Carbon tax discouraging for Canadian businesses, say Sask. critics

A federally-imposed carbon tax will make it harder to operate and be competitive in Canada, according toSaskatchewan business owners and industry groups.

"It's one more tax on top of several other taxes," said Gavin Semple, owner of the Brandt group of companies. "It's becoming increasingly discouraging to operate a business in Canada."

Many business owners in Saskatchewan reacted with dismay to the federal government's announcement Tuesdayof the imposition of a carbon tax on the province.

Semple said Canadian manufacturers are already struggling to compete with the U.S. and its lower tax rates, while also grappling with new U.S. tariffs on aluminum and steel.

The sad part of it is, this tax will do nothing for the environment.- Gavin Semple, owner for Brandt group of companies

He said hikes to gasoline and utility bills will just be another hit for businesses, including Brandt and its manufacturing operations.

"It will drive up the cost of everything we do, and every product that we sell to customers, and make us less competitive," said Semple.

Semple said his major concern surrounds employment. Brandt employs about 1,200 people in Saskatchewan, but has begun hiring more people in the U.S.because of increasing uncertainty in Canada, he said.

"The sad part of it is, this tax will do nothing for the environment. It's not going to change anybody's behaviour," he said. "In Saskatchewan, what are you going to do? Stop operating a car?"

Business footing bill for rebates, says CFIB

People across Saskatchewan have to pay carbon taxes, but the federal government says consumers will get 90 per cent of that money back in rebates to households.

It looks as if [businesses] are going to foot a good chunk of the bill to fund these rebatecheques.- Marilyn Braun-Pollon, Canadian Federation of Independent Business

The remaining 10 per cent will be split between businesses and other players, including universities, hospitals, schools and municipalities.

That doesn't sit well with the Canadian Federation of Independent Business, as vice-president Marilyn Braun-Pollon said businesses will not get what they give into the program.

"It looks as if [businesses] are going to foot a good chunk of the bill to fund these rebate cheques," said Braun-Pollon, who represents CFIB'sPrairies and Agri-Business.

She says new research from CFIB shows 73 per cent of Sask. small business owners feel that a carbon tax will make them less competitive.

Manybusinesses were upset by federal changes to small business taxes in 2017and the latest tax is a new affront, she said.

"This carbon tax plan fails on a number of levels. It fails on fairness. It fails on competitiveness tests for small business," she said, adding that CFIB will push back on the plan, on behalf of its members.

"This is probably one of our bigger battles coming up in the next few weeks."

Resolving legal challenge

Saskatchewan has launched a legal challenge of Ottawa's jurisdiction to impose the carbon pricingon the province.

Premier Scott Moe has said Ottawa should hold off on plans to implement the carbon tax until that legal challenge is resolved.

Steve McLellan, CEO of Saskatchewan Chamber of Commerce, agrees with Moe. If the courts side with Saskatchewan, then a carbon tax could be rolled back and businesses would have to adjust to yet another change, he said.

"So until it's a final decision, our advice would be hold on," he said.

Businesses want to reduce emissions, but the carbon tax will not enable them to do this, he said. Instead, he feels the tax will simply increase costs for businesses, and in turn,customers.

"We'll accept it if it becomes law," said McLellan. "The reality is we don't think it's the best tactic, and again, we're disappointed."