Prime Minister Justin Trudeau is accusing Newfoundland and Labrador’s Liberal premier of giving in to “political pressure” for joining other provincial leaders in criticizing the April 1 carbon tax increase.
This came following a
letter that Premier Andrew Furey sent to Mr. Trudeau on March 12 asking him to pause the 23 percent tax increase, saying Canadians are living under “mounting financial strain.”
Mr. Trudeau described Mr. Furey’s letter as proof that the N.L. premier is “continuing to bow to political pressure.”
“I think Canadians in Newfoundland and Labrador and right across the country expect their governments to do the right thing,” Mr. Trudeau said at a March 15 press conference.
“The right thing, right now, is not just fighting climate change and spurring innovation for the future. It’s about being there to support Canadians during this affordability crisis.”
The carbon tax is set to increase $15 per tonne on April 1, from $65 to $80. The federal charge
applies, either in part or in full, in all provinces and territories across the country except British Columbia, Quebec, and the Northwest Territories, which have their own carbon pricing system.
Mr. Furey
called for a pause in the tax increase “at least until inflation stabilizes, interest rates lower, and related economic pressures on the cost of living sufficiently cool.”
“We ask for the collaboration of the federal government to address the ramifications of the current challenges families face and not to compound them,” Mr. Furey wrote.
Besides Mr. Furey, the premiers of Alberta, New Brunswick, Nova Scotia, Ontario, Prince Edward Island, and Saskatchewan have also called on the federal government to not raise the carbon tax in April.
Trudeau Says ‘Nobody Is Talking About’ Carbon Rebates
Mr. Trudeau lamented during the press conference that “nobody is talking about” the carbon tax rebates, which “puts more money in the pockets of
8 out of 10 families across the country.”
The prime minister said many Canadians are feeling squeezed by the country’s cost-of-living crisis, which is why it’s “basic math” to continue with federal carbon rebates.
“I know that first Canadians want to fight climate change,” he said. “Second, they want more money in their pockets. And that is exactly what our approach on carbon pricing delivers across Canada.”
Although the prime minister has steadfastly maintained the Canada Carbon Rebate offsets the rising price of fuel, a 2023 Parliamentary Budget Officer
report said the carbon tax regime would result in a “net loss” of between $377 and $911 in 2024–25 for most Canadian households even after receiving federal rebates.
Mr. Trudeau also criticized “short-term thinker politicians” during a March 13 press conference, referring to those who oppose the carbon tax. He said the incoming tax increase is a “logical way” for Canada to address the impacts of climate change.
The federal government rebranded the carbon tax rebate in February, changing its name from the Climate Action Incentive to the Canada Carbon Rebate. When announcing the change, Labour and Seniors Minister Seamus O’Regan acknowledged that Ottawa needs to “speak the language that people speak” by changing the name to include the word “carbon.”
The change was made after a Leger
survey found that 69 percent of poll respondents did not support the Liberals’ plan to increase the carbon tax on April 1. The poll, commissioned by the Canadian Taxpayers Federation, found that 31 percent of Canadians who supported the carbon tax increase tended to be under the age of 34 and living in an urban area.
Conservative Leader Pierre Poilievre has repeatedly vowed to “axe the tax” if he becomes prime minister.
His party has introduced
several unsuccessful motions into Parliament calling for the Liberals to get rid of the carbon tax.
Jennifer Cowan contributed to this report.
