Carbon tax flap puts Sask. Premier Moe back on offensive
Province's threat to stop collecting headlines first week of fall sitting
Saskatchewan Premier Scott Moe is back on familiar ground, lobbing shots at the federal government's carbon tax policy, and he has picked up an unlikely ally along the way.
Moe has spent the better part of his time as premier fighting the federal carbon pricing plan. He took the fight all the way to the Supreme Court, which in 2021 deemed the policy constitutional in a 6-3 decision.
The anti-carbon-tax rhetoric from Moe and his government had died down from its peak, but was rejuvenated this week by a Liberal government decision and comments by a Liberal cabinet minister.
Moe said this week in a social media video that Ottawa's decision to exempt heating oil — primarily used in Atlantic Canada — from the carbon tax for three years was unfair.
Moe also said SaskEnergy would stop collecting carbon tax for the federal government as of Jan. 1, 2024, if a similar break isn't extended to other heating sources, including the natural gas used most in Saskatchewan. He acknowledged that would violate legislation.
"The federal government may say that's illegal," Moe said in the video.
"In most cases, I would agree with that, but it's the federal government that has created two classes of taxpayers by providing an exemption for heating oil, an exemption that really only applies in one part of the country and effectively excludes Saskatchewan."
Minister responsible for SaskEnergy Dustin Duncan said Tuesday that the province was exploring ways to transfer legal responsibility for breaking the legislation from SaskEnergy and its leadership to the provincial government and himself as the minister.
"I guess if it comes to that point where somebody's going to carbon jail, it likely will be me," Duncan said.
Thirty per cent of homeowners in the Atlantic region still use furnace oil to heat their homes.
The federal government is giving those affected time to switch from heating oil to heat pumps.
Trudeau defended the decision to only exempt heating oil on Tuesday, arguing it is more expensive than gas and propane, and is generally used by low-income Canadians.
Moe also took umbrage with comments made by Federal Rural Economic Development Minister Gudie Hutchings.
In a recent CTV interview, she said the carve-out for home heating oil was driven by advocacy from Atlantic Canadian Liberal MPs.
"The Atlantic caucus was vocal with what they've heard from their constituents, and perhaps they need to elect more Liberals in the Prairies so that we can have that conversation as well," she said.
Moe countered on Thursday.
"I think part of the argument they put forward is we should elect more Liberals in the Prairie provinces if we want an exemption," Moe said. "What I would suggest is we should elect less Liberals across Canada and that would solve our problem just as quick."
On Thursday, Moe referred to the development as the "carbon tax crisis" and said it was his top priority for this upcoming meeting of provincial and territorial leaders in Halifax.
Despite the criticism from Moe and many other provincial leaders, Prime Minister Justin Trudeau has refused to offer further exemptions.
"There will absolutely not be any other carve-outs or suspensions of the price on pollution," Trudeau told reporters on his way into Tuesday's question period.
On Friday, provincial and territorial finance ministers attended a virtual meeting hosted by the federal minister to discuss Alberta's threat to leave the Canada Pension Plan.
Following the meeting, Saskatchewan Finance Minister Donna Harpauer said there was not enough recognition of the carbon tax issue.
"There was a lot of recognition from provinces across the nation of the need for fairness for all Canadians when it comes to the CPP. That is why I am extremely disappointed with the complete disregard from Minister [Chrystia] Freeland to speak about the carbon tax crisis created by this federal government last week, when they chose to announce their unfair treatment of Canadians across the country," Harapuer said in a news release.
Sask. NDP support cause
This week, Moe's government received the support of Opposition MLAs in the assembly and NDP Leader Carla Beck.
Opposition MLA Jared Clarke introduced a motion on Monday regarding the heating oil exemption and the comments by Hutchings.
A Saskatchewan Party MLA amended the motion to say the assembly supports not collecting or remitting carbon tax from natural gas if the "Liberal-NDP coalition" doesn't offer an exemption.
The motion passed unanimously, 52-0
That development was noted by Federal Opposition Leader Pierre Poilievre.
"It's being condemned by even some New Democrats. The NDP in Saskatchewan and Alberta have come out against the two classes of citizenship that Justin Trudeau has imposed with his carbon tax on heat," Poilievre said Wednesday.
Poilievre will likely be bringing this message to Saskatchewan Party members on Saturday in Regina, as he is the keynote at the party's annual convention.
Beck explained her rationale for backing the government's amended motion.
"I think there was enough agreement from both sides of the house that, at the heart of this, this shouldn't be about political games. This should be about fairness and getting relief for the people of this province," she said.
In the assembly, Beck said the provincial government can do more to address affordability concerns aside from the carbon tax issue.
"It is clear that the people of this province can't wait until Jan. 1 for relief. They need relief today. So when will the premier roll back some of the measures that he's imposed on Saskatchewan people to offer that relief?"
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with files from John Paul Tasker, Darren Major and The Canadian Press