Hearing on Sask.'s request to stop collection of carbon money cancelled
A scheduled hearing from the Government of Saskatchewan to stop the Canada Revenue Agency (CRA) from collecting carbon levy money was cancelled on Friday.
Last week, Saskatchewan Justice Minister Bronwyn Eyre filed an injunction in federal court to stop the CRA from garnishing money owed since the province announced it would stop collecting the carbon tax on natural gas for home heating late last year. The province said it would also stop collecting the levy for electric heat in December.
The move came in response to an October federal government decision to stop collecting the carbon levy from those who use heating oil — primarily benefitting those who live in Atlantic provinces.
Saskatchewan’s injunction was successful, and the court ordered a pause on the seizure of funds pending a full hearing on the dispute.
The arguments were to be heard in Federal Court in Vancouver on Friday morning, but it was cancelled.
In an update from the Government of Saskatchewan on Friday, the money remains in Saskatchewan’s bank account and the order remains in place.
“A further hearing on the injunction was adjourned today so that lawyers for the Government of Saskatchewan and the Attorney General of Canada could avoid the need for a further injunction hearing,” a spokesperson for the province’s executive council said in the statement.
The provincial spokesperson said they would not provide any more details on Friday, but the move could signal the two governments are willing to negotiate the dispute outside of court.
The Saskatchewan government remains adamant that any attempt to garnish funds from the province’s bank account is unconstitutional.
-With files from the Canadian Press
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