INDU Committee Report

Dissenting Opinion of the Conservative Party of Canada

Remove government restrictions to foster a growing and innovative economy

As Canadians are currently being forced to choose between heating and eating, between visiting family or going to work, this report and its recommendations are tone deaf and fail to address the current economic plight faced by Canadian families. It is critical to note that our economy is not merely in an “economic recovery” mode from COVID but is also in the grip of a structural inflationary period that has resulted in record costs for goods and services. In our view, the recommendations in this report fail to acknowledge this reality, will not foster economic recovery or growth, but instead serve to outline this Government’s intention to drive an “economic transition” of our economy to one focused entirely on green initiatives. Such an approach seeks only to further the government’s political objectives and fails to outline the negative impacts of such an approach Canadian families and taxpayers.

Recommendation 1 sets out a false premise that the best way to achieve economic growth rests exclusively on the development of green initiatives. Recommendation 2 acknowledges that this report, if followed, could result in higher energy costs for Canadians which will disproportionately impact low-income Canadians, people with disabilities, rural and remote communities, and farmers. Despite this acknowledgement, the recommendations outlined offer no solutions as to how best to reduce these inflationary costs on these communities.

This report also fails to consider or acknowledge the damaging impacts to Canada’s economy caused by this government’s inflationary spending. It is important to note that much of the government’s spending during the pandemic was entirely unrelated to the impacts of COVID-19. As has been widely noted, the government spend more than $200 billion on non-COVID initiatives during the pandemic and significantly increased long-term spending commitments as a result. Furthermore, of the COVID related spending the Government did pursue, it wasted taxpayer resources on COVID failures such as the ArriveCan App and sent COVID benefits to prisoners and fully employed public servants. Such an approach has clearly fueled record inflation, has placed upward pressure on interest rates and has reduced paychecks in turn. Unfortunately, the recommendations contained in this report emulate the pitfalls of this government’s inflationary fiscal policy by outlining no costs associated with the various green initiatives proposed.

Conservatives recognize the need to reduce Canada’s carbon footprint. We note that the Government’s current approach to emission reduction via the carbon tax has failed to meet their carbon reduction targets in every single year since they took office. Continuing with this approach will not only fail to reduce emissions but will inevitably impose additional cost of living pressures on Canadian families. As noted by one witness, Mr. McTeague, the carbon tax is very expensive for Canadian families, is hurting farmers, and he went on to note that the government’s decision to move forward with a Clean Fuel Standard would “drive up the cost of energy in Canada”. In contrast with the government’s approach to emission reduction, which has failed to reduce emissions and continues to punish Canadian families. Conservatives support a cleaner environment and emission reduction through technology, not taxes.

Recommendations 5 and 6 are more examples of Ottawa-knows-best thinking. Provinces and Municipalities manage waste and recycling streams. While the current government allows hundreds of municipalities to pump raw sewage into the St. Lawrence River, and makes no attempts to stop it, under these recommendations, it will be the government of Canada’s responsibility to develop a circular economy for waste recycling. This is unnecessary and does not adequately address severe challenges facing waste management in Canada.

Recommendation 7 assumes a practice that is not convincingly supported by the evidence and testimony outlined in this report. In addition, the committee did not hear any effective testimony that indicates how the government could regulate, enforce, and apply a prohibition of this sort.

Conservatives note that government is not and should not be the primary driving force behind economic growth. In nearly all cases, government intervention wastes taxpayer money, distorts the market, and creates as many problems as it seeks to address. In contrast with the approach outlined in this report, Conservative members of the committee believe that small government makes big citizens and recognize that Government gatekeeping restricts innovation and erodes productivity. Therefore, Conservative members believe only one recommendation should result from this study:

• That, in view of the impacts of record inflation and record energy costs, the Government of Canada should not dictate a singular “green transition” focus on economic recovery and growth, and should instead remove government restrictions and gatekeepers to foster a growing and innovative economy.