Uproar over carbon plan

Photo: The Canadian Press

Saskatchewan Premier Brad Wall

Saskatchewan Premier Brad Wall tore a strip off Justin Trudeau while frustrated environment ministers walked out on their federal counterpart Monday after the prime minister promised to unilaterally impose a carbon price in those provinces and territories that won't do it themselves.

With provincial and territorial ministers gathered for a day of climate-change talks in Montreal, the prime minister kicked off a House of Commons debate on the Paris climate change accord with unexpected news: Ottawa will set — and enforce, if necessary — a minimum price for carbon pollution.

The federal plan sets a "floor price" of $10 a tonne starting in 2018 that increases to $50 a tonne by 2022.

Wall — a longtime opponent of pricing carbon — did not pull his punches.

"The level of disrespect shown by the prime minister and his government today is stunning," he said, accusing Trudeau of reneging on his promises to collaborate with the provinces.

"This is a betrayal of the statements made by the prime minister in Vancouver this March. And this new tax will damage our economy."

Wall said Saskatchewan will be one of the hardest hit by the carbon tax, which he estimated would siphon more than $2.5 billion from the province's economy once fully implemented, and cost the average family $1,250 a year. He called it "one of the largest national tax increases in Canadian history," saying Saskatchewan would investigate "all options" to mitigate the impact.

Trudeau gave the provinces just two options for implementing the carbon price: either impose their own direct price on carbon that meets or exceeds the national floor price, as British Columbia has already done, or set up a cap and trade system, such as Ontario and Quebec are developing.

If any province or territory does not implement one of the two options by 2018, "the government of Canada will implement a price in that jurisdiction," Trudeau warned, adding that all revenue would be given to the province or territory in which it is generated.

"There is no hiding from climate change," he told the Commons on Monday. "It is real and it is everywhere."

"We cannot undo the last 10 years of inaction. What we can do is make a real and honest effort — today and every day — to protect the health of our environment, and with it, the health of all Canadians."

Scott Moe, Saskatchewan's minister, said, "Many westerners will see this as 'national energy program 2.0." Moe later echoed his boss's words, suggesting Trudeau's "betrayal" could have lingering effects.

"It's not a good day for federal-provincial relations," he said.