Politics

Atlantic Liberal MPs press Trudeau for rural carbon tax carve-out

Atlantic Liberal MPs say they want an additional rural carve-out on the carbon tax to ease cost-of-living pressures specific to Canadians living outside of major urban centres.

MPs say their constituents need more relief from the rising cost of living

A driver fills car at gas station.
Atlantic Canadian members of the federal Liberal caucus are calling on the federal government to cut the region some extra slack on carbon pricing. (Kevin Yarr/CBC)

Atlantic Liberal MPs say they want an additional rural carve-out on the carbon tax to ease cost-of-living pressures specific to Canadians living outside of major urban centres.

MP Ken McDonald, who represents the riding of Avalon in Newfoundland and Labrador, said many of his constituents feel abandoned by the federal government.

He brought their concerns to the attention of Prime Minister Justin Trudeau during the national Liberal caucus meetings this week in London, Ont.

"I told him exactly as it is," McDonald said. "We're punishing the rural areas of our country and the most vulnerable people in our society."

McDonald is pushing for a special policy for rural Canadians that would include carbon tax rebates higher than those the backstop program currently offers.

Ken McDonald is the Liberal MP for Conception Bay South in Newfoundland and Labrador.
Ken McDonald, Liberal MP for Conception Bay South in Newfoundland and Labrador, pitched a rural carbon tax carve-out to the prime minister at the national Liberal caucus meeting in London, Ont. (Olivia Stefanovich/CBC)

The federal carbon tax applies in provinces and territories that don't have carbon pricing systems that Ottawa considers sufficient to lower greenhouse gas emissions.

The government already gives a supplement to residents of rural and small communities that increases the amount of rebates in their province by 10 per cent to account for increased energy needs and reduced access to transportation options.

Under the program, residents in Newfoundland and Labrador receive payments every three months: $164 for people who live alone, $82 for a spouse or common-law partner, $41 per child under the age of 19 and $82 for the first child in a single-parent family.

In Nova Scotia, those amounts are even lower. Liberal Atlantic caucus chair Kody Blois said those payments aren't high enough. 

"There should be a higher rural rebate," said Blois, who represents the Nova Scotia riding of Kings—Hants.

"The policy is the right intent, but I think we need to have some adjustments."

A man in a suit and tie.
Kody Blois, chair of the national Liberal rural caucus and Nova Scotia Liberal caucus, says he wants higher carbon tax rebates for rural Canadians. (Mark Crosby/CBC)

McDonald said Trudeau acknowledged there's an issue in rural areas and said the government will see if there's something it can do.

"People will be very upset when the ballot box comes up the next time if we don't," McDonald said.

"That's what the prime minister is hearing loud and clear."

McDonald said he was moved to speak up after hearing about the struggles of rural Canadians. He said one constituent called him to say she can't afford home heating oil anymore.

"She said, 'I go around my house with a blanket wrapped around me.' And she said, 'The only time I get to have beef or chicken is if my niece or nephew invites me out to Sunday dinner,'" he said.

McDonald said he tells that story to everyone he talks to in government.

"I think government is starting to understand it," McDonald said.

"At first, some people said to me, like, there's nobody living like that … And I said, 'If you don't think people are living like that, you're not living in the real world.'"

Prime Minister Justin Trudeau announces new affordability measures, as he concludes the national Liberal caucus retreat in London, Ontario.
Prime Minister Justin Trudeau wrapped up national Liberal caucus meetings in London, Ont. on Thursday without announcing any relief for rural Canadians struggling to pay for fuel. (Sylvain Lepage/CBC News)

In Newfoundland and Labrador, he said, many consumer goods come in on aircraft or ferries, which burn fuel.

McDonald said he isn't surprised by the Liberals' plummeting poll numbers because Conservative Leader Pierre Poilievre's "axe the tax" campaign is telling people what they want to hear.

He said Trudeau needs to travel across the country, shake some hands and let people know he still has their backs.

"I hope the government is going to listen and do something or the government will be in trouble," McDonald said. 

McDonald said while Ottawa must do its part to reduce greenhouse gas emissions, the burden of that effort shouldn't fall on the backs of the most vulnerable.

"I will continue to stand up for the constituents, which I represent, whether it's favourable to the government or unfavourable," McDonald said.

"I want to make sure they have their voice heard."

ABOUT THE AUTHOR

Olivia Stefanovich

Senior reporter

Olivia Stefanovich is a senior reporter for CBC's Parliamentary Bureau based in Ottawa. She previously worked in Toronto, Saskatchewan and northern Ontario. Connect with her on X at @CBCOlivia. Reach out confidentially: olivia.stefanovich@cbc.ca.