
Province cannot afford Dion's tax
Published Saturday October 11th, 2008

Deck head

New Brunswick is a great province made of families, workers and entrepreneurs. These are all people who want to help build a better province. We also have a wealth of natural resources, talents and innovative ideas. But as a smaller province with fiscal challenges, we rely on our relationship with the federal government. New Brunswick relies on it is because we need partnerships to build our infrastructure, to provide tools to entrepreneurs and essential services to the population.
New Brunswick needs a federal government that will respect provinces' powers and provide them with predictable and continued money transfers with no strings attached. We have actually enjoyed major improvements in this field over the last few years, with the election of the Harper Conservative government. In fact, the fiscal imbalance has been addressed. According to Senator Gerald Comeau, New Brunswick has received more than $370 million in federal transfers since Stephen Harper came to power. The additional money transferred to the provinces to address their fiscal imbalances means more money to provide services such as education, health care, senior care and public infrastructure. It also enables provinces to reduce taxes and give a break to families - a choice that the Shawn Graham Liberal government in New Brunswick has eluded.
The federal government's decisions can also have a direct impact on families and entrepreneurs. Decisions made in Ottawa by the federal government can have a direct impact on people in our province. In fact, national programs can deteriorate or improve the life of New Brunswickers.
Let's think about programs such as the costly, ineffective national gun registry brought by the federal Liberals, forcing law-abiding hunters to fight with the bureaucratic system to go in the woods, or the monthly $100-per-child benefit to help Canadian families pay for child care introduced by the Harper government. These are the type of decisions taken by federal parties that will impact us, here, in New Brunswick.
I have been closely following the current federal election campaign, and one proposal stands out as being very damaging for the economy and families of our country. This proposal is the carbon tax. As explained, it would increase the price of everything, from food to electricity. It would also reduce our international competitiveness and increase the price of Canadian goods and services sold in the United States market, resulting in softening exports and job losses in Canada.
In light of these consequences, the Liberal party led by Dion should have triggered a review of this proposal and considered even a withdrawal of it, but the Liberals failed to think twice about this risky proposal.
This was before the financial instability experienced mainly by our trading partner, the United States. But now, with the current challenges faced in the U.S., Canadians and New Brunswickers need to take a different look at the Dion proposal to implement a new tax. They need to look at it and think about the consequences that it will have on the quality of life of our families and on the success of all of our entrepreneurs.
Canada enjoys one of the strongest financial sectors in the world. Our banks are better managed and less exposed to risky business schemes. Our federal government, led by Prime Minister Harper, is staking budget surpluses and paying down the debt while reducing taxes for families, helping them cope with daily and unplanned expenses. The Canadian economy is also robust when compared with other industrialized countries. Jobs growth in Canada strong, and more people are working today then two and half years ago when Prime Minister Harper was elected.
Our fundamentals are strong and our future is inspiring. Although there is uncertainty in this world, Canada is spoiled to enjoy an enviable situation that will allow us to navigate through the rough waters. Canada has enough challenges without exposing itself to the uncertain, experimental carbon tax scheme pushed by Dion.
For the sake of our province, I am asking our Premier Shawn Graham to come strong against this new tax and distance himself from the risky proposal made by Stéphane Dion that would cripple our economy and create hardship for our families.
Premier Graham, this is the one chance you have to support our families and New Brunswick's economy. Please don't miss it. This is not time to support a party that will create a new tax. This is not the time to jump into Dion's sinking ship, which reminds me of what Faye Wattleton once said: The only safe ship in a storm is leadership.
As we face this economic storm, Stephen Harper is the only leader who can guide us through troubled water.
The biggest source of uncertainty in Canada is the Dion carbon tax. Let's not go there.
Jeannot Volpé is the Leader of the Official Opposition and MLA for Madawaska-les-Lacs. He held several senior cabinet positions in the Lord government, including Minister of Finance, Minister of Natural Resources and Energy and Minister responsible for the Regional Development Corporation. He also chaired the Board of Management.








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At first the transfer of public money from other parts of Canada to NB is touted as a good thing; but then the transfer of public funds from polluters to non-polluters and families is a bad thing.
First, the author suggest broad tax cuts (foregone by NB he claims) are a good thing that create incentives for NB residents that they will respond to; but tax increases on specific actions will apparently not create incentives for taxpayers nor will corresponding tax rebates for avoiding certain activities.
Then finally, making a good or service accountable for its true costs is a bad thing that Canada cannot afford he suggests; instead we should continue to subsidize those costs by public investments in other areas at a time when government can least afford it.
Entertaining writing yes, good thinking-no.