Sask. court rules carbon tax constitutional
Premier vows to appeal to Supreme Court
• Saskatchewan’s top court has ruled the federal government can impose a carbon tax on provinces that refuse to introduce one.
In a 3-2 ruling the court on Friday said the tax is constitutional and called “climate change one of the great existential issues of our time.”
Speaking to reporters in Ottawa, Environment Minister Catherine McKenna said the decision confirms the tax, which four provinces are fighting, is an “effective and essential part of any serious response to the global challenge of climate change.”
“It is time for Conservative politicians to stop the partisan games and join in on serious and effective climate action.”
Saskatchewan Premier Scott Moe, whose government launched the court challenge, vowed to appeal to the Supreme Court of Canada, or as he described it take it to “Game 7.”
Using the sports metaphor during his afternoon press conference, Moe called the ruling “Game 1” of a seven-game series, with the grand finale set for the Supreme Court.
“Though I am disappointed by today’s ruling, our fight will continue on behalf of Saskatchewan people — who oppose the ineffective, job-killing Trudeau carbon tax,” he said.
The Saskatchewan Party government had asked the court for its opinion on the levy that came into effect April 1 in provinces without a carbon price of their own — Saskatchewan, Manitoba, Ontario and New Brunswick.
The court, with Chief Justice Robert Richards writing the 155-page decision, found the Greenhouse Gas Pollution Pricing Act is not unconstitutional “either in whole or in part.”
Justices Lian Schwann and Georgina Jackson concurred. The minority found the act is wholly unconstitutional.
Writing for the majority, Richards said “climate change caused by anthropogenic greenhouse gas (GHG) emissions is one of the great existential issues of our time. The pressing importance of limiting such emissions is accepted by all of the participants in these proceedings.”
The majority rejected the Saskatchewan government’s arguments, which asserted the act is invalid because the Governor in Council determines the provinces where it operates, offending the principle of federalism.
The court also rejected a secondary argument, noting the levies imposed by the act are regulatory charges, not taxes.
Ottawa sought to uphold the act as a valid exercise of Parliament’s jurisdiction under its “Peace, Order, and good Government” (POGG) power. “This approach must be rejected because it would allow Parliament to intrude so deeply into areas of provincial authority that the balance of federalism would be upset,” wrote Richards.
However, he noted Parliament does have authority over a narrower POGG subject matter — the establishment of minimum national standards of price stringency for greenhouse gas emissions.
In their dissenting opinion, Justices Neal Caldwell and Ralph Ottenbreit found that the levy was a tax, enacted in a “constitutionally repugnant” manner. They argued that the provinces have the exclusive right to control greenhouse gas emissions, and the federal government had no right to trump their own constitutional measures.
Saskatchewan has roughly 30 days to file a notice of appeal.
Alberta’s new premier, Jason Kenney, promised to help Saskatchewan in its appeal.
Alberta has a carbon tax brought in by the former NDP government, but Kenney campaigned to move quickly to dump it and fight any effort by Ottawa to impose its own.
“We disagree with the narrow ruling by the majority that the federal government has the power to ensure a provincial minimum price on carbon, and will be joining Saskatchewan in their appeal to the Supreme Court of Canada,” Kenney said.
Conservative Leader Andrew Scheer said in a statement that the Liberal carbon tax “isn’t a plan to lower emissions. It’s just another cash grab which is hurting already overtaxed Canadians.”
Ontario is also challenging the federal tax and is waiting for a decision after arguing its case in court last month.
P r e m i e r D o u g Fo r d , speaking in Bracebridge, Ont., after meeting with officials about flooding, said the Saskatchewan ruling is just the beginning.
“This series isn’t over yet. That’s Game 1. We still have other games to play,” he said. “If we can’t beat them in the courts, we’re going to beat them at the ballot box in (the) October (federal election).”
Manitoba filed papers in Federal Court last week for its own challenge.