Guilbeault Accuses Saskatchewan Premier of Immorality for Violating Carbon-Price Law

Environment Minister Steven Guilbeault emphasizes the need for Ottawa to address Saskatchewan’s violation of the federal carbon-pricing law.

Saskatchewan Premier Scott Moe recently announced that his province would not be submitting the required payment for the carbon price on natural gas by the deadline on Feb. 29.

Mr. Moe’s objection stems from Ottawa’s decision to exempt heating oil from the levy while continuing to apply it to natural gas, which is the primary heating source for eight out of ten households in Saskatchewan.

According to the law, fuel distributors like SaskEnergy are mandated to submit monthly reports detailing the fuel sold and the corresponding carbon price collected.

Failure to comply with these reporting requirements or make the necessary payments may result in fines and even imprisonment based on the outstanding amounts.

Minister Guilbeault condemns Mr. Moe’s defiance of the law as “immoral” and “irresponsible.”

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“If Premier Scott Moe choose to disregard federal laws, action will be necessary,” stated Mr. Guilbeault in response to inquiries from reporters.

He continued, “We cannot allow such behavior. What if someone decided to defy other federal laws, criminal laws, tomorrow? What would be the consequences if a prime minister or provincial premier adopted such an approach?”

“It’s reckless and frankly immoral on his part. Disagreements may arise on various issues like climate change, but being so careless is inexcusable,” he added.

Just last week, SaskEnergy Minister Dustin Duncan acknowledged the potential repercussions of the government’s decision, but he defended it as a move based on fairness.

Mr. Duncan expressed, “It’s a decision I made with serious consideration,” on Feb. 29.

Last autumn, the federal Liberals granted heating oil a three-year exemption from carbon pricing, citing the need for additional time and financial assistance for households utilizing this fuel to transition to electric heat pumps.

Heating oil is significantly more costly than natural gas even before factoring in carbon pricing, and with a more than 50% surge in oil prices in recent years, there’s a strong incentive to switch to alternative heating methods without the added carbon levy.

Federal data indicates that about 1.2 million Canadian homes still rely on heating oil, with nearly a quarter of them located in Atlantic Canada, while only three percent are in the Prairie provinces.

The Liberals faced accusations of making politically driven decisions, responding to declining poll numbers in the East Coast region where they hold a majority of seats compared to their limited representation in the Prairies.

The implications of Saskatchewan’s non-compliance may not be immediately evident.

Even though Saskatchewan made their refusal to pay public, the Canada Revenue Agency refrains from confirming late or missing payments by specific clients, including provincial governments, due to privacy regulations.

The CRA employs compliance procedures to prompt payment or documentation submission before resorting to legal action.

Natural Resources Minister Jonathan Wilkinson explained last week that reducing the carbon rebates allocated to Saskatchewan households will be one consequence of the province’s actions.

These rebates are determined based on the total revenue collected in each province, and a decrease in revenue will result in reduced rebate amounts for residents, he clarified.