Carbon price plan could be changed again

Canada updates its carbon emissions tax policy

Canada updates its carbon emissions tax policy

All remaining industrial sectors will face a carbon tax on emissions over 80 per cent of the industry average.

"It is our position that the federal government has no constitutional authority to second guess provincial decisions with respect to matters within provincial jurisdiction, yet that is exactly what the federal government is attempting to do by imposing a carbon tax only in certain provinces, like Saskatchewan, based on their evaluation of provincial climate change and carbon pricing policies", said Moe in a statement, adding the province will "strongly consider" intervening in Ontario's legal challenge.

A spokeswoman for Environment Minister Catherine McKenna confirmed the move to CTV News following a report in the Globe and Mail.

Environment Canada officials met with representatives from more than a dozen Ontario industries, including auto and auto parts manufacturers, pharmaceutical companies and a number of chemical firms, last week to begin the process of assessing how their competitiveness might be affected by the carbon price. The federal system will only be applicable in provinces without a federally approved carbon price system of their own.

The federal environment minister says her first meeting with her Ontario counterpart has led her to the conclusion that the province does not seem to have a plan to fight climate change.

"We see an effort by the federal government to water down this economic impact, but the fact remains a watered down poison is still a poison and this is economic poison", Moe said.

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He reiterated that Ottawa's carbon tax policy is flawed and won't work in Canada if it hasn't worked around the world.

The change only reduced the amount that heavy emitters or large corporations have to pay on emissions, but did nothing for Canadian households, said Moe.

Cement producers were named among those industries that would will be entitled to a 90 per cent subsidy rate on their carbon tax burden, compared with a previously published subsidy rate of 70 per cent.

For months, the business community has fired off numerous warnings to Ottawa that recent changes _ such as major corporate tax reforms in the United States - have put the country at a deep disadvantage.

Business associations want Ottawa to cut corporate taxes in Canada, arguing the US tax changes could end up inflicting more damage on the Canadian economy than the possible termination of the North American Free Trade Agreement. "We are committed to providing draft regulations in Fall 2018".

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