The NDP opposition are calling on the Sask. Party to use its provincial “carbon tax” on electricity to help out Saskatchewan families as affordability issues continue to be debated inside the Legislature.

During question period on Tuesday, NDP MLA and Jobs and Economy Critic Aleana Young questioned why the Sask. Party is not using their Output-Based Performance Standards (OBPS), which the NDP calls a provincial carbon tax on electricity, to make life affordable or make power generation more efficient.

The OBPS program  came into effect in January 2023 to replace the federally imposed carbon tax on industrial emitters.

“This year’s budget includes $280 million in OBPS carbon tax revenue from Sask. combined with the money from last year,” she said. “That means there’ll be $568 million of taxpayer money set aside in their small modular reactor fund.”

“All of this pads the Sask. Party budget while doing nothing to help families.”

Minister of Crown Investments Corporations Dustin Duncan said the province has negotiated with the federal government to receive the money collected by SaskPower through their customers to send the money from Ottawa back to Saskatchewan.

“That’s going to go towards ensuring that we have a clean electricity grant to SaskPower to help keep rates low and affordable for residents as well as set aside money that’s going to go into a small modular reactor fund in the event that we do decide to embark upon building an SMR in Saskatchewan,” he explained.

“So we really have a choice. The choice is to either have those dollars here in Saskatchewan or allow those dollars to be sent to Ottawa and continue to be spent and decided upon by the liberal NDP coalition.”

Young said without the OBPS carbon tax revenue, the government would be in debt by $554 million. Instead of keeping the money in a fund, Young said it should be used to help address affordability for families.

“Saskatchewan families are struggling and the Sask. Party is choosing to pay hundreds of millions of ratepayer dollars to pad their budget instead of using this money to help families struggling with the cost of living,” she said. “These dollars could go to keeping rates low, they could go to cost of living relief, they could go to rebates for households, literally anything else but a slush fund for this government.”

“Why is the Sask. Party choosing to sit on their own carbon tax dollars instead of deploying them now to help with the cost of living?”

Duncan replied by saying that there will always be over $100 million going towards a SaskPower grant to help keep rates affordable. He reiterated that their carbon tax revenue is staying in Saskatchewan, not Ottawa.

“The alternative is to have those dollars continue to be sent to Ottawa and allow the liberal NDP coalition to choose how those dollars collected by Saskatchewan residents paid for by Saskatchewan residents be chosen how to spend,” he said.

Young said the situation is all a “bit rich.”

“The Sask. Party government rails day in and day out against the federal carbon tax on one hand, while on the other hand, they’re hoarding their own Sask. Party OBPS carbon tax dollars in a slush fund.”