Thursday, March 21, 2013

This Levy is Nice, That Tax is Not

So does Premier Alison Redford support a national carbon tax?
Based on what we've heard this week, the answer isn't entirely clear.
In an interview Monday with Postmedia News, Redford suggested that Ottawa look at copying Alberta’s $15-per-tonne carbon levy:
“We think that’s the right approach,” Redford said, when asked whether Ottawa should introduce a federal carbon levy on large emitters.
Alberta’s carbon tax of sorts has generated more than $300 million for a technology fund used to green operations and improve environmental performance.
“The federal government needs to be supportive of that policy (setting a carbon price) in areas where it can actually make a difference to the outcome. Simply symbolically setting a price doesn’t actually achieve an outcome,” she added.
In fact, the reporter who posed the question says he even sought clarification from the Premier's office and they didn't dispute her remarks. But after the story appeared Tuesday morning, the Premier's office was in full spin mode.
They put out a so-called clarification, that didn't really clarify much, only that Redford did not support a national carbon tax. But the clarification also trumpeted the success of Alberta's climate change actions - which obviously includes the carbon levy.
Later in the day, the Premier made it clear that she thinks Alberta's model is successful and that other governments might want to look at it:
“The comments yesterday were about the fact we have a model we like here in Alberta,” Redford told reporters at the legislature. “It’s been successful. If other governments choose to adopt programs, we suggest they look at this. That was the context of the comments and that’s as far as I go. I am in no way advocating any sort of national carbon tax. That’s for other governments to decide.”
So what Redford said on Tuesday is pretty much what she said in the Postmedia interview on Monday. So if Redford thinks that the carbon levy has been a great success, why wouldn't she like to see other governments emulate it? Certainly the Premier has made it clear she thinks climate change is a problem, so shouldn't she be pushing a policy she says is working?
Furthermore, does she see a major difference between a tax and a levy? Perhaps then she should explain why Alberta's levy is fantastic and a federal tax would be bad.
Interestingly, a study this week from the U of C's School of Public Policy finds that a carbon tax is the most effective and efficient way of reducing emissions. Does Premier Redford agree or disagree? If it's the former, then her remarks this week smack of political cowardice. If it's the latter then she still has much to explain.
Right now, we're at the point where even the Premier's clarifications need clarifications. Frankly, articulating her position here shouldn't be hard.

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