No plan for phase-out of fuel subsidies

The federal government does not have a plan in place to meet its commitment to phase out inefficient fossilfuel subsidies by 2025, according to an auditor general’s report tabled Tuesday in the House of Commons.

The opposition is also accusing the government of “stonewalling” the auditor general’s office by withholding relevant information about the subsidies.

The new report says the finance and environment departments lack a clear understanding of which subsidies are covered by the 2025 commitment, as well as a timeline for phasing them out.

But the audit was hampered by the finance department’s refusal to disclose some budget analysis documents to auditors, claiming cabinet confidence.

“Our right to freely access information is fundamental to our work, and a cornerstone that protects our independence,” said auditor general Michael Ferguson in a message with the report.

In response, Finance Minister Bill Morneau said Tuesday that the government has issued a new order-in-council that he says will give the auditor general “unprecedented” access to budget information. But that comes too late for this audit.

“We couldn’t tell people whether Finance did what they were supposed to do,” he said at a news conference.

Speaking to reporters Tuesday, Green Party Leader Elizabeth May accusing the Liberal government of withholding documents that have always been disclosed.

“What was unprecedented was Finance Canada stonewalling the auditor general to release information to Canadians about a central commitment of this Liberal government on the climate file,” she said.

Morneau claims the government is “on track” to phase out fossil-fuel subsidies by 2025, a commitment Canada made alongside the U.S. and Mexico at the North American Leaders’ Summit in 2016. Leaders of the G20 countries also agreed in 2009 to phase out subsidies “over the medium term.”

The report also finds that Environment and Climate Change Canada doesn’t know the full extent of non-tax measures that could be considered fossil-fuel subsidies, including government loans, loan guarantees and funding for oil and gas research and development.