Here's why provinces aren't following Saskatchewan's lead on the carbon tax home heating fight
The war of words over the price on pollution reached a new level this week with Prime Minister Justin Trudeau warning Saskatchewan Premier Scott Moe that the Canada Revenue Agency will be knocking on his door, looking for the province's remittance from the federal backstop, after Moe stopped collecting the carbon tax on natural gas or home heating.
"Good luck Premier Moe, CRA is an independent organization that is very, very good at getting money it is owed from Canadians from businesses, and now from provinces, if it has to," Trudeau told reporters at a news conference Wednesday, after vowing that Saskatchewan residents would still receive the Canada Carbon Rebate.
In October 2023, Premier Moe announced his government would stop collecting and remitting the carbon levy on certain forms of energy, after the federal government instituted a three-year exemption on home heating oil. That fuel is primarily used in Atlantic Canada and was seen as a political carve-out for that region of the country.
In February, the Saskatchewan government confirmed it would be recognized as the individual supplier of natural gas by the Canada Revenue Agency. By not collecting and remitting the carbon tax, the province is violating the law and risking fines or legal repercussions.
In an email to CTV News responding to Trudeau's warning, Moe's office said the province has "remitted the appropriate amount of carbon tax to the federal government."
"We will dispute any action from the CRA to collect additional carbon tax and we will defend Saskatchewan's interests as required," the premier's spokesperson, Julie Leggott, added in an email.
The Canada Revenue Agency has not responded to CTV News' request for comment on how the organization intends to collect the money from the province, but there appears to be another way the federal government could call the province out.
Buried on page 408 of the federal budget is a proposal to amend the Greenhouse Gas Pollution Pricing Act to give federal officials, like the Minister of National Revenue, the power to tell the public when a province isn't complying with the federal pollution pricing system.
For months, a number of premiers have voiced their opposition to the federal price on pollution imposed on those jurisdictions that didn't have their own, or whose plans did not meet the federal government's standard. In light of the latest Moe-Trudeau showdown, questions were raised around whether other provinces could follow suit and stop collecting the carbon levy on home heating, and still see their residents be refunded.
CTV News cast a net across the country to inquire with the provinces – Alberta, Saskatchewan, Ontario, New Brunswick, Nova Scotia, Prince Edward Island, and Newfoundland and Labrador – which have asked the federal government to pause or remove the federal carbon tax. We learned that not all of them can stop collecting the levy for the federal backstop. Here's why.
Alberta
"We don't have that possibility," Premier Danielle Smith said in October 2023 when asked if she would follow Premier Moe.
Alberta isn't able to because that province has a private energy market, meaning private operators pay the tax directly to the federal government. Smith has said she won't ask private-sector operators to be out of compliance with the law.
"Alberta stands with Saskatchewan and Premier Scott Moe in their fight against the unfair and unconstitutional region-specific and fuel-specific application of the carbon tax," Premier Smith's press secretary, Sam Blackett, wrote in an email.
Ontario
The province of Ontario is in a similar situation as Alberta where home heating energy is supplied by private companies. The director of media relations for Premier Doug Ford told CTV News that Ontario would never ask private companies to violate federal law.
"The federal government should simply do the right, fair thing and eliminate the carbon tax across the board," Caitlin Clark said.
Nova Scotia
The Minister of Environment and Climate Change for Nova Scotia, Timothy Halman, is strongly opposed to the federal price on pollution, but pointed out, like in other provinces, the levy is remitted by private natural gas companies. As a result, the province has no role in collecting the carbon tax on natural gas.
In a statement, Halman pointed to his government's greenhouse gas reduction target contained in a policy called the "Still Better than a Carbon Tax Plan." Among other things, the policy calls for the phasing out of coal-fired electricity generation and to have 80 per cent of Nova Scotia's energy supplied by renewables by 2030.
Prince Edward Island
While Premier Dennis King has been an opponent of the federal carbon tax, his government will not be following Premier Moe's lead.
In a statement to CTV News, Emily Blue from the office of the premier said, "This is not something that PEI is considering at this time."
Newfoundland and Labrador
The lone Liberal premier to call for a halt to the carbon tax reiterated that position at the beginning of the month in a letter to Trudeau. Andrew Furey wrote, "We need a constructive approach to decarbonize our environment without placing the burden on individual families who simply do not have viable alternative options."
Asked if Newfoundland and Labrador would follow Saskatchewan, Furey's director of communications Meghan McCabe told CTV News in a statement, "Premier Furey has been clear that the carbon tax is not the right instrument to mitigate the impact of climate change at this time in our province, and continues to ask the federal government to adjust its policy."
New Brunswick
Officials from Premier Blaine Higgs' office did not respond to CTV News' request for comment.
Correction
This story has been corrected to say the Saskatchewan government confirmed in February it would be recognized as the individual supplier of natural gas by the Canada Revenue Agency.
IN DEPTH
Budget 2024 prioritizes housing while taxing highest earners, deficit projected at $39.8B
In an effort to level the playing field for young people, in the 2024 federal budget, the government is targeting Canada's highest earners with new taxes in order to help offset billions in new spending to enhance the country's housing supply and social supports.
'One of the greatest': Former prime minister Brian Mulroney commemorated at state funeral
Prominent Canadians, political leaders, and family members remembered former prime minister and Progressive Conservative titan Brian Mulroney as an ambitious and compassionate nation-builder at his state funeral on Saturday.
'Democracy requires constant vigilance' Trudeau testifies at inquiry into foreign election interference in Canada
Prime Minister Justin Trudeau testified Wednesday before the national public inquiry into foreign interference in Canada's electoral processes, following a day of testimony from top cabinet ministers about allegations of meddling in the 2019 and 2021 federal elections. Recap all the prime minister had to say.
As Poilievre sides with Smith on trans restrictions, former Conservative candidate says he's 'playing with fire'
Siding with Alberta Premier Danielle Smith on her proposed restrictions on transgender youth, Conservative Leader Pierre Poilievre confirmed Wednesday that he is against trans and non-binary minors using puberty blockers.
Supports for passengers, farmers, artists: 7 bills from MPs and Senators to watch in 2024
When parliamentarians return to Ottawa in a few weeks to kick off the 2024 sitting, there are a few bills from MPs and senators that will be worth keeping an eye on, from a 'gutted' proposal to offer a carbon tax break to farmers, to an initiative aimed at improving Canada's DNA data bank.
Opinion
opinion Don Martin: Gusher of Liberal spending won't put out the fire in this dumpster
A Hail Mary rehash of the greatest hits from the Trudeau government’s three-week travelling pony-show, the 2024 federal budget takes aim at reversing the party’s popularity plunge in the under-40 set, writes political columnist Don Martin. But will it work before the next election?
opinion Don Martin: The doctor Trudeau dumped has a prescription for better health care
Political columnist Don Martin sat down with former federal health minister Jane Philpott, who's on a crusade to help fix Canada's broken health care system, and who declined to take any shots at the prime minister who dumped her from caucus.
opinion Don Martin: Trudeau's seeking shelter from the housing storm he helped create
While Justin Trudeau's recent housing announcements are generally drawing praise from experts, political columnist Don Martin argues there shouldn’t be any standing ovations for a prime minister who helped caused the problem in the first place.
opinion Don Martin: Poilievre has the field to himself as he races across the country to big crowds
It came to pass on Thursday evening that the confidentially predictable failure of the Official Opposition non-confidence motion went down with 204 Liberal, BQ and NDP nays to 116 Conservative yeas. But forcing Canada into a federal election campaign was never the point.
opinion Don Martin: How a beer break may have doomed the carbon tax hike
When the Liberal government chopped a planned beer excise tax hike to two per cent from 4.5 per cent and froze future increases until after the next election, says political columnist Don Martin, it almost guaranteed a similar carbon tax move in the offing.
CTVNews.ca Top Stories
PWHL Minnesota defeats Boston to win inaugural Walter Cup
Minnesota won the inaugural championship of the Professional Women’s Hockey League on Wednesday night, getting 17 saves from Nicole Hensley to beat Boston 3-0 in a winner-take-all Game 5 and claim the Walter Cup.
Canadians are eyeing moves to these cities for more affordable housing
Faced with elevated housing prices, half of Canadians in the country's largest cities are considering moving to places with more affordable housing.
B.C. mortgage broker ran $270-million Ponzi scheme, then fled Canada, bankruptcy trustee says
The trustee appointed to manage the bankruptcies of a Victoria mortgage company and its owner has concluded that they committed "numerous offences" and operated as a "massive Ponzi scheme."
Oilers rally to beat Stars, tie Western Conference Final
With the Edmonton Oilers down two goals late in the first period of Game 4, Rogers Place was quiet, fans seemingly bewildered at the early, quick scoring of the Dallas Stars and the slow start by the home team. Ryan McLeod's marker with six-and-a-half minutes in the opening frame left changed all that.
McDonald's says $18 Big Mac meal was an 'exception' and their prices haven't risen that much
McDonald’s is fighting back against viral tweets and media reports that it says have exaggerated its price increases.
'Targeted again': Montreal police investigate after gunshot fired at Jewish school
Police are investigating another building in Montreal's community was struck by gunfire.
Tessa Virtue reveals she's expecting her first child. Here's what Canadians had to say
Canadian figure-skating icon Tessa Virtue is expecting her first child, she revealed via social media Tuesday.
Poilievre says Canadians 'fleeing' to Nicaragua, Liberals say it shows he 'doesn't have a clue'
Liberal parliamentarians are criticizing Conservative Leader Pierre Poilievre over a new video in which he promotes the idea that some Canadians are 'fleeing' Canada to live in Nicaragua because they can't afford a house in this country.
'Do not drive': Nissan warns Canadian drivers of explosion risk impacting 48,000 vehicles
Car manufacturer Nissan has issued a do-not-drive warning for some older vehicles equipped with Takata airbag inflators, due to the risk of explosion during a crash.
Local Spotlight
'Bigger and better and stronger than ever': Covered Bridge Chips president sets sights for late 2025 rebuild after fire
The president of Covered Bridge Chips in New Brunswick is hoping to have his factory rebuilt for late 2025 following a devastating fire last year.
Winnipeg high school helps lead ducks that nested in courtyard to water
Students and staff at Winnipeg’s Westwood Collegiate had a unique problem to solve this month; how do you lead ducks to water from the school’s courtyard when 12 of them can’t fly yet?
Questions and concerns remain after space junk lands in Saskatchewan
Debby Lorinczy remembers her father as an amazing person and as a man who also made an amazing discovery.
Ski jumper Abigail Strate getting a buzz out of working with bees
Abigail Strate is a member of the Canadian national ski jumping team and an Olympic bronze medallist. She's also a certified beekeeper.
Oilers superfan hopeful Edmonton wins so he can get his massive Stanley Cup tattoo retouched
It's been a long time coming, but one Oilers superfan is hoping this will be the year he gets to touch up his massive Stanley Cup back tattoo.
WATCH Alta. man rescues wild foal trapped on steep cliffside
A man's daring rescue of a newborn wild foal that was trapped after falling down a steep embankment was caught on video over the weekend.
'Forgot how fun this was': Winnipeg man competing in World Pinball Championship
A Winnipeg pinball wizard is heading to the granddaddy of them all – the IFPA World Pinball Championship.
Ottawa U20 ultimate Frisbee players to represent Canada at world championships this summer
It’s the chance of a lifetime for a group of Ottawa athletes who are getting ready to represent Team Canada at the World Junior Ultimate championships in the United Kingdom.
140-year-old downtown Winnipeg church on brink of collapse
Parishioners at Holy Trinity Anglican Church are praying for a monetary miracle, as their historic place of worship could collapse at any moment.