P.E.I. premier describes talks with Ottawa over carbon pricing 'frustrating'

P.E.I. premier Dennis King describes negotiations with Ottawa over carbon pricing as "frustrating," as he tries to get an extension to an exemption on the tax on home heating oil.

Those comments were made during a fiery exchange in the provincial legislature Thursday between the premier and Opposition leader Peter Bevan-Baker.

Bevan-Baker pushed the premier to release his latest plan, a plan submitted to Ottawa back in September. 

King accused the Green Party leader of trying to push up the price of home heating oil, already at record highs. 

"We're trying to negotiate with a frustrating federal government, who won't give Islanders a break. We're going to fight to give them a break," King said during question period. 

"And I'll tell you what, if it takes my government down, it'll take my government down. I'm not going to give in to this leader over here who thinks home heating fuel is not high enough. Go ask any Islander, it's through the roof."

Bevan-Baker said the province is trying to make the argument that they can either address the cost of living crisis or deal with the climate emergency. He said they can — and must — do both. 

"So, Islanders are starving and freezing because they don't have enough money, and they don't have enough money because this government continues to refuse to give them back the full rebate for the carbon tax from Ottawa," said Bevan-Baker. 

The province uses a lot of what it collects now from its carbon tax on gas, currently at 11 cents per litre, to help Islanders transition to renewable energy, like electric cars and heat pumps.

Some Islanders will also see money back from a carbon pricing rebate, up to about $140 per year, depending on household income. But that's significantly less than in other provinces.

The Green Party wants all of that money returned to Islanders. 

King said the province collects $34 million in carbon taxes and rebated $70 million last year, through direct rebates and programs like the free heat pump program.

Environment Minister Steven Myers said P.E.I.'s plan will reduce carbon, while making sure Islanders don't "freeze to death in their own homes." 

Green MLA Hannah Bell said: "People deserve to have enough money to buy food for their family and you are denying that to them."