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Economy

Net Zero Part Three: No One Tells You How Much it Will Cost

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Last week, the National Observer, one of the voices of environmental activism in Canada, published an article entitled Natural Resources Canada probes net zero affordability.

The article references an internal memo from a senior public servant at Natural Resources Canada (NRCan – the federal government department that deals with resource issues such as energy). NRCan Assistant Deputy Minister Mollie Johnson, a senior bureaucrat, is the memo’s author, and in it she notes that the department has been looking into questions on how, amongst other things,  the “Net Zero by 2050” campaign will affect affordability for consumers.

“how, amongst other things,  the “Net Zero by 2050” campaign will affect affordability for consumers.”

Now, the National Observer provides a customary green dodge on the legitimate question about the costs of Net Zero by 2050, noting that this is the kind of question oil and gas industry players focus on. The National Observer goes on to insist that the real issue is that the costs of the climate crisis are soaring – they do not really specify what costs except to point to weather events and suggest these are getting worse and that the costs of them are becoming unmanageable (both are untrue – we will address in a future blog).

It is as if they are saying “How dare energy companies and their lobbyists have the nerve to ask questions about how government policy will affect their interests! How dare Mollie Johnson suggest questions concerning a policy’s impact on affordability might be appropriate for government officials to consider before advancing the policy!”

To the environmental activists and their friends at the National Observer, the very act of daring to raise one’s hand and ask about the radical green agenda that is Net Zero by 2050, to ask ‘how much will it cost?’, is simply unacceptable. Indeed, to the activists, raising such questions is so unacceptable that asking such questions should be forbidden.

And these green propagandists consistently fall back on the usual apocalyptic rhetoric about a “climate emergency” or “climate crisis”.

ADM Mollie Johnson of NRCan appears to be doing what you would hope a public servant would do: asking how much a policy will cost the taxpayer. Thank you Ms. Johnson!

But in this time of ideological green fervor, in the cult of climate action, you cannot dare ask such heretical and vulgar questions as how policy will affect the economic well-being of citizens.

I encourage all of our readers to do just that. Call your local utility, or bank or insurance company, or a mining company, or any other company that is currently espousing a commitment to Net Zero by 2050 – and ask them how much it will cost. How much will it cost in terms of direct taxpayer dollars? How many jobs will this cost? How much in lost tax revenue will it cost the government when the jobs are gone?

My bet is they can’t answer your question.

They don’t know.

Yet they still commit to Net Zero by 2050.

Net Zero Part 4 will be published on Todayville Thursday, June 10

Click here for more articles from Dan McTeague of Canadians for Affordable energy

Dan McTeague | President, Canadians for Affordable Energy

 

An 18 year veteran of the House of Commons, Dan is widely known in both official languages for his tireless work on energy pricing and saving Canadians money through accurate price forecasts. His Parliamentary initiatives, aimed at helping Canadians cope with affordable energy costs, led to providing Canadians heating fuel rebates on at least two occasions.

Widely sought for his extensive work and knowledge in energy pricing, Dan continues to provide valuable insights to North American media and policy makers. He brings three decades of experience and proven efforts on behalf of consumers in both the private and public spheres. Dan is committed to improving energy affordability for Canadians and promoting the benefits we all share in having a strong and robust energy sector.

An 18 year veteran of the House of Commons, Dan is widely known in both official languages for his tireless work on energy pricing and saving Canadians money through accurate price forecasts. His Parliamentary initiatives, aimed at helping Canadians cope with affordable energy costs, led to providing Canadians heating fuel rebates on at least two occasions. Widely sought for his extensive work and knowledge in energy pricing, Dan continues to provide valuable insights to North American media and policy makers. He brings three decades of experience and proven efforts on behalf of consumers in both the private and public spheres. Dan is committed to improving energy affordability for Canadians and promoting the benefits we all share in having a strong and robust energy sector.

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Indonesian leader calls for unity, braces for global crises

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By Niniek Karmini in Jakarta

JAKARTA, Indonesia (AP) — Indonesia’s president called on all citizens to remain united, vigilant and alert as they face crises fueled by the war in Ukraine and coronavirus pandemic in his State of the Nation address Tuesday.

After two years of remote meetings amid pandemic restrictions, more than half of Indonesia’s Parliament was in attendance as President Joko Widodo told them and top officials on the eve of Independence Day that regional tensions are threatening security.

“We must always remain vigilant, cautious and alert,” Widodo said. “Crisis after crisis still haunts the world.”

He noted that when war broke out in Ukraine causing energy and food crises, the world was still grappling with the health and economic impacts of COVID-19. Some countries are predicted to go bankrupt, while over 550 million people face extreme poverty and 345 million others face food shortages and famine, Widodo said.

“The challenges are not easy for the world and for Indonesia. We must face those challenges with prudence and vigilance,” he said.

Russia’s war in Ukraine has exacerbated rising prices in Indonesia amid ongoing supply chain disruptions from the pandemic, causing cooking oil prices to soar while the interruptions in wheat, soybeans and corn have affected the cost of several foods.

In April, Indonesia banned all exports of crude palm oil, a key ingredient in cooking oils, for a month amid a series of student protests against skyrocketing food prices. Indonesia and Malaysia are the world’s largest exporters of palm oil, accounting for 85% of global production.

As the host of the Group of 20 richest and biggest economies this year, Indonesia has sought to bridge divisions between members over Russia’s invasion. Widodo has been guarded in his comments about the war in Ukraine in an attempt to remain neutral.

Widodo was the first Asian leader to visit the warring countries. Ukraine is not a G-20 member, but Widodo has invited Ukrainian President Volodymyr Zelenskyy to the November summit along with Russian President Vladimir Putin, hoping to appease all sides and limit any distractions from the forum’s agenda. Zelenskyy has said he won’t attend if the war is continuing then and has opted to follow the discussions by video link.

The inflation rate in Indonesia has been relatively modest with the shock being mostly absorbed through a budget bolstered by energy subsidies.

Widodo said the state budget recorded a surplus of 106 trillion rupiah ($7.2 billion), allowing the government to provide fuel, gas and electricity subsidies of 502 trillion rupiah ($34 billion) this year to cushion fuel prices.

However, he said the administration must recalculate its energy subsidies to reduce the burden on the budget.

Southeast Asia’s largest economy served as a key exporter of coal, palm oil and minerals amid a global shortage in commodities after Russia’s invasion of Ukraine. Coal exports increased to record levels in March after a brief ban on its shipments early this year to secure domestic supplies.

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Economy

Luxury goods tax on super-rich could hit electric vehicles: expert

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By Marie Woolf in Ottawa

A new tax on yachts, luxury cars and private aircraft designed to hit the super-rich could also cover vehicles meant to help the environment, a tax expert warns.

The luxury goods tax, which will come into force on Sept. 1, will cover cars and SUVs, as well as private planes and helicopters, worth more than $100,000.

The federal tax will also cover yachts and boats — including motorboats — worth more than $250,000.

But senior tax lawyer Héléna Gagné says the new tax could also hit some electric and hybrid vehicles, including Tesla and BMW models, which cost more than $100,000.

The federal government has been encouraging Canadians to invest in clean technology and zero-emission vehicles, which can carry a higher price tag than cars that run on fossil fuels.

Gagné said the thresholds for the tax could also affect people who would not be regarded as wealthy, but have saved up to buy a private plane for a hobby.

“It seems to be assumed that it is only the wealthiest who will be impacted by the luxury tax but it is not necessarily the case,” said Gagné, a partner at Osler, Hoskin & Harcourt LLP. “It can also impact indirectly taxpayers who may not consider themselves as being among the wealthiest but who may decide to purchase an electric vehicle with a retail sales price that happens to be over the $100,000 threshold.”

Adrienne Vaupshas, a spokeswoman for Finance Minister Chrystia Freeland, said the measures, originally proposed in the 2021 budget, are not designed to hit the middle class.

She said the threshold for the tax for boats was deliberately set at $250,000 so it would cover superyachts and not middle-class families buying boats.

Vaupshas said it was “only right and fair that the very wealthiest are asked to pay their fair share.”

“The government was re-elected on a platform that included a commitment to bring forward a luxury tax on yachts, private jets, and luxury cars and implementing this measure is a priority,” she said.

The tax was originally proposed in the 2021 budget. It will cover luxury cars, planes, and boats bought for personal use and leisure. Commercial vehicles, including small planes selling seats, and emergency vehicles are among the classes of vehicle exempt from the new tax.

The tax amounts to either 10 per cent of the taxable amount of the item or 20 per cent of the amount over the price threshold — whichever is less.

The NDP has been putting pressure on the federal government to do more to tax the super-rich. Measures to increase taxes on the wealthiest people in Canada, however, were not included in the Liberal-NDP confidence and supply pact.

NDP critic for tax fairness and inequality, Niki Ashton, said at a news conference last month that she wants the federal government to close loopholes she says are being used by the super-rich and corporations to avoid paying billions in taxes.

This report by The Canadian Press was first published Aug. 11, 2022.

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