Question Period - Finance
Fuel Consumption Tax
October 25, 2018
The Honorable Senator Percy E. Downe:
Honourable senators, my question is for Senator Harder. The Prince Edward Island government, as you know, has been aggressive in reducing carbon consumption in Prince Edward Island. Living on an island, we have lots of wind. We generate more energy from the wind farm than any other province in Canada as a percentage of our electricity.
The province has taken a host of initiatives — rebates for heat pumps, subsidies for LED lights and so on — and can prove how they reduce the carbon consumption in the province. Islanders were surprised when the federal government excluded them from carbon tax but they insisted the province raise the gasoline tax — or they would raise it — by four cents a litre, to somehow reduce carbon. I said yesterday people have asked me about this and I don’t have the answer; I mentioned it to Senator Harder yesterday and hopefully he has an answer. It is a bit of issue now.
The government insisted the gasoline consumption tax go up by four cents a litre and the province immediately moved a three-cent per litre additional reduction. Islanders are being taxed one cent per litre more on the gasoline they consume. To what end? For what purpose? Why is this being done when we are being excluded from other initiatives and rebates?
Hon. Peter Harder (Government Representative in the Senate): I thank the honourable senator for his question. I will make inquiries with respect to the agreement reached between the Government of Canada and the Government of Prince Edward Island. I will be happy to provide the details.