a copy of the letter that has been forwarded to the Federal Government, as well as the Saskatchewan Urban Municipalities Association. Yours truly, Janice Mann, City Clerk
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