Saskatchewan Premier Scott Moe will be appearing at a House of Commons committee Wednesday morning to testify against the carbon price increase, while Prime Minister Justin Trudeau is calling on premiers opposed to the increase to present their ideas for addressing climate change.
Trudeau sent a letter to seven premiers who are calling for a pause on the upcoming carbon price increase, including Newfoundland and Labrador’s Liberal Premier Andrew Furey.
Global News obtained a copy of the letter from a government source.
“There are several factors that affect inflation. It is critical to dispel the misconception that Canada’s carbon pricing system is a significant driver of inflation — because that is demonstrably false. According to the Bank of Canada, the carbon price is only responsible for about 0.1 percentage points of annual inflation,” Trudeau wrote.
The letter says that the federal government is also worried about the cost of living crisis, and defends the carbon price rebate system, citing a Parliamentary Budget Officer report from March 2023 that says eight out of 10 Canadians get more back than they pay.
Conservative Leader Pierre Poilievre frequently cites the same report in his attacks on the carbon price. The report also provides a broader economic outlook that says most Canadians see a net loss due to decreased employment and investment income.
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With the calls to at least pause the carbon price at $65 per tonne, forgoing the planned increase to $80 per tonne, Trudeau said the premiers are welcome to come up with alternative plans that meet emission reductions goals and use the federal backstop.
“When we last engaged with provinces and territories on this in 2022, all of your governments either did not propose alternative systems or (with the exception of New Brunswick) proposed systems that did not meet the minimum standard for emissions reductions,” Trudeau wrote.
“However, we continue to remain open to proposals for credible systems that price pollution that reflect the unique realities of your regions and meet the national benchmark.”
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 a chance to present their cases against the April 1 carbon price increase before it takes effect.
Fonseca told Global News he did not receive requests from committee members to call an emergency meeting, which would have been required for the premiers to be able to appear.
However, the premiers were invited to take part in government budgetary estimates discussions at the operations committee, chaired by Alberta Conservative MP Kelly McCauley.
Moe is the lone premier appearing by videoconference on Wednesday. Alberta’s Danielle Smith, New Brunswick’s Blaine Higgs and Nova Scotia’s Tim Houston are all set to testify by video conference on Thursday.
Parliamentary Budget Officer Yves Giroux was already scheduled to appear at the operations committee. He will testify after Moe concludes.
— with files from Global News’ David Akin
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