Thank you, Mr. Chair.
I want to thank all of the public servants who are here today to help us better understand the reports.
I would like to start where Mr. McLeod left off. Some on this committee may remember that we actually had all three premiers of the territories, either in person or through teleconference, comment on the carbon tax. I specifically remember the testimony of the Premier of Nunavut, who stated that 80% of the costs of diesel are subsidized by the government. I asked him how a carbon tax would work under that kind of system, because most of the money was being recycled from the government's own revenue. He said he imagined that it didn't work.
I want to state categorically for the record that I believe that the Northwest Territories as well as Nunavut...I guess Yukon already has instituted its own carbon tax. But the territories that are not in favour, those premiers, I believe we should be exempting. I think we should be working with members of Parliament to remove diesel through other means.
Anyway, I'll come right to the same question. The report on page 8 says specifically that “we assume that federal revenues returned to provinces and territories will be transferred to households as lump-sum payments.”
Were you unable to get any kind of indication from the government as to whether or not it will be a tax-and-dividend-like system? You mentioned earlier that the preference would be through a decrease in income taxes, whether corporate or personal. Could you go over that, please?