Connect with us

Economy

The carbon tax and energy affordability should be centre-stage in the next federal election

Published

5 minute read

All sorts of carbon tax advocates – environmentalists, academics, political insiders – are saying the following: all those annoying little Canadians who are so vulgar and uneducated as to object to carbon taxes should shut up once and for all.

Their assertion is: the Supreme Court has decided that the federal government can tell the provinces what to do, so the subject is settled.

But no, that is not quite true. What is true, is that IF a federal government wants to impose a carbon tax, it can.

The SCC majority decision is written by a most Trudeau-esque Chief Justice Wagner. In the decision the Chief Justice writes – in a dramatic overreach beyond law to the realm of policy – that climate change is “an existential threat to human life in Canada and around the world”. He then uses that as the basis for his affirmation of the federal government’s use of the Peace, Order and Good Government clause in the constitution.

Fine. We should all be troubled that the SCC has done this, but so be it. For my part, I thoroughly disagree with this decision, as I wrote in my previous blog post.

But the effect of the decision is not to bury the carbon tax issue, notwithstanding the arrogance and the climate alarmism of 6 of the 9 Supreme Court Justices.

What the SCC actually did is kick the carbon tax issue right back onto the front page of national politics.

What?

Yes, thanks to the SCC decision, we are all now once again talking about the carbon tax.

The fact that the Trudeau government has been told it can impose a carbon tax, does not mean that any successor federal government must impose a carbon tax.

Canadians do believe in climate change. I do.

And all of us are told constantly by many – from the likes of Greta Thunberg, and Justin Trudeau (and now) the Chief Justice of the SCC – that climate change is an existential threat. And now we are told that it must be addressed by carbon taxes.

Well …  no, actually.

That isn’t a logical sequencing of things. A belief in climate change doesn’t require a belief in it being an existential threat nor does it require an embrace of carbon taxes.

Making that point is hard, in the midst of all the noise.

But politicians with the courage to stand up for Canadians can make this point.

Politicians who care about the issue of affordable energy can, and should, make the case against carbon taxes.

The anti-carbon tax fight requires a pushback against the establishment interests who have a platform in mainstream media and elsewhere. It requires a pushback against the slew of policy wonks who like to say “carbon taxes just make so much sense.” And it requires a pushback against the many people who insult everyday Canadians who are sick and tired of watching their taxes go up.

If politicians of conviction have the courage to mount such a pushback, if they are prepared to listen to Canadians instead of trying to shut them down, they have a shot to articulate an alternative vision that is in the interests of Canadians’ long-term economic well-being.

In an upcoming blog, I will offer some suggestions for that alternative vision.

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.

Follow Author

Business

Government red tape strangling Canada’s economy

Published on

From the Fraser Institute

By Kenneth P. Green

The cost of regulation from all three levels of government to Canadian businesses totalled $38.8 billion in 2020, for a total of 731 million hours—the equivalent of nearly 375,000 fulltime jobs.

One does not have to look too deeply into recent headlines to see that Canada’s economic conditions are declining and consequently eroding the prosperity and living standards of Canadians. Between 2000 and 2023, Canada’s per-person GDP (a key indicator of living standards) has lagged far behind its peer countries. Business investment is also lagging, as are unemployment rates across the country particularly compared to the United States.

There are many reasons for Canada’s dismal economic conditions—including layer upon layer of regulation. Indeed, Canada’s regulatory load is substantial and growing. Between 2009 and 2018, the number of regulations in Canada grew from about 66,000 to 72,000. These regulations restrict business activity, impose costs on firms and reduce economic productivity.

According to a recent “red tape” study published by the Canadian Federation of Independent Business (CFIB), the cost of regulation from all three levels of government to Canadian businesses totalled $38.8 billion in 2020, for a total of 731 million hours—the equivalent of nearly 375,000 fulltime jobs. If we apply a $16.65 per-hour cost (the federal minimum wage in Canada for 2023), $12.2 billion annually is lost to regulatory compliance.

Of course, Canada’s smallest businesses bear a disproportionately high burden of the cost, paying up to five times more for regulatory compliance per-employee than larger businesses. The smallest businesses pay $7,023 per employee annually to comply with government regulation while larger businesses pay a much lower $1,237 per employee for regulatory compliance.

And the Trudeau government has embarked on a massive regulatory spree over the last decade, enacting dozens of major regulatory initiatives including Bill C-69 (which tightens Canada’s environmental assessment process for major infrastructure projects), Bill C-48 (which restricts oil tankers off Canada’s west coast) and electric vehicle mandates (which require all new cars be electric by 2035). Other examples of government red tape include appliance standards to reduce energy consumption from household appliances, home efficiency standards to reduce household energy consumption, banning single-use plastic products, “net zero” nitrous oxide emissions regulation, “net zero” building emissions regulations, and clean electricity standards to drive net emissions of greenhouse gases in electricity production to “net zero” by 2035.

Clearly, Canada’s festooning pile of regulatory red tape is badly in need of weeding. And it can be done. For example, during a deregulatory effort in British Columbia, which appointed a minister of deregulation in 2001, there was a 37 per cent reduction in regulatory requirements in the province by 2004.

Rather with plowing ahead with an ever-growing pallet of regulations to be heaped upon Canadian businesses and citizens, government should reach for the garden shears and start reducing the most recent regulatory expansions (before they have time to do too much harm), and then scour the massive strangling forest of older regulations.

Whacking through the red tape would go a long way to help Canada’s economy out of its dismal state and back into competitive ranges with its fellow developed countries and our neighbours in the U.S.

Continue Reading

Business

Trudeau’s environment department admits carbon tax has only reduced emissions by 1%

Published on

From LifeSiteNews

By Clare Marie Merkowsky

The Trudeau Liberals had first seemed to claim that the unpopular carbon tax had cut emissions by 33%, only to explain that the figure is merely a projection for 2030 and the actual reduction thus far stands at 1%.

The Liberal government has admitted that the carbon tax has only reduced greenhouse gas emissions by 1 percent following claims that the unpopular surcharge had cut emissions by 33 percent.   

During a May 21 House of Commons environment committee meeting, Environment Minister Steven Guilbeault testified that the carbon tax cut greenhouse gas emissions by 33 percent, before his department backtracked to explain that the figure is a projection for the year 2030, and that the true figure sits at a mere 1 percent.

“I will be the first one to recognize it is complex,” said Guilbeault, according to information obtained by Blacklock’s Reporter 

“If you want simple answers, I am sorry. There is no simple answer when it comes to climate change or modeling,” he said, adding, “Carbon pricing works. This has never been clearer.”  

“Carbon pricing alone accounts for around a third of emission reductions expected in Canada,” said Guilbeault, explaining this number was based on “complex statistical calculations.”  

However, Conservative Members of Parliament (MPs) pointed out that the numbers provided by Guilbeault’s department do not add up to a 33 percent decrease in emissions, as the department had characterized.  

“How many megatonnes of emissions have been directly reduced from your carbon tax since it was introduced?” Conservative MP Dan Mazier questioned.  

According to Guilbeault, after the introduction of the carbon tax, emissions reduced by five megatonnes in 2018, fourteen megatonnes in 2019, seventeen megatonnes in 2020, eighteen megatonnes in 2021, and nineteen megatonnes in 2022.  

According to Blacklock’s, Guilbeault failed to explain how the environment department calculated a 33 percent benefit.

Conservative MP Michael Kram pressed Guilbeault, saying, “I want to make sure I have the math correct.” 

“In 2022 emissions were at 708 megatonnes and the carbon tax was responsible for reducing 19 megatonnes,” he continued. “By my math that works out to a three percent reduction.” 

Associate deputy environment minister Lawrence Hanson explained that the department’s 33 percent emissions cut is a projection of the emissions cut by 2030, not a current statistic.   

“It’s the distinction between how much the carbon price might have affected emissions in one year versus how much in 2030,” said Hanson. “So when you heard us talking about its responsible for one third of reductions we were talking about the 2030 number.” 

This explanation was echoed by Derek Hermanutz, director general of the department’s economic analysis directorate, who said, “When we talk about one third, it’s one third of our expected reductions. That’s getting to 2030.” 

“Yes, but three percent of the total emissions have been reduced as a result of carbon pricing?” Kram pressed.   

“No, emissions have declined three percent in total,” assistant deputy minister John Moffet responded.  

“And so only one percent of that three percent is from the carbon tax?” Kram asked.  

“To date,” Moffet replied. 

Prime Minister Justin Trudeau’s carbon tax, framed as a way to reduce carbon emissions, has cost Canadian households hundreds of dollars annually despite rebates. 

The increased costs are only expected to rise. A recent report revealed that a carbon tax of more than $350 per tonne is needed to reach Trudeau’s net-zero goals by 2050. 

Currently, Canadians living in provinces under the federal carbon pricing scheme pay $80 per tonne, but the Trudeau government has a goal of $170 per tonne by 2030. 

On April 1, Trudeau increased the carbon tax by 23 percent despite seven out of 10 provincial premiers and 70 percent of Canadians pleading with him to halt his plan. 

Despite appeals from politicians and Canadians alike, Trudeau remains determined to increase the carbon tax regardless of its effects on citizens’ lives. 

The Trudeau government’s current environmental goals – which are in lockstep with the United Nations’ 2030 Agenda for Sustainable Development – include phasing out coal-fired power plants, reducing fertilizer usage, and curbing natural gas use over the coming decades. 

The reduction and eventual elimination of so-called “fossil fuels” and a transition to unreliable “green” energy has also been pushed by the World Economic Forum, the globalist group behind the socialist “Great Reset” agenda in which Trudeau and some of his cabinet are involved. 

Continue Reading

Trending

X