Friday, June 27, 2008

From Toronto Star - Dion gung-ho on carbon tax


Liberal Leader Stephane Dion defends his green policy in a meeting with the Toronto Star editorial board on June 26, 2008.

Liberal leader, hinting at a possible fall election, defends his complex, environmentally friendly plan


Ottawa bureau chief

A bullish Stéphane Dion says he's confident he can win over Canadians with his party's climate change plan, even though it will mean higher energy costs.

"It's a debate and we intend to win it because we have a good policy, good values," Dion said.

"It's the first time in history I guess that you have this debate about climate change that may be at the core of an election," Dion said, hinting that his party, after several missed opportunities, may finally be ready to topple the minority Tories.

The Liberal leader, fresh from unveiling the policy last week, is in the early days of a nationwide, summer sales pitch to sell Canadians on the strategy for tackling greenhouse gas emissions.

"I'm pleased by where we are in the debate. I hope it will continue through the summer," he said during a meeting with the Toronto Star editorial board yesterday.

But it's no secret he faces a challenge in persuading Canadians to sign on to a plan that will boost the cost of diesel, home heating oil and natural gas – but could also serve up income tax cuts, too.

Liberals say fuel for cars, trucks and buses would not be affected because gasoline is already subject to a 10-cent-a-litre federal excise tax.

Dion defended the twin goals of his party's ambitious "Green Shift" to curb greenhouse gas emissions while at the same time reforming the country's tax system to put more money in the wallets of the poor.

"I have received some criticism, `why is it about helping the poor? That has nothing to do with climate change and the environment'," Dion said.

"To the contrary. Who will be the most affected by climate change if it is not the most vulnerable people ...," he said.

"This plan is a plan that brings together economic growth, environmental sustainability but also social justice," Dion said.

"It's a change of our tax regime to make it more progressive," he said. "I'm committed to fight poverty."

Under the Liberal proposal, a carbon tax would be slapped on fossil fuels, meaning higher costs for individuals, homeowners and businesses.

But Dion has promised the Liberal plan will be revenue neutral and that the federal tax windfall, estimated to be about $15 billion, will be returned to individuals and corporations in the form of tax breaks.

However, lower-income families stand to come out ahead. For example, a two-income couple earning $20,000 with two children would get back almost $2,400, compared to $1,300 for a couple earning $100,000.

"We are asking the polluters to pay. The polluters are all of us but some of us are more polluting than others and they will have to pay more," Dion said.

"The people with little means will receive more money," he said.

He also touted the Liberals' investments to help businesses cope with the changes, and said Ottawa should take a leadership role to ensure Canadian companies are at the leading edge of "green technologies."

"The booming part of the global economy today is green technology because humanity is facing two problems ... cheap oil is over and climate change," Dion said.

Ontario's manufacturing sector, notably its struggling auto industry, could reap the benefits but only with Ottawa's help, he said.

"If we don't act and we continue to try to build the big polluting cars ... we have no future," Dion said.

"It's what I want to indicate, not only to the auto industry but to world, Canada is the place to invest for green technologies," he said.

But he was vague on his party's strategy for a carbon tariff on imports, meant to ensure that domestic manufacturers, who could see costs go up because of the carbon tax, aren't disadvantaged by cheaper imports.

"To design a carbon tariff is something I want to do well. I need to consult a lot of experts to be sure. But the commitment is there. We will build carbon pricing into our strategy for international trade," Dion said.

"Where it's possible, we will ensure that goods from countries that are not pricing carbon will face a tariff reflective of carbon content," he said.

Dion, who has staked his political future on the green plan, hinted that current debate is just the prelude for an election battle that could come this fall.

After ducking repeated opportunities to topple the minority Conservatives in the last parliamentary session, Dion was fired up yesterday as he talked about the urgency to enact his party's climate change strategy.

"The science is telling us you need to act right away. ... we need to start now," Dion said.

And he said the next election would be a turning point for the country as climate change takes centre stage.

"It will not only be for the next four years but the next 40 years," Dion said.

"It will decide whether we want to tackle the challenges of the century or ignore them."

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