Pause on carbon tax for heating oil gets thumbs up in N.S.

There was rare unanimity at Province House on Thursday night in Halifax as the leaders of Nova Scotia's three main political parties reacted to the prime minister's partial retreat on the carbon tax.

Premier Tim Houston, Liberal Leader Zach Churchill and NDP Leader Claudia Chender all agreed the federal government was doing the right thing by taking the federal carbon tax off heating oil.

Prime Minister Justin Trudeau announced a three-year pause on the tax Thursday.

The temporary reprieve will give people more time to make the transition from heating with oil to using heat pumps or electricity.

"We certainly think the federal government did a good thing today by making this announcement," said Churchill. "But we also believe that they can go further by delaying the carbon tax [on gasoline] until we have the infrastructure in place to help people get off of gas-powered vehicles."

The Liberal leader has said his party opposed the tax, but this is the first time he's explicitly called for the carbon tax to be removed from gasoline.

'A good first step'

"People can't change their behaviour right now," said Churchill. "There's not the infrastructure to support people changing behaviour." 

Houston called the move by the Trudeau government "a good first step."

"I'm happy that they've made some modifications for sure, I mean we've been very vocal and persistent that this carbon tax is not needed here in Nova Scotia, and it's punitive for Nova Scotians," said Houston. "I'm glad they've recognized that for at least portions of it. I hope they go further."

Like Churchill, Houston would like to see the carbon tax removed from gasoline. The PCs have been advocating that ever since the tax was imposed last July 1.

The premier seemed delighted to hear the Liberal leader echo his government's call.

"Certainly the first time I've heard that, too," Houston chuckled. "Would have been helpful to have him add his voice to ours quite some time ago. If he wants to add it now, we're happy to have his voice join ours."

Rebate doubling

The federal government is also doubling the rebate available to offset the tax for people who live in rural communities and, in the Atlantic provinces, people who are eligible for the oil to heat pump affordability program are being offered an extra $5,000 incentive on top of the current $10,000 maximum rebate.

"We're working to install a free heat pump for people who are making at or below median household income," said Trudeau. "And to encourage people to sign up for the change we're providing a $250 incentive payment. That's money in your pocket right now."

Chender said the measures announced Thursday should help ease the pain many Nova Scotians are feeling as a result of inflation and provincial policy.

"We're in the context of a time when the Houston government has just cut the heating rebate assistance from last year," said Chender. "Oil's not getting cheaper, the cost of living is not getting cheaper, so we're glad to see that, you know, hopefully this will help some folks get through the winter a little bit more easily and a little bit warmer."

What happens next?

Chris Benjamin, a senior energy co-ordinator who specializes in efficiency with the Ecology Action Centre in Halifax, applauded the move toward heat pumps in the Maritimes.

"Heat pumps are an extremely efficient electric technology that can really replace oil, and that's huge, and that's the direction we need to move in," Benjamin told CBC Radio's Maritime Noon on Friday.

But Benjamin said he wants to know what happens next.

Further steps need to be taken to create more efficient homes and business, he said, on top of pausing the carbon tax on heating oil.

"That kind of relief, particularly for low-income households, is going to be needed until we can become truly efficient. So the heat pumps coupled with the carbon tax exemption is understandable. And the heat pumps, from an environmental perspective, that's a very positive step," he said.

"We just need to move beyond that so that we can become truly efficient."