Saskatchewan Premier Scott Moe will testify against the carbon price increase at a House of Commons committee, while Prime Minister Justin Trudeau is urging premiers against the increase to share their ideas for addressing climate change.
Trudeau sent a letter to seven premiers, including Newfoundland and Labrador’s Liberal Premier Andrew Furey, who are calling for a pause on the upcoming carbon price increase. Global News acquired a copy of the letter from a government source.
“There are several factors that influence inflation. It is important to clarify that Canada’s carbon pricing system is not a significant cause of inflation, as it is proven to be untrue. According to the Bank of Canada, the carbon price only contributes about 0.1 percentage points to yearly inflation,” Trudeau wrote.
The letter also expresses the federal government's concerns about the cost of living crisis and defends the carbon price rebate system, referencing a Parliamentary Budget Officer report from March 2023 which states that eight out of 10 Canadians receive more in rebates than they pay.
Conservative Leader Pierre Poilievre frequently mentions the same report in his criticisms of the carbon price. The report also presents a broader economic perspective, stating that most Canadians experience a net loss due to reduced employment and investment income.
Amid calls to at least postpone the carbon price at $65 per tonne, skipping the planned increase to $80 per tonne, Trudeau said the premiers are encouraged to devise alternative plans that fulfill emission reduction targets and utilize the federal backstop.
“When we last discussed this matter with provinces and territories in 2022, none of your governments proposed alternative systems or (except for New Brunswick) proposed systems that did not meet the minimum requirements for emissions reductions,” Trudeau stated.
“Nevertheless, we remain open to suggestions for dependable systems that price pollution and consider the unique circumstances of your regions, while meeting the national standard,” he added.
Moe, along with the premiers of Alberta, New Brunswick, and Nova Scotia, all sent letters to the chair of the finance committee, Ontario Liberal MP Peter Fonseca, requesting an opportunity to present their arguments against the April 1 carbon price increase before it takes effect.
Fonseca mentioned to Global News that he did not receive requests from committee members to convene an emergency meeting, which would have been necessary for the premiers to testify.
However, the premiers were invited to participate in discussions on government budgetary estimates at the operations committee, overseen by Alberta Conservative MP Kelly McCauley.
Moe is the only premier scheduled to appear via videoconference on Wednesday. Alberta’s Danielle Smith, New Brunswick’s Blaine Higgs, and Nova Scotia’s Tim Houston are all set to testify via video conference on Thursday.
Parliamentary Budget Officer Yves Giroux was already slated to testify at the operations committee, following Moe’s testimony.
— with information from Global News’ David Akin
In a letter to seven premiers, Prime Minister Justin Trudeau says he is willing to consider 'credible' carbon pricing systems that are tailored to the specific priorities of each province.
