Mark Carney says carbon tax served a purpose ‘until now’

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OTTAWA — Former Bank of Canada governor Mark Carney told a Senate committee on Wednesday that the federal carbon tax has “served a purpose up until now” and called on anyone who would want to scrap it to come up with a “credible and predictable” alternative.

Carney, who serves as the United Nations’ Special Envoy for Climate Action and Finance, was invited as a witness to study Bill S-243, which would require banks and other federal regulated entities to “mitigate and adapt to the impacts of climate change.”

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But Conservative senators were hoping to grill him in the little time they had — the committee started late because of votes — on the federal government’s carbon pricing policy and overall spending, which led to some tense back-and-forths at times.

Leo Housakos asked Carney no less than three times if he supports “Justin Trudeau’s carbon tax” but the former governor gave a more direct answer to Yonah Martin.

“I think it has served a purpose up until now,” said Carney. “I think one can always look for better solutions and as a country, we should always be open to better solutions.”

But he insisted that any new climate policy should not only be better and more effective than the carbon tax, but also have the power to drive investment in a massive way.

“What’s critical in my view… is that if something is going to be changed, that something at least as good is put in its place. Ideally, if you’re going to change something, you put in place something better that still has that credibility and predictability,” he said.

“Because we’re in a position right now where we need $2 trillion of investments at the core of our economy in the next 25 years.”

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At some point, Housakos grew impatient with Carney’s evasive answers to his “yes or no” question. “This is the joy of being a witness, you get to say what you think,” said Carney.

Later, Carney took issue with Martin referencing what many have interpreted as his criticism of the federal budget. In a speech in Toronto last month, Carney said that governments that “spend too much and invest too little will eventually pay a heavy price.”

“You’ve… said that the Liberal government is spending too much and that you weren’t at the risk of constant spending. So, I’m taking this opportunity to ask what Liberal government programs and spending would you cut?” asked Martin.

Carney shot back: “You read something into the record which is not a quote of something that I have said. So, if you’re going to say I have said something, could you make sure that the quote is correct?”

Carney has been a political target for Conservatives in recent weeks, with Conservative Leader Pierre Poilievre nicknaming him “Carbon Tax Carney,” and he and his MPs constantly referring to the banker as the next leader of the Liberal Party of Canada.

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Prime Minister Justin Trudeau has repeatedly said that he has no intention of leaving his position and will lead his party into the next election despite sinking polls.

Since the end of April, Conservative MPs at the House of Commons finance committee have been trying to invite Carney to appear at their committee to answer questions about his political vision for the Liberal party, but their efforts have been in vain until now.

During the meeting on April 30, NDP MP Don Davies successfully adjourned the debate on the matter. And on Tuesday, a scheduling motion by the Liberals to pass the budget turned into a filibuster after the Conservatives tried to include a subamendment about Carney.

Conservative MP Marty Morantz said Carney should appear at the committee for no less than three hours because he claimed it is “clear” that the former governor wants to be the next leader of the Liberal party and that Canadians “deserve to hear what he thinks.”

“He may not want to axe the tax… but it’s very clear he wants to axe the prime minister.”

Davies replied that while Carney acted as governor of the Bank of Canada and of England in recent years, he is now a “private citizen” and accused the Tories of being “clearly obsessed” with his future potential as Liberal leader.

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“I don’t think that Canadians are interested in the political future of Mark Carney when we have a budget to pass that has immediate economic impacts upon them,” he said.

Davies suggested that the Conservatives add Carney to the witness list to testify on the budget if they absolutely want him to come but said that he may turn down their request.

Morantz said that Carney agreed to testify at a Senate committee, so he did not see why he would refuse their invitation at the House of Commons finance committee. In the end, Tuesday’s committee meeting ended with no conclusion on Carney’s appearance.

The finance committee will meet again on Thursday during which they are set to hear from the Deputy Prime Minister and Finance Minister Chrystia Freeland for an hour.

National Post

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