Federal Research Found Carbon Tax Widely Unpopular in Atlantic Canada Before Home Heating Oil Exemption

Prime Minister Justin Trudeau announces a three-year pause on carbon tax measures that are applied to heating oil, in Ottawa on Oct. 26, 2023. The Canadian Press/Sean Kilpatrick

The federal government’s billion-dollar carbon tax cut on home heating oil was implemented after repeated warnings from in-house pollsters of the unpopularity of the policy.

According to Privy Council records obtained by Blacklock’s Reporter, federal researchers spent months questioning Atlantic focus groups on the federal carbon tax, issuing reports in May, June, and July 2023.

“A number expressed concerns regarding how much this initiative would cost as well as whether it would further exacerbate what was viewed as the high cost of living at present,” said a report on participants in a Newfoundland and Labrador focus group. Nova Scotians called the tax “too complicated” and divisive, while New Brunswickers said it was “pointless.”

The Privy Council report “Continuous Qualitative Data Collection Of Canadians’ Views” said that when focus groups were asked whether they supported a carbon tax, many “were uncertain and felt they did not know enough to properly evaluate this measure,” while a “roughly similar number expressed support for a price on carbon as those who opposed this initiative.”

Respondents from Newfoundland and Labrador told researchers they had no alternative but to pay for fuel. “The view was added that making these changes would be particularly difficult for those living rurally who often had to drive long distances to get from place to place and whose communities typically had limited public transportation options available,” the report said.

None of the New Brunswickers surveyed said they thought the carbon tax would encourage Canadians to reduce their emissions, feeling people would “still need to partake in carbon-emitting activities such as driving and heating their homes and that this would continue to be the case.”

Nova Scotians said the tax was inflationary and had contributed to “rising costs for consumers making it more difficult for some Canadians to afford essential goods and services.” They were also skeptical that rebates paid under the Greenhouse Gas Pollution Pricing Act would help offset a portion of higher fuel costs, with most believing the system was “too complicated.”

On Oct. 26, the Liberal government announced it would implement a three-year carbon tax exemption for home heating oil, which would be accompanied by increased subsidies for electric heat pumps. This came after Liberal MPs in Atlantic ridings voiced concern, saying their constituents could not afford to pay the carbon tax on heating oil.

“We have heard clearly from Atlantic Canadians through our amazing Atlantic MPs that since the federal pollution price came into force this summer replacing provincial systems, certain features of that pollution price needed to be adjusted,” Mr. Trudeau told reporters.

According to official estimates, the removal of a 17 cent per litre charge on home heating oil beginning this winter saved Atlantic homeowners an average of $250 a year. The Parliamentary Budget Office in a Nov. 17 report “Pausing The Fuel Charge On Heating Oil” put costs at $1.08 billion.