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Ontario joins Saskatchewan in opposing federal carbon tax plan
Carbon tax debate could distract from premiers' united front on trade
Janyce McGregor · CBC News · Posted: Jul 19, 2018 4:00 AM ET | Last Updated: 7 minutes ago
Ontario Premier Rob Ford, left, and Saskatchewan Premier Scott Moe talk with reporters as Canadian premiers meet in New Brunswick on Thursday. Ford and Moe have agreed to fight the federal government's plan to impose a carbon tax. (Andrew Vaughan/Canadian Press)
Premier Doug Ford announced Thursday that Ontario will intervene in support of Saskatchewan's court reference case, challenging the federal government's right to impose a carbon tax on provinces that don't comply with its climate change plan.
Saskatchewan Premier Scott Moe met his Ontario counterpart on Wednesday evening, after arriving in Saint Andrews, N.B., for two days of Council of the Federation talks. He's been trying to find allies in his fight against Justin Trudeau's Liberal government.
The federal government has threatened to impose a carbon tax on any province that does not develop an effective carbon emissions reduction plan, in order to keep its international climate change commitments. Saskatchewan has launched a reference case at its Court of Appeal, questioning the federal government's jurisdiction to do that.
Ford said both premiers were on "the exact same page," vowing to "use every tool at our disposal" and rally opposition to carbon pricing among their provincial and territorial colleagues.
Moe called carbon taxes "an ineffective policy that simply does not reduce emissions," saying it moves jobs and opportunities to other parts of the world instead. Ottawa's plan fails to recognize the diversity of the Canadian economy, he said.
"We have two provinces in compliance, we have two provinces in court and we have the rest of the country not meeting the federal carbon tax backstop," Moe said.
Doug Ford joins Sask. in carbon tax lawsuit vs. Ottawa
00:00 02:42
Ontario premier, Sask. counterpart Moe make announcement at premiers' meeting in New Brunswick 2:42
It's not clear which two provinces Moe is referring to as being in compliance. The deadline for provinces to have their plans in place is in September. Alberta and B.C. already have a carbon tax.
Quebec and Ontario chose a different way to reduce carbon emissions: participating in a "cap and trade" carbon market where heavy polluters must purchase credits, offering a financial incentive to use clean technology.
Under Ford's leadership, Ontario will pull out of the carbon market, leaving the province's businesses to wonder what will happen to several billion dollars worth of carbon credits they've already purchased.
Manitoba was reluctant to sign on to the federal government's plan until recently. It sought a legal opinion on the federal government's jurisdiction, but did not go as far as Saskatchewan has in initiating a court reference.
Manitoba's legal opinion said the federal government has the jurisdictional authority to impose a carbon tax, but also suggested that if a province had an alternative plan that would accomplish the same policy goal, it could probably succeed in arguing Ottawa does not have the right to interfere with its preferred mechanism to reduce carbon emissions.
This view has not been tested in court.
New Brunswick Premier Brian Gallant, the chair and host of this year's summer gathering of premiers, said he was monitoring Saskatchewan's case to see what will happen, but "what we're told is that the province's case will not stand up. That is the advice that we have been hearing."
Politics News
Gallant on Carbon Tax fight with Ottawa
00:00 01:17
NB Premier Brian Gallant is the chair of the Premiers meeting Thursday 1:17
Gallant's government has an emissions reduction plan, but it's been criticized as inadequate by the federal government. The premier suggested that federal Environment Minister Catherine McKenna "has more challenges with other provinces."
"I would respectfully suggest to her that she focus on that," he said.
Will others follow Ford and Moe's lead?
Other provinces are similarly engaged with the federal government over whether their climate change plans are enough to meet federal objectives. Ford and Moe appear to want to draw them into their camp of outright opposition.
In the Pan-Canadian Framework on Clean Growth and Climate Change, a federal carbon tax was supposed to be a last resort, imposed only if a province didn't implement adequate policies of its own.
Power & Politics
✔@PnPCBC
https://twitter.com/PnPCBC/status/1019696692692627457
.@cathmckenna tells @vassykapelos how Ottawa will ensure Cdns don't suffer under a carbon pricing regime #carbontax #pnpcbc #cdnpoli
5:33 PM - Jul 18, 2018
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Ford's move puts a premier like Alberta's Rachel Notley on the spot.
Her climate strategy was meant to straddle environmental and business concerns, but her opponents in next year's provincial election, Jason Kenney and his United Conservative Party, strongly oppose Alberta's carbon tax and would likely side with Ontario and Saskatchewan if elected.
Atlantic provinces are also finding it difficult to satisfy the federal government's requirements in ways their voters will accept.
When asked Wednesday about his province's recent objections to the implementation of a carbon tax, P.E.I. Premier Wade MacLauchlan said his province remains a full signatory to the federal government's deal, but his province's approach will be to lower the price of renewable energy to motivate people to do the right thing.
"People are acting and voting with their feet, and that's what I think our climate change commitments are all about," he said.
Ford was not with MacLachlan and the other premiers earlier in the day in Bouctouche, where they met with Indigenous leaders.
Instead, most of the media caught their first look at Ford striding across the lawn in front of the Algonquin Resort chatting away with Moe ahead of the premiers' official group photo Wednesday evening. On social media, Ford began publicizing his side meetings with premiers who have opposed the federal government's climate change strategy: first Manitoba Premier Brian Pallister, and then Moe.
Gallant hosted a cordial dinner for all the premiers on Wednesday evening to kick off informal discussion on trade issues. Following the dinner, which ran late, media were invited to photograph Moe and Ford meeting one on one.
"He's a great guy," Ford said of Moe. "I've got a lot to learn from him."
Manitoba corrects record
Ford was forced to change what he said on Twitter about his meeting with Pallister.
The Ontario premier tweeted that when the two met, Manitoba's premier "reaffirmed his government's commitment to working together to ensure that no carbon tax is ever imposed on the people of our great provinces."
But the Manitoba premier's staff were quick to tell CBC News that in fact Manitoba has put a price on carbon.
Ford's tweet was then changed to say the pair discussed "shared priorities for our country."
View image on Twitter
Doug Ford
✔@fordnation
https://twitter.com/fordnation/status/1019745092901355520
Great to be joined by Premier of Manitoba @Brian_Pallister at @cof2018, I also look forward to discussing our shared priorities for our country. #cdnpoli #onpoli
8:45 PM - Jul 18, 2018
Twitter Ads info and privacy
Manitoba and Saskatchewan were both reluctant to agree to the terms of the federal government's strategy, but Manitoba eventually relented rather than lose federal funding for emissions reductions programs.
In an interview with CBC News Network on Thursday morning, Pallister said he didn't object to other issues being raised at this week's meeting, but if the premiers don't focus on a single priority — he wants to talk about interprovincial trade — the meeting will end up with "just talk."
He brought a Manitoba beer with him to emphasize how he thinks it's wrong that Canadians are not free to bring more than one case of beer from one province to another without risking a fine.
Pallister wrote his fellow premiers last week, urging them to focus on making meaningful progress on reducing internal trade barriers.
CBC News
Manitoba premier says provincial trade barriers need to be eliminated
00:00 04:48
Manitoba Premier Brian Pallister speaks with CBC's Hannah Thibedeau ahead of the Council of the Federation talks in New Brunswick 4:48
First ministers to meet on trade?
New Brunswick Premier Brian Gallant wanted the premiers summer gathering to focus on international and interprovincial trade issues, and those were the first items on the agenda Thursday.
David MacNaughton, Canada's ambassador to Washington, updated premiers this morning on their joint work lobbying for Canadian trade interests south of the border.
Gallant said he's proposing the premiers convene a first ministers meeting with Prime Minister Justin Trudeau this fall to discuss trade issues.
The premiers' conversations about interprovincial trade barriers included a review of recent recommendations from the alcoholic beverages working group provinces and territories created to study how wine, beer and liquor sales could be liberalized under the 2017 Canadian Free Trade Agreement.
A few hours are set aside in the schedule at midday for issues individual premiers want to raise.
Carbon pricing, along with equalization payment formulas (another priority for Saskatchewan) and government strategy on asylum seekers (a recent bone of contention between the federal government and Ontario) are expected to come up, based on conversations among provincial and territorial delegations in the lead up to this week's meeting.
Later Thursday, Gallant has planned discussions on provincial strategies for the legalization of cannabis in October and interprovincial labour mobility.
Politics News
Gallant calls for First Ministers' Meeting on Trade
00:00 00:21
NB Premier Brian Gallant is the chair of the Premiers meeting Thursday in St Andrews by-the-Sea 0:21
Carbon tax debate could distract from premiers' united front on trade
Janyce McGregor · CBC News · Posted: Jul 19, 2018 4:00 AM ET | Last Updated: 7 minutes ago
Premier Doug Ford announced Thursday that Ontario will intervene in support of Saskatchewan's court reference case, challenging the federal government's right to impose a carbon tax on provinces that don't comply with its climate change plan.
Saskatchewan Premier Scott Moe met his Ontario counterpart on Wednesday evening, after arriving in Saint Andrews, N.B., for two days of Council of the Federation talks. He's been trying to find allies in his fight against Justin Trudeau's Liberal government.
The federal government has threatened to impose a carbon tax on any province that does not develop an effective carbon emissions reduction plan, in order to keep its international climate change commitments. Saskatchewan has launched a reference case at its Court of Appeal, questioning the federal government's jurisdiction to do that.
Ford said both premiers were on "the exact same page," vowing to "use every tool at our disposal" and rally opposition to carbon pricing among their provincial and territorial colleagues.
Moe called carbon taxes "an ineffective policy that simply does not reduce emissions," saying it moves jobs and opportunities to other parts of the world instead. Ottawa's plan fails to recognize the diversity of the Canadian economy, he said.
"We have two provinces in compliance, we have two provinces in court and we have the rest of the country not meeting the federal carbon tax backstop," Moe said.
Doug Ford joins Sask. in carbon tax lawsuit vs. Ottawa
00:00 02:42
Ontario premier, Sask. counterpart Moe make announcement at premiers' meeting in New Brunswick 2:42
It's not clear which two provinces Moe is referring to as being in compliance. The deadline for provinces to have their plans in place is in September. Alberta and B.C. already have a carbon tax.
Quebec and Ontario chose a different way to reduce carbon emissions: participating in a "cap and trade" carbon market where heavy polluters must purchase credits, offering a financial incentive to use clean technology.
Under Ford's leadership, Ontario will pull out of the carbon market, leaving the province's businesses to wonder what will happen to several billion dollars worth of carbon credits they've already purchased.
Manitoba was reluctant to sign on to the federal government's plan until recently. It sought a legal opinion on the federal government's jurisdiction, but did not go as far as Saskatchewan has in initiating a court reference.
Manitoba's legal opinion said the federal government has the jurisdictional authority to impose a carbon tax, but also suggested that if a province had an alternative plan that would accomplish the same policy goal, it could probably succeed in arguing Ottawa does not have the right to interfere with its preferred mechanism to reduce carbon emissions.
This view has not been tested in court.
New Brunswick Premier Brian Gallant, the chair and host of this year's summer gathering of premiers, said he was monitoring Saskatchewan's case to see what will happen, but "what we're told is that the province's case will not stand up. That is the advice that we have been hearing."
Politics News
Gallant on Carbon Tax fight with Ottawa
00:00 01:17
NB Premier Brian Gallant is the chair of the Premiers meeting Thursday 1:17
Gallant's government has an emissions reduction plan, but it's been criticized as inadequate by the federal government. The premier suggested that federal Environment Minister Catherine McKenna "has more challenges with other provinces."
"I would respectfully suggest to her that she focus on that," he said.
Will others follow Ford and Moe's lead?
Other provinces are similarly engaged with the federal government over whether their climate change plans are enough to meet federal objectives. Ford and Moe appear to want to draw them into their camp of outright opposition.
In the Pan-Canadian Framework on Clean Growth and Climate Change, a federal carbon tax was supposed to be a last resort, imposed only if a province didn't implement adequate policies of its own.
Power & Politics
✔@PnPCBC
https://twitter.com/PnPCBC/status/1019696692692627457
.@cathmckenna tells @vassykapelos how Ottawa will ensure Cdns don't suffer under a carbon pricing regime #carbontax #pnpcbc #cdnpoli
5:33 PM - Jul 18, 2018
Twitter Ads info and privacy
Ford's move puts a premier like Alberta's Rachel Notley on the spot.
Her climate strategy was meant to straddle environmental and business concerns, but her opponents in next year's provincial election, Jason Kenney and his United Conservative Party, strongly oppose Alberta's carbon tax and would likely side with Ontario and Saskatchewan if elected.
Atlantic provinces are also finding it difficult to satisfy the federal government's requirements in ways their voters will accept.
When asked Wednesday about his province's recent objections to the implementation of a carbon tax, P.E.I. Premier Wade MacLauchlan said his province remains a full signatory to the federal government's deal, but his province's approach will be to lower the price of renewable energy to motivate people to do the right thing.
"People are acting and voting with their feet, and that's what I think our climate change commitments are all about," he said.
Ford was not with MacLachlan and the other premiers earlier in the day in Bouctouche, where they met with Indigenous leaders.
Instead, most of the media caught their first look at Ford striding across the lawn in front of the Algonquin Resort chatting away with Moe ahead of the premiers' official group photo Wednesday evening. On social media, Ford began publicizing his side meetings with premiers who have opposed the federal government's climate change strategy: first Manitoba Premier Brian Pallister, and then Moe.
Gallant hosted a cordial dinner for all the premiers on Wednesday evening to kick off informal discussion on trade issues. Following the dinner, which ran late, media were invited to photograph Moe and Ford meeting one on one.
"He's a great guy," Ford said of Moe. "I've got a lot to learn from him."
Manitoba corrects record
Ford was forced to change what he said on Twitter about his meeting with Pallister.
The Ontario premier tweeted that when the two met, Manitoba's premier "reaffirmed his government's commitment to working together to ensure that no carbon tax is ever imposed on the people of our great provinces."
But the Manitoba premier's staff were quick to tell CBC News that in fact Manitoba has put a price on carbon.
Ford's tweet was then changed to say the pair discussed "shared priorities for our country."
View image on Twitter
Doug Ford
✔@fordnation
https://twitter.com/fordnation/status/1019745092901355520
Great to be joined by Premier of Manitoba @Brian_Pallister at @cof2018, I also look forward to discussing our shared priorities for our country. #cdnpoli #onpoli
8:45 PM - Jul 18, 2018
Twitter Ads info and privacy
Manitoba and Saskatchewan were both reluctant to agree to the terms of the federal government's strategy, but Manitoba eventually relented rather than lose federal funding for emissions reductions programs.
In an interview with CBC News Network on Thursday morning, Pallister said he didn't object to other issues being raised at this week's meeting, but if the premiers don't focus on a single priority — he wants to talk about interprovincial trade — the meeting will end up with "just talk."
He brought a Manitoba beer with him to emphasize how he thinks it's wrong that Canadians are not free to bring more than one case of beer from one province to another without risking a fine.
Pallister wrote his fellow premiers last week, urging them to focus on making meaningful progress on reducing internal trade barriers.
CBC News
Manitoba premier says provincial trade barriers need to be eliminated
00:00 04:48
Manitoba Premier Brian Pallister speaks with CBC's Hannah Thibedeau ahead of the Council of the Federation talks in New Brunswick 4:48
First ministers to meet on trade?
New Brunswick Premier Brian Gallant wanted the premiers summer gathering to focus on international and interprovincial trade issues, and those were the first items on the agenda Thursday.
David MacNaughton, Canada's ambassador to Washington, updated premiers this morning on their joint work lobbying for Canadian trade interests south of the border.
Gallant said he's proposing the premiers convene a first ministers meeting with Prime Minister Justin Trudeau this fall to discuss trade issues.
The premiers' conversations about interprovincial trade barriers included a review of recent recommendations from the alcoholic beverages working group provinces and territories created to study how wine, beer and liquor sales could be liberalized under the 2017 Canadian Free Trade Agreement.
A few hours are set aside in the schedule at midday for issues individual premiers want to raise.
Carbon pricing, along with equalization payment formulas (another priority for Saskatchewan) and government strategy on asylum seekers (a recent bone of contention between the federal government and Ontario) are expected to come up, based on conversations among provincial and territorial delegations in the lead up to this week's meeting.
Later Thursday, Gallant has planned discussions on provincial strategies for the legalization of cannabis in October and interprovincial labour mobility.
Politics News
Gallant calls for First Ministers' Meeting on Trade
00:00 00:21
NB Premier Brian Gallant is the chair of the Premiers meeting Thursday in St Andrews by-the-Sea 0:21
