OTAWA –
Canadian banks that refuse to identify carbon rebates by name when making direct deposits are forcing the government to change the law to force them to do so, says Environment Minister Steven Guilbeault.
Guilbeault is taking the stand after Tuesday’s federal budget promised to amend the Financial Administration Act so that government payments accepted for deposit in Canadian banks bear whatever title the government desires.
“The fact that they haven’t done it for many years led us to take this position,” Guilbeault said.
His department has been fighting with banks for nearly two years over how carbon rebates are labeled when deposited directly into bank accounts.
The first refund deposits in 2022 were labeled very generically (“federal payment” and “EFT Canada”, for example), which meant recipients had no idea why they were receiving the money.
Since then, some, but not all, banks have modified their procedures to ensure bank statements reflect the measure’s new name: “Canada Carbon Rebate.”
TD and BMO have adopted the government-requested “CdaCarbonRebate” entry, which conforms to the 15-character limit imposed by some banks.
However, RBC and Scotiabank were unable to make the change in time for the launch, although both say they intend to update it to the new name.
Meanwhile, CIBC still calls it “Depot Canada.”
Guilbeault said the lack of a clear identifier isn’t the only thing causing confusion about carbon pricing, but it’s definitely part of the problem.
“I think we took it for granted that since people were getting it, they knew they were getting it,” Guilbeault said.
“We have discovered in recent months that it was not, in part because that is how it was labeled (or mislabeled, I should say) by most financial institutions.”
The government has struggled to fully explain carbon pricing and rebates since the policy began in 2019.
That has helped conservatives, who meticulously oppose carbon pricing, in their tireless efforts to end it once and for all.
Changing the law would not only affect carbon rebates, but also all government deposits, including child benefits, employment insurance and tax refunds.
Guilbeault rejected any suggestion that the change would cost banks money.
“You can quote me on this: I have a hard time believing banks when they say it’s going to cost them money,” he said.
“I feel like as a customer we should have the right to label this how we think it should be labeled and it’s not up to the banks to decide.”
A spokeswoman for the Canadian Bankers Association had little to say about the proposed change.
“Banks in Canada support measures that help build a strong and sustainable Canadian economy,” Maggie Cheung said in a written statement.
“We will also review proposed amendments to the Financial Management Act when they are introduced, and what the proposed changes to the Act would mean for banks and Canadians.”
This report by The Canadian Press was first published April 19, 2024.