Premier Scott Moe says his government has considered alternatives to Ottawa’s carbon tax but they too would have come at the expense of Saskatchewan families and businesses, making them no better than the federal pricing system.
The Saskatchewan premier was the first of four provincial premiers to testify before a House of Commons committee this week about the impact the April 1 increase to the federal carbon tax will have on their provinces.
His March 27 appearance before the Government Operations and Estimates committee comes a day after Prime Minister Justin Trudeau penned a letter chastising Canadian premiers for criticizing the carbon tax without offering alternatives to the federal pricing plan.
Liberal MP Charles Sousa questioned Mr. Moe on the subject, asking if Saskatchewan had considered replacing the federal carbon tax with a plan of its own.
Mr. Moe was quick to answer.
“Yes, we did,” he said. “All of them were costly to our industry, as is the federal backstop that we’re experiencing now, as well as costly to Saskatchewan families.”
Mr. Sousa was critical of the premier’s response.
“So you’re of the opinion, never say never, but it sounds like kick the can down the road for the next generation to deal with,” he said.
Alternatives
As an alternative to the carbon tax, Mr. Moe pointed to the province’s Heavy Emitter Fund. He said it pays into a technology fund that encourages investment in technologies that reduce, sequester or capture emissions.He argued that instead of supporting a carbon tax, Canada should examine whether industries in the country were reducing emissions and compare them to industries in other countries around the world.
“We should ensure that we are making every effort to make our cleaner products available to the world, displacing some of those dirtier products that are approved in other areas,” he said.
Liberal MP Francis Drouin called on the premier to adopt a regional approach to carbon pricing. Until that happens, he said, Ottawa must put a price on pollution or Canada will not “be competitive in our exports market.” He said countries without a price on pollution would be slapped with an import tariff.
Mr. Moe said the federal government should “take the story abroad” and focus on global solutions to reduce greenhouse gas emissions.
“If you accept the fact that climate change is real, if you accept this fact that climate change is a global challenge, not just one in Saskatchewan or even Canada for that matter, we need to work together with our national partners on achieving global solutions,” he said.
He noted that if the rest of the world produced oil and gas the same way Saskatchewan does, “global emissions from oil production would drop 25 percent overnight.”
Mr. Moe said the oil industry in the province was able to meet a 65 percent methane reduction target but argued a 75 percent reduction could shut down parts of the oil industry. He cited a study from the Global Institute for Food Security claiming that per ton produced, Saskatchewan’s wheat and canola oil had a 64 percent lower carbon content than the next seven producers.
Conservative MP Brad Redekopp questioned Mr. Moe about the impact the carbon tax has had on residents of his province. The premier noted the costs were seen not just in direct taxes, but also increased indirect costs at grocery stores.
He argued the carbon tax and its impact on fuel prices also have an effect on Saskatchewan because many residents live spaced out across the province. He added that the carbon tax was a hindrance to investment.
“And so the impact is very real to families ... in particular to Northern families, where they traditionally have been heating other homes with electricity,” he said but noted some had experienced relief after the province scrapped the carbon tax on home heating Jan. 1.
The federal carbon tax is expected to increase 23 percent April 1 and has been the subject of protest from the federal Tories. The party has attempted two motions in the House of Commons, one of which was a non-confidence motion in the government, to halt the tax hike. Both votes, however, failed to pass.While the Liberal-led government under Mr. Trudeau has argued that eight in 10 Canadians will benefit from a carbon tax rebate, the Tories have maintained that Canadians will receive less than they paid in taxes overall, citing figures from the Parliamentary Budget Officer.
