The Government of Prime Minister Stephen Harper sidestepped the question whether it will cancel specific incentives and subsidies that favors oil and gas companies as part of a commitment on the agenda at next month's G20 economic summit in Toronto.

A leaked internal memorandum from the Finance Department recommended a list of programs that the Government should eliminate in order to show leadership and honor a G20 commitment made last year. Harper also dismissed criticism from Liberal Leader Michael Ignatieff and NDP Leader Jack Layton that he ignored the advice.

"As discussed in the memo, over time, many of these preferences have already been phased out," said the memorandum, signed by deputy finance minister Michael Horgan. Nevertheless, a number of targeted measures for the oil and gas sector, as well as for the mining sector remain. It also noted that Harper would be fully briefed on the matter.

The memorandum also says, as Leaders committed to this process, including a follow-up at the Toronto Summit, we have alerted PCO (Privy Council office), who will brief the Prime Minister regarding the potential scope and implications of the commitment.

The Government is warned by the internal document that the G20 discussions could aggravate national unity tensions within Canada and affect the international reputation of the country and its oil producing industry. Horgan suggested that the Government intricate a plan to evaluate all of its own subsidies and programs for the fossil fuel industry as part of a plan to address environmental concerns such as the emissions which cause global warming, as well as to undertake the federal deficit.