Economy
MP Earl Dreeshen explains opposition to budget and support for plan to replace the Carbon Tax
Submitted by Red Deer – Mountain View MP Earl Dreeshen
In Touch with MP Earl Dreeshen
2021 has continued to be a challenging year after a turbulent 2020. Our community as well as communities and governments around the world are navigating the COVID-19 pandemic and it has led to significant challenges. Many people are dealing with significant health effects, financial strain, mental health strain, and so much more.
I would challenge everybody to recognize that, to some degree, everyone in Canada has been affected by the pandemic. I encourage you to keep that in mind in our dealing with our neighbors and fellow community members going forward.
2021 Budget
For the first time in over two years, the Liberal Government has tabled a budget. They spent most of the pandemic, and the year prior, dodging from accountability on their spending and we can see why.
It’s clear Justin Trudeau’s election budget fails to put forward a plan to adequately fund healthcare, grow the economy, and create jobs.
Justin Trudeau’s budget is a massive letdown for Canadians. Unemployed Canadians hoping to see a plan to create new jobs and economic opportunities for their families are going to feel let down. Workers who have had their wages cut and hours slashed hoping to see a plan to reopen the economy are going to feel let down. Families that can’t afford more taxes and are struggling to save more money for their children’s education or to buy a home are going to feel let down.
This is not stimulus spending focused on creating jobs, but spending on Liberal partisan priorities backed by a $100 billion election slush fund. Unfortunately, this budget does nothing to secure long term prosperity for Canadians. Instead, what Justin Trudeau has proposed is a “reimagined” Canadian economy that dabbles in risky economic ideas, like abandoning Canada’s world leading and sustainable natural resource industries, leaving our economy in a precarious position.
For these reasons, my Conservative colleagues and I voted against the 2021 Budget. More of my thoughts on the budget can be found here
Economic Recovery
As Conservatives, we have been focused on economic recovery across Canada. We acknowledge that these times are unprecedented and additional measures were necessary. Millions of Canadians had their employment and businesses impacted and there was a responsibility to those who fell through the cracks.
However, the reason why these programs need to be extended is due to Justin Trudeau’s failure on vaccines. We are behind many of our allies on moving forward which is why it is so critical that we have a plan to recovery now, and can hit the ground running when possible.
Erin O’Toole and our team has put forward Canada’s Recovery Plan, which is focused on creating financial security and certainty. This plan will safely secure our future and deliver a Canada where those who have struggled the most through this pandemic can get back to work.
This plan will ensure that manufacturing at home is bolstered, where wages go up, and where the dream of affording a better life for their children can be realized by all Canadians.
We are focused on securing jobs and the economy for Canadians who have been left behind by Justin Trudeau.
Canada’s Conservatives got Canada through the last recession, and with Canada’s Recovery Plan, we will get Canadians through this one too.
Conservative Environment Policy
I have heard a lot of feedback already on the proposed Conservative Environment Policy.
As you might know, I have been a vehement opponent of the Liberal government’s environmental approach, and of their Carbon Tax. I have spoken in the House of Commons and other venues on many occasions about the devastating impact the Carbon Tax is having on our farmers and ranchers as well as its devastating impact on all residents of Alberta – who are literally seeing their paychecks and their savings eaten away by this ill-conceived Liberal tax.
My Conservative colleagues and I remain committed to scrapping the job-killing Carbon Tax. We also remain firmly committed to protecting and enhancing our environment – as Conservatives have always done. Conservatives have always been the party which cares the most about conserving our resources, protecting our soils and waters, while taking action to preserve the environment we live in. As Western Canadians, we all understand the need to preserve the environment for future generations.
What we don’t understand is the Liberal government’s approach which is one of big government taxing consumers and phasing out jobs at a time that we need them the most.
Our plan for the environment does include a carbon pricing mechanism. Young Canadians in particular want to see us take action on this front. And we will need a broader base of voter support than we have had in the past if we are going to form Canada’s next government.
In a nutshell, the Low Carbon Saving Account works like Airmiles or other affinity programs. When you purchase gas, your card is fully credited the carbon price. You can bank that money to eventually use on energy efficient products like new windows, hot water tanks, low emission equipment for your farm or business, etc. Businesses get their own account so they no longer pass the cost onto you the consumer as a ‘hidden carbon tax’.
A comparison I have heard is to the deposit on your cans and bottles. You pay it, but if you return the cans and bottles you get that money back. Yes, there will be upfront costs, but the costs will be less than 1/3 of the Liberal plan once fully implemented and you retain agency of every penny you put in.
One of the other major concepts is that small businesses and non-profits will be able to keep control of the money they pay, instead of the current system where these organizations subsidize the program for people in downtown Toronto who don’t have to drive to work.
The savings account idea is only a portion of the plan in total. I would encourage you to look at the whole plan if you are interested. One of the driving ideas is that we don’t want to shut down our industry just to see it end up in other jurisdictions. Our plan addresses that by being less punishing for using carbon while still incentivising more environmentally friendly practises through use of the savings plan. We will also study putting tariffs on certain products that come from places like China that do not do their part in addressing the environment, so that we are not artificially harming our own industries.
Independent analysis, conducted by Navius Research, found this plan would be expected to achieve substantially the same emission reductions as the Stephen Harper’s targets, while resulting in a boost to jobs and the economy. In addition, not a cent of consumer tax dollars will end up with bureaucrats in Ottawa.
I would ask you to take the time to read the plan in its entirety and not rely solely on media coverage.
Business
Carbon tax bureaucracy costs taxpayers $800 million
From the Canadian Taxpayers Federation
By Ryan Thorpe
The cost of administering the federal carbon tax and rebate scheme has risen to $283 million since it was imposed in 2019, according to government records obtained by the Canadian Taxpayers Federation.
By 2030, the cost of administering the carbon tax is expected to total $796 million, according to the records.
“Not only does the carbon tax make our gas, heating and groceries more expensive, but taxpayers are also hit with a big bill to fund Prime Minister Justin Trudeau’s battalion of carbon tax bureaucrats,” said Franco Terrazzano, CTF Federal Director. “Trudeau should make life more affordable and slash the cost of the bureaucracy by scrapping the carbon tax.”
The government records were released in response to an order paper question from Conservative MP John Barlow (Foothills).
The carbon tax and rebate scheme cost taxpayers $84 million in 2023, according to the records.
There were 461 federal bureaucrats tasked with administering the carbon tax and rebate scheme last year, according to the records.
The CTF previously reported administering the carbon tax cost taxpayers $199 million between 2019 and 2022.
Projected costs for administering the carbon tax and rebate scheme between 2024 and 2030 are $513 million, according to the records.
That would bring total administration costs for the carbon tax and rebate scheme up to $796 million by 2030.
But the true hit to taxpayers is even higher, as the records do not include costs associated with the Fuel Charge Tax Credit for Farmers or the Canada Carbon Rebate for Small Businesses.
“It’s magic math to believe the feds can raise taxes, skim hundreds-of-millions off the top to hire hundreds of new bureaucrats and then somehow make everyone better off with rebates,” Terrazzano said.
The carbon tax will cost the average household up to $399 this year more than the rebates, according to the Parliamentary Budget Officer, the government’s independent, non-partisan budget watchdog.
The PBO also notes that, “Canada’s own emissions are not large enough to materially impact climate change.”
The government also charges its GST on top of the carbon tax. The PBO report shows this carbon tax-on-tax will cost taxpayers $400 million this year. That money isn’t rebated back to Canadians.
The carbon tax currently costs 17 cents per litre of gasoline, 21 cents per litre of diesel and 15 cents per cubic metre of natural gas.
By 2030, the carbon tax will cost 37 cents per litre of gasoline, 45 cents per litre of diesel and 32 cents per cubic metre of natural gas.
Economy
COP 29 leaders demand over a $1 trillion a year in climate reparations from ‘wealthy’ nations. They don’t deserve a nickel.
COP 29 is calling for over $1 trillion in annual climate reparations
- A major theme of COP 29 is that the world should set a “New Collective Quantified Goal” wherein successful nations pay poor nations over $1 trillion a year to 1) make up for climate-related harm and 2) build them new “green energy” economies. In other words, climate reparations.¹
- What would $1 trillion a year in climate reparations mean for you and your family?Assuming the money was paid equally by households considered high income (>$50 per day), your household would have to pay more than $5,000 a year in climate reparations taxes!²
- Climate reparations are based on two false assumptions:1. Free, wealthy countries, through their fossil fuel use, have made the world worse for poor countries.
2. The poor world’s main problem is dealing with climate change, which wealth transfers will help them with.
But free, fossil-fueled countries have made life better for poor countries
- Free, wealthy countries, through their fossil fuel use, have not made the world worse for poor countries—they have made it far, far better.Observe what has happened to global life expectancies and income as fossil fuel use has risen. Life has gotten much better for everyone.³
- The wealthy world’s fossil fuel use has improved life worldwide because by using fossil fuel energy to be incredibly productive, we have 1) made all kinds of goods cheaper and 2) been able to engage in life-saving aid, particularly in the realms of food, medicine, and sanitation.
- Without the historic use of fossil fuels by the wealthy world, there would be no super-productive agriculture to feed 8 billion humans, no satellite-based weather warning systems, etc. Most of the individuals in poor countries would not even be alive today.
Free, fossil-fueled countries have made the poor safer from climate
- The wealthy world’s fossil fuel use has been particularly beneficial in the realm of climate.Over the last 100 years, the death rate from climate-related disasters plummeted by 98% globally.
A big reason is millions of lives saved from drought via fossil-fueled crop transport.⁴
- The “climate reparations” movement ignores the fact that the wealthy world’s fossil fuel use has made life better, including safer from climate, in the poor world.This allows it to pretend that the poor world’s main problem is dealing with rising CO2 levels.
The poor world’s problem is poverty, not rising CO2 levels
- The poor world’s main problem is not rising CO2 levels, it is poverty—which is caused by lack of freedom, including the crucial freedom to use fossil fuels.Poverty makes everything worse, including the world’s massive natural climate danger and any danger from more CO2.
- While it’s not true that the wealthy world has increased climate danger in the poor world—we have reduced it—it is true that the poor world is more endangered by climate than the wealthy world is.The solution is for the poor to get rich. Which requires freedom and fossil fuels.⁵
Escaping poverty requires freedom and fossil fuels
- Every nation that has risen out of poverty has done so via pro-freedom policies—specifically, economic freedom.
That’s how resource-poor places like Singapore and Taiwan became prosperous. Resource-rich places like Congo have struggled due to lack of economic freedom.
- Even China, which is unfree in many ways (including insufficient protections against pollution) dramatically increased its standard of living via economic freedom—particularly in the realm of industrial development where it is now in many ways much freer than the US and Europe.
- A crucial freedom involved in rising prosperity has been the freedom to use fossil fuels.Fossil fuels are a uniquely cost-effective source of energy, providing energy that’s low-cost, reliable, versatile, and scalable to billions of people in thousands of places.⁶
- Time and again nations have increased their prosperity, including their safety from climate, via economic freedom and fossil fuels.Observe the 7X increase in fossil fuel use in China and India over the past 4 decades, which enabled them to industrialize and prosper.⁷
- For the world’s poorest people to be more prosperous and safer from climate, they need more freedom and more fossil fuels.The “climate reparations” movement seeks to deny them both.
- The wealthy world should communicate to the poor world that economic freedom is the path to prosperity, and encourage the poor world to reform its cultural and political institutions to embrace economic freedom—including fossil fuel freedom.Our leaders are doing the opposite.
Climate reparations pay off dictators to take away fossil fuel freedom
- Instead of promoting economic freedom, including fossil fuel freedom, wealthy climate reparations advocates like Antonio Guterres are offering to entrench anti-freedom regimes by paying off their dictators and bureaucrats to eliminate fossil fuel freedom.This is disgusting.⁸
- The biggest victim of “climate reparations” will be the world’s poorest countries, whose dictators will be paid off to prevent the fossil fuel freedom that has allowed not just the US and Europe but also China and India to dramatically increase their prosperity.
- The biggest beneficiary of “climate reparations” will be China, which is already emitting more CO2 than the US and Europe combined. (Though less per capita.)While we flagellate and cripple ourselves, China will use fossil fuels in its quest to become the world’s superpower.⁹
- The second biggest beneficiary of “climate reparations” will be corrupt do-gooders who get to add anti-fossil-fuel strings to “reparations” dollars and dictate how it’s spent—which will surely include lots of dollars for unreliable solar panels and wind turbines made in China.
Leaders must reject reparations and champion fossil fuel freedom
- We need leaders in the US and Europe who proudly:1. Champion the free world’s use of fossil fuels as an enormous good for the world, including its climate safety.
2. Encourage the poor world to embrace economic freedom and fossil fuels.
Tell your Representative to do both.
Popular links
- EnergyTalkingPoints.com: Hundreds of concise, powerful, well-referenced talking points on energy, environmental, and climate issues.
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1 Scientific American – COP27 Summit Yields ‘Historic Win’ for Climate Reparations but Falls Short on Emissions Reductions
Phys.org – COP29 climate finance deal ‘must cover loss and damage,’ experts urge
COP29 official website – Fund for responding to Loss and Damage ready to accept contributions
2 Global population was about 8.02 billion in 2023.
About 7% of world population are considered high income, which translates into about 562 million individuals. Considering 3 people per average household in high income households, this translates into about 187 million households.
Pew Research – Are you in the global middle class? Find out with our income calculator
$1 trillion per annum paid by 187 million households means the average household would pay about $5,300 per year.
3 Maddison Database 2010 at the Groningen Growth and Development Centre, Faculty of Economics and Business at University of Groningen
4 UC San Diego – The Keeling Curve
For every million people on earth, annual deaths from climate-related causes (extreme temperature, drought, flood, storms, wildfires) declined 98%–from an average of 247 per year during the 1920s to 2.5 in per year during the 2010s.
Data on disaster deaths come from EM-DAT, CRED / UCLouvain, Brussels, Belgium – www.emdat.be (D. Guha-Sapir).
Population estimates for the 1920s from the Maddison Database 2010, the Groningen Growth and Development Centre, Faculty of Economics and Business at University of Groningen. For years not shown, population is assumed to have grown at a steady rate.
Population estimates for the 2010s come from World Bank Data.
5 UC San Diego – The Keeling Curve
Data on disaster deaths come from EM-DAT, CRED / UCLouvain, Brussels, Belgium – www.emdat.be (D. Guha-Sapir).
Population estimates come from World Bank Data.
6 Our World in Data – Energy Production and Consumption
7 BP – Statistical Review of World Energy
8 UN News – ‘Pay up or humanity will pay the price’, Guterres warns at COP29 climate summit
9 Our World in Data – Annual CO₂ emissions from fossil fuels, by world region
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