Alberta wants carbon cash back
Justice minister demands Ottawa respect ruling on ‘unlawful tax’
EDMONTON The province is demanding that the federal carbon tax no longer apply to the province after the Alberta Court of Appeal ruled the tax unconstitutional because it infringes on provincial jurisdiction.
Alberta Justice Minister Doug Schweitzer is also asking the federal government to “work out a process for the reimbursement to
Albertans of taxes paid,” in a letter sent Wednesday morning to federal Justice Minister David Lametti.
“If you do not respond accordingly to our demands, the Government of Alberta will be forced to consider additional legal recourse to ensure that this unlawful tax on Albertans is removed and fully reimbursed,” the letter reads.
Schweitzer’s letter acknowledges that the Supreme Court is scheduled to rule on the carbon tax soon but, nevertheless, urges the federal government to abide by Monday’s decision in Alberta.
The letter comes at a time when relations are already frayed between Ottawa and the province.
On Monday, Teck Resources withdrew its application for the $20-billion Frontier oilsands mine in the northeastern part of Alberta after an intractable public debate about the project.
Alberta Premier Jason Kenney said the decision was made “in large part because of regulatory uncertainty and endless delays created by the national government,” while the federal government blamed global market and environmental conditions.
The decision prompted an ill-tempered phone call between Kenney and Prime Minister Justin Trudeau on Sunday night, signalling a low point in a relationship that has had few positive moments.
On Monday, Kenney lauded the Alberta Court of Appeal decision as a “great victory for Alberta and a victory for Canadian federalism.”
“We expect the Government of Canada to comply with the order of the court today and to remove the federal carbon tax on Albertans,” said Kenney.
“So my question for the Jane Fondas and Leo Dicaprios of the world who’ve flown up to Athabasca Chipewyan Nation to say ‘leave it in the ground’ and ‘shut down the oilsands’ is, where are they now?
“What are they going to do?” he said. “Are they going to go to their rich friends in Hollywood and raise billions of dollars to invest in a new industry in northern Alberta that can provide opportunity and revenue and a future for the young people of those Nations? No. They’ll forget all about it. They’ll forget all about that community.”
Kenney, who spoke for about half an hour and was not made available for questions from the media following his remarks, said there’s no doubt energy will continue to be in demand, but that a lack of opportunities for growth in Alberta’s oil and gas sector would mean the “world’s worst regimes” benefit.
It would also mean future economic struggles for local Indigenous communities.
“There’s a lot of outside pressure and misinformation and even intimidation by a small number of urban green left militants purporting to speak for First Nations, but I believe more importantly are misappropriating the cause of Indigenous people,” he said.
“We understand in Alberta that poverty is not the path to reconciliation and that opportunity must be at the heart of legitimate efforts at reconciliation.”
Last year, the UCP government established a Crown corporation called the Alberta Indigenous Opportunities Corp. It earmarked $1 billion to backstop Indigenous investment in natural resource projects and infrastructure, including pipelines, through the fund.
Chief Roy Fox of the Kainai/
Blood Tribe praised the Kenney government’s willingness to work with Indigenous partners.
“It remains to be seen how the specifics of the management of this new program will unfold and support worthwhile and profit-oriented projects involving First Nations and the private sector,” said Fox, chairman of the Indian Resource Council.
He bemoaned past decisions by federal counterparts that have stalled economic opportunities. While the outlook for the energy sector looks “bleak,” Fox expressed optimism that Indigenous partners will see more involvement in future developments.
“Now is the time to assert our political and business leadership capabilities and reduce the poverty that plagues many of those that rely on us,” Fox said.
In his speech, the premier derided recent protests of the Coastal Gaslink pipeline in B.C., which have blocked railway traffic in parts of the country. He argued the project has the support of elected Indigenous officials in the region.
“These people in Toronto and Vancouver who say ‘shut it all down’ and ‘leave it in the ground,’ where’s their concern?” Kenney said. “Where’s their social responsibility for the social consequences of this?”
Kenney also announced Wednesday that the Woodland Cree First Nation, northwest of Peace River, would be the first recipient of the province’s Indigenous Litigation Fund.
The $10-million fund was created last year to support First Nations groups in favour of natural resource development.
The Woodland Cree will receive a $187,688 grant to support the Alberta government’s constitutional challenge of Bill C-69, which would amend Canada’s environmental assessment process for projects such as pipelines and power lines.