Manitoba axes carbon tax

Manitoba axes carbon tax
Oct 04, 2018

 

Ag group uncertain what these changes will mean for producers in the province

By Kate Ayers
Staff Writer
Farms.com

Manitoba joins the ranks of provinces rejecting Ottawa’s carbon tax, which could impact farmers’ production costs.

“Manitoba is now one of five provinces that has decided to not participate in the federal government’s climate plan and we are not exactly sure where this leaves us,” Bill Campbell, Keystone Agricultural Producers (KAP) president, said to Farms.com today.

Provincial Government officials “had made a plan that was better suited for Manitoba and the federal government has not recognized what is better for Manitoba.”

The provincial government will use its Made-in-Manitoba and Green Plan, which officials released last year.

“Our Made-in-Manitoba plan proposed a flat, fixed tax rate that would provide stability to consumers, business, industry and agriculture,” Brian Pallister, Manitoba’s premier, said in a government release yesterday.

“It would save Manitoba families and business more than $260 million over five years, compared to the Ottawa plan.

“Most importantly, all monies collected under our plan would be returned to Manitobans, in the form of tax reductions.”

Pallister’s government proposed a carbon price of $25 per tonne. The fed’s plan would start at $10 per tonne this year, increasing each year until reaching $50 per tonne in 2022, a CBC article said yesterday.

The Made-in-Action plan has four main pillars:

  • cleaner water
  • conservation of natural areas
  • effective steps to address climate change
  • strengthening the economy

The plan also commits to provincial investments in renewable energy and encourages residents to reduce their energy use, the release said. But agriculture faces some unique production challenges.

“We had an exemption for farm fuels and had lobbied hard for the inclusion of space heating and heating fuel for dryers (to be) recognized as being an exemption as well,” Campbell said.

“We participated in discussions of how agriculture could help with regard to climate change. We want to be a part of the solution.”

Although government officials have reached out to Ottawa for assurance the province will not be subject to the federal carbon tax, they have not received confirmation.

“Ottawa acknowledged that our plan is the best in Canada,” Pallister said.

“But they have also stated that they will impose their higher – and – rising carbon tax on Manitobans after one year.”

The province’s plan will benefit the environment and the people, Pallister added.

And KAP will continue discussions about the carbon tax with producers.

“This is a relatively big issue with regard to agriculture in Manitoba. I hope everyone has the opportunity to do a little bit of research about it and see how it could affect his or her operation,” Campbell said. 

Manitoba PC Caucus photo

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