Is Saskatchewan going to hurt badly by Stephane Dion's carbon tax?  Well, Stephane Dion admitted as much, but Liberal MP Ralph Goodale has taken the time to explain this more clearly. 

Don't worry, he says.

Almost all the oil taken out of the ground in Saskatchewan will be consumed and turned into carbon dioxide emissions without a dime of tax being applied.

Oil company profits are safe!

You might wonder how this helps the environment.  On the other hand, you might have stopped asking that question after Liberal MPs Ken Boshcoff and Martha Hall Findlay have already explained that no one expects any actual environmental benefit from the carbon tax.

First we had Liberal MP Ken Boshcoff explain how Stephane Dion's carbon tax is really just a way of moving money from Alberta and Saskatchewan to Ontario and Quebec to pay for social programs.

Then we had Liberal MP Martha Hall Findlay explain how Stephane Dion's carbon tax might or might not affect emissions, and that there is simply no way to tell.

Now we have Liberal MP Ralph Goodale explain that most of the oil taken out of the ground in Saskatchewan won't be taxed at all.

Yes, you heard that right.

Most of that carbon emitting oil in Saskatchewan won't be taxed.  The emissions will go into the atmosphere without raising a dime of revenue to be returned to Canadians through tax cuts or social programs.

But profits from the sale of that oil will flow to oil companies without any problem.  Indeed, the business tax cuts in Stephane Dion's carbon tax plan are likely to make those profits higher.

And this helps how?

The Liberal Party's proposed "Green Tax Shift" is raising many concerns in the oil rich provinces of Saskatchewan and Alberta. So, former Liberal Finance Minister and Wascana MP Ralph Goodale was in Moose Jaw this past week explaining the plan.

He says in principle the proposal is to reduce the burden on "good things" like higher incomes and shift some of that load over to things you'd want to discourage like pollution and waste. Goodale also says it's important that people in Saskatchewan understand what's being proposed.

"A significant portion of our oil and gas production in this province will end up being exempt from a carbon tax because it is largely put into a pipeline and exported right out of the country without ever being burned on the Canadian side, so there are no emissions on the Canadian side and therefore about two thirds of our oil and gas industry would be exempt from a carbon tax proposal" Goodale said.

So let's get this straight.  I pull great blobs of oil out of the ground in Saskatchewan.  As long as it is not sold in Canada, Stephane Dion's carbon tax is not going be applied.  As it is, most of it isn't sold in Canada already.  Should one day Stephane Dion get the opportunity to inflict this new tax on Canadians, Canadian producers will do well to sell all their product to the United States to avoid the tax and maximize profits, as Ralph Goodale has been so helpful in explaining.  That means the oil will be consumed and converted into emissions without Stephane Dion's carbon tax doing one jot of environmental good.

I suppose Ralph Goodale is simply confirming what Ken Boshcoff and Martha Hall Findlay have already said.

Stephane Dion's carbon tax isn't going to do any good for the environment.

So what's the point of this tax again?

Addendum: I don't know if "Green Tax Shift" is just a phrase used in this story, or if it is a hint of how the Liberals plan to resolve the lawsuit with Green Shift Inc.

Posted by: Steve Janke at 02:39 PM | Comments (2) | Add Comment
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