Saskatchewan Premier Brad Wall says a federal government cannot tax a provincial government and that might play a role in any potential national carbon tax.
Wall says he might be able to make the case that Ottawa can’t impose a carbon tax on SaskPower because it’s a Crown corporation.
The premier says the province is looking at that argument amid media reports that the federal government is eyeing the idea of a $15-per-tonne carbon price.
Wall says the energy sector across Canada would be hardest hit by a carbon tax and the timing isn’t right because the industry is already stressed by low oil prices.
He made the comments while visiting the city of Weyburn, which has many oil and gas companies that are feeling the pinch.
The premier said last week that bringing in a carbon tax would “kneecap” an already struggling Canadian economy and it would be better to invest in technology to reduce emissions.