SASKATOON – Justin Trudeau says Saskatchewan residents will continue to receive carbon emissions rebates, while the province says it is not concerned about the prime minister’s push for the Canada Revenue Agency to collect money owed.
The Saskatchewan government decided earlier this year not to refer the federal carbon price on natural gas to Ottawa, a move that violates federal law.
Trudeau said Tuesday in Saskatoon that the Canada Revenue Agency has mechanisms to collect money from the province.
“We are going to continue delivering Canada’s carbon rebate to Saskatchewan families, even though Premier Moe is not sending that money to Ottawa at this time,” Trudeau told reporters at an unrelated news conference.
“The Canada Revenue Agency has ways to ensure that the money they are owed is ultimately collected.
Trudeau said he has faith in the “quasi-judicial procedures used by the Canada Revenue Agency.”
Saskatchewan Premier Scott Moe said the province would stop sending the tax to Ottawa after Trudeau exempted heating oil users from having to pay. It’s a move that greatly helps those living in the Atlantic provinces, where it is a major source of home heating, and has been seen as a political motivation to increase Liberal support in the region.
Ottawa initially suggested refunds to Saskatchewan could be at risk.
Dustin Duncan, minister responsible for SaskEnergy, said it’s good that residents are still getting the money, but the ruling Saskatchewan Party doesn’t believe it should be raised in the first place.
“We are going to continue delivering Canada’s carbon rebate to Saskatchewan families even though Premier Moe is not sending that money to Ottawa at this time,” the premier told reporters at a news conference.
Duncan said he is confident in the province’s approach.
“We have done everything we can, first and foremost, to protect the people of Saskatchewan from paying an unfair carbon tax to heat their homes,” Duncan said Tuesday in Regina.
In Ottawa, federal Environment Minister Steven Guilbeault could not say how the Canada Revenue Agency would raise the money, but that Trudeau has ordered the agency to get it.
“(Saskatchewan residents) will not be penalized because their Premier, Scott Moe, is playing politics with climate change,” Guilbeault said.
“The premier, and I believe the cabinet, felt it wouldn’t be fair for the people of Saskatchewan to pay for the provincial government’s irresponsible attitude.”
Trudeau has faced conflict with the Saskatchewan government and Moe over the federal Liberal government’s carbon tax.
Moe is among a majority of provincial leaders, including Newfoundland and Labrador’s only Liberal Premier Andrew Furey, who have called on Trudeau to call a meeting to discuss alternatives to consumer carbon pricing.
Moe has said the price is adding to inflationary pressures for Canadians who are desperate for relief in affordability.
Trudeau said most Canadians receive more money in rebates than they pay in carbon taxes.
He has also challenged prime ministers to draw up their own climate plans if they don’t like the carbon price.
Moe has said Saskatchewan has looked at alternatives, but the province found them more expensive.
Trudeau was in Saskatoon to announce more support for Indigenous communities.
Canada is offering $5 billion in loan guarantees to support those seeking stakes in energy and natural resources projects. The program, which was part of last week’s budget, would allow Indigenous communities to access bank loans at lower interest rates.
Trudeau also said Ottawa is promising to spend millions of additional dollars to help with housing and health care.
The recent federal budget promises $390 million to renovate health facilities, including more than $20 million to support the Virtual Health Center run by the Indian Institute of Technologies Saskatchewan.
It also includes $243 million for post-secondary opportunities for Indigenous people and $918 million for housing and infrastructure in their communities.
Later on Tuesday, Trudeau visited the Jewish Community Centre, where he heard from community members about Passover.
This report by The Canadian Press was first published April 24, 2024.
— With files from Jeremy Simes in Regina