Blue Like You

Archive for June 20th, 2008

Yesterday as Stéphane Dion was announcing his Carbon Shift plan, I was trying to survive a white-knuckled ride on Canada’s tallest and fastest roller-coaster, The Behemoth at Canada’s Wonderland. Well, needless to say, I am still here (next time, hands-up!). Yeah, that was awesome. I highly recommend it.

This morning I’m reflecting on Dion’s Carbon Shift/tax/election platform/budget and considering the implications for a major theme park like Wonderland. The energy required to run that park must be frightening. I would assume the proposed tax would affect everything associated with energy - from running the rides, to the restaurants, maintenance of the grounds and rides, and to the costs of all the goods needed to be transported there. That is just off the top of my head. I’m sure there would be more.

Then consider the cost to the tourists wanting to come to the park. How would they get there? Only a very few would be able to walk or bike there. Yes, Dion says no tax on gas (for the moment). However, gas doesn’t magically appear at the pumps. Oil has to be refined. And it requires energy to come out of those pumps. So gas will in fact cost more.

So Wonderland will probably have to pass the increased the cost on to the consumer in order to remain solvent. Consumers will be paying more to get there. Likely some season pass holders will decide that the cost of the increased pass, increased parking (which is already $10 a pop), and the cost of getting there will be prohibitive.

This is just one example of how taxing consumption (which is what a Carbon Tax does) will have a negative impact on the tourist industry. These people then get laid off and collect unemployment.

How is this helpful to a country’s tourist industry that is already reeling with high gas prices, and a high Canadian dollar that is forcing U.S. visitors to stay home?

And don’t tell me that the ‘Revenue Neutral’ aspect will balance my concerns.

‘Revenue Neutral’ means neutral to the government ; not me.

* * * *

Required Reading: The Great Carbon Swindle - Lorrie Goldstein.

The Liberals’ Tax Shift - National Post editorial.

Then and now; GST, Carbon Tax. (Globe )

Sifting through the shift reviews - Calgary Grit.

Liberals give business the shift - Globe.

* * * *

Saturday Update - Record editorial!!! Dion’s green plan needs reality check:

…There are so many other questions: Will the residents of a province like British Columbia, which has its own carbon tax, be taxed twice? Why will the carbon tax apply to heating oil, propane, natural gas, coal and diesel fuel but not gasoline at the pump? If the point is to change human behaviour, why not go after the drivers of the big vehicles? Or is Dion afraid of courting voter backlash? Meanwhile, given the complexity of imposing a carbon tax, is it advisable, or folly, to try, as Dion is, to use the carbon tax to not only decrease pollution but eradicate poverty?

And why are there no clear targets? Sure, the Liberals say they would cut greenhouse gas emissions to 20 per cent below 1990 levels by 2020. But how will Dion’s plan get us anywhere near that goal in the coming years? When it comes to such specifics, his plan is strangely silent, devoid of charts, projections, statistics…