These Ontario liberals do not seem to care how many wasted billions they cause the Ontario taxpayers to be on the hook for. They have wasted billions on eHealth, The gas plant scandal, Orgne, Hydro fees for Ontarion’s and the list goes on. Now we are going to be saddled with almost 1.4 billion dollar deficit every year. The easiest way is to get rid of Wynne and her liberals and reverse many of her policies. They are ill conceived and designed to put money in the pockets of liberal friends.
Today let’s ask Premier Kathleen Wynne and Climate Change Minister Glen Murray a simple question.
If, as they say, the cost of their cap-and-trade scheme to the average Ontario household is only $156 per year, where are they going to get the additional $1.14 billion a year they say it will raise for the government?
The calculation is simple. Given that there are about 4.9 million households in Ontario, according to the last census, $156 per household raises $760 million for the government.
But Wynne and Murray say carbon pricing will bring about $1.9 billion annually into Liberal government coffers, beginning next year.
So how are they going to raise the extra $1.14 billion annually they need to bring the total government take to $1.9 billion?
Anyone who understands math — for example, former banking executive Parker Gallant, who has made the same point on his Wind Concerns Ontario blog — knows Wynne’s and Murray’s numbers don’t add up.
The reason is they have arbitrarily limited the added cost of cap-and-trade for the average household to gasoline (which they say will increase by $8 a month) and natural gas heating ($5 a month) for a total of $13 a month or $156 per year.
But cap-and-trade doesn’t just apply to gasoline and natural gas.
It covers any sector of the economy where there are major emitters using fossil fuels to create energy, meaning virtually all sectors, from manufacturing to transportation to agriculture.
This means the cost of most goods and services is going to rise under cap-and-trade as these sectors buy carbon credits auctioned by the Wynne government, then pass along their increased costs to consumers in the form of higher retail prices.
Alberta, which will institute a carbon tax next year at the same time Wynne is imposing cap-and-trade, has acknowledged that in addition to the extra $338 an average couple with two children will have to pay for gasoline and natural gas heating, taxes on other goods and services will increase by $70 to $105, for a total cost of up to $443 annually.
While this figure strikes me as suspiciously low given the billions of dollars in public subsidies Alberta is giving to major greenhouse gas emitters in return for their support of carbon taxes — as Wynne is doing in Ontario through huge public subsidies to emitters with free carbon credits — at least Alberta acknowledges the cost of carbon pricing goes beyond gasoline and natural gas.
I know the Wynne government has done calculations on the total cost of cap-and-trade because I asked for those figures when the Liberals brought down their 2016 budget on Feb. 25. I was told they weren’t ready.
For the Liberals to imply the only added cost of cap-and-trade to Ontario families is for gasoline and natural gas is absurd.