Source:
The Globe and Mail. April 13, 2006
MARTIN MITTELSTAEDT AND MICHAEL DEN TANDT
From Thursday's Globe and Mail
The new Conservative government has decided to slash spending on
Environment Canada programs designed to fight global warming by 80
per cent, and wants cuts of 40 per cent in the budgets devoted to
climate change at other ministries, according to cabinet documents
obtained by The Globe and Mail.
The documents also say that the Conservatives' campaign promise of
tax breaks for transit passes would cost up to $2-billion over five
years, but would result in an insignificant cut in greenhouse-gas
emissions because the incentives are expected to spur only a small
increase in the number of people willing to trade using cars for
buses and subways.
The section of the documents on the budget cuts, written by an
unidentified government official after a cabinet meeting in late
March that approved the reductions, also said the Tories want to try
to claw back $260-million the Liberals had pledged to the United
Nations to fund its international climate-change programs.
Federal funding for wind power, considered by environmentalists to
be one of the cleanest new energy sources, "is also uncertain," the
documents said.
Ryan Sparrow, a spokesman for Environment Minister Rona Ambrose,
refused to confirm or deny the details in the leak, and said the
government hasn't finalized its decisions on climate change. "Once
there is an announcement to be made, we'll make one," Mr. Sparrow
said.
The documents were obtained by the opposition Liberals and bolster
previous reports that large-scale cuts have been under way in
climate-change programs, such as the highly visible One Tonne
Challenge, which had much of its funding abruptly axed without
public announcement in late March.
The Tories have indicated that they are ambivalent about the Kyoto
Protocol to fight climate change, planning to neither pull out of
the treaty nor meet its emission-reduction targets.
According to the documents, the Tories have yet to develop their
unique Canadian-based set of actions. "No process has been put in
place to determine next steps on climate change or to develop the
new 'made in Canada' climate plan," the documents said.
The documents said that while the Tories are trying to save money by
cutting the programs designed to reduce greenhouse-gas emissions,
they won't cut government staff positions, so most of the money
earmarked for climate change will be going to salaries for
bureaucrats. "Only $375-million was approved for climate spending,
with most of the dollars covering staff salaries until the new
government determines next steps.
"What is clear is that staff will have little to do and that they
will have no budgets to spend over the next year and that more cuts
are coming."
According to the documents, the programs are being eliminated to
help fund tax cuts, including the GST reduction the Tories pledged
during the election, and to fund the transit-pass scheme.
The global-warming programs are being eliminated even though a
Treasury Board review of government spending found that the vast
majority of 166 such programs run by Ottawa were considered cost
effective.
The review, which was begun by the Liberals and completed last fall,
found only 22 programs were ineffective. The Treasury Board
information was supposed to be used to reallocate funding from
programs that weren't working to those that were achieving better
results.
The Liberals did not deal with the review before the election, and
many federal initiatives didn't have budget allocations after March
31, the end of the government's fiscal year.
Environmentalists reacted angrily to the cuts. John Bennett, a
spokesman for the Sierra Club of Canada, accused the Tories of
having a "slash and burn campaign."
The documents also show that senior officials in the Environment
Ministry have told the government that its proposed tax credit for
transit users will have virtually no impact on greenhouse-gas
emissions and only a small effect on riders. "A wide range of data
suggests that people are not very responsive to changes in transit
fares," said a memo prepared for Ms. Ambrose last week by officials
in the office of her deputy minister. ". . . while the ridership
impacts of the tax incentives are not known with precision, analysis
suggests they will be low."
The six-page memo outlines five transit tax-incentive options,
ranging from a 16-per-cent tax credit for all fares, at a projected
cost of $2-billion over five years, to a credit for monthly pass
holders only, at $1-billion, to the same credit for high-school
students only, at a cost of $90-million.
The memo makes clear that the second option is the one the
government prefers. But its benefits to transit users may be
nullified, the memo states, because "it could be quite easy for the
transit authorities to raise their fares to absorb the benefit of
the tax credit."
The Canadian Urban Transit Association has estimated that the
proposed tax break would increase transit use by up to 30 per cent
by 2016. But in another Environment Minister memo drafted for Ms.
Ambrose, ministry officials say that, based on a 1997 Canadian
study, as well as a U.S. Department of Labour survey in 2004, use
can be expected to increase between 2 per cent and 4 per cent. That
means the effect on emissions will be negligible, the documents
show.
Source: The Globe and Mail
"You take the blue pill and
the story ends. You wake
in your
bed and you believe whatever you want to believe."

"You take the red pill and you stay in
Wonderland
and I show you how deep the rabbit-hole goes."

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