The Carney government, which for the longest time liked to call itself "Canada's new government" in order to distance it from the old Trudeau-led Liberal government, continues to show just how distant it is from Trudeau-era philosophies, particularly where the environment is concerned.
Mr. Carney's latest transgression is to extend the tax cut on gasoline, aviation fuel and diesel that it brought in in April of this year, and which was supposed to die an ignominious death this week. Now we are stuck with it until the end of March 2027 at least.
It's a conservative-inspired populist sop, advertised as a cost-of-living/affordability measure designed to help poorer people cope with the increased costs caused by Trump's war in Iraq.
But it takes a good chunk of government money to finance this kind of feel-good measure.. Esimates are that the tax cut will cost the government (and therefore the country) about $5.3 billion. That's more than the entire annual budget of the Correctional Services of Canada, more than the Department of Agriculture's annual budget, and the Department of Natural Resources'. It's more than what Ottawa plans to invest in its critical minerals strategy, slightly less than is budgeted for "trade diversification and infrastructure strategies" over five years, and a bit less than its investment in defence industrial strategy over five years.
You get the idea: it's a lot of money. And this is not some kind of tax reform measure, funded by tax increases or spending cuts elesewhere. This is just out-of-pocket spending that the country can ill afford. It goes straight on to our deficit and our national debt. It is lowering the cost of filling up your gas-guzzler SUV by borrowing and topping up the national debt.
It works like a carbon tax in reverse: the more you drive, the more you save. If you can't afford a car and use public transit, or if you are environmentally responsible and drive an electric car (like me), you get no benefit at all, but pay for the debt servicing costs anyway out of your taxes.
This is no less cynical than the "temporary" gas tax cut Ontario Premier Doug Ford instituted back in 2022, which of course is now permanent. It is a similarly cynical populist move, just on a bigger scale.
There was a time when Mark Carney was a committed environmentalist, particularly active on climate change issues, but those days are long gone. This move will enable an increase in fossil fuel use, and an increase in greenhouse gas emissions. Carney knows that, and went ahead anyway, because he likes the power and wants to stay as Prime Minister. Of course, he would say, like Doug Ford, that he is saving the man in the street money, but it will certainly not trickle down to the poorest of the poor.
And anyway, at what cost to the environment does it come. It's interesting that it was announced at the same time as the government issued (rather secretively) its latest Changing Climate Report, which concludes that Canadians are feeling the effects of climate change - from floods, wildfires and heatwaves to vanishing glaciers and melting permafrost - much more, and much more seriously, than projected just a decade ago, and that those trends are likely to be much more pronounced in the future. Since 1970, it notes, Canada has warmed nearly twice every as fast as the global average, and the Canadian Arctic three times as fast.
The report makes grim reading. And the Prime Minister's response? Let's just make it worse.
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