Mr. Speaker, as a member of the Standing Committee on Environment and Sustainable Development and as the member of Parliament for Nepean—Carleton, I am very pleased to rise in the House to speak on the issue of climate change.
We hear a lot about this issue these days with the United Nations framework convention on climate change in Kyoto, Japan that is approaching this December. Much attention has been focused on the implications of climate change not just in Canada but certainly around the world.
Environment ministers from around the globe will meet in Kyoto to try to deal with this issue and take steps toward a solution. The eyes of many in the international community are upon Canada as the conference in Kyoto approaches. The world looks to Canada for leadership and it is leadership that we must and I believe will demonstrate at Kyoto.
The Prime Minister and the Minister of the Environment have stated that they are committed to working together with partners across Canada including other governments, non-profit organizations and the business community to seek creative solutions to this problem. I sincerely applaud their efforts and their commitment and I wish them Godspeed.
At the United Nations earth summit in 1992 many countries including Canada promised to stabilize greenhouse gas emissions at 1990 levels by the year 2000. Rather than contributing to a solution however our country and others have had a less than impressive record. While Canada is not the largest polluter overall, we have the second highest rate of greenhouse gas emissions per person on the planet. Canada along with Japan and the United States are responsible for the lion's share of greenhouse gas increases between 1990 and 1995.
Wherever you live in Canada, whether it is in Placentia Bay, Newfoundland, Nepean, Ontario, Brandon, Manitoba or Whitehorse, Yukon, you should be concerned about global warming. According to the “Canada Country Study: Climate Impacts and Adaptation” by the federal environment department, in my own province of Ontario average annual warming of 3°C to 8°C felt especially during the winter months can be anticipated by the latter part of the 21st century. As this warming progresses, Ontarians could be subjected to increased frequencies of extreme weather events such as severe thunderstorms and tornadoes or even long summer droughts as a result of global warming.
As Liberals we are not going to try to evade our environmental responsibilities as the Reform Party is attempting to do with its faulty science theory. We know what our responsibilities are to future generations of Canadians and we are going to face them head on. This Liberal government is committed to endorsing emission targets that can be realistically achieved on a step by step basis.
I believe an effective strategy in the global response to climate change must involve all levels of government, federal, provincial, and I put special emphasis on municipal governments because they are without question the level of government that is closest to the people.
To make such change happen throughout the country, we must look to individual communities for ways to enhance energy conservation, reduce energy efficiencies and improve our environmental record.
How do we as Canadians begin this process? First, because it is obvious that human activity causes climate change, I believe simple and even small changes in our own behaviour can help alleviate this problem.
We all remember not so long ago the concept of recycling and how it was the furthest thing from our minds. Yet the vast majority of Canadians now recycle newspapers, cans, glass and plastic products without giving it a second thought.
We need to look to other aspects of our daily lives and rethink some of the ways we conduct our lives, do business and travel from destination to destination.
Addressing the issue of climate change means doing things smarter and in many cases saving money in the process. We must remember that there are many benefits to a cleaner environment: improved air quality, better environmental health, increased efficiency and I would venture to say as well increased national competitiveness.
While the agents of the status quo, the Reform Party, paint a doom and gloom scenario about the aftermath of Kyoto, the reality of improving energy efficiency and reducing waste is much more positive. One thing that is also evident in terms of Canada's response to Kyoto is that there is no one magic solution which we can rely upon to deal with the problem. In my view it will take a wide range of creative individual measures which are targeted to reduce our emissions in specific ways.
Let us look at one particular aspect of the problem, transportation. It is estimated that the transport sector is responsible for almost 27% of total greenhouse gas emissions in Canada and that this number may grow even larger.
One issue which I believe the government must address on a national basis is that of declining public transit ridership. This is an area where I feel some substantial progress on our emissions could be made in a relatively painless manner. How do we do this?
Speaking as a former municipal representative and transit commissioner here in Ottawa, I believe we can and should use our tax system to get people out of their cars and into public transit. Nine tonnes of pollutants a year are saved by just one busload of passengers. That is why taking public transit is a key step in taking solid action on climate change.
A recent study by the Victoria Transport Policy Institute called “Employer Provided Transit Passes—A Tax Exempt Benefit” argues very convincingly that making employer contributions to transit passes tax exempt would help to improve the cost competitiveness of public transit in relation to the private automobile.
The study notes that the average commuter who owns an automobile and receives free tax exempt parking at the worksite pays approximately the same to drive as to ride a bus. The value of free or subsidized parking to employees is calculated at approximately $1,772 in average pretax income for each employee. This includes $1,200 in direct costs and $512 in tax exemptions.
The study also observes that while Revenue Canada ostensibly collects taxes on parking benefits, it also provides exemptions for which the majority of employees qualify. Therefore from a policy standpoint the existing tax rules favour the private automobile over public transit, inefficient over efficient travel modes, and the economically more advantaged auto driver over the economically more disadvantaged transit rider. Surely this policy area needs re-examination.
I am not the only one who believes that this type of measure could yield some significant benefits. A number of my colleagues and several organizations have thrown their support behind the transit benefit tax exemption proposal, including the Canadian Urban Transit Association, the Federation of Canadian Municipalities, the Transportation Association of Canada, our own House of Commons Standing Committee on Environment and Sustainable Development and the National Round Table on the Environment and the Economy.
So far, the federal government's response to this proposal has been cautious as one might expect. Both the Department of Finance and Revenue Canada initially opposed the idea of tax exempt transit passes citing lost revenues and insignificant reductions in automobile transit.
In a 1995 letter to the Canadian Urban Transit Association the finance department estimated this initiative would cause lost revenue of $140 million or $2,550 for each new transit user.
However, according to the Victoria Transport Policy Institute, experience in the United States where this type of tax break has been available for 10 years suggests that our federal government may be grossly overestimating potential lost revenues.
The initial government analysis assumes that transit benefits would be available to 50% of all transit riding employees, but the American experience indicates that less than 10% of employers provide such subsidies. However, where such benefits are available, reductions of auto commuting of 10% to 30% are possible.
Based on a request made at the environment committee the Department of Finance is currently reviewing the proposal and is taking a closer look at the benefits and logistics of this initiative. I sincerely hope the department gives this more than a cursory examination.
Those of us involved in this initiative realize that results cannot be expected overnight. However, as coverage of transit tax exemption is gradually extended to more and more employees, the benefits in terms of reductions in traffic congestion, greenhouse gas emissions, energy consumption, road and parking costs, and traffic accidents can be significant.
To sum up, the benefits add up to an improved urban environment, lower costs and a better quality of life for all Canadians.
There are many other areas such as district energy where the potential for energy efficiency cost savings and emission reductions are also significant. Hopefully I will have the opportunity to address some of those subjects at a later date.