Wildrose’s Jean says NDP carbon tax must go as federal plan looms

Brian Jean says a Wildrose government will repeal the provincial carbon tax being brought in by the NDP government, even with Ottawa poised to impose a carbon price mechanism on provinces without their own plan.

The Wildrose leader has long vowed to scrap the New Democrats’ broad-based $20-a-tonne carbon levy, which comes into effect Jan. 1, 2017.

But Prime Minister Justin Trudeau announced this week that the federal government will require provinces to implement a minimum $10-a-tonne price on carbon by 2018 — rising to $50 a tonne by 2022 — through either a carbon tax or a cap-and-trade system.

In an interview Wednesday, Jean said the province would likely have no way to prevent the Trudeau government from imposing such a carbon pricing scheme, though if he is premier he would consider whatever options are available.

But he said he would keep his word to get rid of the provincial tax if his party wins the 2019 provincial election.

“We’re the only party that has actually stood up and said we will repeal the carbon tax immediately upon getting elected. In this case now, we will repeal it if it’s the Canada carbon tax . . . but we would take all steps necessary to mitigate the federal carbon tax,” said the Fort McMurray-Conklin MLA.

Trudeau has promised that provinces will keep whatever revenue is raised by their carbon pricing scheme to use as they see fit.

Canada’s incoming carbon levy — which is scheduled to increase to $30 a tonne in 2018 — is expected to raise $9.6 billion over five years, which the NDP government intends to use for measures such as public transit and renewable energy projects, as well as rebates to two-thirds of provincial households.

Jean said a Wildrose government would have to determine whether it would introduce an alternative provincial plan or accept the federal carbon price structure.

“The Devil’s in the details,” he said.

“What we would have to do is analyze the federal carbon tax, the provincial carbon tax, and see how to go forward on it. The issue is, how do we mitigate the damage to the economy? How do we mitigate the money that comes out of consumers’ pockets?”

Jean said a Wildrose government would work to lessen the economic effect of a federal carbon tax by measures such as decreasing the regulatory burden on energy companies to help bolster their competitiveness with rivals in the United States.

The NDP projects the average direct and indirect cost to a family of Canada’s new carbon tax at $433 in the first year.

Premier Rachel Notley said this week she would not support Trudeau’s carbon pricing plan unless Ottawa approves a new oilsands pipeline to tidewater.

But she acknowledged the provinces have no legal recourse to resist the federal initiative.

Notley told reporters that if the carbon price goes up, the NDP government would strongly consider increasing the rebates.

“That’s one of those things we’re going to have to monitor . . . the rate at which the costs to families go up as it balances against our ability to give the tools to reduce their emissions,” she said.

[email protected]