Former Bank of Canada Governor David Dodge in testimony at the Senate Energy Committee said Canadians need to brace themselves for “painful” impacts of the Trudeau Liberals’ carbon tax. Cabinet must be forthright in telling Canadians climate programs will be painful, said Dodge, per Blacklock's Reporter. “We are all going to pay for it one way or another.”“How do we come collectively in business, government and households to the understanding that we have to undergo a little bit of short term pain?” he asked. “I’ll call it pain.”“That is really difficult politically?” asked Liberal-appointed Sen. David Arnot. “Well, yes,” replied Dodge.“It’s politically difficult.”“Political authorities have an important responsibility to be honest and forthright with the public as to what’s at stake. That is not easy. Complicated issues are always difficult.”Dodge did not itemize costs for households or impacts on declining standards of living. Insurance rates were one example, he said.“We’re seeing insurance rates for both housing and forestry have gone up dramatically.”“We are going to have to divert a share of our national income from consumption to investment. That means we’re going to have to pay a price at the moment in reduced, or certainly not increased, consumption in order to ensure we make the investments.”Prime Minister Justin Trudeau’s Liberals have repeatedly claimed climate programs represented a net financial benefit for households. The Department of Environment in a November 19, 2021 briefing note claimed carbon taxes “keep life affordable.”“Canada has proven that carbon pricing can be done in a manner that keeps life affordable,” said the memo on “pricing” carbon pollution. “All direct proceeds from the federal system remain in the jurisdiction where they are collected.”“There is a clear cost from a changing climate so it can’t be free to pollute. That’s why the Government of Canada introduced a price on carbon.”Dodge’s remarks followed a 2022 acknowledgement by a member of the government caucus in the House of Commons that achieving climate goals would be difficult and painful. “Achieving net zero is not going to be easy, that’s for sure,” Liberal MP Ryan Turnbull said in unscripted remarks during debate on a budget bill.“It will require all of us at every level across every industry on behalf of families and members of the general public.”“We are going to have to switch our lifestyles and that is going to be painful at times. Our plan is driven by our national price on pollution.”The carbon tax is currently charged at 18¢ per litre of gasoline. A schedule of fee increases to 2030 will see the charge reach 37¢ per litre of gasoline, 26¢ per litre of propane, 32¢ per cubic metre of natural gas, 42¢ per litre of aviation fuel and 54¢ for heating oil.
Former Bank of Canada Governor David Dodge in testimony at the Senate Energy Committee said Canadians need to brace themselves for “painful” impacts of the Trudeau Liberals’ carbon tax. Cabinet must be forthright in telling Canadians climate programs will be painful, said Dodge, per Blacklock's Reporter. “We are all going to pay for it one way or another.”“How do we come collectively in business, government and households to the understanding that we have to undergo a little bit of short term pain?” he asked. “I’ll call it pain.”“That is really difficult politically?” asked Liberal-appointed Sen. David Arnot. “Well, yes,” replied Dodge.“It’s politically difficult.”“Political authorities have an important responsibility to be honest and forthright with the public as to what’s at stake. That is not easy. Complicated issues are always difficult.”Dodge did not itemize costs for households or impacts on declining standards of living. Insurance rates were one example, he said.“We’re seeing insurance rates for both housing and forestry have gone up dramatically.”“We are going to have to divert a share of our national income from consumption to investment. That means we’re going to have to pay a price at the moment in reduced, or certainly not increased, consumption in order to ensure we make the investments.”Prime Minister Justin Trudeau’s Liberals have repeatedly claimed climate programs represented a net financial benefit for households. The Department of Environment in a November 19, 2021 briefing note claimed carbon taxes “keep life affordable.”“Canada has proven that carbon pricing can be done in a manner that keeps life affordable,” said the memo on “pricing” carbon pollution. “All direct proceeds from the federal system remain in the jurisdiction where they are collected.”“There is a clear cost from a changing climate so it can’t be free to pollute. That’s why the Government of Canada introduced a price on carbon.”Dodge’s remarks followed a 2022 acknowledgement by a member of the government caucus in the House of Commons that achieving climate goals would be difficult and painful. “Achieving net zero is not going to be easy, that’s for sure,” Liberal MP Ryan Turnbull said in unscripted remarks during debate on a budget bill.“It will require all of us at every level across every industry on behalf of families and members of the general public.”“We are going to have to switch our lifestyles and that is going to be painful at times. Our plan is driven by our national price on pollution.”The carbon tax is currently charged at 18¢ per litre of gasoline. A schedule of fee increases to 2030 will see the charge reach 37¢ per litre of gasoline, 26¢ per litre of propane, 32¢ per cubic metre of natural gas, 42¢ per litre of aviation fuel and 54¢ for heating oil.
