Manitoba should join Saskatchewan neighbour to oppose Ottawa’s carbon tax

By Todd MacKay (Prairie Director for the Canadian Taxpayers Federation) and

Robin Speer (Executive Director of the Western Canadian Wheat Growers Association)

There’s a lack of logic in Manitoba’s carbon tax debate and it’s causing uncertainty for farmers.

In other western provinces, the debate is clear. Alberta Premier Rachel Notley sincerely believes her carbon tax will help the environment. Neighboring Saskatchewan Premier Brad Wall opposes the tax as economically harmful and environmentally ineffective.

But the message Manitoba farmers are hearing from their provincially-elected representatives goes something like this: “A carbon tax will hurt the economy more than help the environment, but if you don’t like it, this is a federal initiative.” It’s a bewildering provincial position that leaves farmers wondering where they stand.

In reality, carbon taxes don’t work. Canada is responsible for 1.6 per cent of global greenhouse gas emissions. Manitoba is responsible for 2.9 per cent of Canada’s emissions. Even if Manitoba eliminated all emissions, the impact on Canada’s emissions, let alone global emissions, would be negligible.

It gets worse. British Columbia’s emissions have gone up by 2.7 per cent from 2011 to 2014 despite a carbon tax. And while the BC government claims its carbon tax is revenue neutral, the Fraser Institute calculates it has increased the overall tax bill by hundreds of millions.

Yet, the Manitoba government apparently refuses to oppose a carbon tax because it’s “a federal initiative.” What’s the advantage of this subservience? Even if Saskatchewan can’t stop a carbon tax, Prime Minister Justin Trudeau has already promised to give Premier Wall all carbon tax revenues collected in Saskatchewan – money Saskatchewan can use to offset higher costs for fuel, home heating, and everything else that becomes more expensive due to a carbon tax.

Some farm leaders are also twisting themselves into pretzels with their policy positions.  

“A carbon tax is coming whether we like it or not,” wrote Keystone Agricultural Producers (KAP) president Dan Mazier.

KAP recommends capitulation on carbon taxes, but worries about production cost increases and recommends exemptions for agriculture. It’s hypocritical to accept bad policy while demanding exemptions. It’s also naive.

The biggest single emitter in Manitoba is the Koch Fertilizer Plant, which accounts for 3 per cent of the province’s emissions. Even if farmers are exempted on select items such as on-farm fuel, carbon taxes will significantly increase fertilizer production costs and other costs such as freight. Those costs will flow to Manitoba farmers who are competing on world markets with Americans and Australians who won’t face a carbon tax — farmers around Brandon will become less competitive than their colleagues around Bismarck.

And that’s just an example of the direct cost at the farm-gate. A carbon tax will hit farmers and rural Manitobans disproportionately, by driving up costs throughout the agriculture value chain, from input costs right through to the food processor, grocery store aisle and kitchen table.

But Manitoba politicians and KAP have a history of standing up to Ottawa.

When the federal government awarded the F-18 maintenance contract to Quebec rather than Manitoba, Premier Howard Pawley looked Prime Minister Brian Mulroney in the eye and called the decision a betrayal that should be reversed. More recently, Premier Brian Pallister has fought with the federal government over healthcare funding.

Nor has KAP always been so compliant with Ottawa. A few months ago, it blasted the federal agriculture committee for failing to offer an invitation to a meeting. A few years ago, it publicly fought changes to agricultural support programs.

Manitoba politicians and KAP leaders have the courage to oppose Ottawa on other issues — they should do the same and oppose carbon taxes.

Backbencher MLAs are often dismissed as blind followers, but that’s only true if they simply take orders from political consultants rather than listening to constituents. Even a handful of rural MLAs can change this debate by standing up in caucus and stating the obvious: a carbon tax won’t help the environment, but it will hurt farmers, Manitoba agriculture, and the entire provincial economy.