P.E.I. opposition MLAs grill King government over carbon tax

A day after the federal government announced what Maritimers will pay when the carbon tax comes into effect this summer, opposition MLAs on Prince Edward Island were quick to point the finger at the King government during question period.

“Did P.E.I. submit a plan that they knew would be rejected, just like Nova Scotia did, so they can turn and blame the federal government after having its hand out for wanting more funds from the federal government?” asked Robert Henderson, a Liberal MLA.

Premier Dennis King says P.E.I. significantly cut emissions under the home heating oil exemption.

"Islanders want to get to a better, cleaner future, Mr. Speaker," said King. "We think there’s a way to do that without adding, Mr. Speaker, to the cost at the pump.”

The 17.4 cents a litre increase is set to come into effect in July of next year. At the same time, a federal carbon rebate launches.

For Nova Scotia and P.E.I., it’s nearly $250 every three months, but the Canadian Taxpayers Federation says that won’t cover the increased costs for most.

“We have data from the parliamentary budget officer that shows that, in the provinces that currently have the federal carbon tax backstop in place, families are losing anywhere between $400 and $800 a year after the rebate,” said Jay Goldberg, of the Canadian Taxpayers Federation.

Half the homes on P.E.I. rely on heating oil.

The federal government announced a $250 million program to get people to switch to heat pumps, with a $5,000 grant for low and middle-income homeowners.

But P.E.I. already has a heat pump rebate program, and a program to give away heat pumps for free to low-income Islanders.

"Well isn’t that great. We did that two years ago, Mr. Speaker," said King of the federal program.

All three Maritime provinces already charged the carbon price on gasoline, diesel and natural gas, but heating oil had been exempt.

When the tax comes into effect on Canada Day, it will mean that people in seven out of the 10 provinces are receiving carbon rebates from the federal government -- meaning there are only three provinces with provincial systems that have been approved by the federal government.