Photo: The Canadian Taxpayers Federation says Ottawa’s decision to scrap its planned 2035 ban on new gas and diesel vehicles is a win for taxpayers, but warns the federal government is replacing it with billions in subsidies and new electric vehicle regulations. / Tom Kowalsky
Winnipeg Sun
The Canadian Taxpayers Federation is calling the federal government’s decision to scrap its planned ban on new gas-powered and diesel-powered vehicles a victory for affordability, while warning Ottawa is replacing the policy with billions of dollars in subsidies and new regulations.
In a statement, Franco Terrazzano, the federation’s federal director, said public opposition forced the government to retreat from its plan to prohibit the sale of new internal combustion engine vehicles by 2035.
“Ordinary Canadians forced the federal government to make a major retreat and admit Canada simply can’t afford to ban the sale of all new gas and diesel vehicles by 2035,” Terrazzano said. “Canadians forced Ottawa to retreat, but the federal government is replacing the electric vehicle mandate with a package of unaffordable policies.
“Taxpayers can’t afford to pay for billions in corporate welfare and subsidies.”
The federal government announced it is ending its planned 2035 ban through changes to its electric vehicle mandate. A Leger poll commissioned by the federation found most Canadians opposed the ban on the sale of new gas and diesel vehicles.
At the same time, Ottawa unveiled $3 billion in subsidies for the auto manufacturing industry and reinstated consumer subsidies for electric vehicle purchases, expected to cost $2.3 billion.
According to the Parliamentary Budget Officer, the federal government has already committed up to $31.4 billion in subsidies for battery factories and the electric vehicle supply chain.
The federation argues the new measures come at a time of rising federal debt, which it says has reached $1.3 trillion and is projected to increase by roughly $80 billion this year. It also notes interest payments on the debt now exceed federal health-care transfers and total GST revenues.
In addition to the subsidies, the government said it will impose new regulations requiring automakers to reach 75 per cent electric vehicle sales by 2035 and 90 per cent by 2040.
“Canadians forced Ottawa to retreat from its wildly unrealistic plan to ban all new gas and diesel vehicle sales in less than a decade, but now Prime Minister Mark Carney is using less transparent subsidies and regulations to impose a plan that’s almost as unrealistic,” Terrazzano said. “From runaway borrowing to hidden carbon taxes and now electric vehicle subsidies and regulations, the prime minister needs to stop trying to hide bad policies and end them entirely to make life more affordable for taxpayers.”