Province’s next premier set for carbon tax battle

Saskatchewan’s outgoing premier and the five candidates vying to replace him are firing back after the federal government released new details of its plan to impose a carbon tax on every province that does not develop its own pricing scheme.

Prime Minister Justin Trudeau’s Liberal government on Monday released a draft bill outlining its plan, which could see hundreds of millions of dollars in carbon tax revenue returned to individuals rather than the provincial governments.

In a statement issued Tuesday,

Premier Brad Wall — perhaps Canada’s most vocal opponent of the plan — reiterated his longstanding view that a federally-imposed carbon tax is a “significant overreach” and could be open to a constitutional challenge.

“If the Trudeau government does try to impose a carbon tax on Saskatchewan families and businesses, (the) Saskatchewan Party government will continue our fight to prevent that from happening, including taking court action if necessary,” Wall said in the statement.

Wall has opposed the carbon tax since Trudeau proposed it in October 2016. It is set to be introduced this year, with a floor price of $10 per tonne of carbon dioxide emitted in 2018, climbing $10 each year to $50 per tonne in 2022.

It will apply only to provinces that do not have an alternative system in place. Quebec, Ontario, Alberta and British Columbia, which together account for about 80 per cent of Canadians, have carbon pricing schemes already.

Wall announced his retirement in August and is expected to step down soon. The Saskatchewan Party is expected to choose its next leader, and the province’s next premier, at a convention in Saskatoon on Jan. 27.

In interviews and emails on Tuesday, all five candidates vying to lead the party into the 2020 general election expressed concern about the federal government’s proposal, and the general idea of a price on carbon in a resource-reliant province.

“This is nothing more than a redistribution of wealth,” candidate Gord Wyant said. “The federal government would collect the tax and redistribute it how they want to redistribute it (but) it’s still going to be devastating to our economy.”

Candidate Alanna Koch described the proposal as “unacceptable” and said in an email that provincial governments have the knowledge and understanding of what is needed to deliver services to the residents of their respective provinces.

Candidate Tina Beaudry-Mellor went further still in an email, describing the carbon tax as “a thinly veiled tax grab and charm offensive headed into the next federal election,” adding that former prime minister Stephen Harper’s Conservatives did not display “such an authoritarian approach” to the provinces.

Candidate Scott Moe, meanwhile, questioned the federal government’s actions. He said it was never agreed that provinces could only implement their own carbon pricing scheme if it met the federal backstop, a vital point given that each jurisdiction has different needs.

Candidate Ken Cheveldayoff picked up that point, arguing that the government’s “Made-in-Saskatchewan Climate Change Strategy,” which was released last month and subsequently panned by Ottawa, goes to meeting the federal government in the middle.

All five candidates said they would be open to a court challenge if necessary.

Asked how to balance a legal battle against the need to maintain working relations with Ottawa, Cheveldayoff, Moe and Wyant said they are committed to defending Saskatchewan’s interests.

The federal government would collect the tax and redistribute it how they want to redistribute it (but) it’s still going to be devastating to our economy.