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Bill to change N.W.T. carbon tax rebates would hurt remote communities the most, say MLAs

Bill to change N.W.T. carbon tax rebates would hurt remote communities the most, say MLAs

CBC
Thursday, November 03, 2022 12:33:19 AM UTC

A bill to change the N.W.T. carbon tax system is making its way through the Legislature. 

If passed, the bill discontinues carbon tax rebates for heating and instead increases the territory's cost of living offset — a flat tax-free benefit for N.W.T. residents.

The offset would rise by $135 per person, amounting to $473 per adult and $525 for residents under 18, and would come into effect April 1, 2023.

The change comes in order to comply with new federal regulations that, in addition to increasing carbon prices, prohibit carbon tax rebates that directly reduce the impact of the carbon tax. 

The changes are part of Canada's commitment to reducing national greenhouse gas emissions by 40 to 45 per cent below 2005 levels by 2030. 

Finance Minister Caroline Wawzonek gave notice of the bill in the Legislative Assembly last week and members passed it through second reading Tuesday, but not without criticism. 

Several members said the increased offset does not compensate for the rising costs.

Members said the fact that the offset is standard across the territory is unfair to residents in the northernmost communities who pay the highest heating bills. 

Questioning the minister, Jackie Jacobson, MLA for Nunakput, said he understands "the federal government is forcing our government's hand," but argued "there has to be a way that the GNWT can draw a line to stop rising costs for the residents in Nunakput."

Jacobson proposed a tiered system to support his constituents, who Wawzonek agreed "unfortunately" would face "some of the highest impacts from the change."

Kevin O'Reilly, MLA for Frame Lake, said while he supports the federal effort to reduce greenhouse gases, the bill lacks transparency.

He said MLAs have been in briefings with cabinet since July "receiving some rather confusing information." As the briefings have been confidential, O'Reilly said he was frustrated to not be able to share the information with the public. 

If the bill doesn't pass, the N.W.T. will be forced to adopt the federal plan — an option adapted by both Yukon and Nunavut — but O'Reilly said cabinet hasn't provided enough information to MLAs and the public on how the federal backstop could be adjusted to the N.W.T. or on other alternatives to the proposed changes.

He said since the bill has been introduced, there has been "very little public information available on what it actually means." 

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