The Manitoba government will move forward with its Made-in-Manitoba Climate and Green Plan, but without a carbon tax.

Last year, the Manitoba government received legal advice that the federal government has the constitutional power to impose a carbon tax, but only on provinces that do not implement plans of their own. After consulting with Manitobans, experts and stakeholders, the province instead released its own Made-in-Manitoba Climate and Green Plan a year ago.

“Our Made-in-Manitoba plan proposed a flat, fixed tax rate that would provide stability to consumers, business, industry and agriculture,” said Pallister. “It would save Manitoba families and businesses more than $260 million over five years, compared to the Ottawa plan. Most importantly, all monies collected under our plan would be returned to Manitobans, in the form of tax reductions.”

Immediately after unveiling its climate and green plan, the Manitoba government sought the federal government's assurance that it would not impose its escalating carbon tax plan over and above the Manitoba tax. The province says that assurance has not been not given.

“Ottawa acknowledged that our plan is the best in Canada,” said Pallister. “But they have also stated that they will impose their higher – and rising – carbon tax on Manitobans after one year. This would mean twice the tax, for poorer results. That would threaten jobs and economic growth throughout our province and take money off the kitchen tables of Manitoba families.”

Manitoba planned to charge a continuous flat rate of $25 per tonne starting December 1. The federal government demanded the provinces charge a carbon tax on emissions starting at $10 per tonne by the end of the year and which would rise to $50 per tonne by 2022.

Pallister noted Manitoba’s plan, going ahead without a carbon tax, will focus on four pillars of cleaner water, conservation of natural areas, effective steps to address climate change, and strengthening the economy.