Senator Miville-Dechêne: Like you, I tried to do my homework on this bill, because I hate to see inequities between the regions.

The past few days have been difficult. I became particularly interested in the refundable tax credit that the government implemented in 2021 after noticing how unfair the situation was.

Does this refundable tax credit offset a certain amount of the carbon tax? If we do the math, we see that, in Alberta, the average amount a farm spends on heating and on the carbon tax is 0.5% of all its expenditures. As for the carbon tax, the refundable tax credit offsets 0.17% of those costs. That means that, on average, farmers get a cheque that offsets about a third of their heating and carbon tax expenses.

Given that the carbon tax costs a lot less than heating costs, farmers are receiving a rather substantial amount of compensation. It is true that we are talking about an average and that the cheque is an average amount for everyone.

However, in a way, doesn’t this reward those who use less energy, while penalizing those who use more natural gas and diesel?

That is my somewhat complicated question.

[English]

Senator Wells: Now I regret saying yes to answering your question.

I will take the percentages you gave at face value. With the refundable tax credit, or the rebate, it is not targeted specifically even at farms that use propane and natural gas. It is targeted at all farms for all eligible expenses, which, again, those eligible expenses don’t have to include propane or natural gas.

The other thing I learned is that refundable tax credit is altogether about 7% to 10%. It’s a very low percentage of what the full expenses would be on natural gas and propane.

I don’t know if this fully answers your question, but while it is applied over a broader number of farms, it is not targeted at those specifically who use the fuels we are talking about, natural gas and propane.

[Translation]