B.C. Premier David Eby dared the Conservative Party of B.C. to bring down his government over legislation tabled on the last day of March to eliminate the consumer carbon tax scheduled to increase April 1.

But the pending elimination of the carbon tax also completes a policy reversal that could further strain relations between the B.C. NDP and the B.C. Greens. 

"The elimination of the carbon tax is something that was supported by the NDP throughout the election campaign," Eby said Monday afternoon after B.C. Finance Minister Brenda Bailey had tabled legislation to eliminate the tax.

He added that his government is now following through on its promise. "My understanding was that Conservatives also thought the carbon tax should go, but if they want to vote to keep the carbon tax and go to an election instead, well, that says a lot about where their priorities are." 

Monday's legislation sets the stage for a sitting of the legislature that could last well into the night. Passage of the bill would end a policy that had existed in B.C. since 2008 when the province became the first North American jurisdiction to implement a carbon tax. Economists consider carbon taxation the most effective to change the behaviour of consumers.

The end of the carbon tax would also spell the end of the climate action tax credit designed to help offset the impact of the carbon taxes for individuals and families with low-to-moderate incomes with final payments set to go out in April. 

According to the latest provincial budget, government had budgeted almost a $1 billion for the climate action tax credit for this fiscal year. Benefits have historically varied with the income and composition of families, with the maximum amount per person being $504. Some 70 per cent of eligible individuals received the maximum in 2024 and plans announced in 2024 called for 80 per cent to receive the maximum by 2030. 

Eby acknowledged the historic nature of the legislation and the loss of the credit. 

"I thought it was a good policy," he said. "I fought for the policy. Without a doubt, the policy became absolutely toxic with British Columbians and with Canadians due to a dedicated and concerted campaign by the Conservative Party at the provincial level and at the federal level." 

He said the decision to eliminate the tax was not easy but important, adding that it had run its course.

"British Columbians do not support it. They don't want it. They don't want to see it and we are removing it. We listen to the people." 

He also pointed to potential cost savings. 

"We anticipate that British Columbians will be seeing savings of 17 cents (per litre) at the pump," he said.

But Eby also acknowledged that gas prices have been rising since government's announcement to dump the consumer carbon tax. He added that government has transparency legislation that gives it the power to shine a light on price gouging. "So just a little heads up to the oil and gas companies...now is not the time to be playing games with essentials for British Columbians or Canadians as a whole." 

Eby also repeated promises that government would continue to decarbonize B.C.'s economy, pointing to government's investments in clean electricity and the output-based pricing system for industry. He also pointed to future reviews of government spending and CleanBC to get the most out of public funds "to deliver front-line services to grow our economy, to fight climate change and ensure that we are meeting the expectations of British Columbians." 

Eby's comments come after Speaker Raj Chouhan had ruled in favour of government to use a rarely used procedure to push through the legislation in a single day.  Standing Order 81 says a bill may be read twice or three times, or advanced two or more stages in one day, on "urgent or extraordinary occasions."

Government House Leader Mike Farnworth said the situation is urgent because the legislature is sitting for the first time since March 13. Eby announced on March 14 that the government would scrap the consumer carbon tax after the federal government, under Liberal Leader Mark Carney, had announced earlier this month that it would eliminate the legal requirement. 

"This (Monday) is the first instance that we have been able to table this legislation," Farnworth said. He also argued that the scope of the legislation is narrow enough to push it through before the stroke of midnight, with Farnworth specifically citing a Conservative petition that calls on government to scrap the tax immediately. 

"Well, without getting into the debate on the legislation, we are moving to do just that," Farnworth said. 

Farnworth also made passage of the legislation a matter of confidence in noting its budget implications. 

Neither the Conservative Party of B.C. nor the B.C. Greens bought these arguments, but for different reasons. 

Conservative MLA Peter Milobar, MLA for Kamloops-Centre and shadow finance minister, said during debate Monday that government could have brought have forward the legislation earlier in noting that federal leaders had signalled plans to eliminate the tax, for weeks, if not months.

"It is certainly not urgent, or should not have needed to be urgent, had this government operated with any sense of urgency for the first four weeks that we sat in this legislature, including when the budget was presented," Milobar said. He also predicted that government would eventually cut off debate. 

Speaking with reporters before Eby's appearance, Conservative Leader John Rustad echoed Milobar's comments in accusing government of incompetence.

"We'd like to have gotten rid of it months ago," Rustad said. "We are at this stage where we are looking to get rid of it as soon as possible. But at time same time, I'm not going to give this government a blank cheque on this sort of thing. We have lots of questions that need to be asked." 

Rustad had earlier promised to bring down government at the earliest moment.  

All Conservatives approved the legislation on first reading in joining New Democrats and B.C. Green Interim Leader Jeremy Valeriote. The only no vote during first reading came from B.C. Green Rob Botterell, MLA for Saanich North and the Islands.

Botterell said he voted against it for three reasons. "The first one is that we are going to blow a $3-billion hole in the budget (whose deficit currently sits around $11 billion) and there is no explanation for how we are going to fill that," he said. "The second one is that struggling families that rely on the carbon tax rebate are going to now be empty-handed, increasing the affordability crisis that they already face. And the third thing is that we have no indication how this government will deal with the impact on our fight against climate change in this bill."

Botterell also questioned why government has made this legislation a matter of confidence. 

Valeriote added that he would oppose the bill during subsequent readings. "I felt it should see the light of day just on principle and I will be opposing it from this moment on," he said when asked about his vote. 

Monday's legislation to eliminate the carbon tax marks the second major piece of legislation tabled by government that has drawn vocal opposition from the B.C. Greens, the other being Bill 7.

While both Bill 7 and the legislation eliminating the carbon tax fall outside the cooperation and responsible government accord signed by both parties, both bills touch on key priorities of the B.C. Greens -- democratic accountability and climate change. 

Valeriote said the accord "is still working" for the B.C. Greens with Botterell noting that the accord is better than the confidence and supply agreement both parties had signed in 2017 in supporting the minority government of late premier John Horgan.

"We are very clear about where we are expect to support and where we have the freedom to take a different position," Botterell said. 

When Eby was asked about how opposition from the B.C. Greens on the carbon tax might impact their relationship, Eby said he does not want to pre-judge anything.

"We are still in conversations with the B.C. Greens...and I look forward to having conversations with them about how we work together." 

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