Carbon tax could hit Canadians

The Canadian government is being accused of sliding a costly carbon tax through the back door by treating carbon dioxide as a toxic substance Kyoto Protocol measures published earlier in July in the official newspaper of Parliament.

Without any public announcement, the Canadian Environmental Protection Act required large industrial companies to reduce their emissions of greenhouse gases by 45 million metric tons, or 16 percent of Canada’s total output.

Failure to comply will result in fines amounting to C$200 million per million metric tons.

By including the rules in the official newspaper of Parliament, the Liberal government of Prime Minister Paul Martin does not have to obtain approval from the House of Commons.

That has enraged the major opposition party, the Conservatives.

Bob Mills, environment spokesman for the Conservatives, said the Liberals should have had the courage to introduce legislation and allow a full debate on rules that could have a severe impact on the Canadian economy.

Industry-specific agreements recognized

For the petroleum industry that means a 15 percent increase in carbon output from 1990 negotiated with the previous administration of Prime Minister Jean Chrétien will still apply.

There is also a promise to consult with private-sector stakeholders over the new rules. The measures suggest that companies unable to meet their emission targets will buy so-called credits from domestic or overseas sources to meet the targets or contribute to a government green-technology fund.

But indications that the government has bought into the concept of a carbon tax, despite assurances to the contrary from federal officials earlier this year, points to higher gasoline and electricity prices for consumers, said John Williamson, a director of the Canadian Taxpayers Federation.

—Gary Park