Senator Gold: The reliance in the North, as you know better than I, senator, whether on diesel or home oil, is a fact that has to be taken into account in all adaptations of government programs. There are talented people in Canada and the North exploring alternatives, and I’m sure the government will work in partnership with them and the Government of Nunavut to the benefit of the residents in Nunavut.

Hon. Dennis Glen Patterson: Honourable senators, Nunavut has, without question, the highest cost of living and is the most carbon-intensive region of Canada. You all know the story: no roads, deathly cold early and long winters, and darkness. There is a virtually total reliance on diesel fuel to generate power and to heat both private homes and social housing, where the preponderance of residents live.

We have the highest incidence of food insecurity and the worst social indicators in the country and — in areas like suicide — in the world. So, how is our federal government helping us deal with all these issues? Well, “big daddy Ottawa” added a carbon tax, seemingly heedless of the added cost burdens it imposes on our already sky-high cost of living.

Now, Nunavut did get exempted from paying the tax on aviation fuel for intra-territorial flights. That has been great. But the reality is that everything comes from the South, so we are taxed on it anyway.

We have also been exempted from paying the carbon tax on fuel burned to generate electricity, and it has now been confirmed that on July 1, 2024, the carbon tax will not be levied on home‑heating fuel. That is also good. Thanks to Atlantic Canada.

However, this brief three-year reprieve was meant to buy folks a little more time to transition to cleaner energy sources, and I’m sorry to say transitioning Nunavut to clean energy in three years just isn’t going to happen. Just yesterday, we heard from Jerry DeMarco, Canada’s Commissioner of the Environment and Sustainable Development, that Canada is not on track to meet its 2030 emission targets. Canada is the only G7 country that has not achieved any emission reduction since 1990.

Carbon taxes are supposed to change consumer habits and encourage people to seek out alternatives, but the Environment Commissioner’s report confirms that this has not happened since the tax was introduced in 2019. Moreover, in the case of Nunavut, there are no alternatives from which to choose. We can’t go back to dog teams to hunt. We can’t go back to igloos in which to live in the cold. There are still no electric vehicles — not one — in the capital city of Iqaluit. So, Nunavummiut are hurting, and, sadly, there just doesn’t seem to be any end in sight.

Thank you.

Hon. Marc Gold (Government Representative in the Senate): Thank you for your question and for reminding those in the chamber who have perhaps not visited Nunavut, as I have, of the very different circumstances with regard to fuel, energy, food security and the like that residents of Nunavut face on a day‑to‑day basis.

I don’t have the answer to your question, but I will bring to it the attention of the minister. I have every confidence that the government will consider how to adapt the program for the specific circumstances that are unique to the North.

Senator D. Patterson: Thank you. I appreciate that.

Senator Gold, as you know, the reason behind this tax break was to give folks more time to transition to clean energy. I’m not aware, though, of a single heat pump in Nunavut, nor are we anywhere close to being able to provide reliable, redundant, clean energy options to Nunavummiut.

So, Senator Gold, I’d also like to ask you this question: How will your government ensure that, after three years, Nunavummiut don’t just find themselves paying more money, with no viable alternative energy option?

Hon. Dennis Glen Patterson: Senator Gold, last week, Prime Minister Trudeau introduced a three-year reprieve from the carbon tax spent on home heating fuel. However, regarding the supplies in Nunavut, because it’s a backstopped jurisdiction, it’s complicated. We buy our fuel in bulk ahead of the winter, meaning that some of that home heating fuel now being used has already been taxed. Approximately 60% of the population lives in social housing, meaning it would be the Government of Nunavut both paying those costs and getting the money back, not your average resident.

So my question to you is this: How is your government going to roll this program out in Nunavut to ensure that we are getting properly reimbursed for any carbon tax already paid and Nunavut residents feel less of a pinch through this tax break?