Surging energy prices harmful to families, should drive green transition: Freeland
Deputy Prime Minister Chrystia Freeland said the federal government is absolutely concerned about inflation, but dismissed critics who called her callous and out of touch for suggesting the high cost of gas is a reminder of why we need to transition to greener energy solutions.
Calls for the government to provide more immediate relief to Canadians struggling to fill their cars and feed their families have piled up even as clean energy experts agree the incentive for Canadians to go greener is stronger than ever before.
Freeland was touring southern Ontario this week promoting the government's response to inflation, such as increased federal benefits, and cuts to child-care costs under new agreements signed with every province.
She said those increases will help Canadian families right now. She also said they were long accounted for in government budgets and won't risk increasing inflation further by dousing the economy with more money, driving up demand at a time when supply crunches are a major factor behind rising prices.
"I know that inflation is making life more expensive," she said at a trucking company in Brampton, Ont., Tuesday.
Statistics Canada reported that inflation hit 7.7 per cent in May, the fastest pace since January 1983. Soaring gas prices — which were 48 per cent higher in May compared to a year earlier — were a major factor.
Freeland said inflation is largely caused by forces outside of Canada's control: the Russian war in Ukraine and supply chain hits from COVID-19.
She then added that "from my perspective this price increase in fuel costs is a reminder of why climate action is so important, and why as a country we have to work even harder and move even faster towards a green economy. It's an insurance policy against higher energy prices."
Interim Conservative leader Candice Bergen scoffed at the comment as proof that "the Liberals have always wanted high gas prices."
"They have no respect for struggling families and working Canadians," she said on Twitter.
Asked about what she said on Wednesday, Freeland said it is "completely false" to say she isn't concerned that Canadian families are hurting.
"Of course I am concerned," she said.
But she said it is also true that "the energy crisis that the world is going through right now, absolutely does mean that we need to focus on the green transition."
Dan Woynillowicz, principal at the climate and energy consulting firm Polaris Strategy, said domestic electricity prices are not subject to the same global price volatility as oil. An economy run on clean electricity, he said, should be insulated from these kind of price shocks in the future.
Greg MacEachern, a liberal strategist and senior vice-president at Proof Strategies, said the issue for Freeland isn't necessarily what she said, but how she said it.
"This summer might be a good opportunity to do a communications audit, a test to see how their message is landing with average Canadians," he said.
MacEachern said Conservative leadership front-runner Pierre Poilievre is relentlessly going after the government over inflation and tapping into the anger and fatigue many Canadians are feeling after two years of upheaval. People are looking to their elected leaders to see who really seems to understand their pain, he said.
He noted that Ontario Premier Doug Ford did that to great success in the recent election, where he cruised to an easy victory with an even bigger majority.
"The government cannot underestimate the crankiness of the public right now," MacEachern said.
To date the Liberals have rejected calls to cut gas taxes. Three provinces have cut them — Alberta by 13 cents a litre in April, Newfoundland and Labrador by seven cents in June and Ontario by 5.7 cents on July 1.
Canada is the only G7 country not providing some form of relief at the pumps at the national level.
The average pump price Wednesday was $1.94, 60 cents higher than a year ago. That price includes the 10 cents per litre federal gas tax, and 11 cents a litre in carbon price. The latter is up 2.2 cents compared to a year ago.
Woynillowicz said cutting the gas tax may be a politically popular move, but it will likely just drive demand back up, along with prices.
"So the benefit is kind of illusory," he said. "It's there temporarily, but then it disappears pretty quickly. And those people who are most impacted are right back into the same situation they were, in terms of facing these financial challenges."
Woynillowicz said lowering or eliminating transit fares might be more direct relief, without harming climate policies.
Michael Bernstein, executive director at Clean Prosperity, which looks for market-based solutions to the climate crisis, also said the government should find a way to give Canadians some relief without changing climate policies and action on gas prices.
He said a recent Leger survey for Clean Prosperity suggested more than half of Canadians are facing hardship because of increased energy costs, and two-thirds are responding by driving less and reducing their heating and cooling use at home.
This report by The Canadian Press was first published July 6, 2022.
IN DEPTH
Budget 2024 prioritizes housing while taxing highest earners, deficit projected at $39.8B
In an effort to level the playing field for young people, in the 2024 federal budget, the government is targeting Canada's highest earners with new taxes in order to help offset billions in new spending to enhance the country's housing supply and social supports.
'One of the greatest': Former prime minister Brian Mulroney commemorated at state funeral
Prominent Canadians, political leaders, and family members remembered former prime minister and Progressive Conservative titan Brian Mulroney as an ambitious and compassionate nation-builder at his state funeral on Saturday.
'Democracy requires constant vigilance' Trudeau testifies at inquiry into foreign election interference in Canada
Prime Minister Justin Trudeau testified Wednesday before the national public inquiry into foreign interference in Canada's electoral processes, following a day of testimony from top cabinet ministers about allegations of meddling in the 2019 and 2021 federal elections. Recap all the prime minister had to say.
As Poilievre sides with Smith on trans restrictions, former Conservative candidate says he's 'playing with fire'
Siding with Alberta Premier Danielle Smith on her proposed restrictions on transgender youth, Conservative Leader Pierre Poilievre confirmed Wednesday that he is against trans and non-binary minors using puberty blockers.
Supports for passengers, farmers, artists: 7 bills from MPs and Senators to watch in 2024
When parliamentarians return to Ottawa in a few weeks to kick off the 2024 sitting, there are a few bills from MPs and senators that will be worth keeping an eye on, from a 'gutted' proposal to offer a carbon tax break to farmers, to an initiative aimed at improving Canada's DNA data bank.
Opinion
opinion Don Martin: Gusher of Liberal spending won't put out the fire in this dumpster
A Hail Mary rehash of the greatest hits from the Trudeau government’s three-week travelling pony-show, the 2024 federal budget takes aim at reversing the party’s popularity plunge in the under-40 set, writes political columnist Don Martin. But will it work before the next election?
opinion Don Martin: The doctor Trudeau dumped has a prescription for better health care
Political columnist Don Martin sat down with former federal health minister Jane Philpott, who's on a crusade to help fix Canada's broken health care system, and who declined to take any shots at the prime minister who dumped her from caucus.
opinion Don Martin: Trudeau's seeking shelter from the housing storm he helped create
While Justin Trudeau's recent housing announcements are generally drawing praise from experts, political columnist Don Martin argues there shouldn’t be any standing ovations for a prime minister who helped caused the problem in the first place.
opinion Don Martin: Poilievre has the field to himself as he races across the country to big crowds
It came to pass on Thursday evening that the confidentially predictable failure of the Official Opposition non-confidence motion went down with 204 Liberal, BQ and NDP nays to 116 Conservative yeas. But forcing Canada into a federal election campaign was never the point.
opinion Don Martin: How a beer break may have doomed the carbon tax hike
When the Liberal government chopped a planned beer excise tax hike to two per cent from 4.5 per cent and froze future increases until after the next election, says political columnist Don Martin, it almost guaranteed a similar carbon tax move in the offing.
CTVNews.ca Top Stories
A healthy lifestyle can mitigate genetic risk for early death by 62%, study suggests
Even if your genetics put you at greater risk for early death, a healthy lifestyle could help you significantly combat it, according to a new study.
When you have a moment's notice to evacuate, what do you take?
Knowing what to have at home, or take with you for an evacuation, can be useful and even life-saving.
B.C. brings in law on name changes on day that child killer's new identity revealed
The BC NDP have tabled legislation aimed at stopping people who have committed certain heinous acts from changing their names.
Ellen DeGeneres addresses the 'hurtful' end of her talk show in new stand-up set
Ellen DeGeneres is reflecting on how her talk show came to an end in her newest Netflix special, 'Ellen's Last Stand ... Up Tour.'
Avs forward Valeri Nichushkin suspended at least six months
Colorado Avalanche forward Valeri Nichushkin was suspended for at least six months without pay and placed in Stage 3 of the league's player assistance program.
Western University researchers unlock potential 'cure' for ALS
New research out of London, Ont.'s Western University is shedding light on a potential cure for ALS, in which the targeting of the interaction between two proteins can halt or fully reverse the disease's progression.
Police release 3D images of young child found in an Ontario river two years ago
Police have released a three-dimensional image of a young child whose remains were discovered in the Grand River in Dunnville, Ont. almost two years ago.
B.C. man fighting for refund after finding someone living at Whistler vacation rental
Edwin Mostered spent thousands of dollars booking a vacation home in Whistler, B.C., for a group skiing trip earlier this year – or so he thought.
Kamala Harris drops F-bomb during White House live-stream
U.S. Vice-President Kamala Harris used a profanity on Monday while offering advice to young Asian Americans, Native Hawaiians and Pacific Islanders about how to break through barriers.
Local Spotlight
Adopted daughter in the Netherlands reunited with sister in Montreal and mother in Colombia, 40 years later
Two daughters and a mother were reunited online 40 years later thanks to a DNA kit and a Zoom connection despite living on three separate continents and speaking different languages.
'Reimagining Mother's Day': Toronto woman creates Motherless Day event after losing mom
Mother's Day can be a difficult occasion for those who have lost or are estranged from their mom.
Chris Hadfield inspires youth musical in Sudbury
YES Theatre Young Company opened its acclaimed kids’ show, One Small Step, at Sudbury Theatre Centre on Saturday.
Ottawa pizzeria places among top 20 deep-dish pizzas in the world at international competition
An Ottawa pizzeria is being recognized as one of the top 20 deep-dish pizzas in the world.
From outer space? Sask. farmers baffled after discovering strange wreckage in field
A family of fifth generation farmers from Ituna, Sask. are trying to find answers after discovering several strange objects lying on their land.
Wilfrid Laurier football player drafted despite only playing 27 games in his entire life
A Listowel, Ont. man, drafted by the Hamilton Tigercats last week, is also getting looks from the NFL, despite only playing 27 games of football in his life.
Federal government bans watercraft from Manitoba lake popular with tourists
The threat of zebra mussels has prompted the federal government to temporarily ban watercraft from a Manitoba lake popular with tourists.
Toronto-area dessert shop featured by Keith Lee forced to move after zoning complaint
A small Ajax dessert shop that recently received a glowing review from celebrity food critic Keith Lee is being forced to move after a zoning complaint was made following the social media influencer’s visit last month.
'Oh Crap!' New exhibit at Canada Science and Technology Museum explores human waste
The Canada Science and Technology Museum is inviting visitors to explore their poop. A new exhibition opens at the Ottawa museum on Friday called, 'Oh Crap! Rethinking human waste.'