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Manitoba minister fears Ottawa to pull $67 million in funding after carbon tax spat

Manitoba Sustainable Development Minister Rochelle Squires. File / The Canadian Press

The Manitoba government said it is receiving mixed messages from the federal government about whether $67 million in funding for clean-energy projects is still available.

Sustainable Development Minister Rochelle Squires said she fears Ottawa may pull that money now that Manitoba has scrapped plans to bring in a carbon tax.

Squires said that would be disappointing, because the $67 million is needed to reduce carbon emissions and is separate from any carbon tax.

READ MORE: Manitoba to drop their carbon tax, blames feds for not respecting provinces

A deal in principle was announced in February on cash from the national Low Carbon Economy Leadership Fund.

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A spokeswoman for Environment Minister Catherine McKenna said that no agreement on the money has been finalized.

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Manitoba Premier Brian Pallister announced last year he would charge a lower carbon tax than the federal government demanded but decided last month not to charge any tax at all because Ottawa was threatening to impose its own.

READ MORE: Liberals say 90 per cent of carbon tax will be given to Canadians in rebate

Ottawa required all provinces to put a minimum price on pollution of $20 a tonne of emissions by Jan. 1.

Saskatchewan, Manitoba, Ontario and New Brunswick have not complied and will have a federal carbon levy on fuels as well as a cap-and-trade style of system for large industrial emitters imposed on them, starting April 1.

Residents in those provinces will start getting federal rebates on their next tax return to offset the extra costs they will pay for everything from gasoline and groceries to home heating and electricity.

WATCH: The Manitoba costs associated with carbon tax

Click to play video: 'The Manitoba costs associated with federally mandated carbon tax'
The Manitoba costs associated with federally mandated carbon tax

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