44th Parl. 1st Sess.
November 21, 2022 11:00AM
- Nov/21/22 2:49:07 p.m.
- Watch
Mr. Speaker, combatting climate change is very important and, as I said, we have put in place a comprehensive plan to combat climate change that will accelerate Canada's transition and prosperity.
Our government is committed to eliminating public funding of fossil fuels by the end of 2022. We have already phased out eight tax subsidies for the fossil fuel sector.
61 words
- Hear!
- Rabble!
- add
- star_border
- share
- Nov/21/22 2:57:48 p.m.
- Watch
Mr. Speaker, once again, I heard a lot of praise coming from the international delegations on Canada's various efforts at COP27.
The member will get no argument from this side of the House that there is more to do. That is why we have invested $9.1 billion in our emissions reduction plan, why we are capping oil and gas emissions and why we are eliminating fossil fuel subsidies. We are investing in clean technology, and we want to take advantage of the $2.5-trillion clean energy economy.
90 words
- Hear!
- Rabble!
- add
- star_border
- share
Mr. Speaker, I thank my colleague for an excellent and very interesting speech.
The new trend among Conservatives is to say that for every new expenditure, an old expenditure must be eliminated so that the balance remains at zero. They are obviously forgetting about inflation and economic growth. That is forgivable, however, since we know that economics is not the Conservatives' strong suit.
Having said that, I would like to ask the member how much more money would be available for health transfers if we abolished all oil subsidies.
89 words
All Topics
- Hear!
- Rabble!
- add
- star_border
- share
Mr. Speaker, I want to start by thanking Climate Action Network International for its work on the climate change performance index that was referenced by the member for Pitt Meadows—Maple Ridge, which ranks Canada 58 out of 63. It is a deplorable record. One reason that is the case is that we continue to add new subsidies to the fossil fuel sector. One example is the new $8.6-billion tax credit for carbon capture and storage at a time when oil and gas companies are making record-breaking profits.
I wonder if the member could comment on whether he is similarly concerned with the wholesale margins in the oil and gas industry right now. The reason why Canadians are feeling the pinch at the pumps is that those margins are up 18¢ a litre. Is he concerned about that and would he support a windfall tax on those profits so we can do more with respect to taking action on the crisis we are in?
169 words
All Topics
- Hear!
- Rabble!
- add
- star_border
- share
- Nov/21/22 6:47:24 p.m.
- Watch
Mr. Speaker, I appreciate the opportunity to come back to my question to the Prime Minister about the need to address the subsidies being given to the oil and gas industry.
I will start by sharing why this is important. The UN Secretary General recently shared with the world, “We are on a highway to climate hell with our foot still on the accelerator.” He then said, “We are in the fight of our lives. And we are losing...And our planet is fast approaching tipping points that will make climate chaos irreversible.” He went on to say, “The global climate fight will be won or lost in this crucial decade – on our watch.”
We also heard from the co-chair of climate scientists making up the Intergovernmental Panel on Climate Change, Jim Skea, who said, “It's now or never, if we want to limit global warning to 1.5°C. Without immediate and deep emissions reductions across all sectors, it will be impossible.”
While we have those global calls being made, profits in the oil and gas industry are off the rails. Imperial Oil is one example I mentioned to the PM in my question. Its profits are up and now totalling $6.2 billion in the first nine months of 2022. That is compared to $1.7 billion the same period in 2021. It is four times higher. Why is that? It is obvious they are gouging Canadians at the pumps. In the same period of time, we know wholesale margins, or profits, are up 18¢ a litre.
I will turn to promises that are being made. The PM was in Glasgow last year at COP26, where he promised to end international financing of oil and gas. That has not happened yet. It is also promised in the supply and confidence agreement between the Liberals and the NDP, which provides them the confidence of the House, to phase out public financing of the fossil fuel sector, including early moves in 2022.
This would be a great time for those early moves. Instead, what we are seeing are new subsidies being added. One example is $8.6 billion more in a tax credit for so-called carbon capture and storage. This is a false solution being peddled by the oil and gas industry, study after study shows. In fact, in 32 out of 40 times this has been tried around the world, emissions have gone up and not down. It is the number one item in the so-called emissions reduction plan.
We could also turn to the $10-billion loan guarantee for the Trans Mountain pipeline. We know there are solutions. Number one is to end the subsidies now, all of them. Next is to introduce a windfall profits tax on these excess profits, as I asked the Prime Minister to do in my question, and use the funds to invest in proven climate solutions. The Green Budget Coalition, for example, points to deep energy retrofits in residential buildings that would return $2 to $5 in taxes to the public coffers for every dollar spent. For a just transition for workers, the Canadian Centre for Policy Alternatives is calling for a just transition benefit.
The fact is that our kids' futures are at stake. This is about the world they are going to grow up in. I understand the Parliamentary Secretary to the Minister of Finance is with us tonight. I would love to hear him share more about when the government will stop dragging its heels on ending these subsidies.
605 words
- Hear!
- Rabble!
- add
- star_border
- share
Mr. Speaker, I will start by sharing the sentiment of my friend from Kitchener Centre with regard to the urgency of this issue and with regard to making sure that we get this right, for the sake of our children and all children across Canada and around the world.
Canada remains committed to phasing out inefficient fossil fuel subsidies. We have already taken action to phase out nine tax measures supporting the fossil fuel sector. We have also pledged to undertake a peer review of inefficient fossil fuel subsides under the G20 process. The reality is that Canada fought hard at COP27 so that the world did not backslide on the phasing out of fossil fuel subsidies. We reiterated our commitment to phase out inefficient fossil fuel subsidies by 2023, two years earlier than the G20 commitment.
Some have argued, including the member who just spoke, that our recent measures to support the emerging carbon capture, use and storage sector amount to an inefficient fossil fuel subsidy. This is not true. The fact is that CCUS is one of many tools in our tool box to meet our climate commitments. I would note that many respected global organizations support CCUS development. This includes the United Nations' Intergovernmental Panel on Climate Change and the Paris-based International Energy Agency.
In fact, the agency estimates that this technology could be responsible for about 15% of global emission reductions. It is part of the plan. It also gives us a tool to lower emissions outside of the oil and gas sector. Steel production, cement and other emission-intensive industries can benefit from this technology. This, in fact, builds on our world-leading climate plan, one that approaches reducing emissions and developing clean technology in all facets of our economy, and one that we further expanded on in the fall economic statement tabled earlier this month.
While we are removing tax credits from flow-through shares on oil, gas and coal, we are also creating new investment tax credits for clean tech and for clean hydrogen. We are also creating a sustainable jobs training centre that will prepare our workers for the high-paying sustainable jobs that will be created as new economic opportunities emerge as part of our climate plan. In addition, we are investing in a world-leading innovation and investment agency and a $15-billion clean growth fund that will help Canada further tap into the economic opportunities that the clean transition provides.
That being said, our government's priority, beyond fighting climate change and growing an economy that works for everyone, is to make life more affordable for Canadians who are currently struggling with global inflation.
Indeed, we are now moving forward with targeted measures, including new ones introduced in the fall economic statement. For example, Bill C-32 would make the federal portion of all Canada student loans and Canada apprenticeship loans permanently interest-free, including those currently being repaid.
We are expanding our efforts with regard to affordable housing and we are making sure that every child in Canada, no matter how wealthy their parents are, has access to affordable dental care. This is in addition to our investments that have lifted millions of children and seniors out of poverty, including an early learning and child care agreement that will make our kids smarter and allow hundreds of thousands of parents to rejoin the workforce, if they choose to do so.
Finally, we have doubled the GST benefit to help 11 million Canadian households, including more than 50% of seniors, better handle the impacts of global inflation.
Any responsible plan must tackle climate change in a way so that no one is left behind in our economy, and that is exactly what our government is doing.
628 words
- Hear!
- Rabble!
- add
- star_border
- share
- Nov/21/22 6:55:09 p.m.
- Watch
Mr. Speaker, I will pause just to say that, with regard to this word “inefficient”, I hope that the parliamentary secretary might move away from it. It is completely undefined. It lacks credibility when we are talking about these subsidies because it really does not mean anything at all. In fact, all of these subsidies are not helping us make progress at a time when we need to act urgently and immediately.
In terms of carbon capture and storage, I think the best analogy I can give the parliamentary secretary is that there are measures being taken, some of which he has mentioned, and those measures are kind of like after the snow has fallen and we start shovelling one bit at a time and we are making a little bit of progress here and there. The $8.6 billion to carbon capture is like when the snowplow then comes by and undoes all of our work.
As for that $8.6 billion, not one environmental group in the country has called for those funds. Do we know who has? The oil and gas lobbyists who were at COP27, unfortunately. Those are the ones calling for carbon capture.
When will the parliamentary secretary understand that we have to move away from exactly that?
215 words
- Hear!
- Rabble!
- add
- star_border
- share
- Nov/21/22 6:56:20 p.m.
- Watch
Mr. Speaker, our government is committed to phasing out inefficient fossil fuel subsidies. While my colleague may not like the definition around that particular word “inefficient”, that is a longer debate that I cannot explain in one minute. However, we are committed to undergoing a peer review of inefficient fossil fuel subsidies under the G20 process and we will build on the actions we have already taken.
There is a process that is under the G20. While that definition may not meet his standards today, there is a process under which this is specifically reviewed. If Canadians want to know more, I suggest that they read our emissions reduction plan, which lays out, in detail, how Canada will hit its targets right across every sector of the economy.
They can also tap into my own reports that I write at terrybeechmp.ca/reports. There is not just a report on climate change. There is one on affordability, seniors, housing, the economy and local projects that are important to all Canadians, but particularly those projects that have been delivered in both Burnaby and in North Vancouver.
187 words
- Hear!
- Rabble!
- add
- star_border
- share
