Media Releases

September 9, 2008

Conservative plan to cut diesel tax backward-looking

NAPANEE – Prime Minister Stephen Harper’s announcement that he will cut the excise tax on diesel is a 19th century approach to the challenges of the 21st century green economy, Liberal Leader Stéphane Dion said today.

“This is just a gimmick that will make no real difference for Canadians, while actually undermining the country’s ability to switch to cleaner renewable sources of energy,” said Mr. Dion. “When it comes to facing the challenge of the climate change crisis, Mr. Harper is going in the opposite direction from the international community and every responsible leader.

“His approach will do nothing to help Canadians who want to end their reliance on fossil fuels and it will do nothing to help the Canadian economy which is the worst performing economy in the G7.”

What really makes a difference to Canadian businesses and families are corporate and personal income tax cuts, combined with rebates and incentives for energy efficiency funded by a tax on pollution – like the Liberal Green Shift plan, which will put thousands of dollars into the pockets of Canadian families.

“Taking a serious chunk out of your taxes and providing other benefits to reward good environmental practices is better than a few pennies on a tank of diesel,” said Mr. Dion.

“Mr. Harper’s announcement today is proof that every word he has said about concern for the environment is false. Dirty fossil fuels do impose a cost on the environment.”

Mr. Harper doesn’t really believe it will make a difference on costs. Indeed, in May 2008, Mr. Harper said: "The ability of governments to affect the prices of gasoline per se is so small that it's not worth doing." (St. Catharines Standard, May 24, 2008)

He also dismissed outright lowering gas taxes, telling the National Post: “I don't think government should fool people into thinking it can control the price of gas. It – generally speaking – can't…These prices are set internationally. We are seeing increased prices around the world.” (May 22, 2008)

“This is clearly a desperate election ploy to try and convince Canadians that he has a good plan for the economy,” said Mr. Dion.

“This is not a sustainable long-term strategy for the economy OR the environment. It is not a sustainable approach for Canadian families.

“The best approach is to help Canadians use less fossil fuels, be more energy efficient, build a green economy and invest in renewable alternatives. That is the way to create jobs and save Canadians money,” he said.