N.L. calls on Ottawa to hold off on new clean fuel regulations
Province looking for pause from federal government before July 1 before new charges kick in
The government of Newfoundland and Labrador is blasting the federal government over its clean fuel regulations — just days before they're scheduled to come into effect.
Finance Minister Siobhan Coady said the province is asking the federal government to hold off on its looming clean fuel regulations, slated to come into effect July 1, pointing out there's a lot unknown about the cost.
"We do not know at this point how much that will be, how that will be passed on, so there's still uncertainty," Coady said at a news conference on Wednesday. "That's why we're asking the federal government to pause until we have some certainty."
What is certain, Coady said, is the parliamentary budget officer indicated the added cost will be about 17 cents per litre on gasoline and 16 cents per litre on diesel by 2030. That's on top of the looming carbon tax.
"So we're concerned about competitiveness. We're concerned about affordability. We're concerned and we want to reiterate that today because of course July 1 is coming in a few days," Coady said.
She said the province understands the federal government is concerned with fighting climate change but this policy isn't the way to do it.
Coady was joined Wednesday by Energy Minister Andrew Parsons, who said there have been multiple efforts to get their federal counterparts to understand Newfoundland and Labrador's position but that hasn't happened.
"The reality is that when people get their car gassed up this coming weekend, they're going to feel it," said Parsons.
He's encouraging residents to contact their members of Parliament — not him — about the situation because the regulations are federal.
Parsons also said the regulations will have an impact on Marine Atlantic, and additional costs of burning fuel will likely be passed on to consumers.
Coady said Newfoundland and Labrador was exempt from the previous renewable fuels tax in light of the province's unique geography and sparse population.
Constitutional options
He said the federal government hasn't been doing right by this obligation for years and this charge will make things "more onerous" on Newfoundlanders and Labradorians.
"We've talked about, within the Department of Justice and within government, on the possibilities of constitutional challenge here, based on this. It's gotten to that point where we have to look at all of our options to protect Newfoundlanders and Laboradorians," Parsons said.
He said "there would be a huge uprising" if the situation were playing out in another province.
"But the fact it's here in Newfoundland Labrador, they feel that they could just continue on this path, and I absolutely don't think that's the case," he said.
The province has been "sounding the alarm" over its concerns about the regulations for years, Parsons said, adding he believed there would be opportunity to find a "common sense balance."
"Sometimes it's clear as mud. I don't know if they truly know what the impact is going to be," he said.
Defending the feds
Earlier Wednesday, federal Labour Minister Seamus O'Regan defended the regulations, saying eight out of 10 people will be get more money in rebates than they pay in tax.
"I know that sounds kind of counterintuitive and people are like, 'Well, why tax?' Because you'll always have that cash. We will always be giving you this cash; $1,312," he said.
"But when you make choices on buying products that have less carbon and less pollutants, you'll be saving money and you'll have more money in your pocket. And that's what we wanted to do."
He said climate change is happening and people should not be able to pollute for free. Moreover, he said, the only way the country will address the issue in a meaningful way is if everyone does something.
"In this instance, the price on pollution has always been there," he said. "The province charged it and they put it into general revenue. It was at roughly 11 cents. It is going up to 14 cents now."
But, he said, the federal rebate will cover that — a family of four will get $1,312 a year.
O'Regan also said people won't have to apply for it or see it come out through income tax.
"You were going to see it in your bank account come this July, so that money will be in pocket," he said. "You're not going to have to wait until like a tax rebate at the end of the year and suffer the costs until then."
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