Ottawa’s stance on energy putting extra pressure on cost of living, inflation: N.B. Premier

Ask him about the increasing cost of living and New Brunswick Premier Blaine Higgs says Ottawa is to blame. More specifically, Prime Minister Justin Trudeau’s price on carbon and the federal government’s inaction on the country’s energy resources.

It’s a message he has stuck to over the last four months, saying the Canadian government could be alleviating the pressure on people’s pocket books, specifically at the pumps.

“There's no question the world events have caused an instability in supply, but what's different is that we have no ability in Canada to offset the supply issue,” he said to reporters Friday. “Had we continued to use and allow our own oil to be used, and develop our natural gas at the same time, we would have an ability to mitigate that exposure, because there'd be more supply going into market.”

Higgs claims he’s not against transitioning to a greener economy, but believes the price on carbon policy has been rolled out too quickly, putting unnecessary pressure at a time when people are already re-thinking their energy use because of the cost of living.

So, he says, the timing is all wrong.

“My point continues to be: we can all be on the same path, but we have to have the checks and balances to ensure people can survive that path.”

Earlier this year, Higgs requested the federal government halt increases to the carbon tax for a few months to get people through this current period of price uncertainty. The request was denied, and on April 1 New Brunswick’s carbon tax went up to 11 cents.

His government announced a “Food and Fuel” benefit program this week, which will see individuals on social assistance, low-income seniors and food banks get a boost before the end of June.

But it’s a one-time cheque of $225 for individuals and $450 for families. Higgs will consider an extension, but not until the fall, and says Ottawa needs to also play a part in helping Canadians with the growing cost of living.

Critics say pointing at Ottawa doesn’t make sense.

“He’s delusional if he thinks that somehow federal policy is affecting the world price of oil, which is a prime driver of the gas prices we're all paying right now,” said Green Party of New Brunswick leader David Coon.

St. Thomas University Communications and Public Policy program coordinator Jamie Gillies agrees, saying the picture is much bigger than a single country.

“A lot of things are contingent on whether inflationary pressures go away and none of them, I think, can be controlled by what happens in Fredericton or in Ottawa,” he said.

Gillies says Ottawa has supported Canadians, noting the amount over the last two years “in terms of bailing out people and helping them through the pandemic.”

And this inflationary period could last over a year.

“I think he's mistaken with the approach. and to focus on things like oil supply and oil capability. it's kind of missing the big picture of inflation,” says Gillies. “If inflation was just happening in Canada there would be an argument to be made that provincial premiers should question Ottawa's handling of that, but inflation and cost of living is rising everywhere. This is a global issue, not a Canadian issue, so he can't just blame the federal government for why costs are going up.”

Higgs is meeting with other Canadian premiers and the federal government in July, and says the issue is on the agenda.