September 26, 2008

Climate Change

Concern over carbon tax proposal

VINCE VERSACE

staff writer

As federal leaders debate the merits of a carbon tax, some concrete and cement officials are calling for a further study of options in the climate-change fight.

“A carbon tax is a huge concern — it will harm all industries, whether it’s petroleum-based products or cement products,” said John Hull, president of the Ready Mixed Concrete Association of Ontario and executive vice-president of the Canadian Ready Mixed Concrete Association.

“Whatever the cost is, it will be added to the end cost of the product.”

A carbon tax is central to the Liberal’s Green Shift plan. It raises taxes on most fossil fuels that emit carbon dioxide when burned and reduces personal and corporate income taxes to promote productivity, efficiency and innovation.

The plan outlines a price on fossil fuels, such as coal and natural gas, starting at $10 per tonne of carbon dioxide and rising to $40 per tonne over four years.

No new taxes would be levied on gas at the pump.

“We are also concerned with how a carbon tax affects the competitiveness of our material with those from offshore sources — we do not know what the offshore rules are,” added Hull.

“No one has engaged our industry. There has not been ample opportunity to sit down with government and engage stakeholders on this issue.”

Prime Minister Stephen Harper and his Conservatives don’t endorse a carbon tax.

Harper has stated publicly that he believes a carbon tax would undermine the economy, national unity, and concentrate money and power in Ottawa.

Items in the Conservative environmental platform include national caps for industrial emissions of four air pollutants commonly associated with smog and acid rain.

The Cement Association of Canada (CAC) said there are both merits and concerns with any type of climate-change-fighting regulation.

Provincial carbon taxes in British Columbia and Quebec have hit CAC members hard, noted Pierre Boucher, president and CEO of CAC.

The B.C. carbon tax is expected to deliver a $60 million hit to cement producers over the next five years.

However, Liberal leader Stephane Dion recently revealed that his party wouldn’t double up the carbon tax for British Columbians. He said that a Liberal government would work to harmonize provincial and federal carbon taxes.

This still doesn’t sit well with some.

“We are concerned with safeguarding the competitiveness of our association and members in Canada,” Boucher said.

The Green Party would also tax carbon emissions, along with other pollutants. The generated funds could be used to decrease payroll taxes and support seniors. Prices on carbon intensive items such as gasoline, electricity and heating fuel would rise with a carbon tax, admitted the Green Party.

The NDP endorses a cap-and-trade system which rewards polluters who reduce emissions and punishes those who do not.

The NDP has set a target of an 80 per cent reduction in greenhouse gas emissions by 2050.

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