AGRI Committee Report

The Government of Canada must eliminate the carbon tax, which hurts Canada’s international competitiveness and hinders agriculture and agri-food innovation.

House of Commons Standing Committee on Agriculture and Agri-Food: Dissenting Opinion

This dissenting opinion reflects the views of the following conservative members who sat on the Standing Committee on Agriculture and Agri-Food (“the Committee”): Luc Berthold (Committee Vice-Chair, Mégantic–L’Érable), Earl Dreeshen (Red Deer–Mountain View) and Bev Shipley (Lambton–Kent–Middlesex).

Background

On 21 March 2018, the Committee undertook the study Advancements of Technology and Research in the Agriculture and Agri-Food Sector That Can Support Canadian Exports. The Committee divided the study into three parts: international trade; technological advancements in the sector; and the role of government and the regulatory framework. During six meetings, the Committee heard from 25 witnesses who highlighted a number of current and emerging trends driving progress in the sector, as well as various challenges that we must address if we are to expand our agriculture and agri-food exports.

Reasons for a dissenting opinion

The Committee studied the advancements of technology and research in the agriculture and agri-food sector that can support exports. According to the Conservative members of the Official Opposition, the report tabled by the government does not accurately represent the statements of all the witnesses who appeared. Witnesses who spoke about the carbon tax said that this additional tax was going to disadvantage Canada both abroad and at home. This dissenting opinion aims to clarify the issue and make an additional recommendation to the Government of Canada to ensure that Canadian exporters can increase trade without being hampered by a new tax, as well as avoid increasing the tax burden on the agriculture and agri-food sector.

The Committee report does not consider the impact of a carbon tax on Canada’s agriculture and agri-food sector

In 2018, the Government of Canada decided to proceed with the Pan-Canadian Framework on Clean Growth and Climate Change, a plan that charges Canadians a new tax: the carbon tax.

Since then, this carbon tax has been widely condemned, and several provinces have rejected it because of its negative impact on Canada’s economy

Canada’s Agri-Food Economic Strategy Table recommends that Canada expand its foreign trade by aiming to increase agri-food exports to $85 billion per year by 2025. The goal is to position Canada as the world’s second largest exporter and fifth in terms of agri-food products.

Witnesses told the Committee that the carbon tax will be detrimental to Canada’s trade. Introducing such a tax could even compromise growth targets. The Committee report makes no mention of what the agriculture and agri-food sector is actually experiencing. At a Committee meeting, one witness said that “[c]arbon taxes in a global environment put Canadian exports in an uncompetitive position against others who can supply product at a lower cost due to less regulation. A regulatory impact analysis on the agriculture sector needs to be investigated prior to adopting further legislation.”[1]

This additional tax will affect not only international trade, but also Canadian investment and economic growth. Another witness whose comments were ignored in the Committee report described the situation: “Right now, there are several major initiatives under way, including carbon pricing, the impact assessment review and regulations, and the clean fuel standards. These must not be viewed in silos, as the cumulative impacts of federal regulations could discourage global companies from continuing to make investments in innovation for the betterment of both the environment and the economy. In fact, some recent studies show that the rate of investment in Canada has already slowed considerably in the last several years.”[2]

The carbon tax will harm Canada’s competitiveness in the agriculture and agri-food sector, since our products will bear an additional tax not charged by other countries. As well, this tax will not encourage farmers to invest more in technological advances. We must enable companies to invest in research and development to ensure that their farmland is sustainable.

Several witnesses said that the technological advances being introduced by their companies are environmentally responsible. Farmers look after their land and care about the environment because it is their livelihood. One witness even said that he already had a plan to reduce his company’s environmental footprint: “[W]e have made efforts over the last number of years and even decades to improve our environmental performance. As a company, we have set some internal targets—and that’s global, as well as across Canada—to reduce our emissions by 10% per product tonne by the year 2020. As far as greenhouse gas emissions go, we’ve already achieved a 5% reduction, with more to come, as well as reductions in energy and freshwater use.”[3]

The Committee’s report as presented does not reflect what witnesses said about the negative impact that a carbon tax will have on the agriculture and agri-food industry.

Conclusion

We urge the government to consider everything the Committee heard as part of the study Advancements of Technology and Research in the Agriculture and Agri-Food Sector That Can Support Canadian Exports. This dissenting opinion presents the critical issue of the carbon tax that the government must address in order for Canada to remain competitive on the agriculture and agri-food market.

Although Canadian agriculture still relies on current energy sources such as fossil fuels, farmers are the custodians of the land, and no industry contributes more to eliminating carbon than farming. We want to improve the quality of life for farmers and further the technological advancements of agriculture and agri-food businesses, and the carbon tax is not the solution.

Recommendation

That the Government of Canada eliminate the carbon tax, which hurts Canada’s international competitiveness and hinders agriculture and agri-food innovation.

Respectfully submitted by

Luc Berthold, Conservative MP

Mégantic—L’Érable

Earl Dreeshen, Conservative MP

Red Deer—Mountain View

Bev Shipley, Conservative MP

Lambton—Kent—Middlesex