After a tight vote, the Senate has decided to amend a Conservative bill that would further exempt farmers from the carbon tax, signalling its probable return to the House of Commons where the Liberal government could put it to rest through procedural manoeuvres.
The legislation seeks to exempt farmers from paying the carbon tax on propane and natural gas used to heat or cool barns, or to dry grain. Farmers are mostly exempt from the carbon tax applying to other fuels or applications.
The amendment passed by the Senate has removed the exemption for propane and natural gas and only keeps the drying grain application.
Bill C-234 cleared the House of Commons in March, receiving support from all major opposition parties.
The bill could have received royal assent with a vote in third reading, but objections from senators have prevented the legislation from becoming law. It is expected the bill will be sent back to the House of Commons where the Liberal government controls the legislative agenda.
Conservatives say that completely removing the carbon tax on farmers will help to lower food prices.
The Conservatives have long made “axing” the tax a rallying cry and a central policy proposal, but they upped the pressure after Prime Minister Justin Trudeau declared a three-year carbon tax exemption on heating oil.
This has been interpreted by the Conservatives as a “carve-out” for the region to save the Liberals’ political fortunes as the Tories gain momentum in the polls, as well as an admission that the carbon tax indeed hurts Canadians’ finances.
Privilege ‘Breached’
Political wrangling over the carbon tax and Bill C-234 has been relentless.Conservative Party Leader Pierre Poilievre said in mid-November he would launch a “full-on campaign” to pass the bill and that he would press “Liberal senators” to pass it. There are no Liberal senators per se, and the government has defended exercising pressure on them.
Meanwhile tempers have flared in the Senate with Conservative senators expressing displeasure about delays surrounding the bill.
Sen. Raymonde Saint-Germain claimed there were “attempts of intimidation” on that day.
“Senators, in the Senate Chamber, felt threatened and insulted and intimidated,” said Speaker Gagné in her decision. “That is a violation of the rights of Parliament, of the Senate, and of individual senators.”
A motion has been tabled to refer the matter to the Standing Committee on Ethics and Conflict of Interest for Senators.