With Controversial Vote, Senate Delays Carbon Tax Exemption Bill for Farmers

With Controversial Vote, Senate Delays Carbon Tax Exemption Bill for Farmers
The Senate Chamber in Ottawa on Feb. 18, 2019. (The Canadian Press/Sean Kilpatrick)
Noé Chartier
11/10/2023
Updated:
11/10/2023
0:00

A bill that would exempt farmers from the carbon tax is at the last stage in the Senate before becoming law, but members of the upper chamber have held a controversial vote that will delay its adoption.

Bill C-234, a Conservative private member’s bill to amend the Greenhouse Gas Pollution Pricing Act, was debated as part of third reading in the Senate on Nov. 9. After third reading is agreed upon, the bill will go on to receive royal assent and become law.

However, debate was cut short by a motion from Trudeau-appointed Sen. Lucie Moncion who proposed 11th-hour amendments to the bill, which has already passed in the House.

Sen. Moncion seeks to remove provisions in the bill that would allow Parliament to extend the carbon tax exemption on the use of propane and natural gas for agricultural purposes, eight years after the bill comes into force.

“Senators, we need action on climate change. We should not incentivize inaction,” she said.

“While some colleagues have determined this legislation is necessary to present circumstances, I think we can all agree that we do not know whether such a carve-out will be necessary in eight years from now.”

Conservative Sen. Denise Batters remarked that a similar amendment had been proposed during earlier stage committee study and was defeated. “Is this the same amendment?” she asked.

“I believe that it is similar,” replied Sen. Moncion.

Immediately after, Sen. Bernadette Clement, also a Trudeau appointee, moved to adjourn debate on the motion.

Conservative senators Don Plett and Leo Housakos protested on points of order. “I was standing on debate, and for Your Honour to allow somebody to move an adjournment motion while people are standing on debate is, I believe, definitely out of order,” said Sen. Plett.

“Not only is this outrageous, I have never before seen in my time in this place someone get on their feet, move an amendment without debating on the amendment,” Sen. Housakos said.

The vote to adjourn debate then passed 29–24.

Carbon Tax Exemptions

Defeating the carbon tax has been a main effort of the Conservative Party in recent months, and it has gained a double-digit lead in the polls over the Liberals with a message centred on affordability.

Prime Minister Justin Trudeau’s decision to provide a three-year carbon tax exemption on heating oil in late October has raised a host of issues about the measure. The exemption followed pressure from Liberal MPs in Atlantic ridings, where heating oil is more widely used.

Critics have said that if there’s a net positive for Canadians from the carbon tax, there should be no need to provide an exemption.

Supporters of the tax have questioned whether this puts in jeopardy the government’s climate change agenda.

The Liberal government has declared there would be no other exemptions on the carbon tax.

“There will absolutely not be any other carve-outs or suspensions of the price on pollution,” Mr. Trudeau said on Oct. 31.
Environment Minister Steven Guilbeault said there would be no additional exemptions as long as he’s in the role.

In this context, Conservative Leader Pierre Poilievre asked the government this week whether it would support Bill C-234. The tories argue that removing the carbon tax on farmers will help bring down food inflation and help with the cost-of-living crisis.

“The Prime Minister has claimed that he will not cave again. He says there will be no more carve-outs,” Mr. Poilievre said in the House on Nov. 8.
“Will he put his ego and pride aside and ask his Liberal senators to pass common-sense Bill C-234 to axe the tax and create a carbon tax carve-out for our farmers?”

Mr. Trudeau responded that “farmers across this country know the costs of climate change.”

“That is why we put forward a plan that is reducing our emissions and growing our economy at the same time, while putting more money in Canadians’ pockets.”

The carbon tax currently adds over 10 cents to a litre of propane and over 12 cents per cubic metre of marketable natural gas. The government seeks to raise these amounts to over 26 cents and over 32 cents respectively by 2030.

Bill C-234, sponsored by Tory MP Ben Lobb, seeks to make it less expensive for farmers to heat or cool buildings used to house livestock, grow crops, or operate grain dryers.

The bill passed the House of Commons with support from the Bloc Québécois and the NDP. Three Liberals from Atlantic ridings have supported the bill in third reading: Kody Blois (Nova Scotia), Heath MacDonald (Prince Edward Island), and Robert Morrissey (Prince Edward Island).