Alberta's oilsands have come under the crosshairs of the federal Liberals with a new energy scheme one economist says harkens back to Pierre Trudeau's hated National Energy Program.
"This policy could have come out of the Trudeau Liberals," said University of Calgary economics professor Frank Atkins on the heels of the Grit campaign manifesto released Saturday.
"I don't mind having a big conversation about energy and the environment, as long as we're (Alberta) at the head of the table ... this smacks of the National Energy Program."
The Liberal's 98-page platform, 'Your Family Your Future Your Canada,' pledges to establish a cap-and-trade system that would set a ceiling on the amount of carbon emissions by large, industrial facilities and pave the way for companies to bid on emission permits that could then be traded amongst themselves.
Liberals also want a quick death for the Accelerated Capital Cost Allowance -- a tax break installed years ago to promote oilsands development -- which was to be phased out by 2015 and use the cash for greener technology investments and environmental stewardship in the oilsands.
Atkins and other economists predict the plan could cost the energy industry billions of dollars.
The Grits say an immediate end to that tax break alone would yield nearly $500 million in increased revenue over the next two years.
Liberal boss Michael Ignatieff said the initiative is needed to route subsidies currently going to oilsands production towards shaving down Canada's carbon emissions.
"We want to end that immediate subsidy to the oilsands, and take all the money we save from that and immediately drive it into CO2 reduction technologies and incentives in the oilsands," Ignatieff said Sunday.
"We've also committed, if you look in the fine print, to cap and trade. And we've also committed to a climate reduction target of 2 degrees Celsius by 2050, which is the international standard ... In international climate change discussions, instead of being the dog in the manger, we stand up and make concrete commitments and move forward."
Minister of State (Finance) Ted Menzies said the Conservative government's clean air agenda includes increasing energy efficiency, reducing greenhouse gas emissions, improving air quality and focusing on regulatory actions.
"One thing we will not do is slap a multi-billion dollar carbon tax on Canadian businesses, particularly as we are emerging from a global economic recession and working to complete our economic recovery and strengthen families' financial security," he said.
"This massive Ignatieff-Liberal tax hike would slam the brakes on our recovery and kill jobs across the country. It is a reckless policy that would do irreparable harm to our economy at a time when our recovery remains fragile."
Economist Brian Leach said there are still many questions surrounding the Liberal cap-and-spend initiative and suggested the hit to Alberta's oilpatch could top $30 billion through the Liberal's proposed emission credit auction revenue.
"It's a big number with no real explanation as to where that number is coming from," Leach said.
"It puts that ability to grow and take advantage of that resource at risk."
Industry leaders within the Canadian Association of Petroleum Producers, comprised of companies responsible for about 90% of Canadian oil and natural gas, were mum on the Liberal's proposed agenda over the weekend.
"It's CAPP's policy not to comment on the election (candidates, parties, platforms, outcomes, etc) during the process," CAPP spokesman Travis Davies wrote in an email to the Sun.
Federal Liberals cap and trade election plank raises questions
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Alberta has no power. We are a tiny insignificant province compared to the rest of the country. Alberta makes up less than 10% of the population of Canada so we sure as hell don't have any political power.
