Carbon tax not welcomed by local companies

“It is just another tax,” he said. “I’m no expert by any means but I question whether or not it is really going to do what it is intended to achieve. It’s one thing to put the tax on and collect the money, it’s another thing to make sure it is accomplishing the intended purpose.”

The goal of a carbon plan is to encourage lower emissions in order for companies and residents to save money. There’s a few models to follow including a tax or cap-and-trade, which creates a market where industries are allotted permits for emissions they can buy and sell.

Both Ontario and Quebec are using the cap-and-trade method while British Columbia introduced a carbon tax in 2008. Alberta will have a $20-per-tonne carbon levy next year.

Broda praised Wall for opposing a federal carbon pricing plan calling the government’s actions strong and courageous. He said he’s not sure the prime minister is taking into consideration that Canada is a diverse place.

He pointed out Saskatchewan is based heavily in the energy, agriculture and mineral sectors.

“It’s going to have a significantly larger impact on our province than in other provinces,” he said. “It’s another tax that I don’t think has been completely thought through.”

He added he didn’t know exactly what kind if financial impacts a carbon pricing plan would have on his company. He didn’t believe a carbon plan would cause companies and businesses to fail but, given the current economic situation, an additional cost wouldn’t be welcomed.

Al Balisky, the president and CEO of MLTC Industrial Investments LP, said in an email NorSask Forest Products’ sawmill doesn’t produce a “major carbon footprint relative [to] other industries.”

“We are relatively small user of electricity and natural gas and diesel fuel for mobile equipment,” he wrote. “Short story is carbon tax will add cost to our operations, [the] amount unknown.”

Provincial Environment Minister Scott Moe said there’s no evidence to suggest carbon taxes work to reduce emissions and it isn’t worth the cost to bring one in. He echoed Broda by saying the country is diverse and a federal imposed carbon plan won’t achieve what it’s setting out to do.

The province is moving to try and reduce emissions through its carbon capture plan, but Moe said that won’t be enough to meet the requirements set out by the federal government. He said the carbon capture program will be part of a broader plan to reduce emissions.

“A broad-based policy decision across the nation like this doesn’t work for our unique circumstances,” he said. “In Saskatchewan, we have always worked hard to balance our environmental standards.”

NDP MLA for Prince Albert Northcote Nicole Rancourt agreed Ottawa shouldn’t be telling the province how to handle policy around carbon, but she said the current status quo isn’t acceptable. She criticized the government for draggin its heels on climate change.

She said the province is already paying for carbon because of the handling of the $2-billion Boundary Dam Carbon Capture project.

“Every resident in this province is already paying towards the carbon tax,” she said. “We believe that $2 billion could have been spent in a better fashion and in a wiser way, and we could have spread out and diversified our energy processing.”

She added the whole battle with the federal government is a way for the premier to distract everyone from the recent and controversial provincial budget.

Jeff.labine@jpbg.ca

On Twitter: @labinereporter

by Jeff Labine

Carbon tax not welcomed by local companies

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