Manitoba to seek home heating carbon tax carve-out: Kinew

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This article was published 06/11/2023 (702 days ago), so information in it may no longer be current.

Premier Wab Kinew says Manitoba will ask the federal government for a carbon tax exemption for residents who heat their homes with natural gas.

The NDP premier made it clear for the first time Monday, when pressed at the premiers summit in Halifax, the province wants the federal government to grant a carve-out on carbon pricing for other home heating fuels — not just oil.

“We do think that there should be a similar consideration given to the people of Manitoba to get us through this period of economic pain,” Kinew said in response to the first question asked by national reporters at a news conference following the Council of the Federation meeting.

The federal Liberal government announced last month a carbon tax exemption on high-cost, high-polluting home heating oil used mostly by residents of Eastern Canada.

The move prompted outrage from the premiers of provinces such as Alberta and Saskatchewan that rely mostly on natural gas, saying the break for those who heat their homes using oil is unfair.

Rather than joining conservative calls to “axe the tax,” Kinew has said his government wanted to work with federal government on energy-saving programs for the province, such as heat pumps and geothermal heating systems.

However, when asked specifically if Manitoba would be asking Ottawa for a carbon tax carve-out on natural gas, Kinew said: “Correct.”

“We have started this discussion weeks ago, prior to the recent flare up in interest, I would say,” he told reporters Monday.

The premiers issued a joint communique unanimously calling on Prime Minister Justin Trudeau “to ensure that federal policies and programs are delivered in a fair and equitable way to all Canadians, particularly in light of the affordability challenges being faced across the country.”

In an interview Monday, Kinew indicated he won’t fight the federal government in court or follow Saskatchewan Premier Scott Moe, who said his province will refuse to collect the carbon tax on home heating.

“I’d be optimistic that we can always through negotiation and engagement get a better deal for Manitobans,” Kinew said after attending his first COF meeting.

“I think the word ‘negotiation’ is key. We’ll look to have engagement. I think folks in Manitoba sense that the current approach being proposed is not fair.”

Clean energy investments over the past 50 years in Manitoba Hydro and plans to build up a “low-carbon jurisdiction” by committing to critical minerals and hydrogen development ought to count for something with Ottawa, Kinew said.

“I think we’re going to be looking to revisit that and say, ‘Look at all these initiatives our government is doing to stand up on climate, to do our part to further combat climate change. As a result, let’s help Manitobans during their time of need during this this cost of living crisis.’”

The Manitoba Opposition accused the NDP government of doing a “flip-flop” on the carbon tax.

“This is the same NDP who, until today, remained pro-carbon tax,” Progressive Conservative finance critic Obby Khan said in an email. “Why did it take pressure from all other premiers, the federal NDP and other provincial NDP parties for Kinew to finally stand up for Manitobans?

“Manitobans expect their leaders to stand up for them no matter what — not just when it’s popular.”

On Monday, federal New Democrat MPs supported a motion from the Conservatives calling for the carbon price to be lifted from all forms of home heating.

Liberal and Bloc Quebecois MPs defeated the motion 186-135.

During the two-day summit in Halifax, the premiers and territorial leaders also agreed not to “poach” health-care professionals from each other’s jurisdictions, Kinew said Monday.

“That was the consensus,” he said. “The reason why I think that that is so significant is, in the absence of that sort of collaboration, we may compete against one another into a future in which none of us can afford to staff our health-care systems, in which none of us can sustainably do so.”

Manitoba was at a disadvantage under the former PC government because “it was not in the game in terms of inter-provincial recruitment,” Kinew added.

“Now, getting a stand-still in terms of potentially losing more staff, I think is positive. We need everyone we can get working on the front lines in Manitoba.”

Private agency nurses and doctors hired to cover front-line vacancies cost more than health professionals employed in the public system, the NDP premier said.

“Every province is grappling with how do we invest in the health care that people need while some of the solutions and work-arounds, including agency staff and locums, end up being quite expensive.”

carol.sanders@freepress.mb.ca