PCA Disappointed Trudeau’s Green Energy Tax Plan Plays Union Favourites

The Progressive Contractors Association of Canada (PCA) whose members build and maintain major infrastructure and capital projects across Canada is disappointed that the federal government is moving forward with a Green Energy Tax Plan that benefits certain unions at the expense of all Canadians.

“Building a cleaner economy takes all qualified companies and skilled workers, not a select, favoured few,” said Paul de Jong, President & CEO of the Progressive Contractors Association of Canada. “We are deeply disappointed that the government has chosen to pander to a small minority of Canada’s labour pool in order to build these important projects.”

The federal government is moving forward with tax incentives ranging from 15 to 40 percent for capital investments in low-carbon energy generation and technology. While PCA members support incentives to speed up the clean energy transition, they are set against the government imposing artificial wage and benefit rates of the Building Trades Unions. Businesses must comply with these rates in order to qualify for the full Investment Tax Credit (ITC).

Right now, construction labour markets are highly competitive, with wages for workers the highest they’ve ever been.

“If the federal government is serious about reigning in inflation and making life more affordable for Canadians, it should not be tying clean energy tax credits to artificial wage and benefit rates,” added de Jong. “The end result will be less competition and investment, disruption across the entire construction industry, and fewer jobs and opportunities as some businesses rethink their project plans.”

The federal government’s Green Energy Tax Plan will amount to hundreds of millions of dollars in additional project costs, making green energy projects planned across Canada no longer viable.