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Kevin Falcon says B.C. should consider freezing its groundbreaking carbon tax – the only such levy in North America – as part of a review at the end of the tax's current schedule of increases in 2012.



The former health minister, one of five former cabinet ministers seeking the leadership of the B.C. Liberals, said on Thursday he fears the tax is hurting the province's competitive position because no one else has adopted such a measure.



"What I am concerned about is further increases that would put British Columbia at a competitive disadvantage with all of our neighbouring provinces and states in the United States," said Mr. Falcon, who had a long run as transportation minister before shifting to the health portfolio.



In an interview on Thursday, Mr. Falcon said he does not favour axing the tax because he is "super proud" of the fact that British Columbia took leadership on the issue.



But he agreed that a freeze, following widespread consultation with business and environment groups, was a possibility if he wins the leadership and becomes premier.



"I would consult widely before we would make a final decision," he said.



The carbon tax has been unpopular in rural B.C., and Mr. Falcon's positioning may be part of a drive to seek support among Liberals in those regions ahead of a Feb. 26 vote where party members will choose a successor to Premier Gordon Campbell, who announced his resignation last month.



The tax, which is aimed at curbing the use of fossil fuels and thus their contribution to climate change, was enacted on Canada Day in 2009 and is scheduled to increase annually through 2012.



The tax applies to almost all uses of fossil fuels in an attempt to reduce carbon emissions and help fight climate change. By 2012, B.C.'s carbon tax will add 6.7 cents to the cost of a litre of gasoline.



Revenue projected at $1.85-billion over three years go into tax cuts and tax credits, but Mr. Falcon said he fears businesses are at a "competitive disadvantage" with counterparts in neighbouring provinces and U.S. states "because they have not moved forward in the same leadership way we have."



Environmentalist David Suzuki called the notion of freezing the tax "ludicrous," and said that it should be increased to further curb carbon emissions. "This has got to bite more deeply," he said in an interview.



"Politicians have very few tools at their disposal to change behaviour. One of them is regulation and the other taxation, and we have got to use taxation much more creatively," he said.



Mr. Suzuki said he has supported some aspects of the B.C. Liberal policy on climate change, although some pieces of it, such as twinning the Port Mann Bridge, have been at odds with reducing greenhouse gases. "[Mr. Campbell's] approach to climate change was all over the map," he said.



Mr. Suzuki said he would like to see Mr. Falcon's evidence that increasing the carbon tax will pose a competitive disadvantage.



He also noted that Sweden's economy has boomed since a carbon tax was adopted in the 1990s.



"Mr. Falcon seems to want it both ways. 'Ohhhh, I'm proud of the carbon tax, yeah, yeah, yeah.' But what about the affects on reducing emissions. Is that our highest priority and if that is, we've got to increase the tax."



Mark Jaccard, a professor of environmental economics at Simon Fraser University and a leading expert in climate change, said Mr. Falcon is breaking no new ground by promising a review.



Dr. Jaccard, who served as a technical adviser on the province's climate action plan, says the carbon tax would need to rise significantly higher than the rate set for 2012 if it is to meet Canada's goals for reducing emissions by 2020.



But he said B.C.'s isolation on the tax policy in North America is dampening the chances that will happen.



"No jurisdiction can do this on their own, the best we can do is be a leader," he said. "If we are at $30 in 2012 and the rest of North America is at zero, then I would agree with Kevin Falcon. You can continue to do stuff domestically ... but it's pretty hard to keep that tax going up if you are sitting alone."

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