As Nova Scotians brace for another jump in gas prices Friday, Ottawa went after critics of the carbon tax and clean fuel regulations.
Sean Fraser, Nova Scotia’s only minister in the federal cabinet, held a press conference Thursday in Shubenacadie Park as walkers and kayakers enjoyed the sunshine “to help cut through some of the noise” around their pollution pricing policy.
While highlighting the rebates set to roll into Nova Scotians’ bank accounts as early as next week, Fraser attacked conservative politicians for spreading what he called misinformation and called Pierre Poilievre the “chief violator” of this.
“I’ve seen too many make the false claim that families will be worse off as a result of having to pay a price on pollution,” Fraser said.
When asked about the Houston government’s $56,000 ad campaign against the carbon tax, Fraser said the premier is promoting information that’s not current.
“It’s false to suggest that this move will be punishing,” Fraser said.
The introduction of a carbon tax to Nova Scotia on Canada Day sent gas prices up 14 cents a litre in the province. Clean fuel regulations aimed at producers and suppliers will add on nearly four cents Friday.
Consumers will receive quarterly rebates. In Nova Scotia, individuals will get $124 and a family of four will receive $248.
CTV News requested an interview with Premier Houston but were told he wasn’t available Thursday.
In a statement, the Office of the Premier said the rebates will not be enough to offset the cost at the pump and said the government put forward a plan that would address climate change and reduce greenhouse gas emissions without a carbon tax.
“It was the federal government’s choice to move forward and impose the tax on Nova Scotians. They could have delayed it,” said Meagan Byrd, Press Secretary for the Office of the Premier. “They should own it.”
Ottawa argues most Canadians will get more money back in rebates than they will pay in fuel charges. In a report, the Parliamentary Budget Officer (PBO) agreed with Ottawa’s assessment but also noted that the cost to the average Nova Scotian household — both fiscal and economic cost — will be about $431 in 2023-24.
Fraser pointed out the PBO’s analysis compares putting a price on pollution to not taking further action on climate change and notes if the PBO report looks at indirect costs, it’s also important to also account for indirect benefits.
“The average is skewed on the basis that wealthy people tend to pollute more,” said Fraser. “But the majority of people in Nova Scotia receive as much or more back in a rebate than they will incur as a result of fuel charges.”
Larry Hughes, a professor at Dalhousie University’s Department of Electrical and Computer Engineering whose research includes energy policy, did his own calculations to see whether Nova Scotians would come out ahead.
“It depends on how you heat your home and how you heat your hot water,” said Hughes.
He calculated the costs and rebates for a family of four and pointed out that homeowners who heat their water and houses with electricity will probably gain. Hughes’ analysis shows that households using electricity for heating and hot water would profit up to about $236 from the rebates.
“If you’re heating with oil or using oil for your hot water, you will be pretty close to the edge and may even be out of pocket,” Hughes said.
His analysis shows homes using oil for space or water heating, the benefits from rebates are much lower, ranging from a high of $168 to a loss of as much as $435.
Hughes also said the Houston government must assume some responsibility, adding it had a year to develop programs to prepare Nova Scotians for the impact of the carbon tax.
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