EN FR

The folly, and lesson, of B.C.'s carbon tax

Author: Maureen Bader 2008/10/12
As appeared in the National Post, October 11, 2008.

The unpopularity of British Columbia's carbon tax helped boost the opposition NDP above the ruling Liberals in the polls for the first time in years. With B.C.'s May 12th fixed-election date quickly approaching, the premier hit the panic button. The result is a confusing mix of policies and propaganda. If the premier were smart, he'd cut his losses and get rid of the carbon tax altogether.

The premier's first announcement was a carbon tax refund to municipalities - a not-so-subtle admission the tax was never revenue neutral for families. Offsetting income taxes did not take into account higher property taxes resulting from municipalities passing their increased costs along to homeowners.

The refund is a clever trick and may well serve the intended purpose of halting widespread property tax hikes before voting day; but assuredly it will not keep them from rising in the long term.

A municipal government must sign onto the Climate Action Charter - committing to be carbon-neutral by 2012 - to get back 100% of the carbon tax it pays. And here's the rub: compliance with the premier's charter will carry a price tag.

The Climate Action Charter means each municipality will have to somehow measure all the greenhouse gases emitted from all their buildings and vehicles, then reduce those emissions down to zero, or buy carbon offsets.

This means municipalities will have to hire more bureaucrats to measure and monitor greenhouse gas emissions. If buildings and vehicles have to be upgraded or purchased before the end of their useful lives, costs will be higher than anticipated. Other bureaucrats will be trading "hot air" credits and finding trees to plant someplace. Bottom line: higher costs for municipalities means higher taxes for homeowners.

The second panic announcement was the surprise removal of tolls on the Coquihalla Highway. The Coquihalla is the main trucking route between the Lower Mainland and Alberta. Killing the toll appeases the trucking industry and its supporters in the area, and also Interior residents - many with Liberal MLAs - that travel longer distances and are feeling the carbon tax pinch.

Of course, if the premier truly believed we are heading to global warming Armageddon, why would he reduce any driving costs -- 40% of B.C.'s carbon dioxide emissions come from transportation.

Politicians want it both ways. They want to appear to be "doing something" to curb carbon emissions and that "doing something" is cost free - especially on voting day.

Indeed, the government is trying to shore up support for the carbon tax in B.C. with a $15 million advertising budget to convince people that government policy is countering eminent and catastrophic demise. Unfortunately, that budget may be just the tip of the proverbial ice berg.

The government set up a Climate Action Team to come up with even more brainstorms, and its August 2008 report concluded the government needs to "educate" British Columbians even more about climate change. No price tag on that.

The premier is getting squeamish. He may believe in the righteousness of his carbon tax but he believes in staying in government even more. Don't be surprised to see more municipal-like exemptions and even more government propaganda. The wheels are falling off the carbon tax bandwagon in British Columbia. It is not a popular policy.



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