Climate Change

Mike Morrice: End fossil fuel subsidies and apply a windfall tax on record profits in the industry [Video]

Speaker: Mr. MorriceTime: 21/11/2022 18:45:53Context: Question Mr. Mike Morrice (Kitchener Centre, GP): Mr. Speaker, I appreciate the opportunity to come back to my question to the Prime Minister about the need to address the subsidies being given to the oil and gas industry. I will start by sharing why this is important. The UN Secretary General recently shared with the world the following. He said:We are on a highway to climate hell with our foot on the accelerator. We are in the fight of our lives and we are losing.And our planet is fast approaching tipping points that will make climate chaos irreversible. He went on to say, “The global climate fight will be won or lost in this crucial decade — on our watch.” We also heard from the co-chair of climate scientists making up the Intergovernmental Panel on Climate Change, Jim Skea, who said, It’s now or never, if we want to limit global warning to 1.5°C. Without immediate and deep emissions reductions across all sectors, it will be impossible. While we have those global calls being made, profits in the oil and gas industry are off the rails. Imperial Oil’s, as one example I mentioned to the PM in my question, profits are up and now totalling $6.2 billion in the first nine months of 2022. That is compared to $1.7 billion the same period in 2021. It is four times higher. Why? It is obvious: They are gouging Canadians at the pumps. In the same period of time, we know wholesale margins, or profits, are up 18¢ a litre. I will turn to promises that are being made. The PM was in Glasgow last year at COP26, where he promised to end international financing of oil and gas. That has not happened yet. It is also promised, in the supply and confidence agreement between the Liberals and the NDP, which provides them the confidence of this House, to phase out public financing of the fossil fuel sector, including early moves in 2022. This would be a great time for those early moves. Instead, what we are seeing are new subsidies being added. One example is $8.6 billion more in a tax credit for so-called carbon capture and storage. This is a false solution being peddled by the oil and gas industry, study after study shows. In fact, in 32 out of 40 times this has been tried around the world, emissions have gone up and not down. It is the number one item in the so-called emissions reduction plan. We could also turn to the $10-billion loan guarantee for the Trans Mountain pipeline. We know there are solutions. Number one is to end the subsidies now, all of them. Introduce a windfall profits tax on these excess profits, as I asked the Prime Minister to do in my question, and use the funds to invest in proven climate solution. The Green Budget Coalition, for example, points to deep energy retrofits in residential buildings that would return $2 to $5 in taxes to the public coffers on every dollar spent. In a just transition for workers, the Canadian Centre for Policy Alternatives is calling for a just transition benefit. The fact is our kids’ futures are at stake. This is about the world they are going to grow up in. I understand the Parliamentary Secretary to the Minister of Finance is with us tonight. I would love to hear him share more about when the government will stop dragging its heels on ending these subsidies.