Prime Minister Mark Carney admitted on Monday that he was not informed about a $50 million issue affecting the relationship between his government and New Brunswick Premier Susan Holt’s Liberals. During a press conference, Carney chuckled when asked about New Brunswick’s demand for compensation stemming from a federal sales tax holiday last year, indicating he was unaware of the matter.
The decision by the previous Trudeau administration to waive the tax for two months in late 2024 resulted in New Brunswick missing out on its share of the Harmonized Sales Tax, which is collected by Ottawa on behalf of both jurisdictions. According to the 1996 Comprehensive Integrated Tax Collection Agreement, New Brunswick is entitled to compensation for this loss.
Holt previously estimated the compensation amount at $70 million, with the 2025-26 provincial budget banking on $50 million being paid by Ottawa this year. Carney mentioned that Holt did not bring up this issue during their meeting on Monday morning but joked that his lack of knowledge would prompt her to raise it now.
Holt, during a separate media briefing later in the day, expressed optimism for a resolution to be reached by the end of the year, citing positive progress in ongoing discussions. Last year, federal minister Dominic LeBlanc had indicated that there would be no direct compensation for the province, leading Holt to consider legal action.
Carney also discussed New Brunswick’s proposed “projects of national interest” for expedited regulatory approval, mentioning that an announcement on the next selection is expected on Thursday. Holt confirmed knowing which project is set to be chosen, emphasizing its national benefits while highlighting the significant impact it would have on the province.