Premier Daniel Smith says he is taking steps to keep Albertans warm this winter while lowering their energy bills.
The premier announced Tuesday that the province has applied for a judicial review seeking exemption from Ottawa’s federal carbon tax.
“We are asking the court to declare this exemption unconstitutional and illegal. This will ensure that Ottawa recognizes the burden the carbon tax imposes on Canadians and eliminates it completely. I look forward to it,” Smith said at a press conference.
The United Conservative Party government has been fighting the federal carbon tax since 2019, calling it “unfair” to Albertans.
“Heating is not an option in Alberta, and that means we rely on natural gas not only to keep us warm, but also to keep us safe,” Smith said.
In 2023, Prime Minister Justin Trudeau implemented a three-year suspension of the federal carbon price on heating oil deliveries in all jurisdictions with a federal fuel tax.
Smith said the initiative will only benefit people living in Atlantic Canada and Quebec who use heating oil.
“This outcome is clearly unfair to people in Alberta and other parts of Canada who rely on natural gas and other fuels to stay warm in the winter,” Smith said.
“From where we sit, this looks like another attempt to divide the country and reward one region and punish another.”
Less than 1 per cent of people in Alberta, Saskatchewan and Manitoba use household heating oil, Smith said.
The state says it has not notified the federal government of the lawsuit, but its position on the carbon tax has been clear for years. The Supreme Court of Canada has ruled in favor of carbon pricing.
Smith also argued that the carbon tax is driving up the cost of living in Canada, and said the money could be spent on education or health care.
Alberta Justice Minister Mickey Amery said the idea of creating exemptions for different types of heating used in homes creates a “unique class.”
“It would be inappropriate to grant exceptions to some parts of the country while treating other parts of the country unfairly differently,” Amery said on Tuesday.
“The choice to fight”
NDP Leader Naheed Nenshi said the Smith government is “choosing to fight the federal government by pursuing litigation, rather than seeking natural gas exemptions or rebates for Albertans who want to get off heating oil.” ” he said.
“I’m not a lawyer, but the Supreme Court has ruled that the carbon tax is constitutional,” Nenshi said in a statement Tuesday.
“Certainly, the federal government really screwed up in creating the household heating oil carve-out. I don’t know why they thought it was a good idea. They cut the consumer carbon tax in a very big way. It was a complete loss.”
The offices of federal Justice Minister Arif Bilani and Environment Minister Stephen Guilbeault said Mr Smith’s actions were disappointing, although not surprising, and called it a “politics” ahead of a weekend leadership review. He called it a “target stunt.”
“(Mr. Smith) also acknowledged that the system is fair and that her family gets more back than they paid.In Alberta, through the Canada Carbon Rebate, the largest in the country, A family of four will receive $1,800 this year,” a statement to CTV News Edmonton said.
The office said Smith was reluctant to bring Ottawa’s oil-to-heat pump affordability program to Alberta, calling for “a low-cost or even no-cost alternative to oil-heated homes in the province.” “It’s closing the door to other means.”
Amery expects the legal challenge to take about 12 months.
Would repealing the carbon tax help?
University of Calgary economist Trevor Tombe said the immediate effects of repealing the carbon tax would vary by household.
“On average, removing a consumer carbon price would reduce the disposable income of a typical household because the rebates they receive tend to be greater than the carbon taxes they pay,” Tonbe said. he said in an interview.
Tombe says the issue is not just a question of “dollars and cents,” but the perceived fairness of exemptions for fuel types.
Laurie Williams, a political scientist at Mount Royal University, said Smith is not new to taking Ottawa to court.
“I don’t know on what basis that challenge would be based. If it’s a question of ‘I don’t like the policy,’ that’s not something the court would consider,” Williams told CTV News. told Edmonton.
Mr Williams said the timing of the announcement was important as Mr Smith faces a leadership vote this weekend.
“Obviously, she’s very concerned about the outcome of this weekend’s vote and has been traveling around the state, attending town hall meetings and announcing policy,” Williams said.
With files from Chelan Skulski from CTVNews.ca and CTV News Edmonton
