As a growing number of premiers urge the federal government to ditch an upcoming increase to the federal carbon tax, Prime Minister Justin Trudeau pushed back on what he called “short-term thinker” politicians and defended his government’s deeply divisive policy.
“My job is not to be popular, although it helps,” Trudeau said with a smile during a news conference in Calgary Wednesday.
“My job is to do the right things for Canada now, and do the right things for Canadians a generation from now.”
His visit to Alberta to meet with Premier Danielle Smith, one of the most aggressive opponents of the federal carbon pricing program, comes as most premiers have called on the government to either scrap the program or pause the increase scheduled for April 1 until inflation mellows.
He’s also facing attacks from Conservative Leader Pierre Poilievre, who said he’ll force multiple votes in Parliament next week to stop what he’s calling “Trudeau’s April Fools’ tax hike.”
“Trudeau is facing a provincial revolt,” he said in a statement Wednesday. “But Trudeau isn’t listening.”
Trudeau showed no signs of bowing to pressure from the premiers or Poilievre.
“That’s an easy thing for short-term thinker politicians to say, ‘Oh, we’ll get rid of the price.’ They don’t talk about the fact that they’re also going to get rid of that cheque, the Canada carbon rebate, that puts more money in the pockets of the vast majority of Canadians,” he said.
At the beginning of next month, the carbon price is scheduled to increase from $65 to $80 per tonne.
The federal policy — which includes both a tax on fossil fuels and rebates paid directly to households — was introduced by the Liberal government in 2019 and is designed as a financial incentive to encourage people and businesses to cut their consumption of fossil fuels and transition to greener forms of energy.
Canadians living in the eight provinces with the federal carbon tax receive quarterly rebate payments which vary depending on the province and the size of household.
The federal government says 80 per cent of households get more money back in rebates than they pay in carbon taxes directly.
“Those are cheques that the conservative governments and Conservative Party want to take away from people,” said Trudeau.
“It’s a way of both fighting climate change, of pushing for innovation and better technologies, and putting more money in the pockets of Canadians right across the country.”
N.L. premier writes to Trudeau
On Tuesday, Liberal Newfoundland Premier Andrew Furey shared an open letter to the prime minister saying that while his government is “deeply invested in environmental sustainability,” the scheduled increase will add to residents’ financial burdens.
So far, New Brunswick, Prince Edward Island, Saskatchewan — which says it will no longer remit the money it owes for the carbon price on natural gas, as required by law — Alberta, Ontario, Nova Scotia and Newfoundland and Labrador have weighed in, calling for Trudeau to pause or cancel the coming increase.
British Columbia, Quebec and the Northwest Territories follow their own carbon-pricing mechanisms that meet federal standards and are exempt from the federal program.
The government has made a concession on its program already. Facing pressure from within caucus from Atlantic MPs in the fall, Trudeau announced his government will exempt home heating oil from the tax for three years.
Trudeau said the pause is meant to give rural Canadians more time to switch to alternative sources like electric heat pumps, but ruled out any other exemptions.
“There will absolutely not be any other carve-outs or suspensions of the price on pollution,” said Trudeau in October.
At Issue this week: Saskatchewan is holding back its share of the carbon tax, so how will the federal government ensure other provinces pay up? The Conservatives want more transparency surrounding the Winnipeg lab leaks that got two Chinese scientists fired. Plus, does the pharmacare legislation live up to the promises?
Saskatchewan Premier Scott Moe said his government would not submit the money it owed for the carbon price on natural gas. He has framed the measure as a protest against Ottawa’s decision to exempt heating oil from the levy but not the energy source used by most households in his province.
Failing to submit carbon tax reports or pay the amounts owed could come with consequences, including fines and jail time.
“You can opt out of the Charter of Rights and Freedoms by using the notwithstanding clause but you can’t opt out of the federation. You can’t opt out of Canada,” said Trudeau.
“We are a country of laws, we are a country of rules, of responsibilities … and we expect people to obey the law.”
