SoVote

Decentralized Democracy

Ontario Assembly

43rd Parl. 1st Sess.
November 16, 2023 09:00AM
  • Nov/16/23 9:00:00 a.m.

I’m very pleased to rise in the House today to talk about something that is negatively affecting many Ontarians, including those in my riding of Hastings–Lennox and Addington. That, Speaker, is the carbon tax. This poorly thought-out tax grab by the federal government is doubling down on the existing pain already caused by the inflationary spirals and the interest rate hikes that are causing so much concern and so much suffering among struggling families. People should simply not have to choose between heating and eating.

Housing costs more because interest rates are up. Fuel costs have gone up because of many things around the global economy, certainly. Adding more tax to the already increased home heating fuel cost is just adding to all the cost increases. The cost-of-living increases are bad enough, but adding a tax to that is rubbing salt in the wound. Ultimately, it’s punitive. There is no option in Ontario; you have to heat your home in the winter. The idea that a carbon tax will convince you somehow to use less fuel is saying that you actually want people to poorly heat their homes. This is ludicrous.

Speaker, the last couple of years has changed something for Ontarians. There is a very simple and practical element of what should be an everyday occurrence in life across this province: that is, the enjoyable trip to the grocery store. Gone are the days when families would gather together and go to the local supermarket and actually get excited to pick out the foods that they’re going to eat over the next week or so to prepare those meals for the week. Now families have to brace themselves for making hard decisions of what to feed their families—very often, unfortunately, deciding between heating their homes and eating good, nutritious foods.

The motion we’re discussing today proposes that the Liberal federal government remove this carbon tax from those home heating fuels. The motion is limited to fuels and I will get to that, Speaker, but I would be remiss if I didn’t point out that most of the world views carbon taxes as completely ineffective. In fact, 75% of the nations of this world don’t have a carbon tax, including some of those that are recognized or at least have reputations as being the leading champions in the climate change effort. Countries like Australia, New Zealand and Germany don’t require their citizens to pay this wholly ineffective tax.

As families head out to pick up their groceries, they’re constantly hit with the carbon tax. It starts with putting fuel in their vehicles just to travel to the store.

Speaker, I do need to mention the geography. The area in which you live should never be a determination as to how much excessive tax you pay. For the vast majority of people in my riding, there is no local public transit. For very small rural municipalities, transit is just not a reasonable or practical option for them, so for my residents, a vehicle is not a luxury; it’s a necessity.

Again, I’m not sure exactly where I was in my comments, but when you live in small towns and rural areas, in the north or the south of this province, you must have access to a car, which means you must buy gasoline, which means that with every kilometre travelled, you’re paying that HST or that carbon tax.

The Canadian Taxpayers Federation estimates that with the current gas tax adding 14 cents per litre, skyrocketing over the next six years to the point where it will cost the average driver about $2,300 a year, almost $200 a month—that’s a huge hit for struggling families.

So far I’ve only talked about the struggles of Ontario families putting fuel in their vehicles. As they enter the grocery store, they’re also seeing the cost of food inflated because of carbon tax and, in some cases on those groceries, the HST. Before the food makes it to the store, we need to look at the farmers, the producers who are preparing our food and producing and transporting the food that we eat. They, too, are feeling the burden of these taxes.

Brendan Byrne, the chair of the Grain Farmers of Ontario, wrote an article in the Hill Times. In it, he says, “Like other Ontario grain farmers, we now have access to information and technology that helps us farm more efficiently than previous generations could ever have dreamed of. Agronomic science, data, and new innovations are allowing ... farmers to grow abundant, high-quality food on ever-decreasing amounts of arable land. Some things, though, don’t change. Farmers know healthy soil is the heart of a farm business, and we do everything we can to protect it.”

The farmers are the experts on improving climate impact on their farms, and the federal carbon tax penalizes those farmers who are working hard to create greener farming. A little further in that article, Byrne states, “When innovative ways to dry grain are developed, I can guarantee farmers will be quick to adopt them. Farm fuels are a major cost, and all farmers want to manage costs. But until alternative solutions are available, taxing the fuels used for grain drying only penalizes farmers and unnecessarily increases the cost of food production.”

The grain farmers’ association of Ontario has stated, “By 2030, it is estimated that ... $2.7 billion of carbon tax will be paid by Ontario grains and oilseed farmers.

“The concept of providing an incentive for change is only acting like a penalty for farmers who have no alternatives available to them. This is money that is coming right out of the farmers’ pocket.”

Grain farmers across the country have been asking for a carbon tax exemption since the federal Greenhouse Gas Pollution Pricing Act came into effect in 2018. The act recognizes that farmers need to use some fuels to perform tasks, and the tax was removed for farmers for some gasoline and diesel. The use of propane and natural gas, however, does not have that exemption. Not surprisingly, this tax is not applied equally, fairly, equitably or even logically.

Speaker, I reached out to one of my local farmers. Max Kaiser is an egg farmer down in Southern Lennox and Addington. For those in the House who don’t know this, almost all farmers who raise animals for our food supply are also grain farmers; they have to be. They’re growing the food to feed the animals that, in turn, provide our food. It was mentioned by Brendan Byrne that the federal government has decided that fuel costs for farmers, in some cases, are exempt from this exorbitant tax.

But get this: Max has his own drying equipment and does it himself; he is therefore exempted from some of those taxes. But his friend Richard, who doesn’t own his own dryer, sends his corn over to Herb to dry. Herb has to pay carbon tax because he’s considered a commercial operator, so he passes that charge to Rich when he’s drying Rich’s corn. So Max’s corn is dried tax-free, but Rich’s isn’t because of who’s drying it.

I’ll quote Max, who says, “Who uses it and for what is not relevant. Ultimately it is all food! Why does it matter who is drying and who isn’t?” Max goes on to say that he’s buying about 55,000 litres of propane per year to dry his own corn. If he was paying a carbon tax, there would be another $3,000 out of his pocket that has to be made up by the price of the food to the consumer.

He also buys another 30,000 litres for heating his chick barns, on which there is about $2,000 worth of that tax that’s not exempt. These chicks need to be kept warm and alive so that they can, in turn, produce eggs. I don’t know about you, but I like eating eggs. As egg producers, they employ a cost-of-production pricing system, which means that those prices get reflected in the price they get paid for the eggs. This is a price that gets passed on to consumers. Egg farmers collect about 66 cents for each dollar that the consumer pays for eggs. The grain and bread sectors only collect 2% or 3% on that consumer price.

Let me quote Max again: “So carbon taxing is far more impacting grocery prices for eggs and milk, but it all affects consumer pricing.

The federal government is “lying if they say otherwise. Food and fuel are the bottom, cornerstones of the economy. And, food needs fuel too to make it happen.”

Speaker, even the Parliamentary Budget Office has reported that the carbon tax’s cost to farmers will increase by—

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  • Nov/16/23 11:30:00 a.m.

Perfect timing. Mr. Speaker, if you seek it, you will find unanimous consent to move a motion without notice to call on the federal government to remove the federal portion of the HST and carbon tax from home heating.

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