QUESTION PERIOD — Environment and Climate Change
Fuel Charge Proceeds Return Program
February 13, 2024
My question is for the Government Representative in the Senate. Senator Gold, I would like to explore the government’s Fuel Charge Proceeds Return Program, or FCPRP.
Last week, I met with the Canadian Federation of Independent Business. The federation claims that the federal government has been sitting on $2.5 billion in carbon tax revenue collected since 2019 despite repeated promises to return 10% to eligible small businesses as part of the FCPRP.
The pandemic was tough on our small to medium-sized enterprise community. Many of them are still struggling to make ends meet. Can you provide this chamber with an update on the program? Why is it taking so long for small businesses to receive their fuel charge proceeds ?
Thank you for your question. I’m informed that every effort is being made by the Government of Canada to deliver on its commitment to return all fuel charge proceeds to eligible small and medium-sized enterprises by the expected deadline. Further, I understand that the returns will be made in two phases.
The first phase will distribute approximately $2.5 billion of fuel charge proceeds to small and medium-sized businesses in Alberta, Manitoba, Ontario and Saskatchewan. This comprises proceeds collected in those four provinces in the 2019-20 to 2023-24 fiscal years.
The second phase of the return program will distribute approximately $70 million of fuel charge proceeds to small to medium-sized enterprises in New Brunswick, Newfoundland and Labrador, Nova Scotia and Prince Edward Island. This also comprises the proceeds collected in the four Atlantic provinces in the 2023-24 fiscal year.
Thank you for that answer, Senator Gold, but there seems to remain confusion about the eligibility of businesses. We know the program wants to target small to medium-sized enterprises in emissions intensive and trade‑exposed sectors. What criteria will be used to determine if a business is eligible for the disbursement of fuel charge proceeds? I know the Canadian Federation of Independent Business and the business community as a whole would appreciate some clarity on the matter.
I’m not in a position to share the exact criteria, but the fuel charge proceeds will be returned through a federal program to groups that may be disproportionately impacted such as Indigenous communities and organizations, farmers as well as small and medium-sized enterprises in sectors disproportionately impacted by carbon pricing. The government remains committed to ensuring that our small to medium-sized enterprises are competitive in Canada and on the global stage.
