The federal government’s billion-dollar carbon tax cut on home heating oil was introduced following repeated warnings from in-house pollsters about the unpopularity of the policy. Records from the Privy Council, obtained by Blacklock’s Reporter, indicated that federal researchers spent several months questioning Atlantic focus groups on the federal carbon tax and issuing reports from May to July of 2023.
According to the obtained records, various concerns were expressed by participants in focus groups from Newfoundland and Labrador, Nova Scotia, and New Brunswick. Many expressed concerns about the cost of the initiative and the impact on the cost of living. To the New Brunswickers, the tax was seen as pointless, and in Nova Scotia, it was considered complex and contentious. The report also revealed that when focus groups were asked whether they supported a carbon tax, many expressed uncertainty and felt they did not know enough to evaluate the measure.
In the collected data, respondents from Newfoundland and Labrador expressed the added difficulty for those who had to pay for fuel, especially for those living in rural areas with limited public transportation. Research also showed that the residents did not believe the carbon tax would encourage Canadians to reduce their emissions, as they would still rely on carbon-emitting activities.
Residents of Nova Scotia were skeptical about the rebates paid under the Greenhouse Gas Pollution Pricing Act, and thought the system was overly complicated and inflationary, leading to rising costs for consumers. This was believed to make it more challenging for some Canadians to afford essential goods and services. As a result, the Liberal government ultimately implemented a three-year carbon tax exemption for home heating oil and increased subsidies for electric heat pumps.
Prime Minister Justin Trudeau announced this change, stating that it followed feedback from Liberal MPs in Atlantic ridings who expressed concern that their constituents could not afford to pay the carbon tax on heating oil. The removal of a 17-cent-per-litre charge on home heating oil, beginning that winter, was estimated to save Atlantic homeowners an average of $250 per year, costing the government $1.08 billion.