If you were surprised that the Supreme Court of Canada ruled in favour of the federal government when it comes to the legality of the carbon tax, then you might be an eternal optimist, or you just didn’t grasp the long odds Saskatchewan, Alberta and Ontario were facing on this issue.
The Supreme Court handed down its decision last week. Six of the nine justices said the feds’ carbon tax is constitutional. Two were opposed. One had reservations.
Most people in Saskatchewan seemed to be hoping the court would strike down the carbon tax, and for good reason. As stated in this space before, if you support the federal carbon tax, then you don’t have the best interests of the province on this particular front.
The fight against the carbon tax was one that the province needed to adopt. The odds of victory were long; as was stated in the initial court hearings more than two years ago, emissions know no boundaries. That’s why the feds felt so comfortable imposing this carbon tax on Saskatchewan, Alberta and Ontario.
Does the carbon tax overstep federal jurisdiction when it comes to the provinces? Absolutely. But it also reduces the ability of provinces to be competitive when it comes to industries affected by such a tax.
You can question the wisdom in this battle; after all, why channel taxpayer dollars towards a fight when you’re almost certain to lose? But sometimes it’s nice for the affected industries and the companies and the workers to know that the government actually does have you back on a matter such as this, and the government isn’t going to roll over while the feds try to throw another impediment towards you.
It’s also an encouraging sign for potential investors into Saskatchewan that the government supports industries.
Now that the courts have handed Saskatchewan, Alberta and Ontario this defeat, we have to wonder what’s next.
The Sask. Party says they’re going to bring in their own price on fuel, rather than submit to the federal carbon tax. They believe their system should be enough to make the federal government happy.
Let’s be clear: if given the choice between a made-in Saskatchewan carbon tax and the one that the feds have force-fed on us, we’ll take the Saskatchewan option. The provincial government is going to have a better idea of what’s in our best interests than the feds; our provincial government is definitely going to have a better idea of what we need as opposed to a government led by Justin Trudeau.
Saskatchewan says their scheme would be similar to what was implemented in New Brunswick, which the feds approved. New Brunswick’s concept gives motorist an immediate rebate on the tax at the pump.
Saskatchewan will also seek exemptions for different uses of fuel, including grain dryers used by farmers.
Investments into new technologies and next-generation technologies to combat climate change, such as carbon capture and storage, would be far more effective than a carbon tax.
Perhaps Trudeau needs to come out here and spend some time in Saskatchewan, so that he can see the myriad of initiatives that are happening in Saskatchewan to reduce our carbon footprint and to create a better environment. These initiatives are going to be far more effective than another tax that will punish hard-working people and reduce our province’s competitiveness.
Opponents of the carbon tax can cross their fingers that the Conservatives are elected in the next federal election, but even if the Tories do win, it’s likely to be a minority government, making it difficult to repeal the tax.
So we’re stuck with a carbon tax of some sort. For now, it’s the feds’ application. Hopefully, eventually, it will be a solution that is a little better for Saskatchewan.
But it’s going to have to be tough, and it’s likely going to have to escalate each year in an effort to keep the feds happy.
