Liberal Premier Joins Call for Ottawa to Scrap April 1 Carbon Tax Hike

Liberal Premier Joins Call for Ottawa to Scrap April 1 Carbon Tax Hike
Newfoundland and Labrador Premier Andrew Furey, shown at a press conference in the Confederation Building in St. John's on Feb. 22, 2023. (The Canadian Press/Paul Daly)
Jennifer Cowan
3/13/2024
Updated:
3/15/2024

Newfoundland and Labrador Premier Andrew Furey is calling on Ottawa to stop its planned carbon pricing hike next month, saying the high cost of living is burden enough for Canadian families.

Mr. Furey, Canada’s only Liberal provincial premier, has penned an open letter to Prime Minister Justin Trudeau asking him to rethink hiking the carbon tax by 23 percent during the “most significant cost of living crisis in a generation.”

The carbon tax is set to increase $15 on April 1, from $65 to $80 per tonne. The federal charge will be applied across the country except in British Columbia, Quebec, and the Northwest Territories where they collect their own fuel tax.

Mr. Furey said the upcoming increase is “causing understandable worry as people consider how they will manage the mounting financial strain.”

“For the past two years now, Canadians have endured persistent and punishing inflation, coupled with the most aggressive upward interest rate trajectory in the history of the Bank of Canada,” Mr. Furey wrote in a March 12 letter posted to platform X.

“After years of increasing living costs, there is a need to fully grasp and understand the magnitude of inflation’s effect on citizens, particularly those most in need.”

He suggested the prime minister pause the tax increase until “inflation stabilizes, interest rates lower, and related economic pressures on the cost of living sufficiently cool.”

Premiers Speak Out

Furey’s letter is the latest entreaty by a provincial leader to scrap or pause the carbon tax.

Ontario Premier Doug Ford, Alberta Premier Danielle Smith, and Saskatchewan Premier Scott Moe have all been vocal about the impact the tax is having on the residents of their respective provinces. All three premiers reposted Mr. Furey’s letter to their own X accounts on March 12.

“People across Canada are hurting right now from the high cost of living,” Mr. Ford wrote. “The federal government needs to put a stop to the carbon tax.”

He also blasted the Liberals in a recent press conference, accusing the federal government of being out of touch with the daily reality of Canadians.

“The No. 1 issue with people is affordability. Affordable homes, affordable groceries, and affordable gas. And what drives up the inflation is energy cost,” he said on March 9.

“Guys, wake up and smell the coffee. Like, what don’t you understand? Cancel this carbon tax. … If you don’t, the people of Canada are going to annihilate you when the next election comes up.”

New Brunswick Premier Blaine Higgs is also lending his voice to the call for a tax halt.

“Even if he won’t cancel the tax outright, he can stop his plan to impose even more harm on New Brunswickers and Canadians by halting the planned tax increase,” he said in a March 12 social media post. “Justin Trudeau is putting ideology above individuals and politics over people. The urgency is real, and Canadians deserve better than this.”

‘The Right Thing to Do’

Federal Industry Minister Francois-Philippe Champagne said his government’s carbon pricing policy—which will hike the price by $15 per tonne every year until it eventually reaches $170 per tonne in 2030—is “the right thing to do.”

Mr. Champagne described the carbon tax as an “investment in the future” during a recent interview on Power Play.

“The plan is working, it’s going to bring more money in the pockets of Canadians, and we’re going to continue to do that,” he said, adding that he hears Mr. Furey’s voice on the issue.

Conservative Leader Pierre Poilievre called the increase an April Fool’s tax hike during a March 10 rally in Etobicoke, Ontario, and promised a widespread pressure campaign against the increase in the coming weeks.

“With Justin Trudeau and the NDP, the joke is on you,” he said during the “axe the tax” rally. He said he is calling on Mr. Trudeau to “spike the hike” and encouraged Canadians to join his opposition of the tax by “bombarding” Liberal and NDP MPs’ offices with phone calls and letters and organizing protests outside Liberal MPs’ offices.

“Many of you may say ‘that will never make a difference,'” Mr. Poilievre said. “Well, if you think that you’re too small to be effective, you’ve never been in a tent with a mosquito.”

Ottawa’s planned carbon tax hike on April Fool’s Day is no laughing matter for more than two-thirds of Canadians, however.

A newly released survey from Leger found that 69 percent of poll respondents don’t support the Liberals’ plan to increase carbon pricing next month.

Levied by the Liberal government in 2019, the carbon tax has been described by Mr. Trudeau as a necessity not only to foster greener thinking but to achieve net-zero carbon emissions by 2050.

The prime minister has maintained the Canada Carbon Rebate Canadians receive offsets the rising price of fuel, but a 2023 Parliamentary Budget Officer (PBO) report refuted the government’s assertion.

The report indicated the carbon tax would result in a “net loss” of between $377 and $911 in 2024–2025 for most Canadian households even after receiving federal rebates.

The Epoch Times contacted the prime minister’s office and deputy prime minister’s for comment but did not immediately receive a response.