NDP pledges gas-tax cut as temporary measure to make life more affordable

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This article was published 21/08/2023 (790 days ago), so information in it may no longer be current.

Manitoba’s New Democrats promised Monday to make life a little more affordable by temporarily cutting the provincial gas tax to save motorists 14 cents a litre at the pump.

NDP Leader Wab Kinew pledged to remove the tax while inflation is high and regulate provincial gas prices in the long term.

Manitoba’s Liberals and the governing Tories scoffed at the plan, and a local economist called it “strange.”

Eliminating the tax for six months would cost the provincial treasury about $165 million. The NDP is promising to keep the tax cut in effect for roughly six to 12 months, but the length of time hasn’t been determined yet, Kinew said at a campaign event in St. Norbert’s Charette Park, across from a Pembina Highway gas bar.

He said the dollar value will be fully costed in the party’s platform, and that it could be covered using existing government contingency funds while bringing “hundreds, if not thousands, of dollars in savings” to the average family.

“You know that you work hard, and yet, have you seen a government that matches your commitment?”

Kinew said he would also task the Public Utilities Board with regulating gas prices in the province, similar to the regulation in some Atlantic provinces. The benchmark for regulation would be set in consultation with the board and economic leaders, he said.

Kinew said he doesn’t believe gas-tax savings would lead to people driving more, or result in carbon-emissions increases.

The greatest threat to the fight against climate change, he said, would be to “lose the working class,” saying he believes Manitobans will choose the most environmentally friendly option if it’s as affordable, he said, noting the limited availability of public transportation in rural and northern Manitoba.

He hinted at the NDP supporting a Manitoba-specific carbon tax plan, saying, “I will go to Ottawa and I will negotiate and bring home a better deal.”

Kinew said the plan is an example of his party’s pledge for “no more political games.” The NDP has been critical of the Progressive Conservative government’s previous announcements to send out carbon relief and family affordability cheques to Manitobans, dismissing them as attempts to buy votes.

Asked what sets a temporary gas tax cut apart from other election promises aimed at affordability, Kinew called the PCs “hypocrites.”

“If they really believed in making life more affordable, they would’ve cut the gas tax a year ago.”

The Canadian Taxpayers Federation applauded the NDP promise, saying provincial and federal gas taxes currently account for 29 per cent of the cost of gas. Alberta, Ontario and Newfoundland have reduced their gas taxes as part of provincial relief programs.

“Kinew rightly looks at other provinces that have cut gas taxes to make life more affordable,” Gage Haubrich, the federation’s prairie director, stated in a news release Monday. “Kinew could go even further and promise to permanently eliminate the gas tax.”

Manitoba Liberal Leader Dougald Lamont criticized the plan, saying it makes was nonsensical.

“Well, it finally happened. The NDP are actually promising to borrow money to set it on fire,” Lamont said. “There is no world in which this makes sense. The NDP is borrowing $165 million to subsidize gas, which is used once and literally goes up in smoke.

“There’s something to offend everyone here. It’s fiscally irresponsible. It’s terrible for the environment and does nothing to actually cut energy costs.”

The NDP’s plan amounts to populism, runs contrary to combating climate change, and doesn’t make economic sense, said Gregory Mason, associate professor of economics at University of Manitoba.

“It’s a strange proposal.”

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Mason said he has yet to see “sophisticated discussion” from any party about how to accelerate economic growth while relying less on fossil fuels.

Progressive Conservative Deputy Premier and finance minister Cliff Cullen was also critical.

“This is more smoke and mirrors from Wab Kinew’s NDP who support the punishing carbon tax that is set to rise to 55 cents per litre by 2030. We are the only party fighting to stop it,” Cullen stated.

“Wab Kinew has already promised $1 billion in new spending — and we know that would result in a 10 per cent PST. This is putting money in one pocket, while stealing from the other.”

katie.may@winnipegfreepress.com

Katie May
Multimedia producer

Katie May is a multimedia producer for the Free Press.

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