Northern premiers reject carbon tax proposal

Northern premiers stood united against federal Liberal Party Leader Stephan Dion's national carbon tax plan at their Northern Premiers Conference, which wrapped up in Yellowknife Saturday.

Northern premiers stood united against federal Liberal Party Leader Stephan Dion’s national carbon tax plan at their Northern Premiers Conference, which wrapped up in Yellowknife Saturday.

“There are better ways to deal with this issue than another tax being applied, especially in the North where the cost of goods and services is already predominantly higher than anywhere else in the country,” said Yukon Premier Dennis Fentie, adding he doesn’t believe there’s any evidence a carbon tax would result in reducing emissions.

During the spring sitting of the legislative assembly, the government passed a motion to urge Ottawa to drop the GST on home heating fuel and fuel used for transporting goods to the Yukon.

Nunavut Premier Paul Okalik said the federal government should help Northerners get off diesel rather than taxing them for their lack of options.

“There really are not alternatives for us in Nunavut to turn to, to get away from diesel generation for power and heat,” he said.

Floyd Roland, N.W.T. premier, agreed and said there were better ways for Northerners to play a role in mitigating their greenhouse gas emissions.

“We see a more… sensible solution to combating the impact of climate change, such as making strategic investment in alternative energy such as hydro, electricity, wind power and bio-mass,” he said.

Dion’s plan would put a $10 per tonne tax on carbon dioxide emissions from fossil fuels, rising to $40 per tonne in the fourth year.

Dubbed the “Green Shift,” Dion’s $15.4 billion-a-year proposal would increase costs of coal, oil, diesel and natural gas while cutting personal and corporate taxes.

Dion claims the tax is revenue-neutral; however, many critics disagree and earlier this month, Prime Minister Stephen Harper called Dion’s plan “crazy” and said it would “screw” Canadians.

Dion has since challenged the prime minister to an “adult” televised debate, but Harper has yet to accept, preferring instead to let his party’s ad campaign against the tax and outrage from several of the country’s premiers establish the talking points.

Also taking the wind from Dion’s carbon-tax sails was a recent survey released by the Strategic Counsel, revealing that Canadians’ top two concerns were the cost of energy and a stagnating economy. The environment, Canadians’ number one concern last year, fell to a distant third in 2008 with just 16 per cent of those polled citing it as their biggest worry.

Remarks by the territories’ three premiers come in the wake of similar sentiments from Alberta and Saskatchewan, provinces Dion has admitted would be impacted most by his carbon-tax plan.

Alberta Premier Ed Stelmach has said the province could “take a major hit,” and Saskatchewan’s Energy and Resources Minister Bill Boyd said the province is “just not in favour of it in any way.”

With files from The Canadian Press.