An Act to amend the Greenhouse Gas Pollution Pricing Act

Sponsor

Ben Lobb  Conservative

Introduced as a private member’s bill. (These don’t often become law.)

Status

At consideration in the House of Commons of amendments made by the Senate, as of June 10, 2024

Subscribe to a feed (what's a feed?) of speeches and votes in the House related to Bill C-234.

Summary

This is from the published bill. The Library of Parliament often publishes better independent summaries.

This enactment amends the Greenhouse Gas Pollution Pricing Act to expand the definition of eligible farming machinery and extend the exemption for qualifying farming fuel to marketable natural gas and propane.

Elsewhere

All sorts of information on this bill is available at LEGISinfo, an excellent resource from the Library of Parliament. You can also read the full text of the bill.

Votes

March 29, 2023 Passed 3rd reading and adoption of Bill C-234, An Act to amend the Greenhouse Gas Pollution Pricing Act
May 18, 2022 Passed 2nd reading of Bill C-234, An Act to amend the Greenhouse Gas Pollution Pricing Act

February 6th, 2024 / 12:20 p.m.
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Marcus Janzen Vice-President, Fruit and Vegetable Growers of Canada

Thank you, Mr. Chair.

My name is Marcus Janzen and I have the privilege of serving as the vice-president of the Fruit and Vegetable Growers of Canada. I also, during the day, have a pepper greenhouse just outside of Vancouver, British Columbia, in Abbotsford.

I'm here before you to discuss the pressing issue of stabilizing food prices in Canada, a concern that deeply affects Canadian fruit and vegetable growers, as well as all Canadian citizens. FVGC represents approximately 14,000 farms, producing 120 types of crops, and we contribute about $6.8 billion to the Canadian economy.

A 2022 survey conducted by our organization revealed that close to 44% of our growers are operating at a loss presently, and three-quarters have difficulty offsetting production cost increases that would include the carbon tax, the P2 plastics program, tariffs on fertilizer and aggressive targets for reducing fertilizer emissions. Those challenges, including Bill C-234, risk the sector's affordability and sustainability going forward.

Bill C-234 is at a critical place. By eliminating heating and cooling exemptions to greenhouses and barns, this jeopardizes our competitiveness, as we heard from the previous witnesses, particularly relative to the U.S.

We propose a series of actions that would include the following: reject the proposed amendments to Bill C-234; remove the P2 plastics program in order to further evaluate, particularly when it comes to PLUs, the unintended impacts on costs and therefore food prices; and eliminate the fertilizer tariffs in order to not disproportionately negatively effect domestic producers. We need, again, the idea of having a more cohesive regulatory conversation with government before policies are in place. We would look for the quick passage of Bill C-280, which is essentially the PACA-like trust to be reinstated.

Lastly, we would support an increased resolve to bring the grocery code of conduct into reality.

That concludes my remarks.

February 6th, 2024 / 11:50 a.m.
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NDP

Alistair MacGregor NDP Cowichan—Malahat—Langford, BC

Thank you very much, Mr. Chair.

Dr. Charlebois, much has been made at this committee about carbon pricing. With respect to Mr. Currie's intervention on Bill C‑234, I think the provisions of that bill are in line with the exemptions that are already in the Greenhouse Gas Pollution Pricing Act. You can already see exemptions for farming machinery, farm fuels and farming activity.

You were talking about volatility. The price is set per litre, but of course, we've seen extreme volatility in the price of diesel fuel. I think that, in British Columbia in 2022, some regions were seeing a price of around $2.30 per litre. Now we're at a stage where I think it's around an average of $1.70 per litre, so there's extreme volatility in the price of diesel. That's very important because it's a transport fuel.

I worry, though, that the state of our discourse is doing a disservice to the overall problem, where there's just too much of a focus on carbon pricing. We know that oil and gas companies have certainly seen their bank accounts do very well in recent years, and there's incredible volatility on a fuel source. Is there anything more that you can add on that area of price volatility?

Is the question of the price of fuels something that we need to pay a bit more attention to in a holistic way?

February 6th, 2024 / 11:40 a.m.
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Conservative

John Barlow Conservative Foothills, AB

Thanks for that.

I wanted to shift to Mr. Currie. You mentioned that number. Some of your members are saying how important Bill C-234 is, that 40% of their energy bills are from carbon taxes. We've certainly had bills from across Canada showing that, in some cases, the carbon tax is actually more than the natural gas they're paying for. By increasing the carbon tax again on April 1, and quadrupling this tax over the next few years, what impact is this having on the financial health of farming in Canada?

Why is Bill C-234 so important?

February 6th, 2024 / 11:35 a.m.
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Conservative

John Barlow Conservative Foothills, AB

Thanks, Mr. Chair.

Dr. Charlebois, I just want you to clarify one of your comments. On Bill C-234, you said that farmers weren't happy about that, but I think you meant the amendments that were added to Bill C-234.

Do you mind just clarifying that really quickly for the committee?

February 6th, 2024 / 11:20 a.m.
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Senior Director, Agri-Food Analytics Lab and Professor, Dalhousie University, Agri-Food Analytics Lab

Dr. Sylvain Charlebois

In my personal opinion, I think we need to be in lockstep with our trading partners. We could actually really hurt.... I think we are hurting farmers. I think Bill C-234 was not welcome news for the farming community. Mr. Currie would speak to that for sure.

We need to think about processing. A lot of processors are suffering. The RCC mentioned that costs are going up in retail and distribution, which is absolutely true. Now we're seeing more investment in the middle mile. Metro and Loblaw are all investing in the middle mile, which is great, but it's happening really quickly.

February 6th, 2024 / 11:05 a.m.
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Keith Currie President, Canadian Federation of Agriculture

Thank you, Mr. Chair.

I'm very pleased to be back in front of the committee today. I'm seeing some very familiar faces.

For those of you who do not know me, as the chair mentioned in his opening remarks, I am Keith Currie and I am the president of the Canadian Federation of Agriculture. We represent 190,000 farmers and farm families from coast to coast to coast here in Canada. I'm also joined online by my executive director at CFA, Scott Ross, who will answer all the hard questions for you today.

We've all experienced, in recent years, food inflation outpacing an already high inflationary pressure on the cost of living. While the rate of food inflation has declined over the past year, it's understandably a topic that is of great concern to all Canadians.

As part of my remarks here today, I want to cover off what I believe are some misperceptions when it comes to this topic.

The first one is this: As the price of food increases, so do farmers' profits. In fact, it costs a lot more to produce the food we eat today than it did before the pandemic. For example, look at the change in price for many of our farm inputs out there. Whether we're talking about machinery, fuel, fertilizer, livestock or livestock feed, the prices farmers pay have increased nearly 40% between 2019 and today. While farm incomes have also increased during this period according to the most recent Statistics Canada numbers, growth in expenses outpaces the rise in farm cash receipts. While we are starting to see a softening of the commodity prices in the market, the price of farm inputs is still staying at a high level.

Misperception number two is that farm gate prices drive retail prices. A recent study conducted by the Agriculture Producers Association of Saskatchewan revealed that underlying commodity does not account for the entire price increase of the final food product. More often than not, it plays a minor role, with the farm share of retail prices for the products sampled averaging less than a quarter of the value of the final product.

While I would stress that the evidence is quite clear that farm gate prices play a minor role in retail price increases, there are some immediate steps that can be taken to reduce the rising costs involved in Canadian food production.

First, we need time-limited and targeted exemptions for on-farm use of natural gas and propane, which we were trying to accomplish through Bill C-234. These exemptions must be available not just for grain drying but also for the heating and cooling of barns, greenhouses and other production facilities. Based on our survey of the impact of Canada's carbon tax on livestock, crop and greenhouse farms across Canada, we were seeing the carbon tax account for up to 40% of total energy bills in some sectors.

Second, we've put forward a number of recommendations in our budget submission of 2024—this year—that would help drive down the cost of production and improve supply chain dynamics in the agriculture sector. For example, we're calling on the government to consult on and develop a critical farm input strategy, similar to the critical minerals strategy, in order to ensure Canadian producers have a long-term, stable supply of critical farm inputs to produce high-quality agriculture and agri-food products.

Finally, we need to move forward with the implementation of an industry-led grocery sector code of conduct. The objective of the code of conduct is to enable a thriving industry that promotes trust, fair dealing and collaboration throughout the value chain, increases commercial certainty and develops an effective and equitable dispute resolution process. While not targeting food inflation, it will help improve supply chain dynamics. Industry has committed considerable time and resources to the development of an industry-led code that works for all parties. We have greatly appreciated the attention and support of FPT governments throughout the development of the code and hope to see that support continue in getting this over the line.

I'll be pleased to answer any questions you may have.

Of note, this Friday—February 9—is “Food Freedom Day”. That is the day when the average Canadian has made enough income to pay for their groceries for the entire year.

Thank you.

Carbon PricingOral Questions

February 5th, 2024 / 2:30 p.m.
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Conservative

John Barlow Conservative Foothills, AB

Mr. Speaker, I am very proud to say that the first thing we will cut is the Liberal-NDP carbon tax, and we will make life more affordable for Canadians.

Canadians are paying more for food than they ever have before, with two million people relying on a food bank every month. The Prime Minister's solution is to make food even more expensive. On April 1, Liberals plan to increase the carbon tax by 23%, which is part of their plan to quadruple it.

Conservatives have a common-sense bill, Bill C-234, which would remove the carbon tax for farmers, making food more affordable for Canadians.

Why will the Prime Minister not cancel his plan to increase the carbon tax on April 1 to ensure that Canadians can feed their family?

Carbon TaxStatements by Members

February 5th, 2024 / 2:15 p.m.
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Conservative

Anna Roberts Conservative King—Vaughan, ON

Mr. Speaker, Bill C-234 is asking for a carbon tax carve-out for farmers. The PBO has stated that this bill will save Canadian farmers $1 billion by 2030. By fighting to keep the carbon tax on farmers, Liberals are voting to keep grocery prices high. Everyone knows that when we tax the farmer who grows the food and the trucker who ships the food, we tax the buyer who buys the food.

The Liberal government is sending two million people per month to food banks. The number of people eating at food banks in Toronto today would fill the Rogers Centre seven times. Seniors are the fastest-growing users of food banks. The Liberal environment minister admitted at committee that he called six senators and pressured them to cut the bill.

The Liberals want to continue with their plan to quadruple the carbon tax on farmers, from 14¢ to 61¢ a litre. Our Conservative amendment will reject the Senate changes and restore this bill to its original plan.

The Conservatives will axe the tax, build the homes, fix the budget and stop the crime.

Carbon PricingOral Questions

February 2nd, 2024 / 11:35 a.m.
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Conservative

Gerald Soroka Conservative Yellowhead, AB

Madam Speaker, with an answer like that, I am not surprised Canadians cannot afford food, in a country where two million citizens are relying on food banks monthly. It is baffling to see the NDP-Liberal coalition push to quadruple the carbon tax. When we tax the farmer who grows the food and the trucker who delivers the food, Canadians are stuck with higher food prices.

Bill C-234 in its original form promises immediate relief. Will the Liberals discard the Senate's alterations, lift this tax burden and help Canadians afford their groceries?

Carbon PricingOral Questions

February 2nd, 2024 / 11:30 a.m.
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Conservative

Gerald Soroka Conservative Yellowhead, AB

Madam Speaker, Bill C-234 is back in the House after Liberal-appointed senators stalled and gutted this crucial legislation. This bill is vital for exempting farmers from the carbon tax and would ease the high cost of Canadian food. However, as the carbon tax is set to quadruple, farmers will pay $1 billion by 2030 and will push food prices even higher.

Will the Liberals scrap the Senate amendments, remove the carbon tax from agriculture and make food more affordable for everyone?

Carbon PricingOral Questions

February 2nd, 2024 / 11:30 a.m.
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Conservative

Branden Leslie Conservative Portage—Lisgar, MB

Madam Speaker, I wish we could spread answers like that on farmers' fields so that at least they could benefit from some of that fertilizer.

This NDP-Liberal government is costing Canadians through high food prices, once again showing how out of touch it is. Not only did the radical environment minister admit to pressuring senators to gut Bill C-234, but farmers are getting another carbon tax on April 1. After eight years, the Prime Minister has proven that he is most certainly not worth the cost.

Will the Liberals reject the Senate's amendments and completely remove the carbon tax from farmers to lower food prices for Canadians?

Carbon PricingOral Questions

February 2nd, 2024 / 11:25 a.m.
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Conservative

Earl Dreeshen Conservative Red Deer—Mountain View, AB

Madam Speaker, after eight years of the Liberal-NDP government, farmers and consumers know that the Prime Minister is not worth the cost.

Increasing the carbon tax only increases the cost of goods in stores. For those farmers who cannot pass on the exorbitant carbon tax, it destroys their bottom line.

Will the Liberals reject the Senate's amendments and restore Bill C-234 to its original state, removing the carbon tax on farmers and lowering the price of food for Canadians?

Opposition Motion—Carbon TaxBusiness of SupplyGovernment Orders

February 1st, 2024 / 3:55 p.m.
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Conservative

Doug Shipley Conservative Barrie—Springwater—Oro-Medonte, ON

Madam Speaker, it is an honour to be here today and partake in this important discussion. It is a tough act to follow; my colleague from Renfrew did a great job.

It is an honour to take part in this very important and timely debate on behalf of the great people of Barrie—Springwater—Oro-Medonte.

I have received countless communications from residents in my community who are concerned about the inflationary pressures they are facing due to the government's reckless policies.

Under the Liberal government, there have been a record two million food bank visits in a single month, housing costs have doubled, mortgage payments are 150% higher than in 2015, violent crime is up 39%, tent cities exist in almost every major city, and over 50% of Canadians are $200 or less away from going broke.

Just when it feels like it has all become too much, on top of the 30-year inflation highs that Canadians are facing just to live, the Prime Minister will increase the cost of the carbon tax on April 1 to reach $75 a metric ton. The impact will continue to increase, as the per tonne rate will rise to $170 by 2030. This will send families in my community further into economic despair.

Despite being given every opportunity to make life more affordable for Canadians by removing the tax on their gas, home heating and groceries, the Liberals, the NDP and the Bloc all vote time and time again to raise taxes on the backs of hard-working Canadians who are struggling to feed their families.

At the centre of this crisis are our hard-working Canadian farmers who work day in, day out to grow and raise the food we eat and who are disproportionately impacted by the carbon tax.

The Conservative private member's bill, Bill C-234, has returned to the House and, if passed in its original form, would bring down both the cost of groceries and the tax burden on hard-working farmers by giving farmers a carbon tax carve-out for grain drying, barn heating and other operations.

This bill would make the cost of food more affordable for everyone by saving farmers almost $1 billion between now and 2030, according to the independent Parliamentary Budget Officer. However, while Bill C-234 passed in the House, the Prime Minister's Senate appointees gutted our common-sense bill under pressure from the environment minister, who threatened to quit if the bill was passed.

The Liberal, NDP and Bloc members who represent farmers, rural Canadians and any Canadian who is struggling to afford their grocery bill have this opportunity to reject the gutting of this legislation and bring home lower food prices for all Canadians. I sincerely hope they do the right thing.

Farmers in my riding are counting on legislation like Bill C-234, and I wish to highlight a few of their stories. I have here with me, which I will use as reference, a bill from Enbridge Gas for a chicken farmer in my area. This is a large poultry operation. The bill in my hand shows a carbon tax of $2,700 on the cost of fuel used to dry their grains. The overall bill was just over $9,000, so one-third of that, not including the HST put on the bill, is the carbon tax. Shockingly, the carbon tax is actually more than the value of the gas before delivery and global adjustment.

Moving on to the poultry side of the operation, this farm pays a comparable tax on the cost to heat its barns. Every 24 weeks it places over 3,000 day-old breeder chicks in the barns. These barns need to be heated to 32°C, as the chicks are so small they cannot heat themselves. This temperature is slowly reduced as the chicks grow stronger. The cost to heat the barns during this placement is approximately $7,000, with approximately a third of that cost being the carbon tax.

It appears some of my colleagues from places like Toronto and Vancouver are not aware of how essential it is for farmers to dry their grain and heat their barns. It is a necessity, not a luxury, and there is no alternative. The burden this misguided tax places on farmers has a direct impact on the cost of food for Canadians.

Farmers in my riding know better than anyone that when we tax the farmer who grows the food and tax the trucker who transports the food, we tax the Canadians who buy the food, making everything more expensive. This is especially true for families in my community who are struggling to put food on their tables.

Food bank usage is at an all-time high. Between April 1, 2022, and March 31, 2023, over 800,000 people in Ontario alone accessed a food bank. In total, there were 5.9 million visits to a food bank in this time period.

The Barrie Food Bank, which is located in my riding, is currently seeing an incredibly high demand for services. In October, the Barrie Food Bank assisted nearly 7,000 clients, including 731 first-time visitors, which amounts to a 94% increase from last year alone.

Sharon Palmer, the executive director of the Barrie Food Bank, told CTV News that “We are seeing more employed people than ever before, more large families, seniors, and more people on government support programs”.

The crisis is getting worse. Projections show that, in 2024, there will be a 2.5% to 4.5% increase in food prices, with meat, vegetables and bakery items rising from 5% to 7%. Due to these rapidly rising prices, the “Canada Food Price Report 2024” says the following:

It is important to note that Canadians are spending less on food...despite inflation. Food retail sales data indicates a decline from a monthly spend of $261.24 per capita in August 2022 to a monthly spend of $252.89 per capita in August 2023, indicating that Canadians are reducing their expenditures on groceries, either by reducing the quantity...of food they ...[buy] or by substituting less expensive alternatives.

That means Canadians are skipping meals. They are buying lower-quality food. This is unacceptable in a G7 country, and the costly carbon tax is only making these inflationary pressures worse for Canadians who are struggling.

For reference, I have another bill from Enbridge. It is from a senior in my area. Diane is in her 80s and lives off a pension. She intentionally reduces the heat in her apartment, keeping it low. Nonetheless, her bill is over $22 for the gas alone, and the carbon tax is $21. She is paying almost as much in carbon tax, not including the HST, as she is for the gas itself, just to heat her apartment. This is unacceptable. We know Diane is struggling, but we are here to try to help her by reducing the tax. The total cost of her bill for a month was $108.

Seniors, especially those like Diane on fixed incomes, cannot afford yet another carbon tax increase. They are choosing between putting food on the table and heating their homes, and the Liberal government simply does not care.

The Prime Minister and his environment minister have touted this costly tax program as being a great deal for Canadians. When it was first announced, they made it sound too good to be true. First, it would fight climate change and second, it would not cost Canadians a cent because the government would rebate whatever they spent.

We know now that is not the case. In fact, the independent Parliamentary Budget Officer confirmed what many common-sense Canadians already knew; they pay more in carbon tax than they get in rebates. The Parliamentary Budget Officer shows that the carbon tax cost the average family between $402 and $847 in 2023, and that is before the increase, even after the rebates. By 2030, the Prime Minister's two carbon taxes could add 50¢ per litre to the price of gasoline, according to the same source.

Let me be very clear. The carbon tax is not a climate plan. It is a tax plan that places an undue burden on families, small businesses and farmers. Meanwhile, the Liberal government has failed to meet a single solitary emissions target after eight years in power. In fact, Canada's environment commissioner has made it clear, once again, that Canada will not meet its climate targets, despite the Liberals' punitive taxes on Canadians.

The government is not bothering to set implementation deadlines for 49% of its measures. It has also admitted that only 43% of their so-called “climate measures”, many of which are actually just taxation measures, will have any direct impact on emissions. The government's plan did not even bother to include a target or expected emission reductions for 95% of its measures.

Conservatives have a real plan to bring home lower prices for Canadians. We would cap costs and stop wasteful government spending to bring down inflation and interest rates.

A Conservative government would introduce a dollar-for-dollar law so that every dollar of new spending would be matched with a dollar of savings. Instead of creating more cash, we would create more of what cash buys. That means growing more food, building more homes and creating more energy right here at home through technology, not taxes. We will cancel the Prime Minister's tripling of the carbon tax that punishes hard-working Canadians just for buying food, filling up their cars and heating their homes. These things are not luxuries. They are necessities.

Canadians should not be forced to choose between putting food on the table and heating their homes. The only way to reverse the damage the Liberal government has caused is by reversing the course and doing the opposite. Canadians want change. They want lower taxes, more homes, a balanced budget, safe streets and, most of all, they want a change in government.

The common-sense Conservative promise is simple: We will axe the tax, build the homes, fix the budget and stop the crime. We will restore hope to our country and put Canadians back in control of their lives.

Opposition Motion—Carbon TaxBusiness of SupplyGovernment Orders

February 1st, 2024 / 3:30 p.m.
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Liberal

Kody Blois Liberal Kings—Hants, NS

Madam Speaker, I support Bill C‑234. I also agree on the importance of acknowledging our farmers' relentless work in support of sustainable agriculture and having a certain tool to achieve it.

That is exactly why I spoke about offset credits and their recognition by the Government of Canada in relation to the clean fuel regulations and the clean electricity regulations.

Some companies could pay our farmers for their hard work. Of course, in addition to the government, big companies like Coca-Cola and Pepsi should be making the same kinds of contributions.

February 1st, 2024 / 3:30 p.m.
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Conservative

Gérard Deltell Conservative Louis-Saint-Laurent, QC

Mr. Chair, as you know, on December 14, 2023, the Minister of Environment, here in committee, promised to provide us with all the details of the expenses related to his trip to Dubai, as well as a summary of the meetings, and to give us the list of the senators he had called regarding Bill C‑234.

Do you have any news from the minister?