Canada’s energy minister has criticized the province of Saskatchewan for its decision not to collect a federal carbon tax on natural gas, escalating a growing dispute between Ottawa and the provinces.
Energy and Natural Resources Minister Jonathan Wilkinson called Saskatchewan’s stance “irresponsible” and expressed the need to respond to such actions.
Prime Minister Justin Trudeau had recently announced a three-year suspension of the carbon tax on home heating oil in rural areas, but no further exemptions are planned. Saskatchewan Premier Scott Moe deemed this unfair, given that heating oil is largely used in Atlantic Canada, and threatened to stop collecting the tax on natural gas used for home heating in the province.
“If the government of Saskatchewan wants to create that kind of a barrier, then we will have to figure out how best to respond,” Wilkinson said in an interview.
Sponsored · Silver47 Exploration Inc.
“I don’t think it’s a reasonable thing for any provincial premier to be saying … they’re going to flout the laws of land … that’s just an irresponsible position to take.”
Alberta, another oil-rich province, also opposes Trudeau’s environmental policies, fearing their impact on the energy sector.
The New Democrats plan to vote in favor of a Conservative motion exempting all home heating fuels from the federal carbon tax, criticizing the Liberals for making the decision based on electoral chances.
“The panicked reaction of Liberals a few days ago, it seemed to be tied to electoral chances more than anything else,” the party’s House leader Peter Julian said Thursday.
Polls indicate that if an election were held now, Trudeau’s Liberals would lose to the opposition Conservatives, who promise to eliminate the carbon tax.
The Liberal government’s rationale for the exemption was to provide Canadians using oil for heating more time to transition to subsidized electric heat pumps. However, critics contend that this approach creates affordability issues for Canadians in different regions. Julian also said that the exemption on home heating oil has led to confusion and regional disparities.
The motion being voted on in the Commons calls for a tax break on “all forms of home heating.”
In supporting the Conservative motion, Julian said, the NDP is calling on the government to help all Canadians who are struggling.
“This decision has been made. It’s a bad one. How do we then make it equitable so that everybody can afford to heat their homes this winter?” he said.
Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
