MLAs in the legislative assembly have determined that Bill 60, An Act to Amend the Petroleum Products and Carbon Tax Act, isnSA国际影视传媒檛 ready to be passed.
A report from the Standing Committee on Government Operations was read in the assembly on March 1 with the message that the committee saw no benefit to passing the bill in the House, should it come to a vote.
Yellowknife North MLA Rylund Johnson, the committeeSA国际影视传媒檚 chair, said the GNWT simply has not provided the committee with enough information to show that its approach is better than the federal proposal.
The federal backstop is what would come into effect if the assembly doesnSA国际影视传媒檛 pass its own version of a carbon tax bill by April 1. Finance Minister Caroline Wawzonek introduced the SA国际影视传媒渕ade-in-the-NorthSA国际影视传媒� bill in October 2022.
Johnson said one of the big factors that went into the decision was the failure of the Department of Finance to answer questions the committee felt were important, such as the impact the bill would have on emissions; the economic impact on certain groups, such as community governments, NGOs, businesses and Indigenous governments; and a comparison between the federal backstop and and the GNWTSA国际影视传媒檚 version.
SA国际影视传媒淐ommittee asked for more detailed information and analysis on the advantages and disadvantages of the made-in-the-NWT approach compared with the federal backstop,SA国际影视传媒� he said. SA国际影视传媒淭his missing information from the department made it hard for the committee to assess which approach is better for the NWT and to identify ways to improve either approach.SA国际影视传媒�
Inuvik Twin Lakes MLA Lesa Semmler, the committeeSA国际影视传媒檚 deputy chair, said she found the GNWTSA国际影视传媒檚 approach problematic and that those who wrote submissions or attended public hearings were disappointed in the GNWTSA国际影视传媒檚 SA国际影视传媒渕inimal consultation and public information.SA国际影视传媒�
SA国际影视传媒淚t stands in stark contrast to the YukonSA国际影视传媒檚 approach to carbon tax consultation, which featured a public survey, public information sessions and targeted information sessions with local governments and First Nations,SA国际影视传媒� Semmler said.
She also pointed out that there are few alternative sources of energy in the NWT; many communities rely on diesel generation for electricity, she said. Meanwhile, the NWT Power Corporation allows for 2.6 megawatts of renewable energy capacity out of of an average of 13.2 megawatts of power load across 25 communities SA国际影视传媒� making renewables a maximum of 20 per cent of the electricity mix.
SA国际影视传媒淲ithout alternatives, Northerners have no choice but to pay more for the fossil fuels they rely on,SA国际影视传媒� said Semmler. SA国际影视传媒淎s a result, the tax has a minimal effect towards reducing emissions.SA国际影视传媒�
Rebate split disputed
Kam Lake MLA Caitlin Cleveland, another of the committeeSA国际影视传媒檚 deputy chairs, said the GNWT should focus on giving more of the expected carbon tax revenue to community and Indigenous governments, businesses and NGOs as opposed to turning over a significant portion to the larger emitters.
She pointed to the Department of FinanceSA国际影视传媒檚 estimates of how much will be collected through carbon tax revenues SA国际影视传媒� $63 million SA国际影视传媒� with only $47 million of that going toward cost-of-living offsets. $24 million of that offset cash is earmarked for large emitters while, by contrast, $20 million is going toward cost-of-living offset and cost-of-living heating rebates to households.
The other $16 million, she said, will be going into general revenues. There was no mention of the remaining $3 million during WednesdaySA国际影视传媒檚 discussion.
SA国际影视传媒淐ommittee finds that the governmentSA国际影视传媒檚 overall rebate approach allocates too much to large emitters, and to its own revenues, and not enough to other key impacted groups,SA国际影视传媒� said Cleveland. SA国际影视传媒淭he rationale provided by government that retail businesses can simply pass along the carbon tax to customers, that businesses will be eligible for GNWT energy savings programs, and that NGOs can adjust, is not accepted by committee.SA国际影视传媒�
There were several recommendations made by committee including: the legislative assembly convey to the federal government the specific needs and circumstances of the NWT in its approach to climate change, including a letter to Prime Minister Justin Trudeau requesting a reply; the NWT Power Corporation increases the cap on renewable energy generation that residents and communities can install to offset their power use; the GNWT provide funding to community governments to compensate for increased carbon tax payments SA国际影视传媒� Cleveland suggested $2.2 million for the upcoming fiscal year SA国际影视传媒� with proportional increases; create a law that requires all carbon tax revenues to be rebated to households, businesses, community governments, Indigenous governments, and non-governmental organizations and; that the GNWT provide a response to the committeeSA国际影视传媒檚 report within 120 days.
Johnson moved that the bill be sent to the Committee of the Whole for further consideration.
