Premier Scott Moe and Minister of Justice Don Morgan speak to reporters at the Legislature following the Saskatchewan Court of Appeal's ruling on the province's carbon tax challenge. (Lisa Schick/980 CJME)

By CJME News

SPLIT DECISION

Moe ‘disappointed’ in carbon tax challenge loss

May 3, 2019 | 12:06 PM

Saskatchewan’s Court of Appeal has denied the provincial government’s challenge on the federal government’s carbon tax.

In a decision released Friday in Regina, the judges voted 3-2 to reject the Sask. Party’s argument that the federal government didn’t have the constitutional power to collect the carbon tax in Saskatchewan starting April 1.

In the majority decision, Chief Justice Robert G. Richards wrote that the federal government has the constitutional power to establish a price for greenhouse gas emissions — something that the province disputed in its argument.

“The pith and substance of the Act is about establishing minimum national standards of price stringency for GHG emissions,” wrote Richards, whose decision was concurred with by justices Gergina Jackson and Lian Schwann. “Parliament has jurisdiction over this subject matter by virtue of the national concern branch of (peace, order and good government).”

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However, Richards rejected the federal government’s contention that it should have sole jurisdiction over the issue of greenhouse gas emissions.

“This approach must be rejected because it would allow Parliament to intrude so deeply into areas of provincial authority that the balance of federalism would be upset,” he wrote. “Further, it would hamper and limit provincial efforts to deal with GHG emissions.”

Justices Ralph Ottenbreit and Neal W. Caldwell dissented with the majority’s decision.

“Parliament and the Provincial legislatures are sovereign within their own heads of power or spheres of jurisdiction,” the minority wrote. “Canadian federalism enshrines the principle of autonomy at each level of government so as to permit independent development and promotion of local and national political and policy priorities within the enumerated heads of power.”

Premier Scott Moe said he’s “disappointed” with the ruling, but called it “only one step in the battle.”

“We will be closely reviewing today’s ruling, and it will be appealed to the Supreme Court of Canada,” he said. “(The province’s) fight on behalf of the vast majority of Saskatchewan people who oppose the ineffective, job-killing Trudeau carbon.”

The sides presented their cases to the Court of Appeal in February, with lawyers for the Government of Saskatchewan laying out the province’s argument on Feb. 13. Interveners also shared their thoughts with the judges.

The following day, lawyers for the Government of Canada made their case.

While the judges were considering the case, the carbon tax came into effect in the provinces that hadn’t agreed to enforce their own carbon levies.

Ontario and Manitoba have joined Saskatchewan in launching court cases challenging the carbon tax. Alberta and New Brunswick also are opponents of the federal tax.

On Thursday, Saskatchewan Justice Minister Don Morgan predicted the case would go to the Supreme Court of Canada regardless of the outcome.

— With files from 980 CJME’s Lisa Schick