For those who have followed federal politics closely, it will not be a secret that the Conservative official opposition fought against the former Liberal consumer carbon tax for many years.
We had many arguments against the carbon tax. One was simple: when government policies make gasoline and diesel more expensive, those higher costs do not stop at the pump. Farmers, truckers and businesses also pay more, and some of those costs eventually make their way into the prices consumers pay.
For years, much of the debate was over how much the carbon tax contributed to inflation. The Bank of Canada argued that its direct effect on inflation was relatively modest.
The consumer carbon tax is now gone. But removing one government-imposed cost on fuel does not help nearly as much if other costs remain in its place. Canada still has an industrial carbon tax as well as complex federal fuel regulations that Conservatives believe add unnecessary costs.
Unfortunately, food inflation remains a serious problem in Canada, and many Canadians are struggling with grocery bills. Food Banks Canada recently recorded 2.35 million food bank visits in a single month, the highest number ever recorded. That is up nearly 9 per cent from last year and almost 117 per cent since 2019.
At the same time, diesel prices have risen sharply. We are now seeing reports citing economists who warn that higher diesel prices are increasing transportation and production costs and putting renewed upward pressure on food prices.
This makes sense. Diesel powers the trucks, farm equipment and other machinery that help get food from farms and producers to grocery-store shelves. When those costs rise, the effects can be felt throughout the supply chain.
So what can we do about it?
Canada cannot control wars, world oil prices or other international events that affect fuel prices. But we can control the taxes and regulations imposed here at home.
That is why Conservatives recently brought our Emergency Fuel Relief Plan before Parliament, calling for further relief from federal taxes on diesel. Unfortunately, the proposal was defeated, with the Liberals, Bloc and NDP voting against it.
Conservatives will continue fighting to extend federal fuel tax relief and remove the GST from gas and diesel. We also support eliminating the industrial carbon tax and the federal government’s complex and costly fuel regulations.
Those fuel regulations raise another important question. Canadian ethanol producers say heavily subsidized American ethanol is taking a growing share of the Canadian market. They argue that U.S. ethanol can benefit from American production support and then compete against Canadian ethanol under our own federal regulatory system.
Think about that. Canada is an energy and agricultural powerhouse, yet we have created a federal fuel policy that Canadian producers themselves say puts them at a disadvantage against subsidized American imports.
We cannot eliminate the effects of global events. But when Canadians are struggling with food prices, Ottawa should be doing everything it reasonably can to keep the cost of producing and transporting goods as low as possible, while making better use of Canadian energy and Canadian agriculture.
My question this week relates specifically to diesel. Have you or someone you know been affected by rising diesel fuel prices?
As always, you are welcome to share your thoughts on my Facebook page, by email at Dan.Albas@parl.gc.ca, or by calling toll-free at 1-800-665-8711.
