Fréchette admits she was unaware of planned increase in insurance tax

Premier Christine Fréchette admitted on Wednesday that she was unaware her government was going to raise the tax on insurance products effective Jan. 1.

During the Executive Council’s budget review, Fréchette replied to Liberal House Leader André Fortin that she was “not aware” of this measure.

Fortin pointed out to her that, on the one hand, her government was eliminating, for example, the QST on certain foods, but on the other hand, it was raising the tax on insurance.

“Did she know about it?” he asked her.

“That wasn’t in my portfolio at the time it was announced. I was in charge of the Economy, Innovation, and Energy, so I wasn’t necessarily aware of the details of that particular increase,” Fréchette said.

“Now you’re coming up with measures to say: ‘We’re going to give back to Quebecers,’ but on Jan. 1, you’re going to dip into Quebecers’ pockets again, right after the election, as if by chance,” Fortin said.

Since taking office as premier in April, Fréchette has repeatedly stated that her priority is to help Quebecers cope with the rising cost of living.

On Wednesday, however, she made it clear that she had no intention of reversing “previous” decisions, since she was acting “with an eye to the future.”

“The future is that on Jan. 1, people are going to get that bill … Insurance is going to cost more. You can’t tell me otherwise today,” said the Liberal MNA from Pontiac.

The increase in the tax on insurance products “is a harmonization with the federal government,” the premier later explained during a press scrum.

“It was adopted in the budget 15 months ago ... I was more focused on the economy, energy, and innovation, so there you go,” she said.

The tax exemption on grocery items represents an average savings of $50 per year for a family, while the increase in the insurance tax will cost them $39, according to government data.

In recent weeks, Fréchette also announced a $50 reduction in vehicle registration fees, in addition to a reduction in the welcome tax for first-time homebuyers.

“We will continue to help Quebecers’ wallets,” she said on Wednesday.

In another exchange with Fortin, Fréchette was forced to admit that she did not know the amount of the debt.

When the Liberal member informed her that it had risen from $184 billion in 2018 to $259 billion today, the premier argued that the burden of the debt itself had decreased.

“The amount (of the debt) has increased, but so has GDP,” she noted. “You always have to look at the debt in context.”

Churchill Falls

The premier was also questioned about the thorny issue of Churchill Falls during the budget debate.

Last week, a report by the expert panel appointed by the Government of Newfoundland and Labrador concluded that the proposed energy agreement with Hydro-Québec did not serve the province’s interests.

At that time, Newfoundland Premier Tony Wakeham said he wanted the federal government at the negotiating table. However, that is out of the question for Christine Fréchette.

“I told the federal government that we did not want them at the negotiating table,” she said on Wednesday after being pressed by Parti Québécois leader Paul St-Pierre Plamondon.

Fréchette assured that the federal government had accepted her request. The premier was then asked by Fortin if there were any demands in the report that were non-negotiable for her.

“I would say that serving the U.S. market without going through the Quebec network is, for me, a non-starter,” she stated.

In an interview with The Canadian Press in Paris last week, Fréchette said she was willing to compromise during negotiations with Newfoundland and Labrador, but that any potential concessions would not come for free.

In December 2024, Fréchette’s predecessor, François Legault, signed a memorandum of understanding with the neighboring province to resolve this long-standing bone of contention. But since the election of a new Conservative government in Newfoundland and Labrador in October 2025, the agreement has been called into question.

Currently, Hydro-Québec obtains most of its electricity at unbeatable prices under a contract signed in 1969 that has long been a source of resentment in Newfoundland and Labrador.

Under the draft agreement on the table, initially, Hydro-Québec would gradually increase the royalty to 6 cents per kWh, which is 30 times the current price.

In a second phase, there would be a project to increase the capacity of the Churchill Falls power plant, as well as to build a second plant nearby and a plant downstream on the Churchill River at Gull Island—projects estimated to cost several billion dollars.

Quebec would thus gain access to an additional 7,200 MW to meet its needs, particularly to decarbonize its economy in accordance with international agreements on greenhouse gas (GHG) reduction.

This report by The Canadian Press was first published May 27, 2026.

Caroline Plante and Thomas Laberge, The Canadian Press

– With information from Sarah Smellie and Patrice Bergeron