“It’s safe for now.” province says about carbon levy deal with Feds

“It’s safe for now,” is what Saskatchewan’s Justice Minister and Attorney General Bronwyn Eyre said about the province’s bank account in regards to the carbon tax.

The Federal Government and the province announced a deal has been made following Saskatchewan filing an injunction in Federal Court to stop the CRA from collecting $28 million through a bank order, which according to the CRA is about half of the $56 million of Saskatchewan owes.

Eyre called it a success and said the agreement allows the province to keep its Consolidated Revenue Fund intact.

“The monies are in place, they aren’t going anywhere,” she said, adding that the province offered to establish a letter of credit, which she said provides security under the carbon tax legislation.

She said the “agreement” is to hold the money in the province as the process moves through the Tax Court of Canada.

However, according to Minister Marie-Claude Bibeau until the dispute is resolved, the deal secures 50 per cent of outstanding amounts Saskatchewan owes which complies with both law and standard practices.

Eyre didn’t give a specific timeline as to when the province will be in court but said the province will make strong constitutional arguments such as fair application of the law.

The province stopped collecting the carbon tax from residents after Ottawa announced it would remove the same tax on home heating oil, used by many families in Atlantic Canada.

“You can’t have a carve-out for one part of the country, a break to one part of the country, and an attempt on garnishment of a bank account of another part of the country,” Eyre said.

Minimum national standards was another argument Eyre made, stating that creating the carbon tax wasn’t to give the federal government “free reign”  to regulate specific industries of provinces or to favor one area of the country.

When asked if there was a plan if the province loses the dispute, Eyre said the province “wants to see the process through,” and the CRA can halt that process at any time.

With files from the Canadian Press