Guilbeault defends carbon price, admits 'average household will pay more,' even after rebates
CTV
Canada's environment and climate change minister acknowledged that the average household may eventually pay more for the carbon price than it gets back in rebate payments, but says the Liberal government has other programs to help Canadians lower their energy costs overall.
Canada’s environment and climate change minister acknowledged that the average household may eventually pay more for the carbon price than it gets back in rebate payments, but says the Liberal government has other programs to help Canadians lower their energy costs overall.
The carbon price increased this weekend, from $50 to $65 per tonne. According to the Canadian Taxpayers’ Federation, the change will translate to a higher cost for consumers at the gas pumps, from the current 11.05 cents per litre, to 14.31 cents per litre, among other impacts.
The hike comes just days after a report by the Parliamentary Budget Officer (PBO) this week stating that by 2030, when the price of carbon is expected to reach $170 per tonne, most households will see a net loss, despite the rebate payments offered by the federal government to offset the surcharge.
“When both fiscal and economic impacts of the federal fuel charge are considered, we estimate that most households will see a net loss,” PBO Yves Giroux said in a statement following release of the report. “Based on our analysis, most households will pay more in fuel charges and GST—as well as receiving slightly lower incomes—than they will receive in Climate Action Incentive payments.”
Environment Minister Steven Guilbeault told CTV’s Question Period host Vassy Kapelos in an interview airing Sunday that while the “average household will pay more” because of the carbon price increase, even after the rebates, he says the system is designed to be proportional, meaning wealthier Canadians will still foot larger bills.
“If you do the average, yeah, it's true, it's going to cost more money to people, but the people who are paying are the richest among us, which is exactly how the system was designed,” he said.
“So the rich pay more for their carbon consumption and their carbon pollution, and we're supporting, through the transition, middle class Canadians and low income Canadians, and that's exactly what we're doing,” he also said.
