Senate Amendment Puts Carbon Tax Exemption for Farmers at Risk
Following a close vote, the Senate has chosen to modify a Conservative bill aimed at providing further exemptions for farmers from the carbon tax. This signals the likelihood of the bill returning to the House of Commons, where the Liberal government might be able to effectively end it through procedural maneuvers.
The legislation seeks to exempt farmers from paying the carbon tax on propane and natural gas used for heating, cooling barns, and drying grain. Farmers are mostly exempt from the carbon tax for other fuels and applications.
The Senate-passed amendment has eliminated the exemption for propane and natural gas, keeping only the drying grain application.
Bill C-234 had cleared the House of Commons in March, receiving support from all major opposition parties.
The bill could have received royal assent with a vote in third reading, but objections from senators have prevented the legislation from becoming law. It is expected the bill will be sent back to the House of Commons where the Liberal government controls the legislative agenda.
Conservatives argue that completely removing the carbon tax on farmers will help lower food prices.
The Conservatives have long made “axing” the tax a rallying cry and a central policy proposal, but they upped the pressure after Prime Minister Justin Trudeau declared a three-year carbon tax exemption on heating oil.
This has been interpreted by the Conservatives as a “carve-out” for the region to save the Liberals’ political fortunes as the Tories gain momentum in the polls, as well as an admission that the carbon tax indeed hurts Canadians’ finances.
The Liberal government has repeatedly maintained that most Canadians receive more from climate incentive payments than they shell out on the carbon tax.
Privilege ‘Breached’
Political wrangling over the carbon tax and Bill C-234 has been relentless.
Conservative Party Leader Pierre Poilievre said in mid-November he would launch a “full-on campaign” to pass the bill and that he would press “Liberal senators” to pass it. There are no Liberal senators per se, and the government has defended exercising pressure on them.
Meanwhile tempers have flared in the Senate with Conservative senators expressing displeasure about delays surrounding the bill.
Sen. Raymonde Saint-Germain claimed there were “attempts of intimidation” on that day.
“Senators, in the Senate Chamber, felt threatened and insulted and intimidated,” said Speaker Gagné in her decision. “That is a violation of the rights of Parliament, of the Senate, and of individual senators.”
A motion has been tabled to refer the matter to the Standing Committee on Ethics and Conflict of Interest for Senators.
The Canadian Press contributed to this report.