‘I’m at a loss’: Ottawa not considering a tax on fossil fuel companies that could be worth $4.2 billion over five years

But the lucrative dollar figure is not enough for the embattled federal government to include the tax in its upcoming plans, despite the political pressure from dozens of advocacy groups in Canada and opposition parties, who have routinely accused the governing Liberals of not doing enough to ease the ongoing affordability and climate crises.

According to a report Thursday from the Parliamentary Budget Officer, extending the Canada Recovery Dividend to the 2022 excess profits of oil and gas companies as Morrice’s motion urges would give the government an additional $833 million per year.

The Canada Recovery Dividend is a one-time tax on the windfall profits of Canadian banks and insurance companies, calculated as 15 per cent of the average Canadian-based taxable income over 2020 and 2021 in excess of $1 billion. It’s expected to generate a total of $3 billion for the government.

“We’re not doing exactly what this private member’s bill is proposing, but we’re doing a number of things, and we will obviously be happy to debate this,” Environment Minister Steven Guilbeault said Thursday, highlighting a host of other climate policies, including the upcoming oil and gas emissions cap.

A statement from the office of Finance Minister Chrystia Freeland also did not indicate any plans to adopt the measure.

The government’s reluctance is discouraging for proponents of the bill. Morrice, who said he’d like to see the tax included in the upcoming fall economic statement, said the fossil fuels industry has slowly walked back on its climate pledges amid what he called an array of unnecessary consultations with the government. He and other advocates for a windfall tax have dismissed critics’ arguments against the policy as a product of industry lobbying.

“I’m at a loss for a reason of why the federal government wouldn’t simply do what they’ve already done for banks and life insurance companies and apply it to oil and gas.” Morrice told reporters on Thursday.

The Conservatives, for their part, believe Canadians wouldn’t benefit from solving climate change through additional tax measures, finance critic Jasraj Singh Hallan said in a statement to the Star.

Morrice’s proposal would only be applicable to seven companies operating in Canada, according to analysis from Environmental Defence Canada.

Among them would be Suncor, whose CEO, Rich Kruger, appeared at a committee last week to clarify claims he made about prioritizing profit over climate action.

After the meeting, Guilbeault told reporters he wasn’t convinced by Kruger’s testimony — comments he reiterated Thursday in response to a question on the windfall tax proposal.

For NDP MP Charlie Angus, this is just one of many examples highlighting the urgent need for the Canadian government to finally stand up to big oil companies.

“Consumers have lost out, communities are losing out, our planet is losing out, and the government continues to tiptoe around taking these guys on and holding them to account,” he told the Star.

“The time has come. This is the big tobacco moment.”