House of Commons Hansard #188 of the 42nd Parliament, 1st Session. (The original version is on Parliament's site.) The word of the day was cannabis.

Topics

Motion that debate be not further adjournedParis AgreementGovernment Orders

5:15 p.m.

Ottawa Centre Ontario

Liberal

Catherine McKenna LiberalMinister of Environment and Climate Change

Madam Speaker, I am very disappointed to hear the words of the member opposite, because there could be nothing more important than reaffirming our support for the Paris agreement in light of the U.S. decision.

I would ask if the party opposite could please clarify its position. After so many declarative statements in support of the Paris agreement by Conservatives members of Parliament, including the members for Abbotsford, Carlton Trail—Eagle Creek, Langley—Aldergrove, Oshawa, Thornhill, Portneuf—Jacques-Cartier and Calgary Rocky Ridge, one would think they would be somewhat embarrassed that yesterday the member for Carleton stood in this place, on behalf of the Conservative Party, and not once simply affirm his party's support for the Paris agreement, and during questions, refuse to answer.

Motion that debate be not further adjournedParis AgreementGovernment Orders

5:15 p.m.

NDP

Matthew Dubé NDP Beloeil—Chambly, QC

Madam Speaker, it is certainly true that the NDP is very happy to support the Paris agreement, despite the lack of effective targets. In fact, we do have targets, but they are the ones put in place by the former Conservative government.

That being said, I find this interesting and I would like to echo the comments made by the official opposition House leader. For example, it might have been nice to have a motion denouncing the President Trump's executive orders that discriminate against people from certain countries. This is the reaction we are seeing in the case of the Paris agreement, from which he withdrew. It seems we are being very selective.

The decision has now been move to propose a motion to make grand statements on foreign affairs. We are pleased to see Parliament getting some respect for once; we are happy for these statements.

However, we see how difficult it seems to be to get legislation through; things are moving rather slowly. Despite the grand speeches on work-family balance, parliamentarians are being made to work even harder because of this government's lack of efficiency; for example, it could have initiated a debate and collaborated with the opposition parties.

I would like the minister to tell us why the government is not going forward in a more constructive way to avoid having to gag the opposition and introduce time allocation motions, when all we need to do is have a constructive conversation on these issues so we can really work for Canadians.

Motion that debate be not further adjournedParis AgreementGovernment Orders

5:15 p.m.

Liberal

Catherine McKenna Liberal Ottawa Centre, ON

Madam Speaker, I want to thank my opposition colleague for saying with certainty that the NDP will support this evening’s motion regarding the Paris agreement. I am really happy to hear that.

I want to be clear: the targets were not just adopted by our party, but the provinces and territories also adopted them, along with the Prime Minister, in the Vancouver declaration. It is very important to declare today to the world that Canada supports the Paris agreement. We know that climate change is real and we need to work with everyone to protect our planet. We are also going to create good jobs and make innovations, here, in Canada.

Motion that debate be not further adjournedParis AgreementGovernment Orders

5:15 p.m.

Conservative

Erin O'Toole Conservative Durham, ON

Madam Speaker, I had the good fortune of spending the last seven months speaking with a lot of Canadians in all parts of this country. I have to say that they are very worried about the government's carbon tax plan and scheme across this country. At a time where manufacturers in Ontario are already facing high electricity costs, they are worried about input costs related to pricing carbon.

Making our Paris commitments is important. What I said on the road is that having a tailored plan of innovation and tax reductions for our 30 largest emitters would mean we are targeting 25% of our nation's emissions, if we took a pragmatic approach like that. Instead, the government is spreading the hurt across all companies and all families across this country, to not even meet its targets.

My question for the minister is this. A few weeks ago, 500 families in Brockville learned that the production at Procter & Gamble will be moving to West Virginia, a state in the integrated North American economy that does not have a carbon tax. The government's conduct is putting a dagger in the heart of manufacturing in Ontario. What will the minister say to those 500 families who are seeing those jobs flee as a result of the Ontario government's hydro prices, and as a result of its federal carbon tax scheme?

Motion that debate be not further adjournedParis AgreementGovernment Orders

5:20 p.m.

Liberal

Catherine McKenna Liberal Ottawa Centre, ON

Madam Speaker, unlike the party opposite, when we work with the provinces and territories to develop a climate plan, we actually have a plan to achieve a target. The previous government disingenuously brought a target, had no plan, and had no intention to meet it. Our government is committed to climate action.

Once again, I have a very simple question. Will the members of the party opposite stand up tonight and say very clearly that they believe climate change is real, that they believe we need to take action, and that they support the Paris agreement?

Motion that debate be not further adjournedParis AgreementGovernment Orders

5:20 p.m.

Conservative

Cathy McLeod Conservative Kamloops—Thompson—Cariboo, BC

Madam Speaker, I want to build on what my colleague, the opposition House leader, was talking about. She said we are here until midnight for the next number of weeks. We know that the summer recess is coming. I sit on the indigenous affairs committee and we have a Supreme Court of Canada decision that needs to be responded to. There is a deadline of July 3. That bill has come through the Senate. It has been introduced in the House and we have not had any time debating that bill.

As the member indicated, there are important motions that could be achieved in other ways, but we have women who are waiting for the decision on the Descheneaux case. The Supreme Court of Canada gave us a deadline and we have to get a response back to the Senate in terms of the amendments it has made.

In terms of House management, this is an absolutely ludicrous way forward when the Liberals are saying we have critical legislation that has to be passed before we rise for the summer and we have not spent one hour debating the case and we are spending time doing many different motions, time allocation, etc.

Motion that debate be not further adjournedParis AgreementGovernment Orders

5:20 p.m.

Liberal

Catherine McKenna Liberal Ottawa Centre, ON

Madam Speaker, it is critical that the House is clear to the world that Canada stands up, that we support the Paris agreement, that we understand that we need to be taking action to protect our planet, and that we are going to stand with the governors, mayors, businesses, and communities in the United States that have said they support the aims of the Paris agreement.

We understand that the economy and the environment go together. That is why we have developed a practical plan with the provinces and territories, with indigenous leaders, with business leaders, with labour leaders, with environmentalists, and with all Canadians because we know Canada needs to do its part to tackle climate change. There is a huge economic opportunity in the trillions of dollars. We are going to position ourselves well so that we can create innovation here in Canada that we will export to the world, creating good jobs and growing our economy.

Motion that debate be not further adjournedParis AgreementGovernment Orders

5:20 p.m.

NDP

Cheryl Hardcastle NDP Windsor—Tecumseh, ON

Madam Speaker, I agree that it is important for Canadians to understand what is going on here. The issue is not really about us looking at new policy and the era of using legislation to advance environmental sustainability as well as economic health. The issue here is about the tactics being used by the governing party to run roughshod over opposition members who want to have meaningful debate about the very significant and milestone achievements that the government wants to be able to take credit for.

I am here and ready to give my thoughtful, meaningful, and reflective comments on the legislation, which is historic. However, every time I sit here and am ready to be the voice for the very progressive constituents in my area who have provided very insightful information, we get shut down by a government that campaigned on being healthy for democracy, campaigned on sunny ways, and I see this Eddie Haskell version of governance here. It is very disconcerting to hear the members detract from the real issue of undermining our ability to talk about the issue in this place, when we should be debating it.

Motion that debate be not further adjournedParis AgreementGovernment Orders

5:25 p.m.

Liberal

Catherine McKenna Liberal Ottawa Centre, ON

Madam Speaker, I would once again repeat how important it is that Canada shows to the world that we stand firm on the Paris agreement. In the face of the very disappointing decision by the U.S. administration, we need to stand up and say that Canada understands that climate change is real and we understand the very real impacts that we are seeing across our country. We are seeing floods, forest fires, and an Arctic that is literally melting before our eyes.

We know we need to take action and we need to show that the world is resolved to take action, that we are all going to be working together. I have three children and I am absolutely committed to making sure that we take serious action to protect our planet, but also to create good jobs for them, to grow the economy, to make sure that we are creating the innovation needed for a cleaner planet to help grow our economy and place us well in the world.

Motion that debate be not further adjournedParis AgreementGovernment Orders

5:25 p.m.

Some hon. members

Oh, oh!

Motion that debate be not further adjournedParis AgreementGovernment Orders

5:25 p.m.

NDP

The Assistant Deputy Speaker NDP Carol Hughes

Before I recognize anyone else, I want to remind members that if they have something to contribute, they should stand up to be recognized and I will try to make sure that everyone has an opportunity to ask a question or make a comment.

Questions and comments, the hon. Parliamentary Secretary to the Minister of Environment.

Motion that debate be not further adjournedParis AgreementGovernment Orders

5:25 p.m.

North Vancouver B.C.

Liberal

Jonathan Wilkinson LiberalParliamentary Secretary to the Minister of Environment and Climate Change

Madam Speaker, I think the thoughtful people in the House understand the environmental imperatives associated with endorsing the Paris agreement and addressing climate change in a substantive way, but there is also an enormous economic opportunity enabled through the Paris agreement and in how countries actually implement it. In Canada, that is reflected in the pan-Canadian framework on climate change and clean growth.

Can the minister tell us a little more about the economic opportunity and the ways in which the government is actually approaching this subject?

Motion that debate be not further adjournedParis AgreementGovernment Orders

5:25 p.m.

Liberal

Catherine McKenna Liberal Ottawa Centre, ON

Madam Speaker, I would like to thank the member for his tireless work on climate change and the environment.

The economic opportunity of climate action is enormous. The former governor of the Bank of Canada, now the governor of the Bank of England, Mark Carney, has called it a $30-trillion economic opportunity. We need investments in renewable energy. China is making historic investments in solar and wind power. It is the same for India. Countries around the world are looking for innovations. When I was in China, I brought a trade mission with me. The Chinese government told me it needs our clean air, clean water, and soil remediation solutions. I want Canadian innovations to be exported to the world and to take advantage of that economic opportunity so that we can grow our economy and create good jobs, all the while saving the planet.

Motion that debate be not further adjournedParis AgreementGovernment Orders

5:25 p.m.

Conservative

Cheryl Gallant Conservative Renfrew—Nipissing—Pembroke, ON

Madam Speaker, a taxpayer shared with me a recent conversation he had with Jon-Paul Jepp, who goes by the inflated title of senior policy adviser to the Minister of Environment and Climate Change. Jon-Paul Jepp, who hung up twice on the taxpayer, was completely unable to respond in a professional way. Apart from his former employment with an oil company, which Jon-Paul Jepp felt made him a climate change expert, he was incapable of defending the Liberal Party position on carbon taxes and the reality that carbon taxes are a tax policy, not an environmental policy. When Jon-Paul Jepp was asked to explain how a carbon tax is going to hold temperatures to less than 2° as per the Paris agreement and how a carbon tax causes warming when higher levels do not perceive warming, he hung up.

Is not the real reason the Liberals are bringing in this carbon tax and forcing this vote on the Paris agreement so quickly before all of us have had a chance to talk that they are afraid the truth is getting out and that their signing this agreement is not based on fact?

Motion that debate be not further adjournedParis AgreementGovernment Orders

5:25 p.m.

Liberal

Catherine McKenna Liberal Ottawa Centre, ON

Madam Speaker, I am a bit confused. The Paris agreement was actually negotiated with 195 countries around the world in 2015. We are strongly supportive of action to tackle climate change. I have a very simple question for the Conservative Party opposite. Do you or do you not stand with the House and support the Paris agreement?

Motion that debate be not further adjournedParis AgreementGovernment Orders

5:25 p.m.

NDP

The Assistant Deputy Speaker NDP Carol Hughes

I would remind the minister that she is to address the Chair and not individual members.

It is my duty to interrupt the proceedings at this time. I remind hon. members that there will be 14 minutes and 16 seconds remaining for questions and comments on the motion after private members' business.

It being 5:30 p.m., the House will now proceed to the consideration of private members' business as listed on today's Order Paper.

Carbon PricingPrivate Members' Business

5:30 p.m.

Conservative

Colin Carrie Conservative Oshawa, ON

moved:

That the Standing Committee on Finance be instructed to undertake a study on: (a) how the government could examine approaches and methods to ensure maximum transparency for consumers related to the costs of carbon pricing, including a requirement for a dedicated line item on invoices and receipts; (b) mechanisms the government could use to report annually to Parliament on the financial impact, past and projected, of the federally-mandated price on carbon on Canadian households and employers; and that the Committee report its findings and recommendations to the House within four months of the adoption of this motion.

Madam Speaker, I am not going to lie, but it is actually a bit bothersome that I should even have to introduce a motion like Motion No. 131. However, today I get the opportunity to challenge the Liberals' commitment to be transparent with Canadians, since the Liberals are forcing their mandatory carbon tax on all Canadians.

Motion No. 131 would instruct the federal government to report annually to the House of Commons on the financial impact this tax is inflicting on Canadian families and Canadian employers alike. It would also instruct the Standing Committee on Finance to study new approaches and methods to ensure maximum transparency for consumers about the costs of carbon pricing. Last, Motion No. 131 calls on the government to report its findings and recommendations to the House of Commons in the four months following the passage of this motion.

That is not too difficult, right? My colleagues on this side of the House have been trying for months to get the Liberals to immediately, and completely release all estimates of cost burdens on Canadians in regard to their mandatory carbon tax. An ATIP request of this information was completely redacted. The censored documents demonstrate the government has done an analysis of how the carbon tax will impact Canadians' budgets, including the price increases of things like home heating, gas, electricity, and of course, grocery bills.

The Liberals just refuse to make the information public. This is information the Liberals currently have, but they refuse to be transparent about it, because the Liberals would rather avoid telling Canadians how much this is actually going to be costing them. Let us not forget, this is the party that campaigned on openness and transparency with all Canadians.

In fact, let me take a minute to read the Liberals' views on openness and transparency that come directly from their website. This is the message they are sending to Canadians. The Liberals' website states:

At its heart is a simple idea: transparent government is good government. If we want Canadians to trust their government, we need a government that trusts Canadians. We will amend the Access to Information Act so that all government data and information is made open by default in machine-readable, digital formats. We will also ensure that Access to Information applies to the Prime Minister's and Ministers' Offices, as well as administrative institutions that support Parliament and the courts.

If this is not the definition of hypocrisy, then I do not know what is. Considering the numerous opportunities the Liberals have been given, not once have they been transparent about their apparently revenue neutral carbon tax, which we know, again, is not true.

What exactly is a revenue neutral tax which the Liberals keep promising? They claim that it means all revenue generated from the carbon tax would stay in each province. Just last month, the Minister of Environment released a technical paper which ultimately seeks to mimic Alberta's carbon tax plan. I am sure if we asked Albertans how that is going over, they will tell us it is not going so well.

The Alberta plan, like the Liberals' plan, claims to be revenue neutral, meaning that every dollar taken out of taxpayers' pockets is then spent by the Alberta government. Let us be honest. This tax does nothing but make the necessities of life more expensive for the everyday consumer, and will likely have no impact on actually achieving its goal.

In case members have any doubt, recent estimates show that the Alberta carbon tax program has raised the price of a litre of gasoline by about 4.5¢. By 2018, a single person will have to pay approximately $400 more per year for gas, heat, groceries, and other goods affected by the Liberal carbon tax. A couple with two kids will have to pay an average of $600. This is ludicrous. Alberta is collecting about $5.4 billion between 2017 and 2019 from its carbon tax, but only issuing $1.5 billion in rebates. This so-called revenue neutral tax is anything but neutral.

Do not take my word for it. The Canadian Taxpayers Federation recently stated:

If the federal plan is to take money from taxpayers, and dish it back to businesses they choose in the form of corporate welfare, and select people they choose in the form of rebates, it will not be revenue neutral.

In actuality, the Alberta government has created its own farce of a definition of revenue neutrality, one that consists of taking taxpayers' money, and spending it on how it sees fit.

The federation went on to say that if the federal government copies Alberta's definition of revenue neutrality, every tax in Canadian history would be considered revenue neutral.

I bring this up not only because it is of great concern to Albertans but, in fact, the Parliamentary Library calculated that the additional GST the Liberals are placing on the Alberta and B.C. carbon program will enrich the federal government by about $130 million to $150 million over the next two years. This is approximately 5% of the annual cost of carbon tax in each of those provinces. As my colleague, the member for Langley—Aldergrove, brilliantly said, “That's where the federal government suddenly gets rich off Canadians”.

I am here today to challenge the Liberal government to support my motion, and prove to Canadians and everyone in the House that it will finally start being transparent. Since the Liberals stated their intention of imposing a national carbon tax, I have been in disbelief with how deceitful and shameful the government has been to members of the House and to all Canadians. The Liberals have been caught red-handed misleading Canadians about the lack of information they have on the cost of this mandatory carbon tax. The worse part, after being exposed for misleading Canadians and for withholding this information, the government did not even blink an eye. I am genuinely curious as to what type of an explanation the government could possibly come up with for deliberately concealing information that will have a profound impact on millions of Canadians.

Despite the heavily redacted report the Liberals issued, thanks to the pursuant work by my colleague, the hon. member for Carleton, one thing was clear: the conclusion.

Jean-François Perrault, who was assistant deputy minister at Finance Canada, and now chief economist at Scotia Bank said that these higher costs, associated with the carbon tax, would then cascade through the economy in the form of higher prices, thus leading all firms, and consumers to pay more for good and services with higher carbon content.

In case that was not clear, taxing carbon emissions will have compounding effects on all aspects of our economy. For example, as seen in Alberta, we know that the carbon tax will increase the price of fuel. If gas prices rise, then the price of transporting goods will undoubtedly rise as well. If the price of transporting goods increases, then guess what will happen to the price of these goods? They will skyrocket.

It is bad enough that the Liberals deem it appropriate to further tax individuals on the basic necessities of life, such as gasoline, heat, and electricity, but to slap on these compounding costs without telling Canadians is just plain wrong.

In essence, this tax specifically discriminates against Canada's poorest individuals who are already overwhelmed and overburdened with just paying their bills. As we have already heard many times in the House, Ontario, my home province, has the worst poverty record of any province in Canada. More so, the poverty rate dropped by one-third in British Columbia, the Prairies, and Atlantic Canada. There is nothing fair about this carbon tax. One does not need to be an expert to understand that individuals living around or below the poverty line often spend at least one-third of their monthly salaries just paying for what people would consider basic necessities.

If the Liberals are insistent that their only solution to combatting climate change is by taxing Canadians, then at the very least they should be telling consumers how much it is going to cost them.

According to the Minister of Environment, she says over and over again that pollution is not free, yet there is no evidence that taxation will actually work. The facts about how badly this tax will impact Canadians are not clear.

However, from a speculative standpoint, according to the Canadian Taxpayers Federation, it is estimated that the carbon tax will cost $1,028 per person, per year, or $4,112 per year for a family of four when it is fully implemented in 2022. A study by the University of Calgary estimates that a carbon tax will cost between $603 and $1,120 per year, depending on the province. These numbers are so mind-boggling that close to 2,000 people signed petition E-910 in complete outrage. In terms of stakeholders, the consequences are far-reaching, and can be felt across the country, including in my own riding of Oshawa.

The Canadian Federation of Independent Business recently reported that a great majority of its members fear that they will not be able to absorb the consequences of this forced carbon tax. They are also worried about global competitiveness, and that is so important in my community of Oshawa, that a decrease in their profitability could lead to a major reduction in business investments. No investments means no jobs. What does the government not understand?

The Liberals should be working to improve Canada's competitiveness, and should be fighting to maintain our global competitive advantage. Instead, it appears the Prime Minister is more interested in imposing a carbon tax that will kill jobs by the thousands.

Why would any company, including Canadian companies, be interested in investing in Canada if they do not know what the cost of doing business will be? That is the whole point. These exact issues were confirmed by a report issued by the Stikeman Elliott law firm, which basically confirmed Canadians are left guessing whether the federal government will have the tools to actually introduce and enforce a floor price on carbon.

There is another question. How does the federal government intend to properly measure and consolidate the two different pricing methods? In other words, it would be a carbon tax versus a cap and trade. How does the proposed pricing line up with Canada's commitment under the Paris agreement?

Our American counterparts are working to reduce regulation, lower taxes, and are investing in coal-fired electricity to reduce energy costs. With uncertainty over the effects of the Liberals' national climate change plan, with the U.S. recently reneging from the Paris agreement, and with Canadian companies sitting on the sidelines waiting to find out how much the cost of doing business will be, it is time the Liberals start taking action. It is time for them to come clean.

In light of all the issues I just exposed regarding the carbon tax, I propose Motion No. 131, with the hopes that everyone will agree.

I want to reiterate that this should not be a divisive motion. In fact, it was inspired by the large bold slogan running next to the Prime Minister's face on the Liberal website. I want members to imagine the Prime Minister's face, like a selfie, and the slogan reads “Openness, Transparency, Fairness”, with the Prime Minister standing there and very proud about it. That is what the Liberals are saying.

I am asking for three things. First, for the federal government to report annually to the House of Commons regarding the financial impacts this mandatory carbon tax will have on Canadian families and employers. Second, for the Standing Committee on Finance to investigate new ways of ensuring that there is maximum transparency for consumers about the cost of carbon pricing, such as a line item on receipts. Third, for the government to report its findings and recommendations to the House of Commons within four months following the passage of this motion.

If the government cannot agree to have the finance committee undertake this important transparent study, then it will be acting in complete juxtaposition to the bold writing on its website.

Misleading the House about the consequences of imposing a carbon tax on millions of Canadians is not openness. Redacting a document that tells Canadians how much they will need to pay out of pocket is certainly not being transparent. Lastly, punishing struggling Canadians for heating their homes, keeping their lights on, and purchasing groceries is absolutely not fair.

Carbon PricingPrivate Members' Business

5:45 p.m.

North Vancouver B.C.

Liberal

Jonathan Wilkinson LiberalParliamentary Secretary to the Minister of Environment and Climate Change

Madam Speaker, I must say that I am quite surprised that the House is hearing a speech like that. Carbon pricing is a market-based mechanism that actually drives emissions reduction at the lowest possible cost. It drives innovation and efficiencies. Canadian business leaders and virtually every Canadian economist say that this is actually the best way to address carbon emissions.

Personally, I am surprised to hear the Conservatives opposing market-based solutions. The Conservatives have opposed carbon pricing. They have opposed a whole range of other measures that are focused on addressing greenhouse gas emissions.

Fundamentally, this raises one important question. Does the Conservative Party actually believe that climate change is real?

Carbon PricingPrivate Members' Business

5:45 p.m.

Conservative

Colin Carrie Conservative Oshawa, ON

Madam Speaker, I hope everybody watching on television actually heard that rhetoric.

It is not what he said; it is what he did not say. What I told this House is that the Liberals have done detailed studies. They know what the cost of the carbon tax is going to be. However, when we asked for it, when we put in the ATIP, instead of telling this House and Canadians what it was going to cost, the Liberals blacked it out.

This is all I am asking. Why will the Liberals not release the numbers? This is outrageous. Imagine, Canadians. We have paid to have these studies done. The Liberals know what the costs are. They have been asked what those costs are. They refuse to release them to the elected representatives of Canada, and they refuse to release them to Canadians.

My question for the Liberals is why.

Carbon PricingPrivate Members' Business

5:45 p.m.

NDP

François Choquette NDP Drummond, QC

Madam Speaker, I thank my colleague for raising the climate change issue again. This is an important issue that we talk about regularly in the House, fortunately. Still, the Liberals' measures are disappointing. They put a price on carbon, but that is the only good thing they have done.

My Conservative colleague keeps calling it a carbon tax, but what he is referring to is a carbon pricing system. For example, in Quebec and Ontario, there will be a carbon exchange, a cap-and-trade market that prices emissions allowances. This is not just about a price on carbon.

As for the economic disaster that carbon pricing could trigger, here is what Équiterre has to say:

To those who fear the economy will fall apart, I would like to point out that, when Quebec put a price on carbon, it was able to create jobs, boost the GDP, and reduce GHG emissions.

Seventy university researchers from across Canada have said that we must put a price on carbon and that it will help grow our economy and fight climate change. That is what science has to say about it.

Carbon PricingPrivate Members' Business

5:45 p.m.

Conservative

Colin Carrie Conservative Oshawa, ON

Madam Speaker, I want to thank my colleague for his comments, but we are not surprised in this House that the NDP is supportive of any tax out there.

The point is, unfortunately, that the member has actually missed the point of my entire motion. The motion is there to say to the Liberals that they know the cost of this to Canadians, and it is asking that the finance committee actually do a study on this new carbon tax that they are putting in, the biggest tax on Canadians probably in Canadian history, and look at ways of making it transparent. That is simply what I am asking them to do.

It is about transparency. I would have thought that the NDP would have been supportive of that, but from the comments by my colleague from Drummond, maybe they are not.

Canadians deserve to know what this new massive tax is going to cost them.

Carbon PricingPrivate Members' Business

5:50 p.m.

Conservative

Erin O'Toole Conservative Durham, ON

Madam Speaker, very rarely do we get to compliment a member. My colleague from Oshawa, probably more than anyone else, helped save the auto industry in the last Parliament, in the depths of the global recession.

Now with an integrated North American economy and the lack of realization that our economy is integrated, the input cost of the carbon tax or the cap and trade is not going to be transparent. We are seeing manufacturers, like Procter & Gamble, already leave and go to the United States.

Could the member comment, particularly on how the auto industry will be uncompetitive in Ontario versus the plants in Michigan or Pennsylvania, where there is no carbon tax?

Carbon PricingPrivate Members' Business

5:50 p.m.

Conservative

Colin Carrie Conservative Oshawa, ON

Madam Speaker, we have seen that there has been a change in government in the United States. The Americans are very clear. They are going to be lowering taxes. The Canadian government, under the Liberals, is going to be raising taxes. These companies want to invest in Canada, but the costs are not clear. All I am asking is that the government release it, let it be transparent, and let them know what they are getting themselves into so they can continue to invest in Canada.

Carbon PricingPrivate Members' Business

5:50 p.m.

North Vancouver B.C.

Liberal

Jonathan Wilkinson LiberalParliamentary Secretary to the Minister of Environment and Climate Change

Madam Speaker, Canadians know that polluting is not free. We see the costs of carbon pollution in the melting of ice in the Arctic, coastal erosion in Prince Edward Island, and the increasing frequency of extreme weather events.

In December 2016, Canada's first ministers and indigenous leaders finalized the pan-Canadian framework on climate change and clean growth. The framework is a collaborative plan to meet Canada's Paris emission reduction targets of 30% below 2005 levels by 2030 and to grow the economy.

The pan-Canadian framework is built on four pillars: pricing carbon pollution; taking action in each sector of the economy to reduce emissions; adapting and building resilience to climate change impacts; and supporting clean technologies, innovation, and jobs.

Pricing carbon pollution is a fundamental element of the pan-Canadian framework, but we also support the framework with a range of measures that will play a central role in achieving our Paris agreement objectives.

These include regulatory requirements to ensure the timely reduction of greenhouse gas emissions from key sectors, as well as investments in infrastructure, support to help households and businesses transition to cleaner technology and energy efficiency, investments to stimulate the development and deployment of clean technology and innovation, and new actions to build resilience to a changing climate.

Pricing carbon pollution is widely recognized as the most efficient way to reduce greenhouse gas emissions and promote clean growth.

Under the pan-Canadian approach, provinces and territories have the flexibility to shape their own carbon pricing policies, based on their particular circumstances.

Some 97% of Canadians live in provinces that already have a price on carbon pollution or are working toward one. Every province except one has indicated that it will have a price on carbon pollution to reduce emissions while growing the economy. A federal system will only apply in provinces and territories that do not have a price on carbon pollution that meets a national benchmark in 2018. This is an important point that the hon. member seems not to understand. The pricing of carbon pollution in the pan-Canadian framework builds upon the good work of many provinces. In the case of provinces and territories that are acting to price pollution in line with the national benchmark, there will be no federal system implemented, no direct or indirect federal price on carbon whatsoever.

That said, revenues from pricing carbon pollution will remain with the province or territory of origin. Provinces and territories that implement their own pricing systems will thus be able to decide for themselves how to use the revenue to best meet their individual needs. These revenues could be used in a number of ways; they could be invested in clean technology to cut taxes or even refunded.

Carbon pollution pricing systems create an incentive for households and businesses to reduce their consumption of carbon-intensive goods and fuels and to choose lower carbon alternatives. The cost to households of pricing carbon pollution will vary by province and territory, depending in part on the differences in energy and fuel consumption and electricity generation mix across provinces and territories. The cost to households will also depend on the design of carbon pollution pricing policies introduced in each jurisdiction, as well as on how the particular jurisdiction decides to use revenues from carbon pricing.

Estimates produced by Ontario and Alberta illustrate that costs can vary by province. The Ontario government published estimates that households will face an average increase in direct costs of $156 from pricing carbon pollution this year, and this figure is before consideration of how revenues will be utilized. Alberta estimated the direct impact of its carbon levy to range between $190 and $340 per year per household and the indirect impact from higher prices of goods and services to be about $50 per household.

These numbers suggest that the costs of carbon pollution pricing for households will be modest. However, these numbers do not tell the whole story. They do not account for the fact that pricing carbon pollution provides a signal to invest in energy efficiency and alternative sources of energy and to change behaviour to save energy and reduce carbon pollution. Any such investment will reduce the costs of pricing carbon pollution to the household that makes it.

In terms of impact on those less well off, the goods and services purchased by low-income families are usually not more carbon intensive than those purchased by higher income earners. However, as the federal-provincial-territorial working group on carbon pricing mechanisms observed in its report last year, because lower income earners spend a greater share of their income on energy, they may be disproportionately impacted by carbon pollution pricing unless specific measures are taken to compensate for the impacts.

There are many ways in which low-income Canadian families and vulnerable communities can be protected from the costs associated with carbon pricing. It is important to note that revenues generated by carbon pricing can be used to mitigate these impacts.

Provinces and territories can choose to use carbon pollution pricing revenues to compensate low-income and middle-income families for higher energy costs while still maintaining an incentive to reduce energy use, thereby helping to reduce emissions.

For example, British Columbia provides a tax credit for low-income families and has made its carbon tax revenue neutral by reducing income taxes for British Columbians and for businesses operating in the province.

Alberta's carbon pollution pricing system includes rebates for low- and middle-income households to offset the cost of the carbon levy on transportation and heating fuels. The Government of Alberta has estimated that six out of 10 households will receive a rebate. For example, the full rebate amount for a household with two adults and two children will be $360 in 2017. This exceeds Alberta's estimate of the total direct cost of the levy for a household with two adults and two children, which is $338 in 2017.

Alberta has stated it will provide the full rebate amount for couples and families earning less than $95,000 per year, and for singles earning less than $47,500 per year. In other words, the median Alberta household will receive a larger rebate this year than the amount by which its fuel costs increased. Households receiving these rebates will still have the incentive to reduce carbon pollution, and if they save energy by making their homes more energy efficient, they can save money and be further ahead.

The hon. member's motion proposes that the Standing Committee on Finance undertake a study to find methods to ensure maximum transparency for consumers related to the costs of carbon pricing, including a requirement for a dedicated line item on invoices and receipts.

Such a requirement is not part of the carbon pricing approach that was agreed upon by the Prime Minister under the pan-Canadian framework and would run counter to the flexibility that the framework aims to give the provinces and territories to develop and report on their own carbon pricing systems.

In fact, as I noted earlier, in jurisdictions comprising 97% of the Canadian population, provinces have moved or are moving to implement their own pricing systems. These are not federal systems, as the hon. member seems to be understanding. I would also note that some of the provinces with carbon pricing have in fact already chosen to require a carbon cost line item. It is certainly open for provinces and territories to choose to do so.

Federal, provincial, and territorial governments agreed to work together to review progress annually in order to assess the effectiveness of collective action. Programs and policies will be monitored, results will be measured, and actions and performance will be reported on in a way that is transparent and accountable to Canadians.

The pan-Canadian approach to pricing carbon pollution provides that jurisdictions should provide regular, transparent, and verifiable reports on outcomes and impacts of carbon pricing policies.

A separate study on pricing carbon pollution by the Standing Committee on Finance would run counter to the collaborative approach agreed to by federal, provincial, and territorial governments to implementing, reviewing, and reporting on carbon pricing measures. That is why we oppose the motion and instead support working collaboratively with provinces and territories to report on and review the pan-Canadian approach to pricing carbon pollution.

Our climate is already changing, and Canadians are already feeling the effects. Extreme weather, in the form of droughts and floods is increasing in frequency. North of 60, the average annual temperature has tripled, compared to the global average since the middle of the last century. Snow, sea ice, glaciers, and permafrost are all in rapid decline. We must address climate change now, for the well-being of our people, our communities, our economy, and most of all, our children and grandchildren.

Carbon PricingPrivate Members' Business

6 p.m.

NDP

Alexandre Boulerice NDP Rosemont—La Petite-Patrie, QC

Madam Speaker, I am pleased to stand here today to reaffirm the principles and values of progressives and new democrats, the people who put their trust in the NDP in our collective fight against climate change and the warming of the planet. That is why I am announcing that the NDP will oppose the Conservative motion, which looks strangely like a fox trap inside a bear trap, an expression from a movie that I liked a lot when I was younger, The Dog Who Stopped the War.

In fact, the Conservative Party is trying to do indirectly what it cannot do directly. It is using the virtue and positive value of transparency as a pretext for attacking the fact that we need to set a price on carbon emissions in order to gain the necessary tools to reduce our emissions and do our part, as an industrialized nation, to meet our objectives under the Paris agreement. It is the most recent and most comprehensive agreement regarding the greatest challenge facing our planet, which is the possibility that temperatures might rise to a point that they will cause natural disasters, major geographic changes as well as extremely serious geopolitical changes.

There is a reason Al Gore received the Nobel Peace Prize for his work on the environment; a rather clear causal link has been established by 99% of the world’s scientific community. There are several ways we can reduce emissions. In fact, there are two great tools: a carbon market and a carbon tax.

The NDP has always favoured the carbon market tool, which has deeper structural effects over the medium and long term. However, a carbon tax is also a viable option. It also makes it possible to use market forces to apply economic and financial pressure on businesses and individuals so they will make the best choices and use the best methods in order to make this green shift towards renewable energy that just about everyone supports.

Let us go over some recent facts about the Paris agreement. It was ratified by 195 countries. Though legally binding, it uses broader brush strokes than previous agreements such as Copenhagen and Kyoto, which only involved 15, 20 or 30 countries.

The primary objective of the Paris agreement is to limit global warming to well below the 2% threshold. There is a broad consensus that, compared to pre-industrial temperatures, this would be the point of no return. The changes that would affect our communities, our country and our continents would become irreversible. This is obviously a scenario that everyone wants to avoid. This is not the kind of environment I want to leave to my children. If we don’t succeed, we will have truly failed future generations. The Paris agreement also sets a warming threshold of 1.5%, but clearly, that is a bit more ambitious.

This agreement is based on the principle of common but differentiated responsibilities. This is not “one size fits all”. Developed countries do not have the same objectives as developing countries. Industrialized countries have an absolute responsibility to reduce carbon emissions, while developing countries must increase their efforts to mitigate greenhouse gas emissions.

There is also a contribution from the richest countries to the poorest countries. The argument by poorer countries is clear and logical: today’s rich countries are those that have most rapidly industrialized and that have polluted the most. It is difficult to deny poorer countries the same kind of industrialization. Funding of $100 billion per year is planned until 2020 to help them make this transition and allow them to continue to grow, which is entirely legitimate and normal. We did it, too; we had no qualms about it.

The goal is to have a carbon-free world by 2100. That is not to say that there will be no more greenhouse gas emissions, but we hope that new technologies and renewable energy will sufficiently reduce carbon emissions so that the natural environment and carbon sinks will allow us to achieve a balance by 2100.

The Paris agreement is interesting, because it is a dynamic agreement that will be reviewed every five years. Representatives from each country will have to gather together and report on their performance, their progress and their action plan.

The federal government decided to put a price on carbon and concluded that it was good thing. I would remind the members that, unfortunately, the price set by the Liberal government will not allow Canada to meet its targets under the Paris agreement, which is problematic. Any action so far has been extremely modest.

I urge people to try to come up with other measures that would allow us to honour our international commitments. The government is not walking the talk right now. Here is what Greenpeace had to say:

...the framework announced today point[s] in the right direction, but we won’t free ourselves from fossil fuels fast enough to avoid dangerous levels of warming if we allow oil companies to build new tar sands pipelines and liquefied natural gas export facilities that [pollute]...for the next 50 years.

I would add that this is especially true if we continue, as a society, to subsidize oil and gas companies, which are the biggest source of greenhouse gas emissions. Something just does not add up here.

Speaking of not adding up, the Conservative motion includes two extremely impractical aspects. It calls for an annual report on the impact of the carbon tax, a federal tax that will not be imposed on the provinces that already have measures in place.

British Columbia and Alberta already have a carbon tax, one that is tougher and more rigorous than the one announced by the current federal government. Ontario and Quebec already trade on carbon markets. The federal government's carbon tax will apply to six out of 10 provinces at this time, because four provinces will be excluded.

It is therefore very difficult to see how the Conservatives can expect an annual report, when the four largest provinces would not be included in the findings. They would have to be taken out of the equation to have any meaningful data. There is an incongruity here that the Conservatives simply did not think through.

The second thing that makes the Conservative motion absolutely unworkable is that it calls for a dedicated line item on invoices and receipts. I can see how that might seem like a good idea at first. However, imagine going to an appliance store to buy a washing machine or a fridge made with many parts manufactured by companies from all around the world shipped by multiple modes of transportation. On an administrative level, it would be absolutely impossible to indicate on the receipt the direct and tangible impact of a federal carbon tax, which, by the way, would apply to 6 out of 10 provinces only.

That is a bit rich coming from a party that advocates cutting red tape. Now, it would create a monster. I cannot imagine a cash register being able to make such a calculation. This is nothing more than an illusion, an intellectual conceit.

That is why the NDP will oppose the Conservative motion.