B.C. Finance Minister Brenda Bailey rushed Monday to pass legislation that would scrap B.C.’s consumer carbon tax before a scheduled increase on Tuesday. It remains to be seen, however, how much savings drivers will see at the pump as gas prices continued to rise across the province over the weekend. Read More
Premier David Eby expects British Columbians to save 17 cents a litre starting Tuesday, despite the concern that oil and gas companies may try to gouge customers
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Opposition parties wanted time to debate the changes as gas prices continue to climb across the province
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Provincial finance minister Brenda Bailey rushed Monday to pass legislation that would scrap B.C.’s consumer carbon tax ahead of a scheduled increase Tuesday. It remains to be seen, however, how much savings drivers will actually see at the pump as gas prices continue to rise across the province.
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The bill introduced by Bailey would set the taxation rate at $0 for everything from propane to aviation and jet fuel. It would also end payments sent through the Climate Action Tax Credit to low- and middle-income British Columbians after the final cheques go out in April.
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Premier David Eby told reporters he expects British Columbians to save 17 cents per litre starting Tuesday and that oil and gas companies will continue to be required to report to the B.C. Utilities Commission on all the different considerations that go into the price of gasoline.
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Under the Fuel Price Transparency Act, passed in 2019, oil and gas companies are required to report on prices on a monthly basis. Companies that provide inaccurate information can face penalties of up to $1 million, and individuals that submit that information can face up to six months in jail.
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“Like many British Columbians, I’ve been watching the price of gas go up in the 10 days since we made this announcement,” said Eby, acknowledging gas prices in Metro Vancouver have risen in recent days to almost $2 a litre.
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“Just a little heads-up to the oil and gas companies: British Columbians need to see that tax reduction show up at the pump when they fill up. Now is not a time to be playing games with essentials for British Columbians or Canadians as a whole.”
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Despite the concern that oil and gas companies may try to gouge customers, the premier said he is not considering regulating gas prices like Quebec and the Maritime provinces. There is also no indication the province will follow Alberta in launching an investigation into rising gas prices.
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Eby added that while the consumer carbon tax is being tossed out, the province will continue charging large emitters through the output-based pricing system that sets emission limits for corporations and penalizes them if they go over the amount allocated to their sector.
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“We need them to be maintaining British Columbia’s reputation as one of the cleanest jurisdictions in North America, leaning on clean technology and its implementation,” said Eby.
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Usually, legislation takes days, or even weeks, to pass, but the B.C. NDP called upon an obscure standing order called Section 81 on Monday that would allow it to pass the bill through all stages in one day and get it passed by midnight.
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This riled up opposition parties over the lack of time to debate the changes, but Speaker Raj Chouhan ultimately ruled in the government’s favour and debate was set to carry on late into the evening.
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Conservative leader John Rustad signalled his support for the substance of the bill, telling reporters the carbon tax is a “job killer” and “hurting affordability in British Columbia.”
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But he asked why the NDP was trying to push it through in a day.
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“All they’re trying to do is really hide their own incompetence for not dealing with this appropriately in the past, in the previous weeks.”
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Premier Eby had promised in September he would get rid of B.C.’s consumer carbon tax if Ottawa dropped of its backstop that required all provinces to set a carbon tax at a certain rate, which as of last year was $80 per tonne. It was originally expected to increase to $95 per tonne as of April 1.
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That backstop was officially removed by Prime Minister Mark Carney on March 15 after he was officially sworn in as the new federal Liberal leader.
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The NDP defended the delay in getting legislation introduced, putting it down to the fact the legislature had been on spring break.
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Mike Farnworth, the NDP house leader, warned the bill would be treated as a matter of confidence and that the province would be forced into another election if the legislature voted to reject the bill.
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Green MLAs Rob Botterell and Jeremy Valeriote told reporters they plan to oppose the bill, arguing it will take away supports for struggling British Columbians, blow a $2-billion hole in a provincial budget already projecting an $11-billion deficit, and harm efforts to reduce B.C.’s carbon emissions.
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Botterell even voted against the bill being granted first reading, a highly unusual move as most pieces of legislation are supported unanimously at that stage.
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Although the Greens are nominally required to support the NDP in confidence measures under the Cooperation and Responsible Government Accord signed earlier this month, Botterell and Valeriote pointed out the agreement allows them to disagree with the government on what is deemed a confidence issue.
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“We don’t see this as a confidence measure,” said Valeriote. “This is a loss of supply for the government, a loss of revenue, which makes it an entirely different type of bill, and we don’t see it as confidence. The government can designate it as such, but, under our agreement, we can disagree.”
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Eby acknowledged the loss of supports for British Columbians with the loss of the carbon tax, as well as the hole it will leave in the provincial budget.
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He said the government will be undergoing a review of CleanBC programs to see what else might need to get cut as a result, and acknowledged the difficulties that will come with the elimination of the Climate Action Tax Credit.
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“What we are doing is a review of all government programs to ensure that we’re delivering programs as efficiently as possible, and getting back to balance on the budget,” said Eby.
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