Madam Speaker, on November 22, 2022, I rose in the House and asked a question of the government linking taxes, carbon taxes in particular, with the rate of inflation we are experiencing in Canada. I used the example of Japan and the decisions they are making to address inflation in Japan versus the ones we are making here.
I got a response from the Associate Minister of Finance, the member for Edmonton Centre, which was more of a song and a dance than a reply. I hope I get a better response from the government tonight.
Let us address this. In November, Japan was experiencing 4.2% inflation. Canada, on the other hand, was experiencing 6.8% inflation. As a result of the inflation Japan was experiencing, it cancelled its increase to the carbon tax, which was expected to take effect in April of this year, but that has been cancelled. Canada, on the other hand, is increasing its carbon tax by 30%. Notably, Canada's carbon tax right now is $50 per tonne, and it will rise to $65 if the government continues on the path its on. Japan's carbon tax is about $3 Canadian per tonne of carbon, so there is a significant difference between what we are doing here. We can see why inflation is much more of a problem in Canada.
Carbon tax this year is expected to bring in $8.27 billion into Canada. Not to be outdone, when pressed on the issue, the governor of the Bank of Canada actually admitted, after some study, that the carbon tax itself was contributing 0.4% to the inflation rate in Canada. Instead of 6.8%, without the carbon tax, we would have an inflation rate of 6.4%. That amount is going to increase by about 1.3 times, so about 0.52% of our inflation rate is going to be part and parcel of the carbon tax.
Let me bring home what that means. This summer we had oil prices rise. West Texas Intermediate, the grade we measure our oil by, was about $110 per barrel in the world. That equated to about $2.10 per litre filling up in Calgary. Think about the last time oil was that high. It was actually $1.40 per litre, so it has gone up an extra 70¢ per litre. Part of that is inflation, and part of that is the price inflation. Apples to apples, it should be about $1.72 per litre versus $2.10. Where is the extra 40¢? I will tell colleagues. It is in the form of taxes on gas. It is excise taxes. It is carbon taxes. It is clean fuel taxes.
I know the narrative on the other side is going to tell me that x per cent of the economists around the world believe that a carbon tax is the most effective way of pricing carbon and reducing carbon emissions. I could agree.
Let me ask this: If this is so, why are so many other taxation mechanisms required? There is the clean fuels standard; the clean electricity standard, which is on its way; emissions caps, some targeted at specific industries; vehicle mandates; and massive subsidization of chosen paths forward. This is billions of dollars that the government is spending needlessly, and all of them are, by design, inflationary. This is inflation built upon inflation.
The savings of Canadians are at risk. The energy security of Canadians is at risk. Will the government come clean and provide Canadians clarity on what the future looks like in the designed inflationary spiral that it is designing here?