Uncertainty abounds as federal carbon tax looms

However, the carbon tax is not one of those.

After speaking to the Battlefords Chamber of Commerce Friday afternoon, she said a large chunk of the province’s buildings that could be impacted by the tax — schools, health care facilities — are expected to be exempt, which should negate any major hit to the balance sheet. She said the impact on fuel expenses for the province’s fleet of vehicles will be minor.

“Governments deliver programs. Therefore, our big expense is wages and that is not affected by the carbon tax,” the minister said.

She said information from Ottawa on the entire process has been thin.

“I would love to give you some details on it but frankly they are not there,” Harpauer said.

The tax will be applied to energy and gas bills starting Monday. The province recently approved a rate change that will take SaskEnergy’s commodity rate to its lowest mark in 20 years, but the decrease is being wiped out by the incoming tax. According to the province, the carbon tax will see an average increase of $109 with a further $54 annual increase in each of the following three years.

“It is a tax. That’s all it is. It absolutely will do nothing to reduce emissions,” she added.

Saying the government is frustrated over the ordeal would be an understatement, Harpauer said.

Under Premier Brad Wall, the province stood alone in its fight against the federal government’s ability to levy such a charge. But in recent months, Ontario, Manitoba and New Brunswick have come to the province’s side. And pending the results of Alberta’s April 16 election, the number of jurisdictions opposed could grow to five if the United Conservative Party lead by Jason Kenney takes the legislature.

Harpauer is “very optimistic” for a positive outcome from the Saskatchewan Court of Appeal. The province argues Ottawa’s plan is unconstitutional as it does not respect provincial sovereignty and will not be evenly applied across all jurisdictions. Ottawa says it can impose the tax because climate change is a national issue.

“The federal government will appeal [if we win], but we are going to continue fighting the fight,” she said.

Chamber Chair Dallan Oberg said most business owners view the tax as simply an added cost.

“I have a few freight companies that when they set their contracts it wasn’t with the carbon tax in it,” he said.

While he backs the province’s fight of the tax, he wished they would have worked more closely with citizens on how to deal with it, knowing it was going to be put into effect.

Oberg echoed Harpauer’s comments regarding a lack of details from the federal government.

“If I upgrade my HVAC system and I send it in for a rebate, how fast is the rebate going to come,” he said. “If I spend $100,000, I am supposed to get a certain percentage back. Am I waiting six months, a year?”

He said many businesses will be borrowing money to make green upgrades, which will come with interest payments. This, he said, compounded on the tax, plus PST on construction and other increases will have a ripple effect on bottom lines. As an accountant by trade, he said the entire ordeal is frustrating.

“It is wait and see. People have questions and I can’t give them an answer because I don’t even know the rules yet,” he said.

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tyler.marr@jpbg.ca

On Twitter: @JournoMarr

by Tyler Marr

Uncertainty abounds as federal carbon tax looms

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