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Dan McTeague

“Axe the Tax” is just the beginning

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From Canadians for Affordable Energy

Dan McTeague

Written By Dan McTeague

 

All across Canada preemptive obituaries are being written for the Carbon Tax. (I’ve written one myself.) And for good reason. The closer we get to the full implementation of Justin Trudeau’s carbon tax, the harder regular people are being hit in the wallet. The tax has helped make it more expensive to feed and clothe our families, to heat our homes, and to gas up our cars. It has been a direct assault on the Canadian standard of living.

The fact that the Trudeau Liberals are behind the Carbon Tax is central to their collapsing poll numbers. And Conservative leader Pierre Poilievre has capitalized on its unpopularity by pledging to “Axe the Tax” every chance he gets. Chances are that pledge will carry his party into the majority, whenever we get around to having an election.

That said, we must be careful because the Carbon Tax is just one part of Trudeau’s Net-Zero program. It would be a catastrophic blunder for the Conservatives, upon entering government, to repeal only the Carbon Tax and leave the rest of the Liberals’ green agenda in place. Doing so would jeopardize Poilievre’s ability to make life in Canada more affordable.

There are a whole raft of policies on this file which a Poilievre government should quickly repeal. Here are a few which ought to be at the top of the list:

Clean Fuel Regulations (CFR)

Trudeau’s Clean Fuel Regulations (CFR), which I’ve nicknamed the Second Carbon Tax, are designed to reduce the carbon intensity of fuels like gasoline and diesel by blending increased amounts of ethanol into those fuels, making them less efficient while potentially contributing to engine corrosion and other problems. Plus, it’s estimated that the CFR will raise gasoline prices between six and seventeen cents a litre by 2030. Which is to say, we’ll be paying more for fuel and getting less out of it.

And, like the original Carbon Tax, the cost of the CFR is felt beyond the pumps, with estimates suggesting it will increase household energy costs by between 2.2 and 6.5 percent a year, while also significantly constricting the growth of our economy. These regulations ought to be scrapped entirely.

Emissions Caps

As I’ve written elsewhere, the Trudeau government’s proposed Emissions Cap, which targets our nation’s oil and gas sector, “would make Canada the only country in the world which willingly and purposefully stifles its single largest revenue stream.” Oil and gas is our “golden goose,” according to a study by Jack Mintz and Philip Cross, but the Trudeau government is proposing a cap on that sector’s carbon emissions, which a recent Deloitte report found “would lead to a 10% decrease in Alberta’s oil production and a 16% decrease in conventional natural gas production.” That translates to an estimated decline of real GDP in Alberta of $191 billion, and of $91 billion in the rest of Canada.

This is madness, and that’s before we even touch on the fact that it will have no discernable impact on global carbon emissions. It merely ensures that the world’s energy needs will be met by less environmentally responsible nations like Russia, Venezuela, Saudi Arabia, and Iran.

Electric Vehicle Mandates and Subsidies

Among the most reckless policies enacted by this government is Trudeau’s Electric Vehicle (EV) mandate, which bans the sale of new gas-and-diesel driven cars and trucks by 2035. I’ll say that again – in just under a decade, every new car and truck sold in Canada will have to be electric! This despite the fact that electric vehicles are notoriously bad at holding their charge in cold weather, one of our country’s trademarks.

And that’s assuming you can find a place to charge them. Natural Resources Canada estimates that we will need roughly 450,000 public charging stations by 2035 to make this EV transition at all realistic. At the moment we have about 28,000.

Plus, the wholesale adoption of EVs across Canada would put a tremendous strain on our electrical grid, especially at a time when the environmentalists have been pushing for a nationwide transition to less reliable methods of generating electricity, like wind and solar.

And then there’s the billions in subsidies which support the mandate. Federal and provincial taxpayer dollars are being thrown at automotive companies to underwrite their producing a product which taxpayers will then be forced to buy. It’s an outrageous example of double dipping.

Poilievre seems to understand this. He has called the EV mandate “a tax on the poor,” because of the elevated cost of an EV, compared to traditional vehicles, and he’s slammed the subsidies as bad deals for Canada.

Even so, when Trudeau has accused Poilievre of wanting to cancel the subsidies, Poilievre has tended to pivot to discussing the “generational” opportunity Canada has to start producing the minerals necessary for EV batteries, if only the Liberals would speed up the approval process for new mines.

That’s all well and good, except that the entire EV industry is built on subsidies and mandates. And even with those, countries around the world are finding that demand for EVs is much softer than anticipated. Some “generational” opportunity for Canada, to become a key link in the supply chain for a product that no one wants! Much better to change course, scrap the mandates and subsidies, and see if the industry can stand on its own two feet. Once consumers have shown that they’re willing to buy EVs, then we can talk.

And Many More…

Of course, repealing these policies is just scratching the surface. I could easily have written about the problems with Bill C-69, the so-called “no new pipelines bill;” Bill C-48, the Oil Tanker Moratorium Act which significantly reduces Canada’s ability to export our natural resources; or Bill C-59, which bans businesses from touting the environmental positives of their work if it doesn’t meet a government-approved standard.

The fact of the matter is, Canadians need a government that will not just pull down the low-hanging fruit of the Carbon Tax, but to “axe” the numerous Net-Zero policies, enacted by Trudeau’s and his environmentalist allies over the past nine years, which are making all of our lives more expensive.

Pierre Poilievre has his work cut out for him. Let’s all hope that he turns out to be the man we need him to be. We can’t afford anything less.

Dan McTeague is President of Canadians for Affordable Energy.

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Carbon Tax

Don’t be fooled – He’s Still Carbon Tax Carney

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CAE Logo Dan McTeague

Carney and the Trudeaupians in his cabinet haven’t had some kind of massive conversion. They’ve not done any soul searching. There’s no repentance here for having made our lives harder and more expensive. They remain ideologically opposed to Affordable Energy.

Over the next several days you will see headline after headline proclaiming that the Carbon Tax is old news, because Mark Carney has repealed it. ‘Promises made, promises kept!’ will be the line spouted by our bought-and-paid-for media, desperate to prevent Pierre Poilievre from winning the election.

Of course, this will be the same media who has spent the past few years declaring that Canadians love, are positively infatuated with, Carbon Taxation. So forgive me for scoffing at their sudden about-face, clapping like trained seals when Justin Trudeau’s newly anointed heir waives his pen and proclaims to the electorate that the Carbon Tax is dead.

The thing is, it’s not. It’s still there. And it will still be there as long as Mark Carney is running the show.

And of course it will. Mark Carney is an environmentalist fanatic and lifelong Apostle of Carbon Taxation. Just listen carefully to everything he’s said since he threw his hat in the ring to take over as PM. He’s said that the Carbon Tax “served a purpose up until now,” but that it’s become “too divisive.” He was careful to always pledge to repeal the Consumer Carbon Tax, rather than the entire thing. And in the end he didn’t even do that, just zeroed it out for the time being.

Carney and the Trudeaupians in his cabinet haven’t had some kind of massive conversion. They’ve not done any soul searching. There’s no repentance here for having made our lives harder and more expensive. They remain ideologically opposed to Affordable Energy.

The fact is, the only reason they’re changing anything is because we noticed.

They’re determined that that won’t happen again. The Carbon Tax will live on, but as hidden as it can possibly be, buried under every euphemism and with every accounting trick they can think of.

Trust me, we at CAE would be taking a victory lap if the Carbon Tax were really dead. We did as much as anyone – and more than most! – to wake Canadians up to what it was doing to our quality of life, our ability to gas up our cars, heat our homes, and afford our groceries. When the day comes that this beast is actually slain, we will have quite the celebration.

But that day is not today.

What happened, instead, was that an elitist Green ideologue shuffled the deck chairs on the Titanic in the hopes that the working people of Canada would miss the Net-Zero iceberg bearing down on us.

Don’t be fooled!

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Business

Doug Ford needs to ditch the net-zero pipedreams

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CAE Logo Dan McTeague

Congratulations are in order for Doug Ford, newly re-elected in Ontario to his third consecutive majority government. As a proud Ontarian myself, I wish Premier Ford great success, which will ultimately be measured not by how many votes he’s won, but by the quality of the policies he implements and how well he responds to the challenges which arise on his watch.

Of course, the two are related. Bad policy can instigate a crisis. And bad policy in the midst of one often transforms a challenge into a catastrophe. Just one instructive example: Remember that in the wake of the Stock Market Crash of 1929, President Herbert Hoover signed into law the Smoot-Hawley Tariff, which, as John Robson recently observed on Twitter/X, helped turn “a painful short-term correction into an agonizing decade of misery.”

That is a moment in history our American friends would do well to remember just now. Though Donald Trump has been crowing about the economic benefits of tariffs for decades, the historical record tells a different story. And, more importantly for us, no matter how much damage Trump’s tariffs do to the American economy, they will be worse for Canada.

This is a moment in which our country is in desperate need of political leadership. That isn’t going to come from Ottawa, where the Trudeau Liberals and their accomplices in the NDP have shuttered parliament for months so that they can hold a coronation for their fellow Green Elitist, Mark Carney, who is all set to double-down on the disastrous net-zero policies of his predecessor.

So we are going to have to rely, at least in the near term, on our premiers to respond to this crisis. And so far very few of them – the notable exception being Danielle Smith – have shown the kind of ingenuity and resilience we need at this moment.

Ford himself has done everything he can to make himself the face of Canada’s response to the tariff threat. He’s made a great show of removing (already purchased) American-made products from LCBO.’s shelves, he has pledged to put a 25% export tax on energy, and he’s threatened to cut off Ontario’s energy exports to the United States entirely. In defense of the latter, Ford said, “They want to come at us hard, we’re going to come back twice as hard.”

That might sound impressive, but unfortunately Canada lacks the economic capacity to “come back twice as hard.” Years of mismanagement, on the federal, provincial, and even municipal levels, have left us in a terrible position to negotiate with the world’s largest economy. We have taken every opportunity to shoot ourselves in the foot, chasing foolish net-zero pipedreams which have succeeded only in squandering our capital, and smothering the oil and gas industry upon which our prosperity relies.

Justin Trudeau and his cronies deserve a lot of the blame for that, but the Ford government deserves its share as well. Ford long ago drank the net-zero kool-aid. He embraced the so-called “green energy transition” to such an extent that his government renamed its energy ministry the ‘Ministry of Energy and Electrification,’ a nod to the idea that we need to move away from fossil fuels and embrace electrically-powered everything. Neglecting to mention, of course, where that electricity is going to come from. (Hint: it’s not from expensive and inefficient wind and solar projects! Which, by the way, Ford has also invested heavily in.) And, relatedly, he’s stated that he will not be happy until Ontario achieves a 100% zero-carbon electricity grid, moving away from affordable and reliable natural gas as an energy source.

On top of that, Ford has gone “all in” on electric vehicles, teaming up with Trudeau to invest tens-of-billions of taxpayer dollars in a bid to attract EV manufacturing to his province. This investment wasn’t looking so hot before Trump’s election – remember when the Ford Motor Company scrapped their plan to build EVs at their plant in Oakville, Ont, due to “an unexpected slowdown” in demand for battery powered cars? And it has looked much worse since, once Trump got to work repealing the Biden administration’s de facto EV mandate.

Without that mandate, there will be a few hundred million fewer potential EV buyers in the world. People aren’t exactly lining up to buy EVs if they don’t have to. And though Trudeau’s 2035 EV mandate is still in place, even the Canadian market is softer than expected, especially after the federal program subsidizing the purchase of EVs – to the tune of $5,000 a piece – ran out of money and ended abruptly earlier this year.

But despite the changed environment, Ford doubled down on his commitment to EVs during the campaign. His platform read, “A re-elected PC government would continue to make these investments regardless of any decision by the U.S.,” and Ford continually reaffirmed his intention to continue to “invest in the sector.”

This is worse than rearranging the deck chairs on the Titanic. It’s closer to setting fire to the few lifeboats the ship actually has.

Ontario’s voters have once again entrusted our province to Doug Ford. But if he doesn’t start taking this crisis seriously – by shoring up the province’s financial situation and increasing our competitiveness by changing course on EVs and kicking net-zero to the curb – he won’t be remembered as the first premier to win three consecutive majorities in over 60 years. Instead he’ll be remembered as the guy who took Ontario past the point of no return.

Dan McTeague is the president of Canadians for Affordable Energy and a former Liberal member of Parliament.

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