Thursday, June 07, 2007

Quebec Introduces Carbon Tax

Quebec has become the first province to introduce a so-called carbon tax.

Quebec Natural Resources Minister Claude Bechard says this will not affect the wallets of Quebec citizens because the energy industry will absorb the cost. Says Bechard: "We count on the good will of the gas companies."

Isn't it interesting how politicians refuse to cut gas taxes stating that oil companies will gobble up the savings yet when they raise taxes the same companies are expected to absorb the costs?! Interesting logic M. Bechard...

1 comment:

Maureen Bader said...

A friend sent me this reminder:

Here's a communications lesson we don't talk about often enough, but we
should. One of the worst communications errors you can make is to say
something that doesn't pass the believability test. It can be extremely
damaging to your credibility and that of your organization. In this
case, it's another damaging blow to Quebec's Liberal government and
specifically to the credibility of Natural Resources Minister Claude
Bechard, who announced a 0.8-cent-a-litre carbon tax will come into
force in Quebec on Oct. 1. Bechard Fumbled when he told reporters that
he "hopes" the oil companies, which are reporting record profits, would
absorb the tax and not pass it on to consumers. The Minister would have
been well advised to spend 10 minutes at any Quebec gas station and to
have asked anyone who came to fill-up whether they believed this. My
guess is 100 per cent of them would have told Bechard they have zero
expectation that oil companies would absorb such a tax in Quebec (or
anywhere else in Canada, for that matter), but instead they fully expect
the oil companies would pass it along to consumers in the form of higher
gas prices. Further, Bechard could provide no proof in the form of any
oil company - not even one - confirming that it would absorb the tax
hike as a slice off its profit margin. If recent history and every piece
of evidence points in one direction and you intend to make a media
announcement that points in the opposite direction, you'd better load up
on proof. That didn't happen here.

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