Manitoba 'will win' carbon tax challenge if forced to proceed, Pallister says

Manitoba's premier says the province stands to win if it proceeds with a legal challenge against the federal government over its carbon tax.

The province filed its own court challenge against the tax on Wednesday, following similar moves by Ontario and Saskatchewan. It asks for a judicial review to quash the federal tax on the grounds it exceeds Ottawa's constitutional authority.

Speaking to reporters in Brandon following a speech to members of the Brandon Chamber of Commerce on Thursday, Brian Pallister reiterated previous statements he's made about the challenge, including his argument that the federal plan is not the right one for Manitobans. 

"We're standing up for Manitobans here," he said. "We advanced a plan and other provinces did not. We're ready to stand with that plan if we need to."

Manitoba had planned to enact a carbon tax of its own — a price of $25 per tonne that would not rise. Pallister said that plan would recognize the billions of dollars Manitoba has already invested in clean hydroelectric developments.

When the federal government said the Manitoba proposal didn't go far enough, Pallister withdrew the provincial carbon tax plan and promised to fight the federal plan, which sets a rate of $20 per tonne of carbon emissions, gradually rising to $50 per tonne by 2022.

Pallister said the province is hoping it won't have to go to court, and would withdraw its challenge if the challenges already launched by Saskatchewan and Ontario are successful.

"If those succeed, there is no need for us to go to court," he said.

"If they do not succeed and if [federal Conservative Leader] Andrew Scheer does not win the next federal election … then we will go to court and we will win, based on our advice."

In 2017, a legal analysis for the province suggested the federal government has the right to impose a carbon tax on Manitoba and other provinces — but the provinces have a good legal argument to make for their own carbon pricing plans.

"It will keep Justin Trudeau's hands out of the pockets of Manitobans, and Manitoba small businesses, to the tune of well over a billion dollars over the next three years if we have to go to court," Pallister said.

"I hope that is not necessary. I would hope calmer and cooler heads would prevail." 

A date has not been set for the hearing on Manitoba's challenge. Decisions are already pending in the court challenges by Ontario and Saskatchewan.

In the Saskatchewan court case, federal lawyers argued in February that Ottawa has the authority to enact a backstop carbon tax because climate change and greenhouse gas emissions are a matter of a national concern.