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UK leader Rishi Sunak signals plan to backtrack on some climate goals

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Oxfam’s Rishi Sunak ‘big head’ protests outside the Parliament in London, Tuesday, Sept. 19, 2023. On the eve of the UN Climate Ambition Summit, Oxfam’s Rishi Sunak ‘big head’ staged a protest on top of a giant oil barrel, amongst dozens of real oil drums, supporting the Make Polluters Pay campaign. Calling for oil and gas giants, such as BP and Shell, to pay more tax to raise critical funds to help communities devastated by climate change. (AP Photo/Kin Cheung)

By Jill Lawless in London

LONDON (AP) — Prime Minister Rishi Sunak is preparing to water down some of Britain’s environmental commitments on Wednesday, saying the country must fight climate change without penalizing workers and consumers.

The news drew wide criticism from political opponents, environmental groups and large chunks of U.K. industry, but was welcomed by sections of the governing Conservative Party.

Sunak issued a late-night statement Tuesday in response to a BBC report saying the prime minister is considering extending deadlines for bans on new gasoline and diesel cars — currently set for 2030 — and on new natural-gas home heating, due in 2035.

Sunak said he would set out a “proportionate” approach to the environment. He summoned his Cabinet to an unscheduled conference call to discuss the plans ahead of a speech hastily rescheduled for Wednesday afternoon. It had been due later in the week.

“For too many years, politicians in governments of all stripes have not been honest about costs and trade-offs,” Sunak said. “Instead, they have taken the easy way out, saying we can have it all.”

Sunak did not confirm details of his announcements. He said he would keep a promise to reduce the U.K.’s emissions of climate-warming greenhouse gases to net zero by 2050, but “in a better, more proportionate way.”

The government has previously boasted of Britain being a leader in cutting carbon emissions. U.K. greenhouse gas emissions have fallen by 46% from 1990 levels, mainly because of the almost complete removal of coal from electricity generation. The government had pledged to reduce emissions by 68% of 1990 levels by 2030 and to reach net zero by 2050.

But with just seven years to go until the first goalpost, the government’s climate advisers said in June that the pace of action is “worryingly slow.” Sunak’s decision in July to approve new North Sea oil and gas drilling also spurred critics to question his commitment to climate goals.

Former Prime Minister Boris Johnson, who brought in the 2030 gasoline car target when he was leader, said businesses “must have certainty about our net-zero commitments.”

“We cannot afford to falter now or in any way lose our ambition for this country,” he said.

News of plans to backtrack broke as senior politicians and diplomats from the U.K. and around the world — as well as heir to the British throne Prince William — gathered at the United Nations General Assembly in New York, where climate is high on the agenda. Sunak is not attending, sending his deputy instead.

Greenpeace U.K. policy director Doug Parr said the prime minister was “taking the public for fools.”

“Rowing back on home insulation and commitments to help people move away from gas will ensure we stay at the mercy of volatile fossil fuels and exploitative energy companies,” Parr said.

Environmentalists were not the only ones blindsided by the move. Automakers, who have invested heavily in the switch to electric vehicles, expressed frustration at the government’s apparent change of plan.

“We’re questioning what is the strategy here, because we need to shift the mobility of road transport away from fossil fuels towards sustainable transport,” said Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders, an industry body.

Ford U.K. head Lisa Brankin said the company had invested 430 million pounds ($530 million) to build electric cars in Britain.

“Our business needs three things from the U.K. government: ambition, commitment and consistency. A relaxation of 2030 would undermine all three,” she said.

Analyst Tara Clee of investment firm Hargreaves Lansdown said the retreat could undermine Britain’s hard-won reputation for leadership on green technology, threatening the wider economy.

“The market has been directing capital to the net-zero transition and has been working in good faith,” Clee said. “These changes send a message that nothing is set in stone, and committing in earnest to a movable goalpost could be a major business risk.”

Britain’s Conservatives have been openly reassessing their climate change promises after a special election result in July that was widely seen as a thumbs-down from voters to a tax on polluting cars.

The party, which trails behind the Labour opposition nationwide, unexpectedly won the contest for the suburban London Uxbridge district by focusing on a divisive levy on older vehicles imposed by London’s Labour mayor, Sadiq Khan. Some Conservatives believe axing green policies is a vote-winner that can help the party avoid defeat in a national election due by the end of next year.

“We’re not going to save the planet by bankrupting the British people,” Home Secretary Suella Braverman said Wednesday.

But Conservative lawmaker Alok Sharma, who chaired the COP26 international climate conference in Glasgow in 2021, warned that it would be “incredibly damaging … if the political consensus that we have forged in our country on the environment and climate action is fractured.”

“And frankly, I really do not believe that it’s going to help any political party electorally which chooses to go down this path,” he told the BBC.

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Honda deal latest episode of corporate welfare in Ontario

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From the Fraser Institute

By Jake Fuss and Tegan Hill

If Honda, Volkswagen and Stellantis are unwilling to build their EV battery plants in Ontario without corporate welfare, that sends a strong signal that those projects make little economic sense.

On Thursday, the Trudeau and Ford governments announced they will dole out an estimated $5 billion in corporate welfare to Honda so the auto giant can build an electric vehicle (EV) battery plant and manufacture EVs in Ontario. This is the third such deal in Ontario, following similar corporate welfare handouts to Volkswagen ($13.2 billion) and Stellantis ($15.0 billion). Like the previous two deals, the Honda deal comes at a significant cost to taxpayers and will almost certainly fail to create widespread economic benefits for Ontarians.

The Trudeau and Ford governments finalized the Honda deal after more than a year of negotiations, with both governments promising direct incentives and tax credits. Of course, this isn’t free money. Taxpayers in Ontario and the rest of Canada will pay for this corporate welfare through their taxes.

Unfortunately, corporate welfare is nothing new. Governments in Canada have a long history of picking their favoured firms or industries and using a wide range of subsidies and other incentives to benefit those firms or industries selected for preferential treatment.

According to a recent study, the federal government spent $84.6 billion (adjusted for inflation) on business subsidies from 2007 to 2019 (the last pre-COVID year). Over the same period, provincial and local governments spent another $302.9 billion on business subsidies for their favoured firms and industries. (Notably, the study excludes other forms of government support such as loan guarantees, direct investments and regulatory privileges, so the total cost of corporate welfare during this period is actually much higher.)

Of course, when announcing the Honda deal, the Trudeau and Ford governments attempted to sell this latest example of corporate welfare as a way to create jobs. In reality, however, there’s little to no empirical evidence that corporate welfare creates jobs (on net) or produces widespread economic benefits.

Instead, these governments are simply picking winners and losers, shifting jobs and investment away from other firms and industries and circumventing the preferences of consumers and investors. If Honda, Volkswagen and Stellantis are unwilling to build their EV battery plants in Ontario without corporate welfare, that sends a strong signal that those projects make little economic sense.

Unfortunately, the Trudeau and Ford governments believe they know better than investors and entrepreneurs, so they’re using taxpayer money to allocate scarce resources—including labour—to their favoured projects and industries. Again, corporate welfare actually hinders economic growth, which Ontario and Canada desperately need, and often fails to produce jobs that would not otherwise have been created, while also requiring financial support from taxpayers.

It’s only a matter of time before other automakers ask for similar handouts from Ontario and the federal government. Indeed, after Volkswagen secured billions in federal subsidies, Stellantis stopped construction of an EV battery plant in Windsor until it received similar subsidies from the Trudeau government. Call it copycat corporate welfare.

Government handouts to corporations do not pave the path to economic success in Canada. To help foster widespread prosperity, governments should help create an environment where all businesses can succeed, rather than picking winners and losers on the backs of taxpayers.

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Maxime Bernier warns Canadians of Trudeau’s plan to implement WEF global tax regime

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From LifeSiteNews

By Clare Marie Merkowsky

If ‘the idea of a global corporate tax becomes normalized, we may eventually see other agreements to impose other taxes, on carbon, airfare, or who knows what.’

People’s Party of Canada leader Maxime Bernier has warned that the Liberal government’s push for World Economic Forum (WEF) “Global Tax” scheme should concern Canadians. 

According to Canada’s 2024 Budget, Prime Minister Justin Trudeau is working to pass the WEF’s Global Minimum Tax Act which will mandate that multinational companies pay a minimum tax rate of 15 percent.

“Canadians should be very concerned, for several reasons,” People’s Party leader Maxime Bernier told LifeSiteNews, in response to the proposal.

“First, the WEF is a globalist institution that actively campaigns for the establishment of a world government and for the adoption of socialist, authoritarian, and reactionary anti-growth policies across the world,” he explained. “Any proposal they make is very likely not in the interest of Canadians.” 

“Second, this minimum tax on multinationals is a way to insidiously build support for a global harmonized tax regime that will lower tax competition between countries, and therefore ensure that taxes can stay higher everywhere,” he continued.  

“Canada reaffirms its commitment to Pillar One and will continue to work diligently to finalize a multilateral treaty and bring the new system into effect as soon as a critical mass of countries is willing,” the budget stated.  

“However, in view of consecutive delays internationally in implementing the multilateral treaty, Canada cannot continue to wait before taking action,” it continued.   

The Trudeau government also announced it would be implementing “Pillar Two,” which aims to establish a global minimum corporate tax rate. 

“Pillar Two of the plan is a global minimum tax regime to ensure that large multinational corporations are subject to a minimum effective tax rate of 15 per cent on their profits wherever they do business,” the Liberals explained.  

According to the budget, Trudeau promised to introduce the new legislation in Parliament soon.  

The global tax was first proposed by Secretary-General of Amnesty International at the WEF meeting in Davos this January.  

“Let’s start taxing carbon…[but] not just carbon tax,” the head of Amnesty International, Agnes Callamard, said during a panel discussion.  

According to the WEF, the tax, proposed by the Organization for Economic Co-operation and Development (OECD), “imposes a minimum effective rate of 15% on corporate profits.”  

Following the meeting, 140 countries, including Canada, pledged to impose the tax.  

While a tax on large corporations does not necessarily sound unethical, implementing a global tax appears to be just the first step in the WEF’s globalization plan by undermining the sovereignty of nations.  

While Bernier explained that multinationals should pay taxes, he argued it is the role of each country to determine what those taxes are.   

“The logic of pressuring countries with low taxes to raise them is that it lessens fiscal competition and makes it then less costly and easier for countries with higher taxes to keep them high,” he said.  

Bernier pointed out that competition is good since it “forces everyone to get better and more efficient.” 

“In the end, we all end up paying for taxes, even those paid by multinationals, as it causes them to raise prices and transfer the cost of taxes to consumers,” he warned.  

Bernier further explained that the new tax could be a first step “toward the implementation of global taxes by the United Nations or some of its agencies, with the cooperation of globalist governments like Trudeau’s willing to cede our sovereignty to these international organizations.”   

“Just like ‘temporary taxes’ (like the income tax adopted during WWI) tend to become permanent, ‘minimum taxes’ tend to be raised,” he warned. “And if the idea of a global corporate tax becomes normalized, we may eventually see other agreements to impose other taxes, on carbon, airfare, or who knows what.”   

Trudeau’s involvement in the WEF’s plan should not be surprising considering his current environmental goals – which are in lockstep with the United Nations’ 2030 Agenda for Sustainable Development – which include the 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 aforementioned group famous for its socialist “Great Reset” agenda – in which Trudeau and some of his cabinet are involved.     

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