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For Release: May 8, 2006

Harper government subsidizes oil companies, cuts aid to the poor

(Ottawa) Even in the face of record high oil prices and skyrocketing electricity rates the Harper government is savaging energy efficiency programs. The low income retrofit program supported by all parties last fall along with programs for homeowners and businesses lost funding when the Harper government secretly chopped $1 billion from environment programs last week. There was no public announcement of the specific cuts. Information only came to light when program operators were informed funding for the low income program would not be available.

“This flies in the face of common sense. Even Dick Cheney (US Vice President) believes conservation is a virtue,” said David Coon, Chair of the Climate Action Network - Canada, “On the other hand Harper is following his absurd advice that conservation has no place in an energy plan.”.

Meaningful reductions in greenhouse gas pollution will only be achieved when significant improvements are made in the energy efficiency of Canada's economy, says the Climate Action Network, whose members include many of Canada's most prominent environmental organizations.

Only last month Emma Wellford, Natural Resources Minister Gary Lunn's communication officer assured the Climate Action Network that the Conservative government supports energy efficiency measures.

The federal government has axed or eviscerated most of the energy efficiency programs established under the former Liberal government. The most well known program, EnerGuide for Houses will continue to operate for the next year with a skeleton budget, while EnerGuide for Low Income Houses has been axed altogether. A plethora of other energy efficiency programs directed at commercial buildings, business and industry have also been scrapped or neutralized.

“If they need cut subsidies to fund tax cuts why not the $1.5 billion subsidies to the oil and gas industry or $200 million to Atomic Energy Canada Ltd.?” said Elizabeth Ma of the Sierra Club of Canada.

The Solar Energy Industry Association called on the government to reinstate the REDI program that supports the use of solar energy in buildings after learning it to has been cut too.

The Climate Action Network has spent the last 15 years working for recognition of the essential government role in supporting the deployment of energy conservation, efficiency and new technologies to meet the challenge of climate change.

“It's as if the new government is fearful of energy conservation,” said David Coon, Chair of the Canadian Climate Action Network. “I just cannot imagine why they do not want to help home and business owners to save billions on their energy bills. Sure it will reduce greenhouse gas pollution as well, but you have to accept a reduction in emissions if you want to provide relief for people from rising energy costs," said Mr. Coon.