Premiers present united front on carbon tax exemptions

The carbon tax and affordability were among the big topics discussed as nearly all of Canada’s premiers met Monday in Halifax.

Premiers from across Canada — except Quebec, as Premier Francois Legault didn’t attend the meeting — released a statement after the meeting calling on Prime Minister Justin Trudeau to ensure that federal policies like carbon pricing are delivered in an equitable way.

Last week, Trudeau announced his government would pause for three years the carbon tax on home heating oil to make it easier for users of that fuel to switch to electric heat pumps. Heating oil is the primary source of home heating in Atlantic Canada.

But the move immediately drew criticism from premiers in Western Canada, where few residents and businesses use home heating oil.

During a media conference, Saskatchewan Premier Scott Moe said people in this province who use natural gas should also receive an exemption from the carbon tax. According to Moe, 85 per cent of Saskatchewan people use natural gas to heat their homes.

“They deserve to be treated fairly with respect to the Canadian carbon tax policy as well,” Moe told reporters. “The issue isn’t the policy, it’s how the policy is being applied. Up until now, largely (it) has been somewhat fairly applied across the nation. I don’t think anyone can say this today.”

Moe admitted the provinces likely all have different views on the best way to reduce emissions, but that wasn’t the point of their complaints.

“That’s not what this conversation is about,” he said. “This conversation is about fairness for Canadian families.”

When Trudeau made his announcement, he said one of the reasons the exemption was only for home heating oil was because it’s one of the highest-polluting home heating choices. Moe refuted that, talking about coal- and natural gas-fired electrical power production in Saskatchewan.

“It is the dirtiest way to generate power today,” he said. “We’re in the process of planning our transition away from that, but we’re being charged the carbon tax on that form of what is heating close to 15 per cent of the homes in our province.”

The premiers also called on Trudeau to convene an in-person first ministers meeting, something that hasn’t happened since 2018 despite repeated requests from the provinces.

Meanwhile, a motion put forward in the House of Commons by Conservative Leader Pierre Poilievre to expand the carbon tax exemption to all forms of home heating sources was defeated.

While the NDP backed Poilievre’s motion, the Bloc Quebecois joined the Liberals in voting against it. The motion was defeated by a vote of 186 to 135.

— With files from The Canadian Press