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441-00699 (Natural resources and energy)

Paper petition

Original language of petition: English

PETITION TO THE GOVERNMENT OF CANADA

We, the undersigned citizens and residents of Canada, draw the attention of the House of Commons to the following:

Whereas:

  • The carbon tax is set to continually rise each year until 2030, which will add an extra 38 cents per litre at the gas station;

  • The carbon tax drives up the cost of everyday essentials, including gas, groceries and heating and makes life very expensive for Canadians;

  • The Bank of Canada has said that the carbon tax has increased the impact of inflation by close to 0.5%;

  • The carbon tax is an added expense to Canadian businesses while also creating an economic disadvantage compared to other nations; and

  • CO2 emissions have only increased under the Liberal government.

Therefore we, the undersigned, call upon the Government of Canada to:

1) End the carbon tax and charging GST on the carbon tax, which harms businesses, families and our economy;

2) Reduce inflation and government spending; and

3) Approve pipelines and other projects, especially LNG pipelines, to get clean ethical Canadian energy to tidewater and international markets.

Response by the Minister of Natural Resources

Signed by (Minister or Parliamentary Secretary): The Honourable Jonathan Wilkinson, P.C., M.P.

Canada is advancing a number of efforts to realize its clean growth objectives and position itself to be a global supplier of clean energy in a net zero world. In addition to renewable energy expansion and the deployment of clean fuels, Canada remains committed to regulatory effectiveness, efficiency and transparency across all forms of energy development and use. Together, these efforts will help combat climate change and ensure Canada and Canada’s allies can rely on a secure and diverse supply of energy.

As Canada collectively manages the dual crises of energy security and climate change, the Government of Canada recognizes that a strong oil and gas sector will continue to play a key role throughout Canada’s and the world’s transition to a low-carbon economy. A key part of supporting this transition is continued investment in new and existing energy infrastructure, including pipelines. Such investments are necessary to ensure the reliability of Canada’s energy system, including meeting current oil and natural gas demand and the transportation of various cleaner, low carbon fuels. Pipelines are currently the safest and most efficient way to transport crude oil and natural gas. Their use is expected to evolve as the energy transition continues – including the transportation of hydrogen, ammonia, and carbon dioxide.

In the near-term, the Canadian energy industry is advancing projects to increase the capacity of Canada’s oil and natural gas pipelines to ensure access to export markets, which will also help Canadian producers receive a fair market price for their products. These efforts range from small increases to the capacity of existing pipelines by adding pumping or compression power, to the building of major new projects approved by the Government of Canada, such as the Trans Mountain Expansion Project, the Enbridge Line 3 replacement project, and TC Energy’s expansion of its Nova Gas Transmission Limited (NGTL) system of natural gas pipelines.

Further efforts to increase Canada’s export capacity are also being explored, including investments in new natural gas pipeline projects to enable LNG exports from Canada’s West and East coasts. LNG Canada, which will begin exporting to Asian markets in 2025, and other proposed Canadian LNG projects, aim to develop the world’s lowest emitting facilities and establish reliable, direct access to global markets to capture higher value for Canadian natural gas, support allies’ energy security, and advance the global energy transition.

As we move through the energy transition, Canada will remain an economy in which sustainable development of natural resources will continue to make an indispensable contribution to our ongoing prosperity. Canada will continue working with our American neighbours to strengthen our shared energy infrastructure and our continental supply chains.

Response by the Deputy Prime Minister and Minister of Finance

Signed by (Minister or Parliamentary Secretary): The Honourable Chrystia Freeland

Climate change is an existential challenge, and climate action is critical to Canada’s long-term health and economic prosperity. Carbon pricing is widely recognized as effective and the most efficient means of reducing our greenhouse gas emissions, which is why our government has made sure that it is no longer free to pollute in Canada.

The federal price on pollution is revenue neutral for the federal government; the direct proceeds from the federal carbon pricing system remain in the province or territory where they are collected. Put simply, every dollar collected from the carbon price is returned.

In Prince Edward Island, Yukon, and Nunavut, the direct proceeds from the federal system are returned to the governments of these jurisdictions. In provinces that do not have a fuel charge consistent with the federal benchmark—Ontario, Manitoba, Saskatchewan and Alberta—approximately 90 percent of direct proceeds are returned to residents of those provinces through Climate Action Incentive (CAI) payments. Most households receive more in CAI payments than the costs they face from the federal price on pollution.

In 2022-23, these payments mean a family of four receives $745 in Ontario, $832 in Manitoba, $1,101 in Saskatchewan, and $1,079 in Alberta. In addition, families in rural and small communities are eligible to receive an extra 10 percent.  Climate Action Incentive payments started to be delivered as quarterly payments in July of this year instead of a refundable credit claimed annually on personal income tax returns.

With respect to the application of the Goods and Services Tax/Harmonized Sales Tax (GST/HST), the GST/HST is calculated on the final amount charged for a good or service. The general rule that was adopted at the inception of the GST, under the Mulroney government, and carried over for the HST, is that this final amount includes other taxes, levies, and charges that apply to the good or service and are generally embedded in the final price. This longstanding approach to calculating the GST/HST ensures that tax is applied evenly across goods and services consumed in Canada. It also makes it easier for vendors to calculate the amount of tax payable, for consumers to understand, and for the Canada Revenue Agency to administer.

High inflation is a global phenomenon, driven by the impacts of Russia’s invasion of Ukraine, which have led to sharply higher food and energy prices, and persistent impacts from supply chain disruptions and the pandemic. In Canada, rising housing-related prices have primarily contributed to the portion of inflation driven by domestic factors.

On the demand side, the Bank of Canada has begun tightening monetary policy, while the government continues to move forward with withdrawing COVID supports that are no longer necessary, while committing to reducing the debt-to-GDP ratio over the medium term. Indeed, the IMF projects that Canada will have the fastest pace of deficit reduction in the G7 by next year. In addition, as announced in Budget 2022, the government is taking measured and appropriate steps to moderate spending through the launch of a comprehensive Strategic Policy Review with a target of finding savings of $6 billion over five years, and $3 billion annually by 2026-27.

On the supply side, to keep inflation expectations in check, the government is taking action to boost the economy’s supply capacity. The investment in Early Learning and Child Care, which is expected to yield a material increase in labour-force participation, is one important example. Budget 2022 redoubled the focus on expanding the economy’s capacity with investments to grow and maintain our talented and diverse workforce through immigration and skills development; facilitate the transition to a low-carbon economy; drive innovation and business growth; and make our cities more competitive by expanding the supply of housing. 

To help with affordability challenges, the government is implementing targeted investments to support Canadians, such as:

  • Making an historic investment of $30 billion over five years to build a Canada-wide early learning and child care system in collaboration with provinces, territories, and Indigenous partners.
  • Investing $938 million to provide dental care to uninsured Canadians with a family income of less than $90,000 annually, starting with children under 12 this year. The Canada Dental Benefit would provide families with direct payments totaling up to $1,300 per child over the next two years (up to $650 per year) to cover the cost of dental care for their children under 12.
  • Providing $1.7 billion in new support for low-income workers this year by enhancing the Canada Workers Benefit. A modest-income couple could receive up to $2,400 more this year and a single worker up to $1,200 more.
  • Providing $2.5 billion in additional targeted support for low- and modest-income Canadians by doubling the GST credit for six months. Couples with two children would receive up to an extra $467 and single Canadians without children would receive up to an extra $234. 
  • Providing a one-time tax-free payment of $500 to nearly two million qualifying Canadians who are struggling with the cost of rent. This federal benefit would be in addition to the Canada Housing Benefit currently co-funded and delivered by provinces and territories, and would be available to applicants with an adjusted net income below $35,000 for families, or below $20,000 for individuals, who pay at least 30 percent of their income on rent.
  • Implementing a ten percent increase to the Old Age Security pension for seniors age 75 and over in July 2022, which will provide additional benefits of over $800 to full pensioners in the first year.

Importantly, key government benefits are also adjusted for inflation over time, including, among others, Old Age Security, the Guaranteed Income Supplement, the Canada Child Benefit, and the GST Credit.

Presented to the House of Commons
Arnold Viersen (Peace River—Westlock)
September 26, 2022 (Petition No. 441-00699)
Government response tabled
November 14, 2022
Photo - Arnold Viersen
Peace River—Westlock
Conservative Caucus
Alberta

Only validated signatures are counted towards the total number of signatures.