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'The plan is working,' Champagne says as more premiers urge pause to carbon tax hike

'The plan is working,' Champagne says as more premiers urge pause to carbon tax hike

CTV
Wednesday, March 13, 2024 03:58:33 AM UTC

As yet another provincial leader calls on the Trudeau government to pause next month's carbon tax hike, federal Industry Minister Francois-Philippe Champagne says that 'the plan is working' on efforts to price pollution.

As yet another provincial leader calls on the Trudeau government to pause next month's carbon tax hike, federal Industry Minister Francois-Philippe Champagne says that 'the plan is working' on efforts to price pollution.

The remarks came in response to a letter to Prime Minister Justin Trudeau from Newfoundland and Labrador Premier Andrew Furey, published on social media Tuesday.

Furey asked the federal government to help "address the ramifications of the current challenges families face and to not compound them," citing "punishing" inflation and cost-of-living challenges affecting his province's most vulnerable residents.

"The coming almost 25 [per cent] increase … in the federal carbon tax on April 1st is causing understandable worry," the letter reads. "I respectfully request that you consider pausing the implementation … at least until inflation stabilizes, interest rates lower and related economic pressures on the cost of living sufficiently cool."

April's tax increase to $80 from $65 per tonne of carbon emissions is part of a series of hikes, with fees scheduled to rise annually until 2030.

In an appearance on CTV News Channel's Power Play with host Vassy Kapelos Tuesday afternoon, Champagne said he hears Furey's voice on the issue, but that putting a price on pollution is "the right thing to do."

"This is an investment in the future," he said. "The plan is working, it's going to bring more money in the pockets of Canadians, and we're going to continue to do that."

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