Achi news desk-
OTTAWA –
Canadian banks that refuse to recognize the carbon refund by name when making direct deposits are forcing the government to change the law to make them do so, said Environment Minister Steven Guilbeault.
Guilbeault is standing down after Tuesday’s federal budget promised to amend the Financial Administration Act so that government payments received for deposit in Canadian banks will carry whatever title the government wants.
“The fact that they haven’t been doing it now for many years has led us to take this position,” Guilbeault said.
His department has been battling with banks for nearly two years over how carbon refunds are labeled when they are deposited directly into bank accounts.
The first refund deposits in 2022 were labeled very generically — “federal payment” and “EFT Canada,” for example — which meant the recipients had no idea why they were getting the money.
Some banks, but not all, have since revised their procedures to ensure bank statements reflect the measure’s new name: “Canada’s Carbon Refund.”
TD and BMO have adopted the “CdaCarbonRebate” entry requested by the government, which matches the 15 mark limit set by some banks.
However, RBC and Scotiabank were unable to make the change in time for rollout, although both said they planned to update to the new name.
Meanwhile, CIBC is still calling it “Canadian Deposit.”
Guilbeault said the lack of a clear identifier isn’t the only thing fueling carbon pricing confusion, but it’s definitely part of the problem.
“I think we assumed that since people received it, that people knew they were receiving it,” Guilbeault said.
“We’ve come to find out over the last few months that that wasn’t the case, partly because it’s being labeled – or mislabeled, I should say – by most financial institutions.”
The government has struggled to fully explain the carbon price and rebates since the policy began in 2019.
That has helped the Conservatives, staunchly opposed to carbon pricing, in their relentless efforts to kill it once and for all.
The law change would not only affect carbon refunds, but all government deposits, including child benefits, employment insurance and tax refunds.
Guilbeault rejected any suggestion that the change would cost the banks money.
“You can quote me this: I have a very hard time believing the banks when they say it’s going to cost them money,” he said.
“I feel, as a client, we should have the right to label this the way we feel it should be labeled and it’s not up to the banks to decide.”
A spokesperson for the Canadian Bankers Association had little to say about the proposed change.
“Banks in Canada support measures that help build a strong and sustainable economy in Canada,” said Maggie Cheung in a written statement.
“We will also review proposed amendments to the Financial Administration Act when they are introduced, and what proposed changes to the Act would mean for banks and Canadians.”
This report was first published by The Canadian Press on April 19, 2024.
