Morneau pressed to reveal true cost for families from federal carbon tax national newswatch gas natural inc


OTTAWA — Conservative MP Pierre Poilievre repeatedly tried to squeeze answers out of Finance Minister Bill Morneau during a marathon Commons session Tuesday night that featured a barrage of questions on the potential costs of the federal carbon tax for Canadian families.

Poilievre got the ball rolling earlier in the day during question period, accusing the government of an ongoing "carbon tax cover-up," refusing to say how much more families can expect to pay for everything from gasoline to home heating to groceries as a result of the measure.

Environment Minister Catherine McKenna fielded that one, accusing the Conservatives of denying both the existence of climate change, the cost it is having from the impacts of major weather events, and the economic opportunity it poses in fostering growth in clean technology.

"Canadians are paying billions of dollars in insurance costs, but there is also a huge economic opportunity. Since members of the party opposite like talking about jobs, then maybe they should get on the bandwagon, because there is a $23-trillion opportunity in clean growth."

Neither did she later when she answered questions at a Senate committee reviewing the government’s legislation to make the national carbon price a reality. The legislation, contained in the government’s spring budget implementation bill, would create a federal carbon price system that will be imposed in any province that doesn’t create their own system that meets federal requirements by the end of this year.

Conservative Sen. Michael MacDonald said it is frustrating that the government continues to dodge the question about what that federal system will cost. McKenna said only that the carbon prices in place now are from individual provinces, each of which did different things with the revenues so the cost to people was different depending on where they lived.

When the government unveiled its federal plan last year, it did include the expected cost it will add to things like gasoline (11.6 cents a litre) and natural gas (9.79 cents per cubic metre). However, a government analysis of what those costs could mean overall for an average family has been withheld from documents released to date under access-to-information legislation.

It is an argument sure to persist into next year’s election campaign. Conservative Leader Andrew Scheer has promised to scrap the Liberal scheme, saying he will have a plan of his own to meet Canada’s international emissions targets without putting a tax on carbon.

Canada’s 2030 target is to cut emissions by 30 per cent below 2005 levels. Carbon pricing is the most cost-effective, efficient way to get there, says McKenna; any other plan would require regulations and policies that would likely cost industry and families far more than a carbon price.

Earlier this month Environment and Climate Change Canada estimated that a $50-per-tonne carbon price would reduce emissions by 80 million to 90 million tonnes per year, at an annual cost to the economy of about $2 billion — not counting would-be growth in the clean technology industry, which some predict will grow by trillions over the next decade.

The government’s numbers differ from those of the parliamentary budget office, which says the GDP impact will be about $10 billion a year. The office released a more detailed explanation of that number Tuesday, saying it reflects the difference between no carbon price anywhere and $50 per tonne everywhere.

Ottawa’s numbers were based on the fact that four provinces representing about 80 per cent of the population already had a carbon price scheme of some sort in place or in progress before the government announced every province would be required to have one.

During the evening session, Morneau also faced questions from New Democrat MP Guy Caron over the Trans Mountain pipeline and the government’s promise last week to "indemnify" would-be investors in the Alberta-B.C. expansion project against any cost overruns resulting from political interference.

Morneau has been in talks with pipeline-builder Kinder Morgan since mid-April after the company threatened to pull out of the project, spooked by court threats from B.C. The company has given Ottawa until May 31 to smooth the jangled nerves of investors.