Thank you, Mr. Speaker. The myths and facts of carbon taxation need some discussion. A recent roundtable on a carbon tax in the NWT sponsored by the partnership of Ecology North, Sustainable Prosperity and the GNWT and involving diverse representatives from across the Territory has contributed to that discussion.
First, why a tax? Well, first, climate change through carbon emissions is destroying our planet, as we heard from my colleague, especially the North, leading to high costs from cultural loss to loss of building foundations.
Second, we are at the mercy of rising and volatile oil prices which drain dollars from our economy and increase uncertainty. Traditional life, the prosperity and safety of our children, our hopes for economic stability all are at risk until we reduce our carbon emissions.
Other jurisdictions have taken action by putting a tax on carbon emissions. This government has consulted on a carbon tax option, with some questions and positive feedback. Let’s examine the costs and benefits, the facts and myths.
Myth: Carbon taxes hurt economies. Not true. Three provinces and many European countries have introduced carbon taxes with no negative effect on their economies. In fact, stable energy prices and deriving renewable energy locally has boosted some economies.
Myth: Carbon taxes are felt most by individual consumers, especially low-income earners. Not true. A smart carbon tax is typically offset by reducing rates of income and corporate tax. Taxes can also be carefully constructed to protect people who don’t enjoy a tax savings in wages. We know how to protect our low-income residents in remote communities.
Myth: A carbon tax will drive away industry. Not true. By cutting the corporate tax rate to offset the new tax, there’s a zero cost change to business. The carbon tax is an efficient tool for creating business incentive to cut costs by investing in energy efficiency and promoting energy diversification.
The biggest myth is that we can do nothing. Our main fuel, oil, is constantly jumping in price. Delay in taking action on climate change also means rising costs of climate change impacts later when we can least afford it. For the NWT to lead will set an example that will be noted by the world and influence concerted action.
Mr. Speaker, I seek unanimous consent to conclude my statement.
---Unanimous consent granted
Mr. Speaker, change is difficult, but a smart carbon tax will create the economic incentive to take action. Places that have acted have benefited. Like shopping bag fees, the hoopla has disappeared shortly after these changes have been implemented. Let’s get it done. Mahsi.
Thank you, Mr. Bromley. The honourable Member for Yellowknife Centre, Mr. Hawkins.
