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Liberal Leader Stephane Dion Pitches Environmental Tax Reform in Alberta

Posted on: Thursday, 11 January 2007, 21:00 CST

By JOHN COTTER

EDMONTON (CP) - Federal Liberal Leader Stephane Dion wants to green up Alberta's black gooey oilsands sector with tax cuts for companies that voluntarily reduce their greenhouse gas emissions and use less fresh water.

Dion says such "environmental tax reforms" would make Alberta's economic boom sustainable for many years to come.

"I will be the best partner they (Alberta) ever saw from Ottawa if I become prime minister, because I am committed to help Albertans have sustainable development," Dion said Thursday during his first visit to the province since winning the Liberal leadership last month.

"If we succeed in making Fort McMurray sustainable, we will succeed everywhere in the world, because we will export our new technologies, our know-how, and we will make megatonnes of money with it."

There are more than $100 billion worth of new energy projects either approved or planned in Alberta. The scope of the activity has prompted some conservationists and community leaders to call for an inquiry into their cumulative impact on people and the environment.

The Liberal leader said a Dion-led government would review the oil and natural gas tax regime that was developed in the 1990s by the Chretien administration and that helped enable the current boom.

He said providing incentives for industry and universities to bolster research to find ways of dealing with the environmental consequences of energy development is the best approach.

But a Liberal government would also set strict environmental regulations that would be enforced, he said.

"Demanding, but reasonable, in order to speed up innovation," he said in an interview.

Dion flatly rejected the idea of a carbon tax to reduce greenhouse gas emissions.

The oilpatch appeared to respond favourably to Dion's approach to environmental tax reform.

Greg Stringham, vice-president of the Canadian Association of Petroleum Producers, said while his members want to study Dion's remarks in more detail, they like his tone.

"This is relatively new that they (the Liberals) would use the incentive mechanism to try and bring out new technologies to address environmental issues," Stringham said from Calgary.

"I think it is very similar to what we have dealing with the Tory government. Technologies are the answer to resolving a lot of these issues."

Dion took his environmental tax reform message to the University of Alberta, where he reiterated a pledge not to proceed with the current federal government's plan to further cut the GST from six to five per cent.

The former environment minister said the money would be better used to encourage Canadians to buy energy-efficient cars, homes and appliances.

Dion said the Conservative plan would cost the government $5.5 billion but wouldn't have a long-term positive impact on Canadians.

The Liberal plan would help change the way people think and act in their daily lives, he said.

"This will help people make the link between their wallet and the planet."

Dion was to meet with new Alberta Premier Ed Stelmach before attending a townhall meeting in Edmonton on Thursday night.

He said he and Stelmach share a bond because they were both dark-horse candidates who came from behind to win their party leaderships on the same day in December.

"We will have a good start because we share something together."

Source: Canadian Press

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