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Meeting federal carbon tax price relies on Trans Mountain breaking ground, says Alberta premier

The Trans Mountain pipeline expansion must break ground for Alberta to meet federal climate goals, stressed Premier Rachel Notley

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The Trans Mountain pipeline expansion must break ground for Alberta to meet federal climate goals, stressed Premier Rachel Notley on Thursday. 

“Moving forward with additional hikes with the carbon levy will depend on the Trans Mountain pipeline, as I’ve said many times over the last year and a half,” she said during question period.

When it was introduced last year, the carbon tax was pegged at $20 per tonne. That rose to $30 per tonne Jan. 1. Ottawa’s national plan would increase the tax to $50 by 2022. 

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But Notley said meeting that goal rests on the fate of the Kinder Morgan Inc. expansion. 

The $7.4-billion project has resulted in a boycott of B.C. wine and spurred at least one cabinet minister to use colourful language — Economic Development and Trade Minister Deron Bilous apologized for calling his B.C. counterparts “a bunch of s–t heads” on Wednesday.

“We will not move forward on the federal government’s proposals until we see that construction is fully underway and that approval is given meaning,” Notley said Wednesday in recorded Hansard. “There is no question that the two were always connected, and they will stay connected.”

Alberta’s Opposition leader introduced a private member’s bill Thursday that would prevent carbon tax hikes unless approved by a public referendum. 

“To be clear, a future Alberta conservative government will repeal the carbon tax,” United Conservative Party Leader Jason Kenney told a news conference. “If the Trudeau Liberals then seek to impose their federal carbon tax on us … I would immediately challenge that in court.”

The introduction of the Alberta Taxpayer Protection (Carbon Tax Referendum) Amendment Act followed Kenney’s repeated slamming of the tax, which he describes as a punitive tax on consumers. 

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Ahead of introducing the bill, he doubled down on his message at the Alberta Urban Municipalities Association convention in Edmonton.

“It’s no secret that our party is committed to eliminate the carbon tax. We think it’s all economic pain and no measurable environmental gain,” he told the audience. 

Government house leader Brian Mason said the carbon tax was always intended as a tool to force the federal government to support building a pipeline to tidewater.

“What Mr. Kenney is proposing would strike that weapon from Alberta’s hands,” Mason said. “It’s probably our best tool to keep the federal government’s nose to the grindstone when it comes to seeing through the decision to build the Trans Mountain pipeline.”

With files from Hina Alam

cclancy@postmedia.com

twitter.com/clareclancy

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