Premier of Newfoundland and Labrador calls for pause on carbon tax hike

'After years of increasing living costs, there is a need to fully grasp and address the magnitude inflation's effects on citizens, particularly those most in need,' said Premier Andrew Furey in a letter to Prime Minister Justin Trudeau.

Premier of Newfoundland and Labrador calls for pause on carbon tax hike
The Canadian Press / Sean Kilpatrick and The Canadian Press / Kelly Clark
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Andrew Furey, the Liberal premier of Newfoundland and Labrador, is calling on Prime Minister Justin Trudeau to pause the April 1 carbon tax hike.

“I am now asking Ottawa to pause its planned increase to the carbon tax,” Furey wrote on X on Tuesday morning. “The high cost of living is enough of a burden on families,” added the premier's post, which included a longer letter attached.

“For the past two years now, Canadians have endured persistent and punishing inflation, coupled with the most aggressive upward interest rate trajectory in the history of the Bank of Canada,” the letter reads. “After years of increasing living costs, there is a need to fully grasp and address the magnitude inflation's effects on citizens, particularly those most in need.”

Last year, the Trudeau Liberals attempted to appease concerns among Atlantic Canadians by issuing a pause on heating oil tax and increasing rebates.  The decision came after criticism mounted from Atlantic Liberal MPs, like Ken McDonald, who said, “Everywhere I go people come up to me and say, ‘we’re losing faith in the Liberal Party,'” during an interview on CBC, the National Post reported.

“I’ve had people tell me they can’t afford to buy groceries. They can’t afford to heat their homes and that’s hard to hear from especially seniors who live alone; they tell me that they go around their house in the spring and winter time with a blanket wrapped around them,” McDonald added.

Earlier this month, Prince Edward Island Premier Dennis King also lamented the carbon tax, blaming it for rising food prices. 

“As an Island province we are in a unique position," King said, also in a letter to Trudeau, as reported by CBC. "With most goods arriving by diesel trucks ... adding to the cost of gas and diesel continually drives up the costs to goods, services, and food for Islanders."

Trudeau rebuffed the premiers' assertions that carbon taxes are hurting Canadians' wallets.

“Eight out of 10 Canadian households get more money than they pay in carbon pricing in the provinces in which it applies,” Trudeau said in Parliament on February 28. “That is money in their pockets.”

Liberal MP McDonald described how there was “almost a hatred out there right now” of Trudeau, calling on the prime minister to face a leadership review by party members. He walked those comments back the following day.

“The coming almost 25 percent increase (from $65 to $80 per tonne) in the federal carbon tax on April 1st is causing understandable worry as people consider how they will manage the mounting financial strain,” said Newfoundland and Labrador Premier Furey's letter to Trudeau.

“I respectfully request that you consider pausing the implementation of the April 1st carbon tax increase - at least until inflation stabilizes, interest rates lower and related economic pressures on the cost of living significantly cool.”

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