Premier Scott Moe condemns NDP-backing of carbon tax

‘Jagmeet Singh said we're not going to support Justin Trudeau anymore,’ said Premier Scott Moe. ‘He had an opportunity to go into the House of Commons … to not support a carbon tax which would save [businesses] so very much. But he chose not to.’

Saskatchewan's leading contenders for premier this election debated support for small businesses in the province last evening, with Scott Moe, leader of the Saskatchewan Party, pointing to the carbon tax as a sore spot for entrepreneurs.

“We are seeing job losses [among] businesses,” said NDP Leader Carla Beck. “That's not true,” replied Moe. “It is true,” she said.

In August 2024, there were 612,600 people employed in the province, an increase of 19,200 jobs year-over-year. During that period, Saskatchewan’s employment increased by 3.2%, leading Western Canada over Manitoba (3.0%), Alberta (2.1%), and British Columbia (1.4%).

“Mr. Moe says he wants to run on his record but we see him … run away from it,” claimed Beck.

“Small businesses most certainly need support, of which both parties have put forward — they need less taxes and less regulation,” Moe said.

“The NDP very recently, Jagmeet Singh said we're not going to support Justin Trudeau anymore,” he continued. “He had an opportunity to go into the House of Commons … to not support a carbon tax which would save [businesses] so very much. But he chose not to.”

“He [Jagmeet Singh] supported Justin Trudeau again and he supported the carbon tax and he's costing Canadians … money.”

When the Government of Saskatchewan removed the carbon tax on home heating last January, it reduced the province's inflation rate from 2.7% to 1.9% in December 2022, reported Statistics Canada.

Crown Investments Minister Dustin Duncan emphasized the significance of the move, suggesting that the federal government should follow suit to alleviate the financial burden on Canadian families.

“If they are actually serious about fighting inflation, the federal government needs to remove the carbon tax on everyone and everything,” he said at the time.

Conservative MP Philip Lawrence earlier asked the Bank of Canada governor how long a period ending the carbon tax would reduce inflation. Tiff Macklem said one year.

Last October 30, he told the Commons finance committee it “would create a one-time drop in inflation of 0.6 percentage points” from the current rate of 3.8%.

Duncan said eliminating the carbon tax on home heating could significantly reduce gas prices, grocery costs, and overall production and transportation expenses.

The carbon tax last April 1 increased 23% to 12¢ per litre of propane, 15¢ per cubic metre of natural gas, 18¢ per litre of gasoline, and 25¢ per litre of heating oil. Another 23% increase is scheduled April 1, 2025.

The feds confirmed October 1 that roughly 600,000 businesses would receive $2.5 billion allotted to the Canada Carbon Rebate for Small Businesses before the end of the year. Final payouts amount to $301 million in Saskatchewan.

Eligible businesses are paid a tax credit based on their province and company size, meaning a company with 499 employees in Saskatchewan could receive upwards of $576,844, according to a government news release. 

Under the current regime, “Increases in the carbon tax, coupled with minimal compensation, made the cost of doing business substantially higher, negatively impacting thousands of businesses,” said the Canadian Federation of Independent Business (CFIB) in its report Fueling Unfairness: Carbon Pricing And Small Business.

An overwhelming 85% of small businesses opposed the federal carbon tax, according to a CFIB survey. Three in five businesses incurred 10% higher energy costs last year, despite using the same amount of power as in previous years.

Should the carbon tax continue to rise through 2030, over half (56%) of small businesses would increase their prices to offset costs, said Fueling Unfairness.

Over four in ten (45%) said they would be forced to freeze or cut salaries. Another 40% would reduce investments in their business.

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Alex Dhaliwal

Calgary Based Journalist

Alex Dhaliwal is a Political Science graduate from the University of Calgary. He has actively written on relevant Canadian issues with several prominent interviews under his belt.

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