Iamgold Corp (IMG.TO) Chief Executive Steve Letwin said he thinks Ottawa’s adoption of a blanket carbon tax could ultimately hinder Canada’s competitive prospects.
In an interview on BNN, Letwin said corporate Canada is on board with taking steps to protect the environment, but the country’s relatively small carbon output may not be deserving of unilateral moves made well in advance of global competitors.
“Look, everybody wants a clean environment. But I’m a little bit worried about the fact that we seem to be a bit aggressive trying to be in first place. We’re two per cent of the carbon emissions in the world, and we’re trying to be the champion?” he said on Thursday.
“You go to Calgary and see 30, 40 per cent vacancy rates -- I’m worried about it, and as a Canadian we want to be friendly with the environment, but let’s not get to the point where we’re punishing our fellow Canadians with policies that are going to hurt us.”
Letwin said the low likelihood of the United States enacting a similar carbon tax could exacerbate the problem, given Canada’s close proximity and reliance on U.S. demand for domestic goods.
“Unfortunately, because we’ve taken a ‘holier-than-thou’ approach to renewables, our cost structure in Canada is going to be challenged. I’m a little bit fearful of the U.S. getting out in front of us and not being as concerned … I fear for Canadians.”
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