We need an excess profits tax on oil companies

October 6, 2005

The federal government today announced a fairly complex program of relief for home-heating costs. Some of this is not bad - retro-fitting low income rental housing and subsidies for more efficient furnaces, etc. The extra money for low income seniors is more political than substantial and completely ignores low income families.

The point to make in commenting on this billion dollar is simple - we should be funding such programs with an excess profits tax on oil and gas companies which are making windfall profits simply because of global demand for energy. They have done nothing to deserve these huge profits and we should claw some of it back to low income Canadians don’t get stiffed so Texas oil companies can get rich.

This requires only a very short letter to the editor simply making the above point.

If you have the extra time, a reference to the conservation measures would be appropriate, too. There is a huge contradiction here: Canada continues to allow the unlimited export of our natural gas and oil to the US and NAFTA guarantees the US that supply until we run out. But OUR energy security is exactly zero. We cannot cut supplies to the US if we run short. Our response? We subsidize more efficient furnaces whilke the gas pours over the border.

In short - we need a comprehensive national energy policy.

Some sample letters:

Dear editor:

It’s great that the federal government actually recognizes that low income Canadians will be up against it this winter with energy costs. But sending people checks in the mail to pay for outrageous energy costs looks to me like we are subsidizing the oil companies. We should be paying for these programs - retrofits, more efficient furnaces, etc. - with an excess profits tax on oil and gas companies.

Dear editor:

The amount of profits being made by oil and gas companies is irresponsible and has nothing to do with their performance or efficiency. These are windfall profits and they should be taxed as such. This is how the government should be paying for its just-announced measures to deal with home heating costs. Let them have a fair return on investment - and take the rest so that low income people don’t suffer.

Dear editor:

The Liberals’ plan to deal with high home heating bills just shows that we desperately need a national energy policy and strategy in this country. We must be the only developed nation without such a policy. This piece meal approach is absurd and should draw attention to the fact that we have given up our control over the most valued resource in the world. Under NAFTA we guarantee the US energy security while ours is abandoned. A good start would be an excess profits tax on the oil companies. If we can’t set a cap on oil and gas prices we can at least recoup some of that money through fair tax on these companies rolling in money.

Dear editor:

Why should the giant (and mostly American) oil and gas companies be allowed to profit off the misery of low income Canadians? The government’s plan for rebates is totally inadequate to deal with the problem faced by low income seniors - and what about low income families? An excess profits tax on these cash-laden and greedy companies would allow for a much more comprehensive program.

Dear editor:

The federal government’s plan for dealing with the high cost of home heating is nothing more than political expediency. In a minority government situation they are terrified of getting punished at the polls. What we really need in this country is a comprehensive, long term national energy policy not a piece meal, political patch work. Part of this program must be an excess profits tax on the fabulously profitable oil patch. Then we need to revisit NAFTA which provides the US with energy security while undermining our own.

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