Premiers see no hope for deal on green plan

by BRIAN LAGHI and KAREN HOWLETT AND RHÉAL SÉGUIN — July 16, 2008

QUEBEC — Canada's premiers have concluded it's impossible to get an agreement among themselves for a pan-Canadian plan to reduce greenhouse gases, with some saying they may have to wait until after the U.S. elections to kick-start the process.

Their reasoning comes as a number of premiers, including leaders of energy-rich provinces, are expected to criticize Liberal Leader Stéphane Dion's Green Shift when they meet in Quebec City Wednesday for the annual gathering known as the Council of the Federation.

“We're going to be vocal about any scheme that will, as a net result, transfer wealth and opportunity from our province and threaten our ‘have' status,” Saskatchewan Premier Brad Wall said in an interview. “I'll take every chance I can to say, ‘It's not on in our books.'”

A spokesman for Nova Scotia Premier Rodney MacDonald also said Tuesday the leader won't hesitate to criticize the plan. The Nova Scotia government has made it clear that it wants to discuss the effect of burgeoning energy prices.

Although a number of provinces have separate ideas for combatting climate change, they have not been able to reach an accord on a national scheme.

Officials acknowledged that the premiers will refrain from even trying for unanimity this year after Ontario Premier Dalton McGuinty's push for a national carbon-trading idea fizzled at last year's meeting over opposition from many of his colleagues, notably Alberta Premier Ed Stelmach.

But Quebec Premier Jean Charest, the host of this year's gathering, said it is only a matter of time before all the provinces and territories follow the United States and unite behind a common strategy. He said the two main contenders in next year's U.S. presidential elections both support a cap-and-trade system.

“I don't think we can look at this issue now without factoring in the change that's going to happen in the United States in the short term,” Mr. Charest said Tuesday. “I respect the position of the other provinces … but we should lead and prepare for a cap-and-trade system.”

Some of the provinces are striking out on their own. Mr. Charest and Mr. McGuinty agreed last month to establish a market-based trading system to cut emissions. Both British Columbia, which has adopted its own carbon tax plan, and Manitoba support the Quebec-Ontario initiative.

Manitoba Premier Gary Doer argued that the four provinces represent about 80 per cent of Canada's population. Those who want to stay behind will have no choice but to catch up, he said.

But it looks like Mr. Dion's controversial carbon tax plan will dominate the climate-change portion of the agenda. The three northern leaders are unanimous in rejecting it, Yukon Premier Dennis Fentie said in an interview Tuesday.

Mr. Dion said he's not bothered by the criticism, saying the provinces have worked hard on the file.

“I understand that it is very difficult for them to do so,” he said. “I'm not aware of one country that has been able to succeed without the leadership of their national government.”

British Columbia Premier Gordon Campbell said that if the meeting “degenerates” into an attack on Mr. Dion, there is no point in having it.

“Everyone can do that without getting together.”

Meanwhile, the Assembly of First Nations may have secured the support of provincial and territorial premiers in pressuring Ottawa to address serious poverty conditions and the shortage of educational resources in native communities.

AFN National Chief Phil Fontaine, who is presiding over the native leaders' annual assembly in Quebec City, said the question will be raised today when they meet with the premiers.

“I'm pretty certain that one of the results will be a joint call from the Council of the Federation and aboriginal leaders on the Prime Minister to convene a meeting … on the process of funding, on socio-economic conditions … and the severe under-funding for schools and education,” Mr. Fontaine told reporters Tuesday.

The AFN is calling on Ottawa to initiate a process that would eventually lead to an agreement similar to the $5-billion Kelowna accord that was signed by the previous Liberal government but rejected by the Conservatives.

Mr. Charest agreed that the premiers must examine the education and social concerns expressed by native leaders in light of the June 11 apology.

Source:Globe and Mail