Carney stumped on New Brunswick’s HST compensation demand
Holt didn’t raise issue with PM but says officials are ‘near the end’ of talks on $50M payment
Prime Minister Mark Carney acknowledged on Monday he was unaware of a $50 million irritant in his government’s relationship with New Brunswick Premier Susan Holt’s Liberals.
Carney chuckled good naturedly after he was visibly baffled by a question about the province’s demand for compensation over a federal sales tax holiday last year.
“Actually, I'll be blunt,” he said. “I don't know the issue.”
The previous Trudeau government’s decision to not charge the tax for two months in late 2024 meant that New Brunswick wasn’t able to get its share of the Harmonized Sales Tax, which Ottawa collects for both jurisdictions.
Under the 1996 Comprehensive Integrated Tax Collection Agreement, New Brunswick is entitled to compensation.
Holt had pegged the amount at $70 million last year and the 2025-26 provincial budget assumes Ottawa would pay $50 million this year.
Carney unfamiliar with N.B.’s $50-million HST gripeCarney told reporters the premier had not raised it with him during their Monday morning meeting at her office, but joked that his comments would surely put it on the agenda now.
“We had a very wide-ranging, productive discussion,” he said.
“She can't raise everything. She has my number, we talk frequently and now she's going to have to raise it,” he continued, laughing.
“So consider it raised. ‘Don't call me. I know the HST thing. I'll run it down.’”
Holt hopeful for end-of-year resolution
Holt told reporters in a separate media availability later in the afternoon that she didn’t bring it up because discussions are going well and she’s hopeful there’ll be a resolution by the end of the calendar year.
“I think we're getting near the end of the negotiations,” she said.
“They haven't needed to involve the prime minister. The team here at Finance and Treasury Board has been working that out with their fellow civil servants in Ottawa.”
Last year, federal cabinet minister Dominic LeBlanc said there would be “no direct compensation” for the province, which prompted Holt to talk about pursuing the issue in court.
There had been discussions last year about other ways to make up the amount, such as through extra federal funding for other programs, but they did not lead to a resolution.
Carney said Monday that his discussions with Holt included New Brunswick’s proposed “projects of national interest” for regulatory fast-tracking and the province could expect to see one in the next round of selections, to be announced Thursday.
Holt said she was aware of which project was being chosen and said it would have national benefits, but that “the primary impacts” would be in the province.
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