Manitoba premier Brian Pallister announced yesterday that he was going to implement a carbon price after all – sort of. In a dare to the federal government, Pallister says he’ll stick with his originally planned $25/tonne price, and not raise it like he’s supposed with the rest of the country, but he would also reduce the province’s PST to compensate. Revenue neutrality can be a very good thing, but the point of having a common carbon price across the country is to have a level playing field so that provinces don’t undercut one another – which Pallister frequently ignores as he instead battles straw men about the efficacy of the province’s environmental plans (many of those mentioned having nothing to do with reducing GHGs).
While Pallister is confident that the Supreme Court of Canada will rule against the federal government on the upcoming carbon price challenges – which is a pretty risky gable to take – he’s daring the federal government to do what they said they would, which is to continue making up the federal carbon price with a separate carbon levy on top of the provincial one, which would continue to be rebated to taxpayers by the CRA. None of this makes much sense as a strategy other than the fact that it lets him proclaim that he’s lowered the PST in order to get the plaudits for that.
Meanwhile, here’s Dylan Robertson with some additional context:
Environment Canada told us two years ago (before Pallister withdrew the flat tax he's now bringing back) that they will collect a parallel tax for any shortfall in provincial levies: https://t.co/sLYsYUAzHP
— Dylan Robertson (@withfilesfrom) March 5, 2020
Pallister has said the provincial $25 will go to green activities and displace PST. So I expect Manitobans will get a minuscule rebate in their taxes. If Ottawa keeps to its April 2018 statement. We've asked them to confirm.
— Dylan Robertson (@withfilesfrom) March 5, 2020
To be fair: I am not entirely sure that Ottawa has ever given us their estimated cumulative reduction of GHGs, through its various programmings, on a per-province basis. I've asked them.
But this doc isn't bothering to compare Made-in-Manitoba plan with the Pan-Canadian Framework— Dylan Robertson (@withfilesfrom) March 5, 2020
I also don't understand why the premier's office never gave us a clear answer as to what amount of flat fee they were proposing to Ottawa. They told us in January they wanted a flat fee but wouldn't say how much; said that's negotiating in public. Turns out it's the old $25 pitch
— Dylan Robertson (@withfilesfrom) March 5, 2020
Statement from federal Environment Minister Jonathan Wilkinson — his office is waiting for Pallister's plan to be formally submitted (the original one Manitoba had withdrawn) and will assess it to figure out what Ottawa will do. pic.twitter.com/4yZ4jqhS4r
— Dylan Robertson (@withfilesfrom) March 5, 2020