Liberals drop Kyoto from budget bill (Canada)

OTTAWA -- The Liberal government sought to avoid a non-confidence motion with an offer Tuesday to drop Kyoto provisions from its budget legislation.

The Conservatives had threatened to join the Bloc Quebecois and NDP to bring down Prime Minister Paul Martin's minority government unless changes to environmental laws were removed from the budget implementation bill.

Events in Montreal might have forced Martin's about-face.

Damning testimony coming from the Gomery inquiry and currently covered by a publication ban might have begun to seep out just as the government faced possible dissolution.

Government House Leader Tony Valeri said outside the Commons that if the finance committee recommends the environmental provisions of the budget bill be removed, the government will not bring them back.

It is almost certain the bill will go to the finance committee for study after second reading, and that the committee will in fact recommend removing the provisions.

The clauses at issue would have amended the Canadian Environmental Protection Act to remove the word "toxic,'' making it easier to cover greenhouse gas emissions under the bill even though the emissions aren't toxic in the usual sense.

Conservative Leader Stephen Harper had denounced the proposed amendments as a ``back door'' attempt to clear the way for Kyoto compliance and for introduction of a carbon tax.

"It is the one impediment that Harper outlined as the problem to moving Bill C-43 (the budget bill) forward,'' said Valeri. "I think it's a pretty simple solution I put forward.''

He said he had not received a reply to his proposal from Conservative House leader Jay Hill.

Conservative Deputy leader Peter MacKay said that if the environmental provisions are removed, his party might accept the budget bill.

"If we can bring the bill back in its entirety except for the environmental protection act, that's an option. That might in fact meet everyone's requirements and we'll get the offshore accord through this sitting.''

He was referring to Harper's threat to defeat the budget bill because it also puts into legal effect the revenue-sharing accord for offshore resources.

That possibility had caused alarm in the Atlantic provinces, which want the accord implemented as soon as possible.

Environment Minister Stephane Dion announced in the Commons that the Kyoto implementation plan will be made public next Wednesday.

Dion said he would prefer to see the word "toxic'' removed from the environmental protection act, because it creates a perception problem. Industries are unhappy to see their emissions declared toxic, he said.

But the act can still be applied to greenhouse gas emissions even if it is not amended, he said.

Earlier, at a meeting of the Commons environment committee, Deputy Environment Minister Samy Watson said many industries object to having their emissions designated toxic, because the word carries a stigma.

But he also said the act can be used to control substances harmful to the environment even if they are not directly toxic in the usual sense of the word.