Silver says YG now Looking at Sector Exemptions to Carbon Tax

Thursday, 25 May 2017 08:30

Premier says he does not want to put a tax on industries where emissions won't be reduced, which could unfairly hurt them.

The Yukon is now in talks with Ottawa about possibly giving certain industry sectors exemptions from the federal carbon tax. Premier Sandy Silver (Klondike) was forced to admit Wednesday the ongoing negotiations, after media reports suggest through Environment Canada that the North in general were getting considerations outside of the provinces.

Silver says on a national scale, he wants to ensure the Yukon is not unfairly treated. “If you take a look at the placer industry, they can put solar rays on their cabins, if they are running a diesel generator. That's somewhere where you can change. If you're a commuter from the communities, you can buy a more energy efficient car. So those are areas you could put a mechanism on. If you're running a D9 CAT, what is your option? That's what you need to run that industry. When we're talking about flexibility, when we're talking about sector specifics, these are the types of conversations we've been having.”

Silver hinted that the air transportation may be exempted as they currently do not pay into the BC carbon tax. Silver says with the parameters by Ottawa now set, the technical discussions will take place. Over the summer the government is expected to consult First Nations, Yukoners and businesses on how the carbon tax will affect them, as they have until the fall to respond to the federal government’s framework.

The Yukon Party campaigned last year as a hard no to a carbon tax and has been asking the new Liberal government questions, with Silver suggesting for the last month that his government was waiting on details of implementation from Ottawa. Silver has always maintained that exemptions were not on the table, but Wednesday qualified that by meaning “blanket exemptions.”

Interim Yukon Party leader Stacey Hassard (Pelly Nisutlin) says Silver is doing the opposite of what he has been telling Yukoners. “This is interesting because it is a direct contradiction to what the Premier has been telling Yukoners. In fact, let me quote the Premier from May 9 when he said — and I quote: “There are no exemptions.”

Silver countered saying Yukon would not have been immune to the carbon tax. “We fully expect to explore how flexibility and sector-specific solutions will apply to the north; however, no decisions have been made to this point. At no point was there an option for the Yukon to opt out of carbon pricing. The federal government did not offer blanket exemptions to the territory or to the provinces that didn’t want to impose a price on carbon pollution.”

Silver stated that a carbon tax is the right move to reducing emissions. “That carbon pricing is a cost-effective way for Canada to reduce its emissions. It will encourage innovation in renewable energy and efficiencies and will help build a foundation of a low-carbon and resilient economy. That’s the opinion of the Yukon Liberals. That’s what we campaigned on and that’s what won us part and parcel of a majority government here in the Yukon, because Yukoners want to do their part.”

(Dan Jones May 25, 2017)