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THURSDAY, JANUARY 26, 2017 • WATERLOO CHRONICLE • 17 BUSINESS As Waterloo Region business-es and residents are aware, the provincial cap and trade program became e� ective on Jan. 1, 2017. The initial result is higher gas prices as oil re� neries pass the costs through to consumers, however more impacts will be evident in the future. Along with the implementation of cap and trade, Canada's First Ministers finalized a Pan-Canadian Framework on Clean Growth and Climate Change in early December. The agreement includes provincial initiatives and $3.6 billion in previ- ously-announced federal spending, grouped into national carbon pricing, complementary actions, adaptation and resilience and clean technology. Manitoba and Saskatchewan did not sign the agreement. Saskatche- wan Premier Brad Wall opposes car- bon pricing for their resource-based economy suffering from low com- modity prices, while Manitoba Pre- mier Brian Pallister is withholding support pending an agreement with the federal government on health- care funding. In terms of next steps, the First Ministers will provide an interim report on the framework in 2020 and conduct a full review of the carbon pricing system by 2022. The Canadian Chamber of Commerce has expressed sever- al concerns with the new national approach. Firstly, there is no reference to the cost of all the measures referenced in the framework. Independent research estimates that a $50 / tonne carbon price would cost the average household $1,100 annually. � e framework has minimal refer- ence to partnerships with the private sector outside a section on technol- ogy and innovation. The Canadian Chamber believes that business will be crucial to the development of all parts of the plan and that there needs to be more emphasis in private sector input into both federal and provincial plans. Most importantly, Canada's larg- est trading partner in the United States appears unlikely to retrench many of its federal measures on cli- mate. � e framework does not include a plan on how the government would act to preserve the competitiveness of Canadian industry as new climate policies were implemented. In December of last year our Chamber, along with 19 other Cham- bers and Boards of Trade across Ontario, issued a news release ask- ing the Ontario government to delay implementation of their cap and trade program until an economic impact analysis can be completed for all major provincial sectors. We noted that since 2004, electric- ity prices have increased by 383 per cent from a � at rate of 4.7 cents/kilo- watt hour to 18 cents at peak times. � e local, provincial and national business sectors cannot continue to absorb these additional costs and consumers will pay more. ••• Ian McLean is president and CEO of the Greater K-W Chamber of Commerce. Climate change programs continue to challenge business BUSINESS MATTERS IAN MCLEAN By Bill Jackson For the Chronicle Realtors don't see the local hous-ing market slowing down follow- ing a record-breaking year for sales. According to recently released numbers, 6,655 residential prop- erties were sold through the Mul- tiple Listing System of the Kitchen- er-Waterloo Association of Realtors (KWAR) in 2016. � at's 1,000 more units compared to the year prior, amounting to an increase of 18.1 per cent and a new record for annual residential sales. Compared to 2015, the total dollar sale value rose 30.9 per cent to more than $2.578 billion. � ere isn't just one smoking gun to explain it, according to KWAR president James Craig. Willing to commute to work, peo- ple from the Greater Toronto area are seeking more a� ordable homes o� Hwy. 401, creating bidding wars that have induced a sellers' market. Mortgage rates remain low, and an attractive community with a growing economy just adds to the demand, Craig said. "I don't see much changing unless there's an economical factor -- interest rates, policy change, that type of thing that limits the num- ber of buyers in the market. But that doesn't seem to be the case." What Craig is hoping to see is inventory levels improve, includ- ing both the number and variety of homes on the market. � ough high demand is great for sellers, it can also have an adverse e� ect. Some people simply looking to downsize or upsize aren't putting their homes on the market because they have no place to go and are reluctant to enter a competitive mar- ket, Craig said. The 8,003 residential listings processed last year represented a decrease of 9.7 per cent compared to 2015. The number of months of inventory has been ranging between a 10-year low of one to two months. For those who are frustrated or thinking of entering the housing market, Craig said being patient is the best alternative. Hot housing market expected to continue into 2017 with no signs of cooling carriers wanted Join our carrier club Earn extra money and win prizes Many routes still available Call immediately for more information 519-895-5690 61 38 -0 01 Metroland is looking for newspaper carriers in your neighbourhood! support your local carrier