Manitoba will still push forward with carbon tax challenge despite Supreme Court ruling
Premier says he's optimistic Manitoba's plan is stringent enough to sway court
Manitoba Premier Brian Pallister says the province is still moving forward with its own legal challenge of the federal carbon tax, despite a Supreme Court ruling that the federal Liberal government's carbon pricing regime is constitutional.
In the decision released Thursday morning, Chief Justice Richard Wagner, writing for the majority, said the federal government can impose minimum pricing standards on provinces because the threat of climate change is so great that it requires a national approach.
The province was an intervenor in that case.
However, Pallister says the province's legal challenge is based on different grounds, and argues that Manitoba's plan still addresses the threat of climate change while being a better fit for the needs of the province.
Pallister believes Manitoba should be recognized for his willingness to impose a carbon tax and the green investments the province has already made in hydroelectricity.
"I think we've made a compelling case — a better case, frankly, I would have to say, than our other provincial counterparts had made — because … we stepped up and we demonstrated we were ready to act on climate change and do a carbon tax."
Wagner's decision said a patchwork approach — with some provinces refusing to impose a price on carbon — would hinder Canada's collective fight against climate change.
However, it also says the federal government can only apply its carbon price if the province's price is insufficiently stringent.
Pallister says this part of the decision makes him optimistic Manitoba could win its court case.
"Manitoba has demonstrated a commitment," he said. "We have developed our own plan and we are implementing it, so we don't believe that the federal government has a right to jump overtop of what Manitobans have worked so hard on."
I think we have a better plan and I'm confident that Manitobans will work better on it because it comes from us.- Premier Brian Pallister on why Manitoba will proceed with its legal challenge
The Pallister government had wanted to impose a $25 a tonne carbon tax, while the federal government's plan escalates every year and will see the carbon tax rise to $50 a tonne by 2022.
The province abandoned its planned levy in 2018 after Ottawa ruled its flat levy wasn't stringent enough.
WATCH | Manitoba premier on carbon tax legal challenge:
Last year, Manitoba was planning to reintroduce the same carbon tax and take those revenues to lower the PST by one percentage point, but that plan was yanked once the pandemic hit.
Pallister said Thursday he is interested in trying a Manitoba carbon tax again, but he wouldn't commit to a dollar amount.
Manitoba NDP Leader Wab Kinew argues it's time for Pallister to stop wasting time and money fighting the federal government on the carbon tax, and start focusing on fighting climate change.
"The court decision today is sort of the 'end of the road' for conservative premiers opposing this, so now lets get on with fighting climate change instead of fighting court battles," he said.
"It's pretty clear that the federal government is moving in one direction, it seems pretty clear Canadians are moving in one direction, and so lets have our premier catch up."
The Canadian Centre for Policy Alternatives wants the province to move on as well, pointing out that in February, the Parliamentary Budget Officer found that because of the federal government's Climate Action Incentive rebate, most households will receive higher transfers than amounts paid in fuel charges.
In a news release, it argues a lower PST will benefit households with higher incomes more than others.
"This approach does not incentivize behaviour change necessary to curb carbon-intensive activities," the release says.
With files from John Paul Tasker, Ian Froese