Atlantic Liberal MPs press Trudeau for rural carbon tax carve-out

Atlantic Liberal MPs say they want an additional rural carve-out on the carbon tax to ease cost-of-living pressures specific to Canadians living outside of major urban centres.

MP Ken McDonald, who represents the riding of Avalon in Newfoundland and Labrador, said many of his constituents feel abandoned by the federal government.

He brought their concerns to the attention of Prime Minister Justin Trudeau during the national Liberal caucus meetings this week in London, Ont.

"I told him exactly as it is," McDonald said. "We're punishing the rural areas of our country and the most vulnerable people in our society."

McDonald is pushing for a special policy for rural Canadians that would include carbon tax rebates higher than those the backstop program currently offers.

The federal carbon tax applies in provinces and territories that don't have carbon pricing systems that Ottawa considers sufficient to lower greenhouse gas emissions.

The government already gives a supplement to residents of rural and small communities that increases the amount of rebates in their province by 10 per cent to account for increased energy needs and reduced access to transportation options.

Under the program, residents in Newfoundland and Labrador receive payments every three months: $164 for people who live alone, $82 for a spouse or common-law partner, $41 per child under the age of 19 and $82 for the first child in a single-parent family.

In Nova Scotia, those amounts are even lower. Liberal Atlantic caucus chair Kody Blois said those payments aren't high enough. 

"We need to have some adjustments," said Blois, who represents the Nova Scotia riding of Kings—Hants.

"We need to continue to show that we're meeting the needs, particularly around affordability. That's the number one concern I heard from my riding this summer."

McDonald said Trudeau acknowledged there's an issue in rural areas and said the government will see if there's something it can do.

"People will be very upset when the ballot box comes up the next time if we don't," McDonald said.

"That's what the prime minister is hearing loud and clear."