Energy
Trudeau gov’t ‘green’ heat pump scheme to cost nearly quadruple initial estimate
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From LifeSiteNews
The scheme to try and incentivize Canadians to switch to less reliable heat pumps is expected to cost taxpayers $2.7 billion, up from the original $750 million estimate.
An ideologically charged Canadian federal government “green” program to try and get homeowners to switch their reliable heating oil furnaces for less reliable electric heat pumps via a large grant has been blasted by a taxpayer advocacy group as yet more government waste after it was revealed the program is set to cost nearly four times as much as originally thought.
According to Blacklock’s Reporter, a recent federal Legislative Costing Note from the Parliamentary Budget Office released last Thursday showed that estimated costs for a federal government program to give households $15,000 grants to switch to new heat pumps have gone from $750 million to $2.7 billion.
“The Budget Office estimates there are up to 244,000 households nationwide that could be eligible for program funding,” stated the Legislative Costing Note, which added that if all eligible households access the program, “we estimate the program could have a maximum potential cost of $2.7 billion.”
According to notes from the Enhancements To The Oil To Heat Pump Affordability Program, the program uptake was “projected by extrapolating historical participation trends in the program.”
The original scheme was to allow $10,000 to eligible homeowners to convert from their oil-fired furnaces to an electric heat pump. The cabinet of Prime Minister Justin Trudeau last October expanded the grants to $15,000 along with a $250 “one-time bonus payment.”
As it stands now, the grants apply to residents in the provinces of Nova Scotia, Prince Edward Island and Newfoundland and Labrador.
According to The Budget Office, “approximately 10,000 households” to date have officially qualified for electric heat pump grants.
In October of last year, amid dismal polling numbers that showed his government would be defeated in a landslide by the Conservative Party come the next election, Trudeau announced he was pausing the collection of the carbon tax on home heating oil in Atlantic Canadian provinces for three years.
He then revealed the main reason for the announcement, which was to encourage locals to ditch their home heating oil units for electric heat pumps and said his government would be giving out free pumps to many homeowners.
However, Trudeau refused to offer carbon tax relief to other provinces, such as Alberta and Saskatchewan, for natural gas. This led to Saskatchewan Premier Scott Moe announcing his government would defy the Trudeau government, and stop collecting the federal carbon tax on natural gas in this province, as of Jan 1, 2024.
Taxpayer watchdog: ‘None’ of this is ‘free money’
Franco Terrazzano, Federal Director of the Canadian Taxpayers Federation, told LifeSiteNews that “none” of the money going to the heat pump scheme is “free” and the Trudeau government instead should just scrap the carbon tax.
“Why does it feel like this government can’t keep anything on budget? Is there any wonder why this government is more than $1 trillion in debt?” said Terrazzano.
“None of this is free money.”
Terrazzano noted that if a person is getting a grant from the government, “all of that money will have to be paid back through higher taxes.”
“If the government wanted to make all areas of life more affordable, the government should leave more money in people’s pockets and cut taxes,” he told LifeSiteNews.
“Trudeau should completely scrap his carbon tax.”
Terrazzano added at the “very least,” Trudeau should “extend the same relief he provided to Atlantic Canadians and take the carbon tax off everyone’s home heating bill.”
Heat pumps do not work well in very cold weather unlike a natural gas or oil-fired furnaces, a fact which was even admitted by a former environment minister for the province of British Columbia, Barry Penner.
The Trudeau government is trying to force net-zero regulations on all Canadian provinces, notably on electricity generation, as early as 2035. His government has also refused to extend a carbon tax exemption on heating fuels to all provinces, allowing only Atlantic provinces, this benefit.
Canada has the third largest oil and gas reserves in the world, with most of it in Alberta. However, since taking office in 2015, Trudeau has continued to push his radical environmental agenda similar to the agendas being pushed the WEF’s “Great Reset” and the United Nations’ “Sustainable Development Goals.”
LifeSiteNews has earlier reported on how Trudeau’s carbon tax is costing Canadians hundreds of dollars annually, as government rebates it gives out are not enough to compensate for high fuel costs.
One of the reasons the carbon tax break was applied to Eastern provinces, might have something to do with the fact that there are 24 Liberal MPs up for re-election in Atlantic Canada.
A recent cold snap showed Canadian lives depend on carbon-based fuels to survive winter.
A little over a week ago, an extreme cold snap sent temperatures plummeting to nearly minus 50 degrees Celsius (58 degrees Fahrenheit) in much of Western Canada. It was so cold that the province of Alberta’s power grid almost collapsed due to a failure of wind and solar power. Natural gas and coal are abundant in Canada, notably in Alberta.
In response to the situation, the neighboring province of Saskatchewan, which was also facing the same cold snap, announced it would be providing Alberta with electricity, made from coal and natural gas, to stabilize the grid.
Alberta
Open letter to Ottawa from Alberta strongly urging National Economic Corridor
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Canada’s wealth is based on its success as a trading nation. Canada is blessed with immense resources spread across a vast country. It has succeeded as a small, open economy with an enviable standard of living that has been able to provide what the world needs.
Canada has been stuck in a situation where it cannot complete nation‑building projects like the Canadian Pacific Railway that was completed in 1885, or the Trans Canada Highway that was completed in the 1960s. With the uncertainty of U.S. tariffs looming over our country and province, Canada needs to take bold action to revitalize the productivity and competitiveness of its economy – going east to west and not always relying on north-south trade. There’s no better time than right now to politically de-risk these projects.
A lack of leadership from the federal government has led to the following:
- Inadequate federal funding for trade infrastructure.
- A lack of investment is stifling the infrastructure capacity we need to diversify our exports. This is despite federally commissioned reports like the 2022 report by the National Supply Chain Task Force indicating the investment need will be trillions over the next 50 years.
- Federal red tape, like the Impact Assessment Act.
- Burdensome regulation has added major costs and significant delays to projects, like the Roberts Bank Terminal 2 project, a proposed container facility at Vancouver, which spent more than a decade under federal review.
- Opaque funding programs, like the National Trade Corridors Fund (NTCF).
- Which offers a pattern of unclear criteria for decisions and lack of response. This program has not funded any provincial highway projects in Alberta, despite the many applications put forward by the Government of Alberta. In fact, we’ve gone nearly 3 years without decisions on some project applications.
- Ineffective policies that limit economic activity.
- Measures that pit environmental and economic objectives in stark opposition to one another instead of seeking innovative win-win solutions hinder Canada’s overall productivity and investment climate. One example is the moratorium on shipping crude through northern B.C. waters, which effectively ended Enbridge’s Northern Gateway proposal and has limited Alberta’s ability to ship its oil to Asian markets.
In a federal leadership vacuum, Alberta has worked to advance economic corridors across Canada. In April 2023, Alberta, Saskatchewan and Manitoba signed an agreement to collaborate on joint infrastructure networks meant to boost trade and economic growth across the Prairies. Alberta also signed a similar economic corridor agreement with the Northwest Territories in July 2024. Additionally, Alberta would like to see an agreement among all 7 western provinces and territories, and eventually the entire country, to collaborate on economic corridors.
Through our collaboration with neighbouring jurisdictions, we will spur the development of economic corridors by reducing regulatory delays and attracting investment. We recognize the importance of working with Indigenous communities on the development of major infrastructure projects, which will be key to our success in these endeavours.
However, provinces and territories cannot do this alone. The federal government must play its part to advance our country’s economic corridors that we need from coast to coast to coast to support our economic future. It is time for immediate action.
Alberta recommends the federal government take the following steps to strengthen Canada’s economic corridors and supply chains by:
- Creating an Economic Corridor Agency to identify and maintain economic corridors across provincial boundaries, with meaningful consultation with both Indigenous groups and industry.
- Increasing federal funding for trade-enabling infrastructure, such as roads, rail, ports, in-land ports, airports and more.
- Streamlining regulations regarding trade-related infrastructure and interprovincial trade, especially within economic corridors. This would include repealing or amending the Impact Assessment Act and other legislation to remove the uncertainty and ensure regulatory provisions are proportionate to the specific risk of the project.
- Adjusting the policy levers that that support productivity and competitiveness. This would include revisiting how the federal government supports airports, especially in the less-populated regions of Canada.
To move forward expeditiously on the items above, I propose the establishment of a federal/provincial/territorial working group. This working group would be tasked with creating a common position on addressing the economic threats facing Canada, and the need for mitigating trade and trade-enabling infrastructure. The group should identify appropriate governance to ensure these items are presented in a timely fashion by relative priority and urgency.
Alberta will continue to be proactive and tackle trade issues within its own jurisdiction. From collaborative memorandums of understanding with the Prairies and the North, to reducing interprovincial trade barriers, to fostering innovative partnerships with Indigenous groups, Alberta is working within its jurisdiction, much like its provincial and territorial colleagues.
We ask the federal government to join us in a new approach to infrastructure development that ensures Canada is productive and competitive for generations to come and generates the wealth that ensures our quality of life is second to none.
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Devin Dreeshen
Devin Dreeshen was sworn in as Minister of Transportation and Economic Corridors on October 24, 2022.
Business
New climate plan simply hides the costs to Canadians
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From the Fraser Institute
Mark Carney, who wants to be your next prime minister, recently released his plan for Canada’s climate policies through 2035. It’s a sprawling plan (climate plans always are), encompassing industrial and manufacturing emissions, vehicle emissions, building emissions, appliance emissions, cross-border emissions, more “green” energy, more “heat pumps” replacing HVAC, more electric vehicle (EV) subsidies, more subsidies to consumers, more subsidies to companies, and more charging stations for the EV revolution that does not seem to be happening. And while the plan seeks to eliminate the “consumer carbon tax” on “fuels, such as gasoline, natural gas, diesel, home heating oil, etc.” it’s basically Trudeau’s climate plans on steroids.
Consider this. Instead of paying the “consumer carbon tax” directly, under the Carney plan Canadians will pay more—but less visibly. The plan would “tighten” (i.e. raise) the carbon tax on “large industrial emitters” (you know, the people who make the stuff you buy) who will undoubtedly pass some or all of that cost to consumers. Second, the plan wants to force those same large emitters to somehow fund subsidy programs for consumer purchases to offset the losses to Canadians currently profiting from consumer carbon tax rebates. No doubt the costs of those subsidy programs will also be folded into the costs of the products that flow from Canada’s “large industrial emitters,” but the cause of rising prices will be less visible to the general public. And the plan wants more consumer home energy audits and retrofit programs, some of the most notoriously wasteful climate policies ever developed.
But the ironic icing on this plan’s climate cake is the desire to implement tariffs (excuse me, a “carbon border adjustment mechanism”) on U.S. products in association with “key stakeholders and international partners to ensure fairness for Canadian industries.” Yes, you read that right, the plan seeks to kick off a carbon-emission tariff war with the United States, not only for Canada’s trade, but to bring in European allies to pile on. And this, all while posturing in high dudgeon over Donald Trump’s plans to impose tariffs on Canadian products based on perceived injustices in the U.S./Canada trade relationship.
To recap, while grudgingly admitting that the “consumer carbon tax” is wildly unpopular, poorly designed and easily dispensable in Canada’s greenhouse gas reduction efforts, the Carney plan intends to double down on all of the economically damaging climate policies of the last 10 years.
But that doubling down will be more out of sight and out of mind to Canadians. Instead of directly seeing how they pay for Canada’s climate crusade, Canadians will see prices rise for goods and services as government stamps climate mandates on Canada’s largest manufacturers and producers, and those costs trickle down onto consumer pocketbooks.
In this regard, the plan is truly old school—historically, governments and bureaucrats preferred to hide their taxes inside of obscure regulations and programs invisible to the public. Canadians will also see prices rise as tariffs imposed on imported American goods (and potentially services) force American businesses to raise prices on goods that Canadians purchase.
The Carney climate plan is a return to the hidden European-style technocratic/bureaucratic/administrative mindset that has led Canada’s economy into record underperformance. Hopefully, whether Carney becomes our next prime minister or not, this plan becomes another dead letter pack of political promises.
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