Ottawa hints at resolving N.B. tax revenue fight with Holt government

The federal government has hinted an announcement may soon be made to address the New Brunswick government’s fight for lost tax revenue.

Premier Susan Holt has been pushing for the province to be reimbursed from Ottawa for last year’s tax break implemented by Prime Minister Justin Trudeau.

The provincial government has pegged the lost revenue from the tax break to be anywhere between $50 to $70 million.

Internal Trade Minister Dominic LeBlanc was in Fredericton on Tuesday and was asked during a joint-news conference with Holt if a resolution on the matter was near. Holt looked at LeBlanc and asked if he wanted to answer the question, or if she should take it.

LeBlanc responded by saying, “Christmas is coming… everybody is looking forward to getting interesting Christmas presents.”

LeBlanc went on to say that the federal government wouldn’t compensate provinces by “writing a check for the amount.”

“But we’re always looking with every province, and not only those that have harmonized sales tax, for ways we can support joint initiative,” said LeBlanc. “I’m very confident that the premier’s understandable concern about what that meant to her fiscal framework will be addressed in the fullness of various arrangements that the government of Canada can make with provinces.”

Premier Holt offered a brief follow-up to LeBlanc’s answer.

“New Brunswickers can be reassured to know that we’re going to be kept whole,” said Holt. “And it’s positive for New Brunswick.”

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