Manitoba PCs say past comments by new Hydro adviser show support for tax hikes

Manitoba’s Opposition party raised concerns at the legislature Wednesday about the province’s new energy adviser, saying the government shouldn’t listen to his advice — and Manitobans can’t afford it.

The Progressive Conservatives took aim at past comments made by Ken Klassen, who has worked in the environmental field for more than 30 years. He was appointed to the position of special adviser for Hydro and energy on April 17.

The PCs pointed to comments made by Klassen to a legislative committee in 2018, saying they show his support for tax hikes and changing the way homes are powered.

“These are things he’s willing to say on the record. What is he willing to say off the record to the minister behind closed doors? ” Tory finance critic Obby Khan said after question period Wednesday.

“Governments don’t hire advisers to ignore them, they hire advisers to take their advice.”

Klassen told a legislative committee in 2018 that neither the carbon tax nor the provincial gas tax were high enough, and that new homes shouldn’t be powered with natural gas.

He made the comments during a committee hearing about Bill 16, the Climate and Green Plan Implementation Act introduced under then premier Brian Pallister.

Khan also took issue with another of Klassen’s comments at the committee hearing, in which he said he doesn’t believe Manitoba Hydro has the capacity to change. 

Klassen said at the time that Manitoba Hydro would have “a huge role to play” if the province intended to eventually eliminate natural gas as a heating source for new homes and buildings, and see more adoption of electric vehicles.

“I’ve dealt with that organization for over 30 years, and I don’t think that organization has the culture to embrace that kind of change,” Klassen said, according to a transcript of the 2018 legislative committee hearing. 

When reached for comment Wednesday, Klassen referred CBC News to government spokespeople.

The current NDP government hasn’t taken any of the positions previously expressed by Klassen. 

In January, the government temporarily lifted the 14 cent per litre provincial gasoline tax. That tax break will continue until September.

The Manitoba government has also said it wants the province exempted from the federal carbon tax

A man in a suit standing in front of a sign.
Adrien Sala is the NDP minister responsible for Manitoba Hydro. (Bartley Kives/CBC)

Adrien Sala, the minister responsible for Manitoba Hydro, told CBC News he’ll consider Klassen’s advice, but not at the expense of the NDP’s policies. 

“We’re doing important work right now in setting a path forward on energy, with a focus on ensuring that we keep rates affordable and that we ensure energy reliability in our province,” said Sala.

“And Ken has the skill set and background to help ensure we have expert advice in developing that plan.”

Sala said the government has been clear there’s no need for the use of a carbon tax in the province. He also called the current gas tax holiday “an important piece of making life more affordable for Manitobans.” 

“Tackling climate change should not come at the expense of the working class,” said Sala. 

He said, though, he’s ultimately OK with having differing voices at the table, citing Klassen’s decades-long work in the sector.

“What Manitobans can expect … is that our energy policy and the work we’re going to do will be focused on keeping rates affordable and ensuring that we work in a good way towards creating reliable energy for Manitobans,” he said. 

Klassen will make $130,000 in the adviser role, according to Sala.

The province’s last adviser to government on Manitoba Hydro was former Hydro chair Sandy Riley, but when he gave advice to the then PC government, it was on a volunteer basis. 

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