Pallister tells Ottawa to ‘back off’

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This article was published 06/04/2018 (2765 days ago), so information in it may no longer be current.

Premier Brian Pallister is warning Ottawa to “back off” on plans to foist higher carbon taxes on Manitobans than the province is willing to impose — or face a lawsuit.

At a news conference Friday, Pallister said a federal plan to eventually raise carbon prices to $50 a tonne would hurt Manitoba’s economy.

He blasted a federal official for saying this week Ottawa would create a system for collecting the carbon tax from Manitobans once the province’s $25-per tonne levy failed to meet minimum federal thresholds.

“I have a simple message for Ottawa today: back off or we’ll see you in court,” the premier said.

“If you can’t prove your plan works better than the Manitoba plan, you have no right to invoke any higher levy on the people of Manitoba.”

The federal plan calls for a $10-per-tonne levy starting this fall, rising to $20 at the start of 2019 and another $10 for each of the following three years, ending with a $50-a-tonne tax for 2022.

Manitoba has countered with a $25-per-tonne tax, set to begin this fall, with no subsequent increases.

The province argues this will be as, or more, effective in reducing carbon emissions.

The federal government has always maintained its carbon tax targets are to be a minimum for all provinces.

However, the comment this week by a federal official, quoted in the Free Press, clearly angered Pallister.

The official said Ottawa would eventually establish a parallel process for collecting a top-up carbon tax beyond Manitoba’s $25 levy.

On Friday, Pallister called such talk “a very real threat” to Manitoba, because it will create “unnecessary uncertainty” in the business community and stifle investment.

He said under the province’s plan, Manitoba would have the lowest carbon levy in the country in three years.

At the same time, the premier called the federal official’s comment “an empty threat,” because he believes the feds “know they can’t beat us in court.”

Last fall, Pallister obtained a legal opinion from constitutional expert Bryan Schwartz, who said Manitoba might win a court case if it argued its flat $25-a-tonne levy achieved Ottawa’s emissions-reduction goals.

Caroline Thériault, a spokeswoman for federal Environment Minister Catherine McKenna, said Friday the federal carbon price schedule is clear.

“We’ve also been clear that we will assess each province and territory each year against the federal benchmark,” Thériault said.

“Manitoba’s current approach (instituting a $25-a-tonne levy this year) puts them in very good shape this year and next,” she added.

Pallister said there is no guarantee Ottawa won’t impose a carbon tax levy of more than $50 a tonne in the future.

“If we let them impose their plan on us, how do we stop them from continuing to raise it?” he said.

The Manitoba Progressive Conservatives have said they will use revenues from the carbon tax to reduce income taxes and shave a percentage point off the provincial sales tax.

Pallister said calls by NDP Leader Wab Kinew to use all or most of the revenues on programs to reduce carbon emissions would harm the economy by taking hundreds of millions of dollars out of Manitobans’ pockets over the next several years.

On Friday, Kinew criticized the premier for picking fights that don’t advance the interests of Manitobans.

He said he hears little from Pallister about the environment and reducing emissions.

Kinew accused the provincial government of treating the carbon tax — expected to generate $248 million per year — as a “cash grab.”

“This government still can’t point to a single program that is going to be put into place that the average family… could access to make the transition to a lower-carbon lifestyle,” he said.

Earlier this week, the NDP used a procedural tactic to delay passage of the province’s Climate and Green Plan Implementation Act until the fall.

The province had planned to begin collecting the carbon tax Sept. 1.

Manitobans will start paying more for gas, diesel and home-heating fuel on Dec. 1, once Bill 16 is assured passage.

The carbon tax is expected to cost a couple with two children about $300 a year.

On Friday, the NDP received rare applause from the Canadian Taxpayers Federation for its action.

“Kinew’s delay of the carbon tax will save taxpayers millions,” federation Prairie director Todd MacKay said.

On Friday, Pallister said the government is looking for ways to pass the bill sooner.

If it can’t, he said, a “logical consequence” would be the province will run a higher deficit than it planned.

It’s expected the delay in imposing the tax will cost the provincial treasury about $60 million in revenue.

— with files from Dylan Robertson

larry.kusch@freepress.mb.ca