Manitoba will challenge federal carbon tax in court, has 'credible greenhouse gas-reduction plan': premier

The Manitoba government will go to court over Ottawa's imposition of a carbon tax.

Premier Brian Pallister revealedWednesday his government will launch a legal challenge against the federal government, whichimposedits new levy as promised on Manitoba, along with three other provinces, Monday.

"We're going to court, sadly,to challenge the Ottawa carbon tax because Ottawa cannot impose a carbon tax on a province that has a credible greenhouse gas-reduction plan of its own, and we do," he told reporters.

Manitoba's climate change plan originally included a carbon tax, which Pallisterwithdrewin a surprise move last October.

The federal government's carbon tax came into effect April 1 for four provinces Saskatchewan, Manitoba, Ontario and New Brunswick that didn't meet Ottawa's standard for a sufficient carbon pricing system.

The carbon tax is nowcharged on 21 different fuel inputs in those provinces, including gasoline, at a rate of $20 per tonne of carbon emissions. Thatwill gradually rise to $50 per tonne by 2022.

Pallister said Wednesday his government has a strong legal case against the federal tax, separate from a court challengealready launched bySaskatchewan, and backed by Ontario and New Brunswick, becauseitoriginally proposedits own tax.

Manitoba backed away from that plan, which proposeda flat carbon price of $25 per tonne,when thefederal Liberal government declared itdidn't go far enough.

The premier also said it wasn't fair thatthe federal government had offered exceptions to other provinces, butnot Manitoba.

He's previouslysaid Quebec's cap-and-trade program is much less stringent than theflat $25-per-tonne price he proposed beforehe withdrew the Manitoba carbon tax, and has argued Manitoba isn't given credit for the clean energy it produces.

"I'm the only Conservative premier in the country that took steps to develop a green plan,which actually involves our people here contributing somewhat to a levy."

What you need to know about the federal carbon tax

5 years ago

Duration 4:35

The federal Liberal government will begin levying its carbon tax on greenhouse gas-emitting fuels today in the four provinces that have refused to take part in the pan-Canadian climate framework.

Pallister said his decision was influenced by discussions with government lawyers, and thatManitoba's legal argument is more convincing now that the federal backstop is in place.

"There's no point launching the case unless they were going to intrude on Manitoba's jurisdiction," he said of the federal government. "They didn't do that until this past Monday."

Manitoba will withdraw the court challenge, which may take two to three years to windthrough the legal channels, Pallister said, ifthe Saskatchewan court challenge succeeds, or if the Trudeau government is defeated in the next federal election.

"My hope would be it's resolved by previous court decisions and we don't need to carry it further,"Pallister said. "I guess I could be accused of trying to save money, yet again."

If Ottawa's plan is rejected, Pallister wouldn't say whether he would implementthe carbon tax plan his government originally proposed.

Manitoba has 'flip-flopped': environment minister

Federal Environment Minister Catherine McKenna is dismayed by Pallister's thinking.

"Ithink it's really ironic," she said from Ottawa.

"The day after we release a climate report for Canada by our scientists that said that Canada's warming is double the worldaverage that we have the premier of Manitoba deciding to take us to court, to spend taxpayer money fighting climate action as opposed to fighting climate change," McKenna said.

"Manitoba had an opportunity to have a plan and, unfortunately, they flip-flopped so many times."

Manitoba NDPLeader Wab Kinew pointed out the provincereceived a legal opinion two years agothat said the federal government has the right to impose a carbon tax.

He said thislawsuit, which he described as "frivolous," won't change that.

"We can debate the merits of the carbon pricing measure, but I can tell you one thing for sure: taking the federal government to court on this is just going to waste taxpayer money and it's going to do absolutely nothing to fight climate change here."

The legal opinion said the province could legally snub the federal carbon tax scheme if it demonstrated that its plan was equally effective at cutting emissions.

The government would be better off returning to the negotiating table with the federal government, arguedManitoba Liberal Leader Dougald Lamont.

"To go against the advice of a very well-respected law prof who you've paid tens of thousands of dollars to give you advice on this matter doesn't make anysense to me."