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NDP motion on Fuel Tax countered by Moe’s carbon tax concerns

Daily Leg Update: Instead of supporting NDP motion to suspend fuel tax, Premier Scott Moe asks Opposition if they will support their enabling legislation to not submit carbon tax.
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Premier Scott Moe speaks to reporters Tuesday as Leg resumed following Remembrance Day break.

REGINA - In Question Period Tuesday, the Opposition New Democrats made it known they would be introducing a motion to suspend the gas tax for six months to address the affordability issue.

In response, Premier Scott Moe challenged the Opposition to support the government’s own legislation on the affordability issue: enabling legislation so Saskatchewan will not have to submit the carbon tax.

It was a contrast in positions taken by the two parties in the Legislature, with New Democrats once again trying to pin the blame on the Moe government on affordability, while the SaskParty focused their attack on the federal Trudeau Liberals for the affordability woes created by the Carbon Tax. The issue gained new life recently with the feds’ move to suspend the Carbon Tax for home heating oil used primarily in Atlantic Canada — a key topic at the premier’s conference in Halifax that Moe had just attended.

On Tuesday, with Moe back in the Legislature, the NDP tried to get back ahead of the affordability issue as Regina Rosemont MLA Trent Wotherspoon submitted a notice of motion calling for a six-month break on the gas tax. According to NDP leader Carla Beck in Question Period, this would save families an average of $350.

Premier Moe had other ideas. Beck and Moe tangled on the issue in Question Period, as recorded in Hansard.

Ms. Beck: — “Mr. Speaker, the Premier’s sunny ways are not going to fix this, and neither is the self-congratulation… Families are paying more in this province as a direct result of that government’s tax and fee hikes, but this Premier isn’t offering any real relief for families. But, Mr. Speaker, soon he’ll have a chance… 

“Will the Premier finally act and give families this much-needed break on the price of gas?”

Hon. Mr. Moe: — “… Very shortly, I would ask the Leader of the Opposition . . . There is going to be a piece of enabling legislation put onto the floor of this Assembly to ensure that Saskatchewan families are equivalent to Atlantic Canadian families and are not submitting the carbon tax on their home heating fuel, Mr. Speaker. Is the Leader of the Opposition going to support that piece of legislation?

Ms. Beck: — “Mr. Speaker, I think we’ve been pretty clear on our position on the carve-out on the heating tax.”

Beck then went on to go after the government for the decision “to spend a million dollars on a pavilion in Dubai,” in reference to their attendance at COP28. Moe responded by defending the decision. 

“In addition to the record investment in health care that we have seen over the last decade and a half, Mr. Speaker, we’ve been able then also to remove 112,000 low-income families, low-income individuals from the provincial tax rolls altogether. The way that we are able to do this is to ensure that we are encouraging an environment for investment which results in a strong and vibrant economy, which results in jobs, Mr. Speaker.

“And the way we’re able to do that — most notably this last week being recognized by the Canada-India Business Council, Mr. Speaker — is to engage, engage with our customers around the world. Engaging at COP28 is most certainly just what we are going to do to provide a platform for Saskatchewan industries to tell their story, not just about what they’re producing but about how they are producing some of the most sustainable products that you can find on earth.

And, Mr. Speaker, what is the goal of that investment? The goal behind that investment is to continue to ensure that — this past month we had 6,600 more jobs created in this province — that that is the rate of job increase in this province, not just a one and done.”

In speaking to reporters afterward, Premier Moe explained what he was referring to when he spoke about the enabling legislation, which is not yet before the Assembly.

“There will be some enabling legislation required to ensure that it is the government minister that is the ones that would responsible for any decisions ultimately that would be made in foregoing the carbon tax submitted to the federal government,” said Moe. 

“We would ask the opposition, all the opposition members to support that legislation, so it would move through swiftly so we would then move forward with removing the carbon tax from families’ energy bills, and ultimately from the bills they have now to heat their homes. It was about my understanding. It would amount to my understanding average about $400 a year so it’s significantly. It’s a significant amount for many families across the province.”

Moe also said that suspending the 15 cent a litre gas tax would have different consequences as well. “The gas tax has been available to fix roads across the province,” said Moe, who noted it has also been consistent as well since being introduced in the early 90s.

Moe made the point it was the carbon tax that was unnecessary. 

“On a $150 gas bill that a family might have in their vehicle over the course of a week, about $15 of that is provincial tax, about $35 of that is federal tax. And so when we talk about an additional carveout on home heating or agricultural gas use… that is only part of the stance of this government. We believe the carbon tax, a consumer-based carbon tax should be removed on everything for everyone. It ultimately is adding to the inflationary costs families are feeling when they’re buying groceries, when they’re filling their vehicle, whatever that might be. So that is the tax that most certainly is unnecessary. The discussion around collecting a gas tax and using those dollars, and then adding dollars to that part to invest in our provincial highway system can be a discussion as well, but ultimately that money would have to come from somewhere.”

In speaking to reporters, Beck reiterated the number one issue was the cost of living. She said it was within the Premier’s “jurisdiction, his ability to implement a six month pause on the gas tax. And I think frankly, it’s something that many Saskatchewan people are desperate for some sort of break, especially as again we move into Christmas.”

Beck also noted the issues of removing the gas tax and carbon tax “weren’t mutually exclusive.”

“The difference between these two things, and both can happen, and I think should happen — one the Premier has the ability to ensure it happens today. The other one is going to require working with the provinces and making that case with the federal government. Again, I think that it simply won’t fly for most people in this province to say, which one do you want.”

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