Harnessing windfall profits to tackle corporate greed and fund a greener future

On the eve of the federal budget, The Globe and Mail reported that Liberal Finance Minister Chrystia Freeland was considering implementing an excess profits tax on big oil and gas producers, but multiple sources confirmed that she backed down in the face of strong lobbying from oilpatch executives and the Canadian Association of Petroleum Producers. These same lobbyists and executives are raking in record profits, increasing their emissions, and gouging Canadians at the pump, all while handing out millions of dollars in bonuses to their CEOs. But, lucky for them, the Liberal government has their back. Everyday Canadians haven’t been so lucky. They have been experiencing the dual crises of climate change and the skyrocketing cost of living. Wildfires, extreme flooding, multi-year droughts, and heat domes have forced Canadians from their homes, cost billions of dollars in damage, and taken the lives of hundreds of people. At the same time, families across Canada are struggling to keep up with the corporate greed of real estate developers, grocery giants, big pharma, and big oil and gas who have driven up prices while seeing corporate profits hit record highs. NDP MP Laurel Collins is her party’s environment and climate change critic. Photograph courtesy of Laurel Collins Left unchecked, soaring corporate profits are a major driver of the recent inflation spike, and these inflationary price increases hurt workers’ pockets, while padding corporate profits—particularly in oil and gas. Most Canadians see greedflation as a problem, and the majority of Canadians support a windfall profits tax on oil and gas. The concept of a windfall profits tax on oil and gas is not radical. It is a pragmatic approach that has been adopted by countries around the world. A windfall tax has been implemented by the United Kingdom and more than 20 European countries, and raised more than $10-billion. In response to record profits, the global surge in energy prices exacerbated by geopolitical tension, market manipulations and corporate greed, they levied additional taxes on the surplus profits of oil and gas companies. In Canada, however, both the Liberal government and the Conservative opposition have shown a disheartening reluctance to take on big oil and gas. While New Democrats were able to successfully force the Liberals to implement a surplus profits tax on big banks, the Liberals refuse to ruffle the feathers of their friends in oil and gas. They lack the courage to take on corporate greed. And then there is Pierre Poilievre, who continues to do the bidding of the oil and gas executives that flock to his fundraisers. Conservatives champion increasing production and increasing emissions, and they disregard the long-term environmental and economic consequences of these policies. The corporate-controlled Conservatives have no climate plan, and they have no problem letting oil and gas companies pollute and gouge Canadians without consequence. But it's not surprising that Conservatives won't even talk about corporate greed or a windfall profits tax, when, despite Poilievre's top adviser appearing to use a shell company to try to hide her lobbying (which she denies), the fact is their party is run by lobbyists. But no matter what the Conservatives believe, climate change is real. And the climate crisis costs our economy billions annually in disaster response, mitigation, and adaptation. The recent wildfires, floods, and extreme weather events across Canada are stark reminders of the price we pay for inaction. And the sector that produces the most emissions in Canada, fueling the climate crisis, is also receiving government handouts in the form of fossil fuel subsidies. Freeland and the Liberals have shown that, despite a clear mandate from Canadians who support a windfall tax and demand accountability, they’d rather be wined and dined by big oil then stand up to them. For years, the Liberals have sat on their hands while Canada’s biggest polluters have made more money than ever before and done irreparable harm to the planet. The parliamentary budget officer reported that if the Liberals made big oil and gas companies pay their fair share, it would generate more than $4-billion a year. Billions that could be invested in clean energy, public transportation, helping families switch to heat pumps—ultimately driving down emissions and helping people with the cost of living. A windfall profits tax on oil and gas profits is not just wise, it's essential. It represents a critical step to not only tackle corporate greed and discourage inflationary price increases, but also a way to fund climate solutions that make life more affordable and protect our environment for present and future generations. NDP MP Laurel Collins, who represents Victoria, B.C., is her party’s environment and climate change critic, as well as the deputy critic for families, children, and social development. The Hill Times