Oil companies could download windfall tax onto consumers: New Brunswick premier

N.B. looks for ways to provide financial relief New Brunswick government officials continue to brainstorm ways to help residents with the rising cost of living. Laura Brown has more.

Within a three-month period, gas prices in New Brunswick have gone up about 50 cents a litre. It continues to have politicians wondering what can be done about it.

David Coon and some of his Green Party colleagues across the country are calling for Ottawa to implement a windfall profits tax on oil and gas companies, otherwise known as a “Robin Hood tax.”

And since speaking out about it in the New Brunswick legislature last week, Coon says he’s received a lot of support.

“I actually heard from a guy yesterday who spent a good chunk of his career working at the Irving Oil Refinery who said, 'You're right, right on,'” he said. “So, it's certainly resonating with lots of people because frankly, I think everyone feels we're being royally hosed at the pumps.”

Coon says 90 per cent of the increase is going to oil and gas companies. He believes that should be redistributed to Canadians, something the U.K. has done temporarily.

He’s hoping it will be on the agenda at the next meeting of Canadian premiers, but he’s not sure Premier Blaine Higgs will be on board.

“I know that he has some concerns about what's going on with the prices. So, we'll see,” he said.

In an emailed statement, Higgs listed a number of things his government has done to try and help with the increased cost of living, including the $20 million support fund to assist low-income New Brunswickers.

He also mentions increasing the minimum wage, investing $2 million into food banks and a three-year plan to reduce property taxes collected from low-income earners.

Higgs sounded skeptical a windfall tax would work.

“It should also be noted that even if a 'windfall tax' was implemented, oil companies could choose to pass along the bill for its tax increase to consumers, potentially causing even higher prices at the pumps,” he stated.

The Canadian Taxpayers Federation agrees and remains steadfast that Maritime governments should be reducing province gas taxes.

“When you're filling up at $2.16 a litre, you're paying $1.56 for gas and 60 cents for taxes... We've got Alberta, we've got Newfoundland, we've got Ontario doing all these gas tax reductions. I'm sure the government of New Brunswick can find money in its vast coffers to do the same kind of thing for New Brunswickers,” said interim Atlantic director, Renaud Brossard.

New Brunswick is expecting another gas price adjustment at midnight.

Canadian premiers are scheduled to meet in Victoria, B.C., July 11 and 12.