Ottawa’s Parliamentary Budget Officer (PBO) just reported that “implementation of the federal government’s carbon pricing levy will generate a headwind for the Canadian economy.”
Mariners in this province understand what a headwind is. It’s the wind that is blowing directly toward you. It slows down your progress.
Our economy does not need a carbon tax to slow down our progress.
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The PBO stated: “we project that real GDP will be 0.5 per cent lower in 2022 than it would otherwise be. This amounts to $10 billion in 2022.”
Our economy is already struggling, mainly because taxes are too high and the Liberals have failed to create the conditions for growth.
A carbon tax will make things worse.
Families will not be able to afford it on top of all the other tax increases the Liberals have imposed — gas tax, insurance tax, sales tax, income tax, the levy. We have asked in House of Assembly, what will a family of four pay per month in additional carbon tax? No answer.
In fact, the Government of Saskatchewan does not believe the Trudeau Liberals have the constitutional authority to impose the carbon tax.
They are taking Ottawa to court.
The premier of Saskatchewan makes a strong argument that Newfoundland and Labrador is already doing their part.
For example, he says his province will double its renewable power to 50 per cent of SaskPower’s generating capacity.
He also talks about their carbon capture and storage project, which has captured more than 2 million tonnes of carbon dioxide — the equivalent of taking half a million vehicles off the road.
Think about what our own province is doing.
When Lower Churchill power comes onstream, we will be using clean power to displace dirty oil-fired power at the Holyrood Generating Station.
The Holyrood Generating Station burns at peak about 18,000 barrels of oil a day.
It generates 1.1 million tonnes of greenhouse gas emissions — equivalent to 300,000 cars per year on the road.
The Lower Churchill will not only displace those emissions from the Holyrood Generating Station but has the potential to displace more than 16 million tonnes of carbon dioxide a year. That is equivalent to taking over a million vehicles off the road.
In fact, we have been producing even more green power at the Upper Churchill for the past 40 years; surely there should be credit for that.
In all likelihood, Muskrat Falls power will displace coal-burning in Nova Scotia and New Brunswick and further reduce emissions.
Are we not doing more than our fair share?
For the federal Liberals and supported by provincial Liberals, the tax appears to be ticking a box, not identifying a true means to contribute to an emission reduction program.
In Budget 2016, we saw over 300 taxes either increased or created, which has seen our economic indicators head in the wrong direction for our economy. In Budget 2018, we saw no reduction; rather, we will see a trickle-down carbon tax that will affect every municipality, small business and non-profit group, and take more money from that average family with two kids.
A competitive tax policy will allow young families to stay in our province, drive our economy and build a better future for us all. We need to compete with other provinces in leaving our residents with money to spend in their local economy, for investment by the private sector, and for the attraction of people to our province, where our demographics are going in the wrong direction.
Excessive taxes do not create jobs. Taxes kill jobs.
The Trudeau carbon tax will add to our struggles since the Liberal Budget 2016. The carbon tax is a renewed Liberal policy to tax jobs and investment in Newfoundland and Labrador.
The Ball government should be speaking up and arguing against such a tax to their federal cousins and fighting for recognition of what we have done to date to reduce emissions.
If people stand up to the carbon tax — as Saskatchewan is doing, and others are doing — then we can stop this tax and spare our economy the harm it would cause.
The Ball government has no answers on the impact on Newfoundland and Labrador of a carbon tax, so it cannot be good, as demonstrated in the House of Assembly in question period.
They refuse to tell families how much more tax they will have to pay.
People have a right to know.
It’s time to stop the tax grabs and start reducing the burden of tax that we all have to bear to the detriment of our economy.
Keith Hutchings, MHA Ferryland
Opposition Finance Critic
