Canadian Opposition Plans Sweeping Carbon Tax
Date: 19-Jun-08
Country: CANADA
Author: Randall Palmer
The opposition party said on Wednesday it would unveil what it is calling a "green shift," avoiding the word "tax" on the advice of veteran Liberal Senator David Smith.
The notice of Thursday's announcement gave no details, but a Liberal source had previously said the idea was to apply C$15 billion (US$14.7 billion) in taxes on fossil fuels and return that same amount via income tax cuts.
The Conservatives got out ahead of the announcement with an advertising campaign more than a week ago warning of Liberal leader Stephane Dion's planned "tax on everything," but the Liberals are banking on the idea of income tax cuts sweetening the carbon tax plan with the public.
They also point out that Dion had promised in November not to introduce a carbon tax.
"We've only seen half the story, the negative half. The Conservatives have talked about the carbon tax. We have yet to talk about all the benefits arising from this," Liberal Member of Parliament John McCallum told reporters on Tuesday, adding that Canadians attach high importance to the environment.
Shortly before McCallum spoke, Conservative Prime Minister Stephen Harper told Parliament: "The Liberal Party wants to raise taxes across the board as part of its insane environmental and economic policies. That is wrong for Canada."
The Liberals are presenting themselves as green and see the issue as a weakness of the minority Conservative government, whose home base is in the energy-rich province of Alberta.
Dion won the leadership of the Liberal Party 18 months ago on a green platform and appears ready to defy conventional political wisdom that in tough economic times voters are less inclined to make sacrifices for the environment.
The Toronto Star said one of the Liberal slogans planned is said to be "Shift happens," focusing on the idea that taxes would shift from income to energy use.
Many Liberals are keen to have a campaign plank to distinguish them from other parties and to restore an environmental record tarnished by the fact that greenhouse gas emissions, blamed for global warming, soared when they were in power.
But some privately express concern that introducing fuel and electricity taxes when prices are already rising is politically unpalatable.
Three Liberal members of Parliament even backed a decision by the House of Commons agriculture committee to study the effects of a carbon tax "to ensure that Canadian farmers are not saddled with a carbon tax which would further increase their input costs and hurt their competitiveness."
No election is expected this summer but the Liberals could try to bring the minority government down in the autumn or some time next year. The Conservatives were elected in January 2006 and must face an election in October 2009 if not before. The Liberals trail the Conservatives slightly in the polls.
(US$1=$1.02 Canadian)
(Editing by Rob Wilson)