Hearing cancelled for Saskatchewan’s bid to stop federal collection of carbon money

VANCOUVER — A court hearing for the Saskatchewan government to argue for an injunction to stop the Canada Revenue Agency from collecting millions in carbon levy money has been cancelled.

Federal Court in Vancouver says lawyers for Saskatchewan indicate in a letter that they’re negotiating with Ottawa to resolve the dispute.

The letter says if there’s no settlement, the hearing could be rescheduled for next week.

Premier Scott Moe’s government argues it’s unconstitutional for Ottawa to take from the province’s bank account, and that it’s unfair Saskatchewan has to pay.

Earlier this year, Saskatchewan stopped remitting the carbon levy on natural gas to Ottawa, after Prime Minister Justin Trudeau exempted home-heating oil users from paying.

Trudeau’s move was largely seen as helping those in Atlantic Canada, where home-heating oil is commonly used and where polls suggest the federal Liberals need to bolster support.

Court documents say Saskatchewan’s unpaid bill has grown to $56 million between January and April, and the revenue agency had tried to take $28 million through a bank order.

Ottawa has said it’s standing firm on getting the money back from Saskatchewan, noting the province is breaking federal emissions law by not paying.