Carney stumped on New Brunswicks HST compensation demand

Windwhistler
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Carney stumped on New Brunswicks HST compensation demand

New BrunswickPrime Minister Mark Carney was in Fredericton Monday to highlight the government’s new “Buy Canadian” policy. Holt didn’t raise issue with PM but says officials are ‘near the end’ of talks on $50M paymentJacques Poitras · CBC News · Posted: Nov 10, 2025 11:45 AM EST | Last Updated: 1 hour agoListen to this articleEstimated 3 minutesThe audio version of this article is generated by text-to-speech, a technology based on artificial intelligence.Prime Minister Mark Carney spoke in Fredericton Monday about the ‘Buy Canadian’ policy. 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.WATCH | HST dispute with Ottawa close to resolved: Holt:Carney unfamiliar with N.B.’s $50-million HST gripeDuring his stop in Fredericton, Prime Minister Mark Carney says he didn’t know about New Brunswick’s claim that it should be compensated $50 million for revenue lost during his predecessor’s two-month tax holiday. Carney 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 resolutionHolt 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. ABOUT THE AUTHORJacques Poitras has been CBC’s provincial affairs reporter in New Brunswick since 2000. He grew up in Moncton and covered Parliament in Ottawa for the New Brunswick Telegraph-Journal. He has reported on every New Brunswick election since 1995 and won awards from the Radio Television Digital News Association, the National Newspaper Awards and Amnesty International. He is also the author of five non-fiction books about New Brunswick politics and history.

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