Testart, Hawkins launch bill to repeal NWT’s carbon tax

Kieron Testart and Robert Hawkins say they’re bringing forward a bill that would repeal the territory’s carbon tax and “shift the NWT over to the federal backstop.”

The bill is a private member’s bill, meaning it is brought forward by one or more regular MLAs rather than cabinet, which is unusual though not unheard-of.

If the bill passes, a carbon tax would still exist but it would operate differently under the hood.

Testart says the bill would allow the NWT to keep its current system of rebates but hand off administration of the tax to the federal government. And when the federal rules change – as was the case with home heating diesel recently – the NWT’s rules would then automatically change, rather than requiring an update from the GNWT.

Testart argues the Yukon and Nunavut already have systems whereby Ottawa collects the tax, then hands the proceeds back to those territories.

The NWT’s current carbon tax system is entirely designed and implemented by the territorial government, in a way that meets rules set by the federal government.

The text of the bill proposed by Testart and Hawkins is not yet available, so it’s not possible to see exactly which measures it contains. The fact that cabinet hasn’t brought forward the bill itself implies that ministers foresee problems where the two regular MLAs do not.

In a news release, Testart set out the bill’s purpose as follows: “The Carbon Tax Repeal Act will amend the Petroleum Products and Carbon Tax Act to repeal all sections related to the collection of carbon tax on fuels, including natural gas.

“This will shift the NWT over to the federal backstop system through Government of Canada’s Greenhouse Gas Pollution Pricing Act, with all direct proceeds from the federal pricing system returned to the NWT where they were collected.”

Bill reaches House next week

Testart said he had pitched the bill to finance minister Caroline Wawzonek in a “not-extensive discussion” in which he’d outlined how, in his view, the bill allows the NWT to keep its rebate system – in particular rebates to mines, which aren’t covered by the federal system – while ceasing to collect the tax itself.

“We’re saying: let’s not be forced any more. Give it back to Ottawa. Let them handle it, and we’ll decide how the money is spent,” Testart told Cabin Radio.

Cabinet has been approached for comment.

So far, the political news cycle of the new NWT government has been dominated by initiatives driven by regular MLAs – the other obvious example being a call for a wildfire public inquiry.

That’s partly because regular MLAs can move more nimbly while government ministers get their feet under desks and assess which changes they can reasonably make, and partly because some regular MLAs this time around, like Testart and Hawkins, are particularly experienced and vocal political campaigners. Both of those Yellowknife MLAs had sought positions on the other side of the House after last fall’s election, with Testart losing out to RJ Simpson for the role of premier.

Hawkins, who campaigned on a platform of finding ways to bring down the cost of living, said in a news release: “We must take meaningful action wherever possible to make life affordable for northerners while still doing our part to tackle climate change.”

Testart said Premier Simpson had “basically taken sides with the official opposition on repealing carbon tax,” referring to one of the premier’s opening interviews after his election, “so the NWT is very much a part of this conversation on repealing or maintaining the tax.”

Unlike the wildfire public inquiry vote – in which regular MLAs voted to establish an inquiry, but cabinet isn’t obliged to do so – the Testart-Hawkins bill would become law if the House passes it.

Testart said the bill is expected to receive its first reading on Tuesday next week and second reading the following day, at which point MLAs will be invited to debate the principle of the bill.

Both the inquiry and the bill focus on topics that have the changing climate as their underlying common denominator.

“This is a jurisdiction that is facing extreme climate and weather events. Then there’s the volatility of gas prices for a variety of reasons, including geopolitical reasons that are simply out of our control,” Wawzonek told Cabin Radio earlier this month.

“Do we want to get to a place where, for the good of reducing greenhouse gas emissions and for the good of being less reliant on a volatile source of fuel, we have a better and more reliable source of heat, of energy, for transportation?

“Where are we spending the funds that we do have on those initiatives to improve our energy resiliency, improve our energy sustainability? There are endless things we could talk about, which should be the focus of the discussion, and I hope will start to be the focus of the discussion from the federal government’s perspective. The territories cover 40 percent of Canada’s landmass, and they’re going to need to face this reality up here.”