Alberta demands carbon tax exemption

COURT DECISION

The Alberta government 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 Alberta.

On Monday, Teck Resources withdrew its application for a $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.”

Recent appeals court decisions in Saskatchewan and Ontario on the carbon tax upheld the law and the Supreme Court of Canada will consider the issue next month.

Environment Minister Jonathan Wilkinson said on Monday that the Supreme Court will make the “ultimate determination” and that he’s confident the law will pass the test.

The majority opinion in the Alberta Court of Appeal argued that the federal law is a “Trojan horse” that has wide ranging discretionary powers buried within it. The powers the act authorizes are “in the sole unfettered discretion of the executive” and “endlessly expansive.”

“If the Greenhouse Gas Pollution Pricing Act is a valid law, the constitutional foundation for provincial governments is badly damaged and their future as an important level of government is in jeopardy. Federalism, as we have known it for over 150 years, is over,” the decision reads.