That, given that the cost of government is driving up inflation, making the price of goods Canadians buy and the interest they pay unaffordable, this House call on the government to commit to no new taxes on gas, groceries, home heating and pay cheques.
He said: Mr. Speaker, it is an honour to rise today to speak to this very important and timely motion.
The government's economic policy can be summed up in four simple words: smaller paycheques, higher prices. The cost of government is driving up the cost of living. What do the Conservatives mean when we say that? If we look at why prices are rising, it is directly linked to the massive deficits the has been racking up pretty much since his first day in office. In its first year in power, the government made a conscious decision to spend more money than it received and plunge this country into those deficits. That weakened our economy before the pandemic.
It is fair to say that nobody could have seen the COVID pandemic coming, but it is also prudent for a government to predict that the unknown could occur. We might not have known that it was going to be this crisis, but governments must be prepared for any number of world or global events that it might be forced to respond to. Plunging the country into those deficits when times were good was therefore a foolish thing to do. Obviously, in retrospect, it was massively unhelpful, as our country had to deal with the COVID pandemic from a weakened position because of the government's policies.
I know so many of my colleagues want to speak to this very important motion, because it is affecting people's lives in such a real and practical way, so I will be splitting my time this morning to allow for more members to participate in this debate.
How did the government's deficits lead to that higher spending? Well, the government had to go out and borrow a bunch of money that it did not have, so it turned to the Bank of Canada, and the Bank of Canada made a decision to underwrite the government's deficit spending by purchasing government bonds, or IOUs. When a government has to borrow money, it writes a promise to pay the money back. That is called a bond. Normally, individuals or institutions can buy those bonds and expect to get paid the interest, and the government pays the bond back at the end of the term. However, the Bank of Canada did something a little different: It created new money right out of thin air to buy those government bonds.
It started creating five billion dollars in new currency every single week, starting in March 2020, to buy those government bonds. That new money, not backed up by new production, not backed up by economic growth and not backed up by any extra production of goods or services, washed through the system.
There could be big winners when the government creates money out of thin air. The big winners are the large financial institutions that get the money first, because they go out and gobble up assets. They buy property and commodities. They do that with the new money before everybody realizes there is a whole new influx of currency in the system. When everybody else gets that money when it eventually makes its way through the economy, prices start to go up. Those large financial institutions and wealthy investors can then sell those commodities and make money on the difference. That is why prices have gone up, and it is also why we have seen record profits at large financial institutions like the big banks.
That is why we say that the cost of government has driven up the cost of living. Literally, the government's extra spending, wasteful spending, forced the Bank of Canada to underwrite those deficits, creating that new money and causing prices to rise. That is the higher prices.
What about the smaller paycheques? Well, what the government is planning to do on January 1 is take a bigger bite out of Canadians' paycheques with an increase in paycheque taxes. Canadians are going to be forced to pay more right off the top on their paycheques, and the government is going to take part of the extra tax it collects, scoop it out of the EI fund and spend it.
We know this. We know the government's plan for the EI increase is simply going to be gobbled up by regular government spending. In fact, the extra premiums the government will collect will put the EI fund into a $10-billion surplus over the short term, and all of that will be taken by the to finance his pet spending projects.
Where is a big chunk of that extra money going? It is going to the interest on our national debt. The has racked up more debt than every single other prime minister combined, and the PBO report indicates that just the interest on our national debt, which Canadian taxpayers will be forced to pay, will double. Soon, the portion of our tax dollars that go to pay just the interest on that national debt will be higher than the amount that is spent on the Canadian Armed Forces. That is the scale we are talking about.
What is the result? Well, we have all heard the heart-wrenching stories in our ridings. We have all heard from the seniors who have had to delay their retirement and watch their life savings evaporate with inflation. Thirty year-olds are trapped in tiny, 400-square-foot apartments in our large cities or, even worse, are still living in their parents' basement because the price of homes has doubled under the Liberals. Single mothers are putting water in their children's milk so they can afford the 10% year-over-year increase in the price of groceries.
It is no wonder that people are worried. Most are lucky just to get by, but so many are falling far behind. There are people in this country who are just barely hanging on. These are our friends and neighbours, and we in the House are their servants. It is up to us to take real action to address this Liberal-caused inflation crisis.
The Conservatives are bringing forward very simple and practical solutions to help Canadians across the country. Today, the Conservatives are calling on the government to not make the situation worse. The Liberals have already done damage with higher prices. They do not need to shrink Canadians' paycheques, which is what this government is planning to do. Not only are they adding inflationary fuel on the fire with their continued plans to increase spending, but they are reducing Canadians' ability to cope with the government-caused inflation by shrinking those paycheques.
A new poll out today is just jaw-dropping: 90% of Canadians are tightening their household budgets due to inflation. Almost half, or 46%, say they are worse off now than they were at the same time last year when it comes to their own finances, which represents a 12-year high. Over half say that it is difficult to feed their household, and this number rises to seven in 10, or 68%, among those with household incomes below $50,000. Canadians cannot keep up.
As for grocery prices, I have five children and our grocery bill is big enough as it is with a few teenagers in the house. Those prices have skyrocketed, up over 10% and rising at the fastest pace in 40 years. With inflationary pressures at this rate, the government's supports do not even help the problem but contribute to it, as that extra spending is added to the amount of money the government needs to borrow, which is causing that vicious circle of higher inflation.
The average Canadian family now spends more of its income on taxes than it does on basic necessities such as food, shelter and clothing combined. By comparison, 33.5% of the average family's income went to pay taxes in 1961. Thirty-three per cent of income in 1961 went to taxes and now that number is 43%, so more is spent on taxes than food, shelter and clothing combined. It is simply jaw-dropping.
On Tuesday, the Conservatives proposed that the government should cancel its plan to triple the carbon tax. The cost of everything is set to skyrocket as the government triples the amount that it charges Canadians on home heating and fuel, with all the effects that has on literally everything else that Canadians have to buy. Groceries, lumber and household items all go up when the government raises the carbon tax by 300%.
Today, we have another practical solution: The government should get its hands off Canadians' paycheques and let Canadians keep more of their hard-earned dollars. It has already robbed Canadians of the purchasing power that they are already earning, and their existing paycheques are already devalued because of the government's inflationary policies. It is never a good time to raise taxes, but the absolute worst time to raise taxes on Canadians' paycheques is when they are already struggling so hard to get by with day-to-day goods.
I hope every member of the House supports this common-sense, practical motion to stop the government's tax hikes on Canadians' paycheques.
:
Mr. Speaker, my father has worked very hard ever since he immigrated to this country. He has worked in sawmills and in coal mines in Alberta and B.C., and to this day he continues to drive a taxi, because he just cannot stay at home, so he would rather go out and work. He has always said that in Canada, if people work, they can pay their bills and provide for their families, and if they work hard, they can buy really nice things, too. That is the reason so many people, like my father and many others, have come to this country. They came to Canada for the opportunities and to be able to provide for their families.
However, the Liberal government has created a Canada that many Canadians struggle to recognize now, where working hard no longer means people will be able to pay for fuel, heat their homes or even own a home at all. Affordability is a top concern for Canadians across the country. When asked in a recent survey what issues we should focus on during this parliamentary session, almost every response listed the cost of living as a top concern.
Now in Canada we have college students living in homeless shelters, single mothers who cannot afford to buy nutritious food for their children, and seniors turning to food banks as a last resort. Even in recent reports, those same food banks are saying that they are struggling to even stay open, that they do not have enough food to provide to those who show up for help and support.
We have a generation of young Canadians living in their parents' basements without the hope of ever moving out. Young families who were once saving up for a down payment are now having to use that down payment to buy groceries and pay for gas. Grandparents watch as their adult children struggle to provide for their own children, despite having jobs. There is much pain and struggle among Canadians. They did everything we asked them to do, yet the government is failing them.
When the took office, Canadians were paying 32% of their income, on average, to maintain a mid-size house. Now the average family has to pay 50% of its income just to keep that house. Canadians are putting themselves in debt to cover their basic expenses and repaying this borrowed money at an unpredictable and growing interest rate. The government told Canadians that rates would remain low for a long time, but now we can see interest rates rising every few months and Canadians just cannot keep up. Instead of providing relief to Canadians, the government is increasing taxes on those who are already struggling.
I have heard from many people across my riding, single mothers, small business owners and families in Edmonton Mill Woods, who cannot afford the government's spending agenda, a spending agenda that the government itself cannot afford. As one constituent said to me, we need a government that works for Canadians, not the other way around. I could not agree more.
My riding of Edmonton Mill Woods is very much a multicultural community. Many immigrants have come to this beautiful place to make their lives here. I know many hard-working immigrant families that work long hours, trying to provide a good life for their children, but still fall short of meeting the inflationary demands created by the government.
A constituent of mine, Abdul, is a local business owner and a new immigrant from Nigeria. Like most small business owners, he works a lot more than the usual eight hours per day. This is a person who is driven, hard-working and passionate about his business, yet he struggles to make ends meet. He confided in me that he cannot afford to put his children in hockey or put his daughter in dance. Unlike the government, he cannot spend money he does not have.
Kim, another constituent, is a single mother and the sole provider for her children. She continues to struggle to afford to put gas in her car in order just to get to her job. Unlike the government, she has to save up money in order to spend it on her children. She had to save up just to buy school supplies this year, which, of course, cost more because of the government-created inflation crisis right now. I believe single mothers like Kim and many other Canadians have something to teach the government. It must find a dollar to spend a dollar. It must have the money to spend the money.
Now the government is making things worse for Canadians. The government must scrap its planned tax hikes on Canadian families and Canadian businesses. Canadians cannot keep up with this out-of-control spending, which is driving interest rates and inflation. Instead of just printing more money, we need to produce more things we can buy. We need to produce affordable food, energy and natural resources right here in Canada.
Our farmers are the best in the world. By removing the barriers the government has placed on them, we would increase our food production and make food more affordable. We must scrap these taxes on farmers, scrap the government's plan to reduce the use of fertilizer, and eliminate even the red tape that makes it more expensive for farmers. Let our farmers do what they do best, which is to grow our food.
In fact, if the government would just get out of way, farmers would not only be able to provide more food for Canadians, but could also help in this looming food shortage crisis around the world.
I would also suggest the government go out and speak to Canadians and hear from them. I suggest the government speak to my constituents and other constituents across the country about what is actually happening to them, their families and their businesses. I recently sat down with a group of truckers, and I was astonished to hear that some trucking companies are actually finding it cheaper and saving money by parking their trucks. Diesel and the cost of paying for and finding a driver have become so expensive that they are saving money by not working.
We must ensure Canadians keep more of their paycheques in their pockets and that energy, gas, heating and other costs become more affordable. Instead of importing foreign energy, we must get rid of laws like the ones arising out of Bill and allow energy to be produced here in Canada. Bill C-69 itself was a major roadblock for bringing new investments and projects into Canada.
Canada currently imports over 130,000 barrels of overseas oil daily, mostly from dictator countries. This is despite the fact we have the third-largest supply of energy right here in Canada, with much of it in Alberta. That is all because the government prefers dirty dictator oil to responsible Canadian energy.
We will repeal the government's anti-energy laws and replace them with laws that protect our environment, consult our first nations and actually get projects done. That will mean more jobs for Canadians and more ethical Canadian energy for the world. This will also help the value of our dollar.
It is never the right time to raise taxes on working Canadians, yet that is exactly what the government is doing. We continue to call on the government to cancel all planned tax hikes, including payroll taxes planned for January 1 and tax hikes on gas, groceries and home heating on April 1. I hope the government and all other members of the House will support our motion today.
:
Mr. Speaker, I am pleased to be here to discuss this topic. I will be sharing my time with the member for .
We are seeing higher inflation rates and a higher cost of living in Canada, and frankly right around the world. as a result of many factors. They include the war on Ukraine, global supply chain bottlenecks, in large part due to the pandemic, and global energy market uncertainty. Inflation is actually less severe here in Canada at 7% than among many of our peers. The United States is at 8.3% and the United Kingdom is at 9.9%. The euro area and the OECD also have higher inflation.
While inflation in Canada has continued to ease from its peak in June, we know that Canadians continue to be worried about the higher cost of living. They are asking what their government is doing about it and what we are going to continue to do to make life more affordable and to grow an economy that works for everyone.
While inflation is not a unique Canadian problem, we are uniquely positioned to deal with it. We have the lowest debt-to-GDP ratio in the G7. We have a AAA credit rating and, according to the International Monetary Fund, Canada will have the fastest-growing economy in the G7 this year and next year. This means we can build a comprehensive affordability plan for Canadians while continuing to reduce our debt-to-GDP ratio, and that is exactly what we are doing.
In terms of what this means for Canadians, our plan will help make life more affordable through measures like doubling the GST credit for six months, which will provide $2.5 billion in additional targeted support this year to roughly 11 million individuals and families who already receive the tax credit, including more than half of Canadian seniors. I am, in fact, very happy that the Conservative Party is now supporting this measure.
We are going to enhance the Canada workers benefit to put up to an additional $2,400 into the pockets of low-income working families. We are increasing old age security for seniors over 75, which increases benefits for more than three million seniors and provides more than $800 in the first year for full pensioners.
This year, a $500 payment will be made to 1.8 million Canadian low-income renters. We will cut child care fees by an average of 50% by the end of this year. Dental care for Canadians without dental insurance who earn less than $90,000 will be available for hundreds of thousands of children under the age of 12 for the first time in Canadian history.
We will continue to index to inflation some of Canada's most important programs, including the Canada child benefit, the GST credit, the Canada pension plan, old age security and the guaranteed income supplement. Simply put, our plan is putting more money in the pockets of Canadians when they need it the most. This includes our lowest-paid workers, low-income renters and families who cannot afford to take their kids to the dentist.
We know that the right fiscal path does not have us compensating every single Canadian for rising costs driven by a global pandemic and by an illegal war on Ukraine. To do so would only make inflation worse. Canadians understand that too. We are instead targeting supports to the Canadians who are the most disproportionately impacted by the effects of inflation.
Our government will also ensure our economy is growing, that our businesses have the workers they need and that Canadians can continue to find good-paying and rewarding jobs. We will do this while continuing our strong fiscal track record and not further fuelling the inflationary fire.
Let us be absolutely clear: This suite of measures that comprise our affordability plan will support Canadians without increasing inflation. This, of course, undercuts the 's motion, what his has already said today and specifically runs counter to the claim that the government is driving up inflation.
Many economists, including the former deputy parliamentary budget officer, the University of Calgary's Lindsay Tedds and Alberta economist Trevor Tombe, have all agreed that this support package for Canadians is not inflationary. In fact, because our incremental investments only represent 0.1% of our GDP, even the current Parliamentary Budget Officer has stated that the impact on inflation would be neither significant nor measurable.
It is great to see that Conservatives have started to backtrack on their previous positions against getting support to Canadians and are now supporting the GST tax credit. It is time for them to support the housing benefit and dental care as well.
Let me take some time to discuss the Canada pension plan and the employment insurance system. At this time of global economic uncertainty, it is the height of irresponsibility for the Conservatives to suggest that we as a country stop putting money away for retirement and employment insurance. Cutting contributions will mean lower pensions for seniors at a time when they will need it most. Raiding pensions is a regular strategy for the Conservative Party, and this policy is similar to when they raised the age of retirement eligibility from 65 to 67. That took thousands of dollars away from seniors, and we should not let them do it again.
With respect to employment insurance, when we were elected in 2015, the EI premium rate was $1.88. Funny enough, the current was the minister in charge of the file at the time. Today, the EI rate is $1.58, which is 30¢ lower. Next year it will go up to $1.63, which is still 25¢ lower than it was in 2015, when the Leader of the Opposition had full control of the file. I am certain this clarifies the issue for Canadians.
By the way, going after the pensions of Canadians is not just, resolutely, a poor economic and social decision, but a little misguided as well. I am sure the knows that making changes to the Canada pension plan requires legislation and agreements from seven out of 10 provinces. If he truly wants to govern, he should think long and hard before he gets into a fight with the 13 provinces and territories over reducing the hard-earned pension plans of our fellow Canadians.
Let us turn to fighting climate change and our national price on pollution.
First, fighting climate change is an absolute necessity for the future of our planet. Let us also acknowledge that the effects of climate change are an inflationary pressure on our economy. It is well known that having a national price on pollution is a highly effective market mechanism for reducing greenhouse gas emissions while making life more affordable for the majority of Canadians. Throughout all the debates in this session, the Conservatives have tried to correlate the massive increase in the price of gas with the federal carbon price, and it is simply not true. In 2019, the carbon price was approximately 9¢ per litre in British Columbia, my home province. Today, it is 11¢ per litre. That means that although gas prices have increased by more than a dollar per litre, only 2¢ of that increase can be attributed to the price on pollution in British Columbia over the last three years.
Further, because the carbon price in British Columbia is provincially administered, if the federal carbon price was eliminated, as the Conservatives are regularly suggesting, this would result in zero savings for residents in British Columbia. Instead, it would simply mean that other jurisdictions, other provinces, would do less to fight climate change.
Also worth noting is that, with the climate action incentive, carbon pricing actually makes life more affordable for 80% of Canadian households, something the Conservatives always seem to forget when they talk about the subject.
I hope that all members opposite will share this information with their colleagues and convince their caucus to go back to supporting carbon pricing as they did less than 12 months ago.
I believe I have now fully addressed every point within today's motion. It is clear that our government continues to have a fiscally responsible plan to help make life more affordable and to grow an economy that works for everyone.
:
Madam Speaker, I am very pleased to be here today with my friends and colleagues to speak to the very important issue of making life more affordable for all Canadians.
[English]
I am pleased to contribute to the debate today on this motion. Making life more affordable for Canadians is a key priority for our government, and I would like to highlight some of the measures that we are taking to address the cost of living.
The pandemic has been, we hope, a once-in-a-lifetime and generation crisis. However, like any major crisis, this has aftershocks and inflation is chief among those aftershocks.
Inflation has made the cost of living into a real struggle for a lot of Canadians and for many of my constituents in Milton, especially the most vulnerable. We understand that our neighbours are going through many tough times right now and these measures are designed to address some of those.
This is not a made-in-Canada challenge. Inflation is affecting people around the world. We are fortunate to recognize that inflation is not as bad here as it is in some other places, but we do have made-in-Canada solutions for the impact that our neighbours are feeling.
Over all, the government's affordability plan is delivering targeted and fiscally responsible financial support for the Canadians who need it most, with particular emphasis on addressing the needs of low-income Canadians who are exposed to inflation.
The government's affordability plan includes an enhanced Canada workers' benefit that will put up to $2,400 more into the pockets of low-income families. There is a 10% increase in old age security for seniors 75 and over, which will provide more than $800 in new supports to full pensioners over the first year and increase benefits for more than three million seniors in Canada. The main support programs, including the Canada child benefit, the GST benefit, the Canada pension plan, old age security and the guaranteed income supplement are all indexed to inflation and they will be increasing.
Last week, meeting a commitment made earlier this year, the government tabled two important pieces of legislation in Parliament. The bills represent the latest suites of measures to support Canadians with the rising costs of living without adding fuel to the fire of inflation. Bill would double the goods and services tax credit for six months. Bill would enact two important measures: the Canada dental benefit and a one-time top-up to the Canada housing benefit.
Doubling the GST credit will provide $2.5 billion in additional targeted support to the roughly 11 million Canadians and families that already receive that tax credit. That includes about nine million single people and almost two million couples, and more than half of Canadian seniors as well. Single Canadians without children will receive an extra $234 and couples with two children will receive an additional $467 this year. Seniors will receive, on average, an extra $225.
The next important measure is the Canada dental benefit, which will be provided to eligible Canadian families with children under 12 who do not already have access to dental insurance, starting this year. Direct payments totalling up to $1,300 per child over the next two years, which is up to $650 per year per child, will be provided for dental care services. This is the first stage of the government's plan to deliver comprehensive dental coverage for families with adjusted net incomes under $90,000 and will allow children under 12 to receive the dental care they need, while the government works to develop a comprehensive dental care program. As I have said many times in the House before, healthy children today is a healthy Canada tomorrow.
The one-time top-up to the housing benefit will deliver an additional $500 payment to 1.8 million renters who are struggling with the cost of housing right now. This more than doubles the government's budget 2022 commitment, reaching twice as many Canadians as initially promised. The federal benefit will be available to applicants with an adjusted net income below $35,000 for families and below $20,000 for individuals who pay at least 30% of their adjusted net incomes on rent, which is, unfortunately, a high proportion of those folks.
In addition to those important pieces of legislation and the rest of the affordability plan, I would also like to speak about an important key measure to help Canadian families; that is the early learning and child care program that we have launched in every province and territory across the country.
Despite legitimate doubts that it was possible, we have already signed agreements on early learning and child care with every province and territory. Our plan makes work and life more affordable for middle-class Canadian families. It means an average reduction in fees of 50% by the end of this year. By 2026, regulated child care will cost an average of just $10 per day right across the country.
Just recently, I heard from a constituent who is going to save $9,000 a year, because he and his wife have two children. They are both going to get to work slightly longer hours, and neither of them will be part-time this year. They were so grateful to the Milton Community Resource Centre for signing on to the early learning and child care plan. I have visited the Milton Community Resource Centre a number of times to ensure that its priorities have been met through that program. It is serving my constituents in Milton and so many families are going to save thousands of dollars next year, thanks to that program.
Labour force shortages are a problem right now for our economy, and affordable early learning and child care is going to be such an important part of Canada's solution.
At this point, I feel that I should make a comment on the so-called payroll taxes about which the Conservatives keep talking.
Canada pension plan contributions are not a tax; they are an investment in one's own retirement, security that receives a tax credit or a tax deduction. The CPP provides an affordable, low-cost and modest pension for Canadian workers outside of Quebec, who are covered by similar benefits of the QPP.
Many Canadians are worried that they will not have put enough money away for their retirement, and fewer and fewer Canadians have workplace pensions or large savings on which to fall back. Our government has delivered on a commitment to Canadians to strengthen the CPP, in collaboration with provinces, to help them achieve their goal of a strong, secure and stable retirement.
The measures I have mentioned today would deliver targeted support to Canadians who need it most, without exacerbating inflation. That is an important balance, and the government's affordability plan is already putting money back in the pockets of Canadians who need it most.
Even as we deal with the very real challenges of the global economy, elevated inflation and increasing interest rates, it is important to take comfort in the reality that Canada has a really strong economic foundation as we face these global challenges. We will continue to provide timely support where it is needed most, all while maintaining fiscal discipline and responsibility.
It has been a tough couple of years for all of us. It does seem like we have to overcome one thing after another, but there are better days ahead, and Canada is in a really good place right now. The numbers today dictate that, and our plan is a strong one. I hope all members in the House will support it.
:
Madam Speaker, I will begin by saying I will be sharing my time with the member for , who will definitely be very interesting to listen to.
Before getting into the presentation on our topic today, I think it is important to properly understand the motion. As some have already mentioned, reading it feels like déjà-vu. It feels like we are debating the same topic we did on Tuesday, on the Conservatives' opposition day. They are really stuck on this theme. It is important to them and it does them credit. It remains to be seen how important this is as a position and an idea. We will talk about it some more.
The motion reads as follows:
That, given that the cost of government is driving up inflation, making the price of goods Canadians buy and the interest they pay unaffordable, this House call on the government to commit to no new taxes on gas, groceries, home heating and pay cheques.
I will begin by addressing the elements they do not want a tax hike on, since I believe that that is what they are focusing on. That is what I gleaned from their remarks this week. They accuse the government of raising taxes on groceries, heating and paycheques. What are the facts? When they talk about a tax on gasoline, it is true that there is a carbon tax. Since gasoline produces carbon, there will be an increase in the carbon tax over time. Is this tax appropriate? I think so. Apparently, the Conservatives do not think so. Let us talk about this tax, because I think it is very important. It may even be the central focus of their motion, more than any other tax. In fact, this carbon tax appears to be what bothers them the most. As soon as we mention oil, their hair stands on end.
When it comes to the tax on groceries, I do not follow. They will have to explain what they mean. We will ask them questions later. Perhaps a member of the Conservative Party could explain how the government, with its new policies, is going to raise taxes on groceries. According to my understanding, basic goods at the grocery store are not taxed. The only products that will see a tax hike are, for example, sweets and soft drinks. These are not really basic goods and we do not really want to encourage their consumption. We know that there is a problem with the overconsumption of sugar and fats. Sugar is one of those ingredients whose content we should be trying to limit. I do not know why they should be so upset, given that these are not the most nutritious foods. People who live on sweets and soft drinks are probably very familiar with the health care system.
Then the Conservatives talk about a tax hike on home heating. The last I heard, there was not going to be a tax increase on Quebeckers' Hydro-Québec heating bills. Maybe elsewhere in Canada, but that is the carbon tax we were discussing earlier for people who heat with oil or gas, for example. These people may be affected. However, it is not a tax on home heating. Once again, the Conservatives are playing with words. It is sad to see. It is as if they are trying to say that the government wants to raise taxes on major daily costs, on essential goods. That is the crux of the Conservatives' motion: to portray the government as the bad guy.
Lastly, the Conservatives are talking about paycheques. They say that we will be raising taxes on paycheques. I must admit, they found a good way of saying it. However, I am uncertain about the content of the motion. It is more about form, and there is nothing really convincing about the content.
On Canadians' paycheques, we are talking about a very slight increase, but an increase nonetheless, in EI premiums. Of course, based on what we have seen with past Conservative governments, there would be almost no employment insurance if they were in power today. The Harper government did everything it could to cut employment insurance and tell workers that, if they are out of work, they should move. If memory serves, they had to accept jobs more than 100 kilometres away. Perhaps this was intended to help the oil industry or to empty the regions of Quebec. One thing is clear: the Conservatives missed a great opportunity to defend workers and reform the EI system.
They could have used their opposition day to point out that the temporary EI measures recently expired. Workers have been dealing with the gap in EI for a very long time now, and many people are not covered by the plan. The Conservatives could have said that it is time to talk about what we want to do with the employment insurance plan to better help Canadians now that the special measures have expired.
Based on their record, that is not something the Conservatives, who are calling us out for increasing premiums, would do. Increasing premiums is justified if there is a good reason, for example, enhancing the social safety net. In this case, we know that the rate of EI premiums is set by a commission, based on a seven-year forecast. I have not looked into it in detail but, during the pandemic, the government used the EI fund as a pandemic program so that Canadians could have an income. Helping people is not necessarily a bad thing, but the problem is that they depleted the employment insurance fund. They created huge delays, and the pandemic showed us that the EI program is no longer adequate and that it needs major reforms, which the government has still not done. I would very much like to hear what my Conservative colleagues have to say about that.
I would like to return to the issue of the gas tax we have heard so much about. They are afraid of the tax on gasoline. I understand that some people may be frustrated. When I saw the price of gas exceed $2 a litre in Quebec, I was angry and thought it was outrageous. There were surely people who were profiting from the situation.
In the end, it is the oil companies that are making record profits. They raise the price one day, and raise it again the next. Then they lower the price, and no one really knows why. All we know is that gas prices tend to rise far faster than inflation. It is difficult to understand the underlying reasons for these increases in oil prices.
What I find surprising is that I never heard the Conservatives denounce the practices of the oil companies. I never heard the Conservatives say that they are making absurd profits. However, if we increase the tax on gas by 0.01%, it will be the end of the world. In their way of thinking, the Conservatives believe that, if they lower the tax on gas, the price at the pumps will go down. From personal experience, I can say that is a laugh, I have a feeling that the price will stay about the same and the oil companies will pocket even more. That is what is likely to happen.
These companies are not interested in Canadians’ well-being. They are not trying to improve their living conditions. They are trying to raise the price as much as they can and as high as people are willing to pay to maximize their profits. If taxpayers get to keep more of their income because of a lower tax on gas, the oil companies will surely claw it back. Why would they not take the opportunity to make even more profits?
In fact, it is clear that this entire motion is meant to put a negative spin on the policies they do not like. That is not the real cause of inflation. The inflation problem was caused by a pandemic, by the fact that people stayed home and got money from the government. We had to help them. We did not want them to run out of money. They received money so they could meet their needs. Unfortunately, production stopped because people were at home.
When there is a gap between production and demand, prices rise. It is that simple. We need to help those who are suffering the most, not the oil companies.
:
Madam Speaker, we are here to debate a Conservative motion that is interesting, to say the least. I really want the people who are listening to us today to read and understand the wording of this motion. It is very interesting, and I will explain.
The motion reads as follows:
That, given that the cost of government is driving up inflation, making the price of goods Canadians buy and the interest they pay unaffordable, this House call on the government to commit to no new taxes on gas, groceries, home heating and pay cheques.
This motion is really interesting in that it represents the definition of populism. Populism is using issues that people are rightly concerned about, such as inflation, and proposing bogus solutions to achieve a goal that is not described in this motion. This is simply an attempt to downsize government and prevent it from doing its job while also manipulating people and taking them for a ride to feed their fear of, or concerns about, the carbon tax. I wanted to read it out loud and demonstrate just how little sense this motion makes.
The cure for populism is education. Therefore, I would like to give a lecture similar to the one I would prepare for a college student enrolled in economics 101. I go into much more detail with my master's students.
Economics 101: What is an externality? An externality is when a cost or a societal effect is not included in the price, the price being a market indicator, of a good or a service. This externality is often incurred on goods and services for which there are environmental impacts that have not been quantified or taken into account in the price. The role of the state in these cases is actually to identify the externality and include it in the price.
That is exactly what the government is trying to do with its carbon tax. I will go into a bit more detail on the carbon tax. It is one of the necessary means to address climate change.
Let us go back to basics. What is climate change? I am looking at my friends over there to be sure they understand me clearly. Greenhouse gases, namely methane, CO2, nitrous oxide and ozone, are gases emitted by human beings that have an impact on people through climate change. The effects of climate change have been studied extensively for the past 20 or 30 years. We know all about them now. We can measure their impact on people. A few years ago, I was a co-author of a study on the impact of climate change in Quebec. We know that climate change has real, tangible costs.
First, there are infrastructure costs because of floods and storms. Today our thoughts are with our friends in the Magdalen Islands and eastern Canada that were hit hard by a big storm, hurricane Fiona. Hurricanes are stronger now because climate change intensifies them. Shoreline erosion is also an issue that has a major economic impact.
Then there is the thawing permafrost. When the land thaws, infrastructure built on the ground, such as housing, collapses. Look at what is happening to our first nations friends.
Those are direct, tangible, quantifiable impacts of climate change.
There are also health impacts, including those caused by the emergence of zoonoses. What are zoonoses? They are diseases spread by animals that are vectors for disease, for example Lyme disease or the Nile virus. These diseases came from the south because temperatures are rising. There are also allergies. Our Conservative friends really like to talk about productivity and efficiency. When people have allergies, which are on the rise with climate change, they are less productive at work.
Finally there are heat waves. That is very important. Every year, heat waves cause the deaths of seniors in their homes. The Conservatives constantly talk about seniors. That is real. Older individuals are dying because of climate change and their lives have value.
The cost of these consequences is quantifiable, and it comes out to millions of dollars. Climate change has a cost for society. This cost is not included in the price we pay for gas.
Now that we have addressed the problems, let us talk about solutions. Economists have given us solutions many times. One of them is the carbon tax. Another is the cap-and-trade system for greenhouse gas emission allowances implemented a long time ago in Quebec.
In 2014, Quebec linked its system with California’s. They did not link their system with any other Canadian province, but with California. They had to go south of the border to find people who cared to do something about climate change. That was in 2014, eight years ago. Maybe we were a little ahead of the curve in Quebec. This is not the first time I am saying that, and it will surely not be the last.
Quebec has assumed its responsibility in the fight against climate change. I will give a small but very important example to show how well these measures work. In 2015, Quebec reduced its greenhouse gas emissions by 8.8% over 1990 levels. It works. The government must be able to implement measures to fight climate change.
The government needs to take action. Once again, the carbon tax is one of the measures it can use. However, we are happy that it does not apply to Quebec and that we can stay on the right track with the cap-and-trade system for greenhouse gas emission allowances. There are plenty of other means, but it is obvious that tax measures are the best way for a government to change people’s behaviour. That is a well-known fact; there is a lot of literature on the subject. I would be more than happy to send my colleagues a ton of papers. That might help them learn more about this very important topic.
Let us talk about the social cost of carbon. This cost does not reflect the market value of a tonne of carbon. There are now markets like Quebec's cap-and-trade system and the European carbon exchange that set a certain price. The social cost of carbon is higher. The U.S. has estimated the social of carbon at $51 per tonne. A very recent study in the journal Nature suggests that the cost should be roughly $180 per tonne. That is much higher than the estimate currently being used. The carbon tax is a start. It is nothing compared to the real cost of climate change.
The social cost of carbon is very difficult to measure. As I have already said, it can vary widely. Surprisingly, a tonne emitted in China has exactly the same impact as a tonne emitted in Canada. However, it is difficult to establish its value, which is why a range is used. This value is established by models that predict the impacts of climate change today and in the coming years. Everyone agrees that the next few generations are pretty important.
The government has a duty to take climate action. Everyone needs to come to an agreement on this, once and for all. Let us stop using issues like inflation, which concern the public and rightly so, to justify measures that stand in the way of the government taking climate action.
The Bloc Québécois has proposed some real solutions to combat inflation. I gave the example of seniors. The Conservatives go on and on about how much they care about seniors, but they do not have much to say when we propose increasing old age security.
We are also proposing that we build more social housing. The government should be investing 1% of its revenue in social housing.
We have a number of solutions, but one very important one on which we should align with the Conservatives is the free market. Why do we not hear them talk more about protecting and, most importantly, increasing the power of the Competition Bureau? As my colleague mentioned earlier, companies are getting rich at our expense. We must fight oligopolies and monopolies that are artificially making our prices too high.
These are measures that would truly help Quebeckers and Canadians. This is what the Bloc Québécois is proposing, while the Conservative Party proposes bogus solutions.
:
Madam Speaker, I will start by saying I intend to split my time with the member for .
This is the first time I have had occasion to speak in the House since my father, Bill Blaikie, passed away on Saturday. I am hoping there will be time at some point for a more proper and fulsome tribute, but for now I would be remiss if I did not give a big thanks to all of my colleagues, the people in the parliamentary precinct and those beyond.
Canadians across the country have reached out with some really lovely messages about the ways my father's life and work inspired them in their own work. I am very grateful for those messages, as are my mother, Brenda; my sisters, Rebecca, Jessica, and Tessa; and our entire family. I want to thank everyone who has been a part of that.
Of course, it means a lot to us, and it would mean a lot to my dad because he really did love Parliament, with all of its shortcomings, disappointments and faults. That love was borne of a very real belief that it can be a place for positive and constructive dialogue that can bring our country to a better place, if we do it well while we are in this place.
It is in that spirit that I would like to offer some remarks today on the Conservative opposition day motion. There are two things about it that I think need to be called out.
The first has to do with the very proposal in the motion, which is that the emphasis of government right now should be on broad-based tax cuts as a way to fight inflation. Even if the Conservatives are putting this forward in the best of faith, they have it wrong. They have been out there saying for a long time that more money chasing fewer goods leads to more inflation. The fact of the matter is that broad-based tax cuts, as opposed to targeted income support for people who really are on the margins, are not targeted. People on the margins are struggling with choosing whether they are going to put some food item back on the shelf or not, or struggling with homelessness because they lost their place to live or are on the cusp of that, as opposed to some of us who are experiencing discomfort as a result of inflation and maybe having to pass up some things we would really rather like, but that are, at the end of the day, not vital. Providing income support to those people who really are at financial risk is the way to bring Canada through this extraordinary moment of inflationary pressure, which everyone is feeling in some way, shape or form. We have to bring Canada through this in the best possible way, doing the least possible damage to the smallest number of Canadian families.
That is why the NDP believes in doubling the GST rebate. That is why we fought for an increase in payments on the Canada housing benefit. It is why we believe looking to structurally change the cost of things that Canadians cannot do without, such as child care, dental care and prescription drugs, is a better way to combat inflation exactly because it is not doing what the Conservatives say they are concerned about.
We heard at the finance committee yesterday that even the IMF, the International Monetary Fund, of which it is fair to say is by no means understood as a progressive organization, as it has been the chief deregulator and tax-cutter, defunding and cutting the public service for decades, has said that broad-based tax cuts right now are going to fuel inflationary pressures in exactly the way the Conservatives say we must not do. The reason for that is because broad-based tax cuts put more money back into the pockets of the people who need it the least. The more wealthy one is, the more money one already has, and the more one will benefit from broad-based tax relief.
Earlier, a Conservative member talked about students who are living in homeless shelters and single mothers who are worried about ending up homeless. They are not going to benefit in the same way from broad-based tax relief as people living in far richer neighbourhoods, nor will seniors living on low fixed incomes. If those are the people who we want to help, then we need to do that with targeted income supports. That is the way to do it, not only to get more help to the people who need it most, but also to avoid delivering more money into the pockets of people who will use that as disposable income because they already have a fair bit of income.
That is why there is a real difference of approach between the New Democrats on the one hand and the Conservatives on the other. One can tell that I sometimes think the Liberal government feels caught in between, and its recipe would be to do nothing, just watch the debate happen between Conservatives and New Democrats and stand back.
This is why it is important to push, and why I am grateful to Canadians for having elected 25 New Democrats to this Parliament to do that work of pushing. When we first proposed the doubling of the GST rebate, the Liberals said no. That was well over six months ago, and in time and with persistent advocacy by New Democrats in the chamber, and many, many voices in civil society outside the chamber, we were able to get the government to change course.
That is a story of success for Parliament. That is a story of the Parliament Canadians elected doing the work they want us to do. Sometimes it is messy, and it is not always pretty or fun to watch, but there is a job getting done here, and it is because of the wisdom of Canadians in electing a minority Parliament with strong voices on many sides of the House that we are able to move forward.
The second thing I want to call out about this motion, which is a pet peeve of mine, and we heard it a bit before already today, is talking about increases in EI premiums and the CPP as though they were a payroll tax. If it were just a matter of arguing about words, then it would not matter. I do not care that accountants call EI premiums and CPP payroll taxes. If that is what they want to do within their profession for ease of accounting, that is fine by me.
When politicians start to talk about fighting payroll tax increases as a euphemism for fighting against properly funding our employment insurance system, I have a problem with it. When politicians use lowering payroll taxes as a euphemism for fighting against Canadians' pensions and denying increases in Canadians' pensions, especially when they are talking out the other side of their mouths about how much they care about seniors on fixed incomes, I have a problem with it. That is a major problem with this motion and what we have been hearing from the Conservatives today.
People are experiencing homelessness now who were not a couple of years ago and who are continuing to struggle with the difficulties of the economy we are in. There are a lot of jobs available in certain sectors of the economy, but it is still a difficult employment situation for other parts of the economy. There are people who are trained for those parts and have experience in parts of the economy that are still struggling, including tourism and hospitality, for instance. Those are industries struggling in various ways.
The hospitality sector is coming back, but if the employer is only willing to offer three three-hour shifts, the help-wanted sign in the window does not mean what a lot of Canadians think it means. It does not mean a full-time, well-paying, family-supporting job on the other end of that help-wanted sign.
Yes, we need to rebuild the EI system. We know that. We knew that before we went into the pandemic. All the more is the shame on the government for having reverted to the prepandemic employment insurance rules on September 24 without having a solve and without revealing the details of these consultations it has been doing, or having a better system in place in the first place. Employment insurance was leaving far too many people behind before the pandemic. We all know that.
We all know it needed to change, yet here we are moving away from the temporary rules of the pandemic, which were not perfect but were certainly better than what we had before, and we have gone back. Yes, EI premiums, after having been frozen during the pandemic, are eventually going to go up. That is part and parcel of providing insurance so people do not lose their homes when they lose their jobs in difficult economic circumstances.
A party that really had the backs of working people would understand that and not try to cover over its opposition to a proper EI system with euphemisms such as lower payroll taxes. The same is true of the Canada pension plan. We are at a point where the Canada pension plan finally is going to have another tranche for workers down the road. They are going to start to have to pay into that, as will employers. That is part of building better public pensions, so fewer Conservative politicians and others in the future will stand up to say how sad they are that seniors do not have a proper income. That is what is wrong with what is going on here.
:
Madam Speaker, I am going to start today by expressing my disappointment that what we are doing here today is talking about this motion, on the eve of the second annual National Day for Truth and Reconciliation, at a time when indigenous people in this country do not have clean water, do not have adequate housing and do not have their basic human rights met, and at a time in this country when indigenous people are finding the graves of their children. On the eve of that day, this is what the Conservative Party has brought forward.
I am shocked by this, but I want to start by telling a story. Something happened yesterday. Yesterday, I was talking to a Conservative member, and no, we were not on screen and it was not in public. She asked me why we got into the supply and confidence agreement with the Liberals. She asked me what was in it for us. That is how she put it. I sort of laughed and said that maybe she needed to sit with that for a minute and think about it. Then all last night, I thought about it. Does she really not get why we did that? Was that really not something she could comprehend?
What it comes down to for me is that we did it because we were trying to get help for Canadians. We did it because we were trying to get dental care, pharmacare, environmental care and support for workers. It was for Canadians. We did not do it to win. We did not do it to get points off the Liberals. We did not do it to increase our power. We did it for Canadians.
As we stand in the House and debate this motion, which I will get to, I want us all to remember that every member of the Conservative Party of Canada has access to a dental care program that is gold-plated. Every member has access to a dental care program for themselves and their children, and the Conservatives are voting against just the bare minimum for other Canadian families in the country. For me, that shows what we are dealing with; that shows who we are talking about.
As members of this place, we all have such privilege. We have such voice. We have such opportunity. We all have access to benefits and wages that regular Canadians do not have, and we have an obligation, when we stand in this place, to think of those people and make sure that all Canadians have access to those things, the same things we have and our families have.
With this motion, the Conservatives are trying to mislead Canadians. They are trying to turn “tax” into a four-letter word. I know and members know that “tax” is not a four-letter word. It is, in fact, a three-letter word, but we will get to that.
They are trying to convince Canadians that they are on their side with this motion, but we are not fooled. Canadians are not fooled. The Conservatives continue to side with big business and are throwing Canadians under the bus with this motion.
One thing I do like about the motion is that it gives us an opportunity to talk about taxation. We do not talk about taxation often enough in this place. However, this motion avoids the most important questions: Who is paying and what are they getting for that money?
Right now, the tax burden in Canada is on Canadian families. It is on the shoulders of working families. That is not fair. It means that even if they have two incomes, it is hard to make ends meet. It has resulted in an imbalance in our country. We have a housing crisis that is forcing more and more people onto the streets, rental costs are skyrocketing and young people have no hope of owning their own home.
This was not always the case. There was a time in this country when corporations and the wealthy were shouldering their fair share of the tax burden, and our economy was booming. Workers were able to support their families, and the government was able to provide services because it was raising revenue from sources other than working families. However, successive Conservative and Liberal governments changed that. They have lowered corporate tax rates. They have created tax loopholes. They flipped the tax system on its head.
The last time people and corporations paid the same amount in income tax was 1952. Since then, the corporate tax contribution to our society has gone down steadily. Today, Canadians are paying four dollars for every dollar corporations pay in tax, but not all Canadian are paying that.
While Conservatives and Liberals were cutting tax rates for corporations and handing out corporate subsidies and tax credits, they were also cutting taxes for the richest Canadians and relying instead on regressive forms of taxation like the GST. It is not a secret. Everyone in this House knows that. We all know this, yet here we are debating a simple-minded motion that is designed to trick Canadians into believing that Conservatives have Canadians' best interests in mind. It is a motion that relies on making tax a four-letter word without addressing the most fundamental questions: Who is paying the tax, how much are they paying and why?
Which people governments tax, whom they take money from, whom they take revenue from and what governments spend it on indicate the governments' priorities. Over the past four or five decades, from Liberal governments to Conservative governments to Liberal governments to Conservative governments, on and on, we have seen a distinct pattern and an unbroken history of shuffling the tax burden to working Canadians and cutting taxes for the wealthy and for corporations.
Over and over again, Conservative and Liberal governments have demonstrated who they are and who they care about, and it is not ordinary Canadians. It is not workers. It is not students. It is not seniors. It is not indigenous peoples. It is not people living with disabilities. It is not people who are houseless.
We do not need to look back 50 years to see what is happening in this country. Within three days of the global health pandemic being declared, $754 billion went out to support financial markets, the big banks and the largest corporations. It took the government weeks and then months to get the support to regular Canadians who were actually paying for that $754 billion to big banks. Conservatives are not interested in talking about that.
While I welcome the opportunity to talk about taxation today and while I am disappointed in the simple-mindedness of this motion, I also think we need to talk about how we could reform our tax system. New Democrats have proposed an entire range of reforms, all of which the Conservatives have voted against: a steady return to reasonable corporate tax rates, a pandemic profits tax to recover some of the hundreds of billions that Canadians provided to these corporations, a wealth tax, closing tax loopholes that allow the wealthy to escape Canadian taxes and going after tax cheats.
If we enacted these reforms, we could provide dental care for all Canadians. We could have pharmacare. Canadians would not have to worry any longer about whether they can afford their prescription medicines. We could pay for a housing strategy. We could invest in our future. We could build a better Canada. Tax is not a four-letter word. It just becomes that when politicians are trying to pull the wool over people's eyes.
Finally, I will finish by talking a bit about EI and CPP. Despite what the Conservatives may think, Canadians are not fooled by their conversation and nonsense about whether this is a tax. Canadians see what the Conservatives are doing. I am from Alberta. Albertans see what is happening. We see our provincial government attacking our CPP. It is something I hear about more often from my constituents than anything else. I know how Conservatives are working to destroy the safety net that workers rely on. Workers need their pensions. They need an EI system that works. This is not government money; this is workers' money.
Last week, the EI system reverted back to its broken prepandemic status. The changes that I and my fellow New Democrats fought for so that Canadian workers were not left out in the cold in the pandemic are gone. Instead of pretending that EI and CPP are a burden on working Canadians, I invite the Conservatives to join us to make sure that 100% of workers are able to get the support they need from EI and that 100% of workers can afford to retire with dignity with adequate pension benefits.
Now is not the time for this motion. This political nonsense is designed to get the new some airtime and some retweets. Canadians do not want this nonsense. Canadians want all parties in this place to work together to make their lives better.
:
Madam Speaker, I will split my time with the member for .
Canadians cannot afford the current Liberal government. The NDP-Liberals have made the cost of living so expensive that people are being forced to choose between heating their homes, putting gas in their cars and feeding their families. That is why the Conservative motion today calls on the government to immediately stop new taxes on gas, groceries, heating and paycheques. That would mean cancelling its planned carbon tax increase and their planned tax hikes on paycheques, which are all defined on the Liberal government's own website as taxes.
The numbers are stark. A Canadian making $60,000 a year went from paying $3,400 a year in taxes under the previous Conservative government to $4,169 in taxes today. The average Canadian family now spends more of their income on taxes than they do on food, clothing and shelter combined, and this share is going to keep escalating under the current Liberal government. That is morally wrong, and it is all a consequence of bad policy.
The cost of everything is skyrocketing. Families are spending $1,200 more a year to put food on the table. Housing prices have spiralled out of control, and rising interest rates mean that half of young Canadians, 56%, who are looking to buy their first home have put their plans on pause or given up altogether.
Rent for a one-bedroom home in Toronto is over $2,300 a month, and post-secondary students are living in homeless shelters. One in six small businesses are considering closing permanently, while almost two-thirds are still carrying debt from the last two years, in large part because of decisions made by governments. Of course, there is also the ever-increasing carbon tax that the Liberals promised would stay at a certain level, but it is going to blow way past that and way past what they claimed.
The Liberals keep saying this tax gives Canadians more back than they spend on it, but of course, the Parliamentary Budget Officer completely debunked that claim. The reality is that 60% of Canadians will not get back more than they put into it, and of course, courtesy of this particular Liberal government, Albertans are the hardest hit, paying $2,282 more than they get back.
However, the carbon tax rebate is effectively the Liberal government using working-class Canadians as a 0%-interest loan. Proceeds are not returned, and it costs Canadians the exact cost of inflation for every month that they do not have their money, plus the cost of lost potential investment income.
For example, using what we all now know is actually a conservative inflation number of 3.4%, which was inflation in 2021 and has more than doubled this year, plus a conservative 2% rate of return on investments, and adding that to the average 2021 carbon tax cost for an Albertan of $1,585, it is almost $86 that has just disappeared, money that these Canadians will never get back and money these Canadians could have used to pay for their grocery bill that week or fill up their gas tanks. The Liberals are going to make these losses worse and keep taking more and more away from Canadians.
Conservatives are focused on Canadians who are struggling with this Liberal-manufactured cost of living crisis.
Coralea from Elk Point wrote to me. Her son has ADD and several other learning difficulties. To deal with these challenges, she sent him to a school about half an hour away from where her family lives. They were able to carpool with other families, and her husband had a well-paying job in the oil patch, but the Liberals’ war on the oil and gas sector changed all of that.
Drilling rigs shut down, companies closed, investment dried up and projects were cancelled, all because of the risk and uncertainty created by the Liberal government, and unfortunately, like tens of thousands of other workers directly employed by the energy sector, Coralea’s husband lost his job. He did find another job local to their home, but it paid him a third of what he was making. Coralea started a housekeeping business so their family could make ends meet, but that business was wiped out during the last two years.
A few months ago, Coralea's son’s school called with a plan for the next four years that would actually see her son graduate with a diploma and his first-year apprenticeship, but she had to tell them that her son is not returning next year, because the skyrocketing cost of gas to drive an hour back and forth twice a day, is no longer feasible on their reduced income.
Coralea is not a Canadian who can afford to buy a fancy $60,000 Tesla. She cannot even afford to rewire her home to accommodate the charge. She cannot afford to have an electric car that does not work in the snowstorms and in -40°C weather that people in Lakeland often experience. She cannot afford the taxes the Liberal government keeps imposing and hiking on Canadians.
Another constituent, Steve, who is a senior living in Vermilion, told me he received both CPP and OAS, both payments are indexed to inflation. The Liberals will tell us that seniors living on these programs are protected from cost of living increases and inflationary pressures, but that is just not the case. Under half of Steve’s monthly gas bill is for the actual gas he uses. A full quarter of his bill goes to taxes, over $50 a month.
For the first two quarters of the year, single adults received just over $250 in carbon tax rebates. Steve would pay $300 in taxes on his gas bill alone at the same time. He pays carbon taxes on his electricity bill, carbon taxes on his groceries and carbon taxes on the fuel he needs to fill up his truck. Steve is going to be taxed out of his retirement at this rate. He told me, “This carbon tax is killing me””, and asked me to keep fighting against this “nonsensical and needless taxation.”
Then there is 25-year-old Austin from Vegreville, who should have a bright future ahead of him. He should be ready to start his life, buy a home and plan a family if he wants. Instead, he has to decide on what bills he pays every month and whether he can afford groceries at the same time. His car ran into some issues, costing him $850, $850 that he cannot afford when gas prices have doubled and his gas and electricity bills are costing him $400 a month. Austin works two jobs, at Walmart and at a local indoor arena. His girlfriend is 21 and works in early learning and child care. He is really worried about their future and he stood up. He told me to, “Scrap the carbon tax...Stop the spending, soften the blow of inflation, and actually make the middle class pay less tax and actually help us get ahead, not send us backwards.”
We could all go on about this from our constituents: from Jason, who runs a small public golf course in New Brunswick, who paid an extra $6,000 in fuel from 2020 to 2021 and is anticipating another $7,500 increase this year; to Linda, a widowed senior, who is still working as a school bus driver because she cannot afford to heat her home and put gas in her car; to Fred, who told me of a young family he sits beside every week at hockey practice that now has to choose which of their kids can play this coming season because the cost of travelling to games has become too much.
The cost of living crisis imposed by the Liberals is not “transitory”, it is not “Vladimir Putin’s inflation” and it is not “a supply chain issue.” It is inflation created because the government has consistently spent well beyond its means and ignored all Conservative warnings that its out-of-control spending would lead to higher prices of basic necessities for all Canadians.
The cost of living crisis driven by the government’s spending and tax increases on gas, groceries, home heating and paycheques is forcing the Canadians who I represent to choose between heating and eating, to choose which of their kids can go into sports or if they can at all, to choose whether they can afford to see their grandchildren, to jeopardize their children’s future because they cannot afford the costs anymore. This has to stop. The government’s reckless spending, its attacks on working Canadians and its continued tax hikes are ruining lives. That is why the motion today is so important. Canadians literally cannot afford the Liberals anymore.
As our new leader, the member for , has urged them for years, the Liberals must reverse course, find savings in government spending and balance the budget so all that debt is not passed on to future generations with nothing to show for it. It needs to stop fining, demonizing and firing Canadians whose personal medical decisions were not acceptable to the ; stop destroying lives and livelihoods of Canadians by driving away investment, handcuffing the development of Canada’s natural resources in agriculture sectors, anchors to our economy, with its anti-business, anti-private sector, high-taxing red tape agenda; and commit today to no new taxes on gas, groceries, home heating and paycheques.
:
Madam Speaker, today we are talking about inflation, which is taking a toll on Canadians. This inflation was entirely foreseeable. The government could not keep printing stack after stack of money and not expect any consequences.
The ratio between the money supply and our GDP has increased drastically lately. It is unfortunate that nothing was done earlier on to regain control of the money supply. From the start, the government has been blaming inflation on the global situation, more specifically, supply chain disruptions. True, these disruptions are having an impact on supply and demand, but there are many other factors for which the Liberals have been responsible from the moment they took office, and those factors are behind this economic situation.
I do not want to be all doom and gloom today, but the Liberals' policies are leading us right for a cliff. There are two things that stand out to me regarding the situation we are now. The first is the Liberal government's inordinately large deficit, which is undermining Canada's financial stability and, even worse, endangering the economic prosperity of future generations.
When the Liberal Party formed government in 2015, Canada was in an enviable economic position. Not only did we have one of the lowest debt-to-GDP ratios in the G7, but we also had a budget surplus accompanied by positive economic growth. Canada was one of the best countries to invest in.
When the Liberals took office, they embarked on a spending spree that was unnecessary, considering the economic context. Canada's debt rose dramatically, going from $626 billion in 2014 to $1.049 trillion in 2021. Of course, part of that increase is a result of managing the pandemic. I want to talk about that management, though. Canada borrowed more than any other industrialized country, except Japan, and got little in return. Canada ranked 21st out of 33 industrialized countries in terms of average economic growth in 2020 and 2021, with the fifth-highest average unemployment rate.
Even so, this is still a level of debt that, all in all, could be managed well with historically low interest rates. However, by being short-sighted and failing to plan ahead, which is a recurring theme in the Liberal Party, the government was playing with fire. This situation could not continue if certain parameters changed, and now they are changing. As interest rates rise, servicing the debt will become increasingly expensive. Government forecasts will have to be revised.
The yield curve is inverted, probably signalling that a recession is coming. The 10-year treasury yield is rising very quickly, pointing to a growing lack of confidence in the Canadian treasury. Lastly, the increase in 10-year treasury bonds is making Canadian debt more expensive.
Who is going to pay for this debt? Who is going to pay the interest on it? Will it be Canadians? Can the government assure the House today that it will not raise taxes and other charges on Canadians, who are already struggling to fill up their cars and put food on the table?
The Liberals' silence speaks for itself. Why is that? This brings me to my second point about why the Liberals are responsible for the current situation. The Liberal government has been waging war on Canada's energy sector since 2015, which has made it hard for us to respond to global energy shocks. Canada has the third-largest oil reserves in the world and the 18th-largest natural gas reserves. Not only do we have quantity, but we also have quality, because we produce oil and gas more cleanly than countries like Saudi Arabia and Venezuela.
With energy and gas prices soaring, let us imagine what Canada could do if it were an energy superpower. First, we could put more barrels on the global market, which would increase the supply and ultimately lower prices. Second, we could meet the energy needs of countries that really need it right now. I am thinking in particular of our allies in Europe, who are being held hostage by an authoritarian regime that controls the flow of energy into western Europe. Being an energy superpower is not just about meeting local demand, it is also about meeting an international need.
Instead, the Liberal government is trying to convince itself that Canada's energy industry is a thing of the past and that exporting our energy would be difficult because the product is far from the coasts. However, this is the same government that killed off over $100 billion worth of Canadian energy projects and cancelled the development of key infrastructure meant to reach export terminals on the east and west coasts.
President Biden would rather ask Saudi Arabia to increase its production, even though we are the United States' closest neighbour. That is shameful and embarrassing, not to mention hypocritical.
Yes, it is hypocritical, because the Liberals keep talking about fighting climate change, but they have done nothing to stop the supply of dirtier oil from Saudi Arabia and Venezuela.
Canada's is talking about increasing natural gas exports to the United States, which will then export it to Europe. How out of touch is that? Instead of putting Canadians to work, developing Canadian expertise and creating Canadian wealth, which would help fight inflation, we are acting as the United States' lackey.
Canada's energy policy is a disaster for Canadians' pocketbooks. It is also a disaster in terms of making a positive contribution to the fight against climate change. Furthermore, it is directly responsible for the significant increase in energy and gas prices.
The government plans to triple the carbon tax soon. Is that still in the cards? Is it really a good idea to increase gas prices when Canadians are struggling to make ends meet?
Gas is essential for transportation, in particular the transportation of food. Last August, food prices rose 10.8% over the previous year, when they were already trending upwards.
Is it reasonable to consider adding an indirect tax on food by increasing the price on carbon at a time when food prices have jumped by nearly 15% in two years? It is utterly ridiculous to even be considering it.
Families are losing faith in the economy and are going deeper into debt. The ratio of household debt to income is now 181.7%. It is not just a question of what rising interest rates will do to Canada's ability to service its debt. We also have to consider what Canadians will do as interest rates continue to rise. How will they be able to pay down their debt if everything gets more expensive and their loans get more expensive but their income does not keep pace with inflation?
We could be headed for some dark days if we do not address this crisis quickly. The government must first provide certainty for Canadians by committing to not increasing taxes of any kind in an attempt to make up for its own oversights, mistakes and inaction.
The current situation paints a bleak picture for Canadians who will end up in debt slavery if this trend continues. It will be extremely difficult for the next generation to buy property. We cannot afford to ignore the economic importance of property. Canadians see it as a symbol of prosperity and independence. For many, it is a retirement fund; for others, it is financial leverage. It is a place to raise a family, the bedrock of society. We have to put families first and give them all the tools they need to prosper.
We are talking about the rising cost of consumer goods, but I would like to conclude with some comments about the other issues hanging over our heads. The 0% interest rate policy was in place for years. How did that affect the structure of Canada's economy? That is a question we have to consider, because our party's motion makes even more sense given how much money was injected into the system and the unnecessary risks that companies and governments take when money really has no value because interest rates are near zero.
To get back to the main point of my speech, the government must give Canadians as much certainty as possible by not increasing their taxes.
I urge all parties to support our motion. To resolve the current inflationary crisis, I urge them to be prudent when it comes to government spending in the future and to stop the war on Canadian energy.
:
Madam Speaker, I will be splitting my time with my dear friend and colleague, the hon. member for , which is in the beautiful city of Winnipeg in the beautiful province of Manitoba. I know it will be riveting for everyone to hear the member's remarks, after I give mine of course.
I am pleased to respond to this motion today, brought forward by the official opposition. The government’s timely and targeted measures played an important role in helping Canadian businesses weather the pandemic and now respond to the global inflation that has taken a hold of Canada and the world for reasons we know quite well. It has helped Canadian businesses and workers deal with the economic uncertainty and financial challenges brought on by COVID-19, by supply chain issues and now by the subsequent and very unfortunate barbaric invasion of Ukraine by Russia.
Our government enacted its plan while also exercising fiscal responsibility and prudence. It is a serious plan with serious leadership. Our actions have built a resilient foundation as the world economy continues to face strong headwinds.
I remind my hon. colleagues that if they have read the news in the past couple days about what is going on in Europe regarding movements in bonds and stock prices, and Nord Stream, there continues to be greater uncertainty in the world economy that we too will face and that is coming to the shores of North America. That is why we need serious leadership for these very uncertain times.
Canada is faring better than other G7 countries in these difficult times. The OECD continues to project that Canada will have the strongest economic growth in the G7, both this year and in 2023. The OECD just revised this week its projections for economic growth.
In addition, Canada has the lowest total government deficit in the G7 this year, and by far the lowest net debt burden among these countries. This is due to our government's overriding commitment to fiscal prudence, to maintain a fiscal framework and to always maintain our AAA credit rating to ensure a good, strong fiscal position, not only today, but going into the future for all our children, including my three kids.
However, Canada is not immune to adverse global developments. Global supply challenges and elevated energy prices resulting from the illegal, barbaric Russian invasion of Ukraine are adding upward pressure on global prices, including in our country. We also know that inflation is a global phenomenon that is a lingering result of the pandemic. It is exacerbated by worldwide events, and it is making life harder for many Canadians, including those back in my riding of Vaughan—Woodbridge.
Canada’s job market is strong, though, and businesses are doing well. Corporate profit margins and corporate balance sheets are actually very robust, and companies are investing in this country. We have seen this in the automotive sector here in Ontario. We have seen this with our steelmakers here in Ontario. We have seen this with our artificial intelligence in organizations like in the city of Montreal.
That is why our government support programs continue to be so important for the Canadians who continue to face challenges today because they are exposed to high inflation, including seniors, folks with fixed incomes, and working Canadians.
We have an affordability plan that includes many important measures. This is to support the most vulnerable people in our communities, to help them at a time when the cost of living is a real challenge for many Canadians. Our affordability plan is a suite of targeted measures totalling $12.1 billion in new support in 2022 to help make life more affordable for millions of Canadians from coast to coast to coast, including those in my wonderful riding of Vaughan—Woodbridge.
Simply put, we are helping Canadians cope with inflation, and I am very surprised that the did not mention our measures in his motion.
Therefore, allow me to outline some of the key measures in this plan that will help Canadians manage inflation, including the GST credit. We will double it with Bill for six months to help 11 million Canadians, with $2.5 billion in relief going to the Canadians who need it the most, like our most vulnerable: single mothers, seniors and folks on fixed incomes.
It is something that is concrete and tangible. We can get it out the door before the year ends. I am glad to see, if I understood correctly, that the official opposition party will be joining us in moving this bill quickly through Parliament and having it receive royal assent, so we can get this help to Canadian families.
In Bill , we have a one-time top-up for the Canada housing benefit to assist nearly two million renters with $500. Again, it would be timely relief that would provide help to Canadians who need it the most.
I will say one thing on the Canada pension plan, because it has been mentioned by various individuals. The CPP was enhanced in June 2016 by our government, after coming to an agreement with all provinces in Canada, to ensure that Canadians have a secure and dignified retirement in their golden years. It is something we worked on with all provinces and we came to an agreement. It demonstrates, again, what I call serious leadership. It is leadership that recognized that Canadians who were retiring needed their Canada pension plan to be enhanced from the level it was at. It was called the replacement rate on their wages and salaries. This is so important because many Canadians do not enjoy a defined benefit pension plan provided under unions or provided to public sector employees.
When Canadians retire, they depend on the Canada pension plan. It is indexed. It is monthly. It is an annuity stream. It is one of the best examples of how Canada is leading the world in ensuring a secure and dignified retirement for its citizens. It was applauded by all corners of our country and somewhat supported by different political parties at the provincial level. These are contributions by our citizens so they can have a great, secure and dignified retirement. This is something we need to continue working on with the types of measures that assist Canadians. Again, this is what I call serious leadership, prudent leadership and reasonable leadership.
On the question of employment insurance, employment insurance is about contributions. They are contributions by employees and employers for when someone is laid off or when there are changes in the economy.
Earlier this week, the Office of the Superintendent of Financial Institutions, otherwise known as OSFI, released its actuarial report on the employment insurance system. It is in the Employment Insurance Act, something that has been in existence under Conservative governments and Liberal governments. It talks about the seven-year break-even rate. The funds do not go into general government revenues. There is an operating fund for EI; it is there. I was actually reading the report this morning, again from OSFI's chief actuarial officer, and it talks about the EI system.
We know we need to continue to alter and change the EI system to respond to changing workplace requirements and job requirements given the sectoral and geographic changes that happen in our economy and our country. It is very important that when we speak about EI and speak about CPP, we note that these are bedrock programs for our social safety net. They are there to assist Canadians.
Thus, I say again that we need serious leadership at times when there is economic uncertainty and when there are global events happening. To use sound bites and cliches, I think, is a disservice.
On the question of dental coverage in Canada, I said in the prior opposition day that as members of Parliament, we meet a lot of different constituents. I have met constituents who are dealing with dental coverage, especially seniors, and who do not have dental coverage. They did not belong to a public sector union or are not covered under benefits when they retire. They have no coverage. When they go see a dentist, they are paying out-of-pocket.
We need to cover for those seniors. They deserve it. They deserve our support; they deserve our help. That is exactly what our government is going to do. We are going to start off, this year, helping those under 12 with income-tested and means-tested programs. I greatly support means-tested programs. Then we are going to help seniors as well. We are going to make sure that this is in place because it is the right thing to do.
That is, again, dealing with serious leadership in these times and identifying issues that we can all work on as parliamentarians. We can work together to make sure we are taking care of individuals who need assistance.
Seeing a dentist is important for our health, but it can be expensive. A third of Canadians currently do not have dental insurance, and in 2018, more than one in five Canadians reported avoiding dental care because of the cost. That is unacceptable in our country. For these reasons, the government has previously committed to providing dental care for uninsured Canadians with a family income of less than $90,000 annually.
As I know my time is quickly running out, I wish to say happy Thursday to all of my dear colleagues and to all of their constituents at home.
:
Madam Speaker, I like to think of what is being proposed by the Conservative Party as another opportunity for us to really express the contrast. What a difference there is between the Conservative Party and the governing party, the Liberal Party of Canada. We have a , ministers and in fact an entire Liberal caucus who are very much focused on ensuring that we have an economy that works for all Canadians. That is our priority.
It should be no surprise that back in 2015 when we formed government, we made a commitment to Canada's middle class and those aspiring to be a part of it. If we take a look at the policies, whether they are budgetary measures or legislative measures, members will find that we have been consistent virtually from day one.
When we had the worldwide pandemic, and I emphasize “worldwide”, we responded by supporting Canadians. We supported them in a big way. For millions of Canadians, small businesses and individuals, we were there. We spent billions of dollars in support, and the Conservatives actually voted in favour of many of those billions of dollars. However, today, they criticize us for spending that money. There is a word in the dictionary that would best describe this but it is unparliamentary so I will not say it. However, I can tell members that the Conservative Party of Canada is all over the map on all sorts of economic and environmental issues. The Conservatives are not consistent.
Last Tuesday, in an emergency debate, they talked about taxes, and they used the example of the price on pollution. Members will remember that Stephen Harper was supportive of a price on pollution, but the Conservatives back then said, “No, we don't support a price on pollution.” They were jumping up and down in opposition saying that it was not a price on pollution but a tax. Then the , the one before the , indicated very clearly that he supported the principle of having a price on pollution. That leader was the one who led the entire group, and every Conservative candidate in Canada campaigned on a price on pollution. However, again, we see members of the Conservative Party taking a massive flip. They have changed their policy, even though they campaigned on it, and now they do not support a price on pollution. Now they are talking about other taxes.
We can think of the leadership of the Conservative Party and the need to be consistent. What did the talk about? My colleague from has raised this on a couple of occasions and the has raised it. Many of us in the Liberal caucus do not understand why the leader of the official opposition today, as a leadership candidate, said to all those who wanted to listen to invest in cryptocurrency. He said that was the way to fight inflation. He encouraged Canadians and his followers to invest in it.
We have to feel for the individuals who followed the advice of the . Who knows? Maybe it was not his personal idea; maybe it was from another Conservative. I do not know. The bottom line is that it was a stupid idea. At the end of the day, how many Canadians lost thousands of dollars because they listened to today's leader of the Conservative Party just a few months back?
We can think of the Bank of Canada, an institution recognized around the world for its independence and good stewardship on the issue of Canada's money supply and the impact it has on our economy. Well, the had an idea: He would fire the Governor of the Bank of Canada. How bizarre is that?
There were even Conservatives who did not support that. I can recall at least one who was somewhat displaced from the front bench and the role he was playing because he was vocal that this was a dumb idea. He spoke truth to power, many would ultimately argue.
The Conservatives talk about wanting tax relief and wanting to give relief to Canadians because of inflation. There are two things that come to mind. Number one is that they need to take their collective heads out of the sand and recognize that inflation is taking place around the world. In the U.S.A., the inflation rate is higher. In Europe and in England, the inflation rate is higher. It does not mean that Canada should not be doing anything.
We have a progressive government that has consistently, from 2015, been there for Canadians in a very real and tangible way. In fact, we have brought forward two pieces of legislation that would provide virtually immediate relief for Canadians. We all know, in regard to the GST rebate, that Bill has passed into committee. That was to give 11 million Canadians money in their pockets to assist them in dealing with inflation. Originally, the Conservatives opposed it. That is hard to believe. How do they oppose something when they are saying they want tax breaks and that is what we would be providing? We would be providing cash in people's pockets, and originally the Conservatives opposed it.
I am grateful. I do not want to come across as being ungrateful all the time. I am grateful the Conservatives actually changed their minds again. This time, 11 million Canadians are going to benefit, because of the Conservatives changing their minds and supporting sending the legislation to committee. I am an optimist, with my fingers crossed and all. I am hoping it will go through the committee and get through third reading, and hopefully we will be able to do that in a relatively quick fashion. We have to do it before they change their minds again, but that was an encouraging sight.
We have Bill , which would do two things. One is that it would establish, for the first time in history, here in Canada, an opportunity for parents to collect support for dental care for children under the age of 12. Who would oppose that? At a time when we are experiencing inflation and have children who are going into hospital for emergency services in order to get dental work done because they cannot afford to get it done, and we have a government that is bringing forward legislation that would assist them in doing that, it is hard to believe the Conservatives would oppose that.
Tied into that legislation is additional support for people who are having a difficult time making rent payments. It is hundreds of dollars, and millions across the country, and the Conservatives, again, are indicating they are not going to be supporting Bill . It is unfortunate.
On the one hand, they say to support Canadians. On the other hand, if they are ashamed, we can convince them to make a flip-flop, as with Bill , but we still have a little more work to do to get them convinced that providing a service to our children under the age of 12 to get dental work is a good thing and they should support it, and that the support for rental payments is worthy of support. Hopefully we will see Bill pass.
There are so many things the Government of Canada is doing to support our economy and the people of Canada. The emphasis is on ensuring that we have an economy that is working for all Canadians. At the same time, we understand the importance of health care, whether it is long-term care, mental health, dental or working with the provinces, and it does not mean being an ATM. What it means is ensuring there is a higher sense of accountability.
Canadians deserve the best quality health care, and this is a government and a minister who are committed to delivering that.
:
Madam Speaker, I will be splitting my time with the member for .
The residents of my riding, the good people of Miramichi—Grand Lake, are struggling. They want to take control of their lives. They want to take control back from the government, which continues to take it from them.
After the pandemic, after hurricane Fiona and after years of broken Liberal promises to improve the lives of the middle class, folks are done with these Liberal gatekeepers making things worse. The cost of Liberal spending is driving up the cost of living. The GST rebate will provide welcome relief that Conservatives support, but it will not address the real problem. Inflationary deficits and taxes are driving up costs at the fastest rate in nearly 40 years.
A half a trillion dollars of Liberal deficits bid up the cost of the goods we buy and the interest rates we pay. Inflationary Liberal taxes have inflated the cost of making the goods we are buying. The more the Liberals spend, the higher the taxes, and the more things cost is just inflation.
The folks of my riding have racked up mountains of debt. Credit cards, lines of credit and people are so desperate they refinanced their homes, using up the equity they need to retire just to pay for groceries and gas. The cost of living is a total crisis in Canada, and the Liberals caused it and are making it worse.
The carbon tax is going to triple the cost of everything in this country. Do Liberals understand what that means to Atlantic Canadians and to those in my riding of Miramichi—Grand Lake? Heating oil is one of the most common ways we heat our homes in Atlantic Canada. It is delivered by trucks that run on diesel. That is also going up in price. The NDP and the Liberals voted just yesterday to triple the carbon tax.
Enough is enough. It is time for the Liberals to listen to Conservatives: no new taxes on gas, groceries, home heating or paycheques in our country.
Canadians cannot make ends meet as it is, never mind affording a tripling of the carbon tax. Four out of five Canadians have to cut back on food because they cannot afford groceries. It comes at a time when Canadians cannot even fill up their cars or trucks to go to work. This is not a luxury. It is the reality of rural Canada. Because the is so busy jet-setting around the globe, he rarely ever comes to Atlantic Canada. He does not realize we burn furnace oil and still use wood heat and wood pellets.
This is exactly the wrong time to raise taxes on paycheques, gas and other essential goods. Inflation is at a 40-year high, and nine out 10 young people who do not already own a home do not think they ever will. Imagine being in this age bracket in our country and believing it will never be possible to own a home in Canada. I have constituents who feel this way. I take their phone calls and get their emails. I see the struggle of young families in rural Canada every day. Members on this side of the House understand that struggle.
Home prices in New Brunswick skyrocketed in the last couple of years as folks in Ontario and Quebec fled the unaffordable cost of living, putting home ownership further out of reach for young people in places like Miramichi—Grand Lake.
Conservatives are calling on the government to cancel all planned tax increases, including payroll tax hikes planned for January 1 and tax hikes on gas, groceries and home heating on April 1. We are demanding it today.
It has been crickets from the six Liberal MPs from New Brunswick as their government imposed a more punitive carbon tax on New Brunswick than other Atlantic provinces. It has been crickets from the six Liberal MPs when the federal government shut down the proposed iron ore plant in Belledune. Where was the member for when that was shut down? The Belledune proposal, quite frankly, shows how backward the Liberal approach on the carbon tax has been.
Instead of creating paycheques in New Brunswick, very close to Miramichi, and processing iron ore using modern technology that would reduce global emissions, the Liberals killed the project with their carbon tax. The result is that the iron ore is going to be processed overseas by a higher-polluting plant. We cannot make these things up; they are real, and the people of my region lived it, because those jobs do not exist now.
The Liberals are just not getting it right for Canadians on the cost of carbon tax. The Parliamentary Budget Officer reported that the carbon tax costs 60% of households more than they get back, but I guess that is really the point. Every day, I try to table this report, but I never receive unanimous consent. I wonder why.
The Liberals have repeatedly hiked taxes to pay for their out-of-control spending, but Canadians cannot afford it. The cost of Liberal spending is driving up the cost of living. Who is supporting it? It is the NDP, the very elected officials who were not elected to be the government. They were elected in opposition, like many members of this House. However, the Canadian public now has them in caucus with the Liberals, which it did not want. Nobody voted for it, but believe me, they are going to pay for it. Everybody knows it, and it is so good to know that.
After the Liberal broken promises, the pandemic and now Fiona, I am here on behalf of my constituents, my family and friends, and all the people struggling in one manner or another with the state of the economy right now in Canada. We are all actively involved in our respective regions and see the suffering the cost of living is causing to our fellow Canadians. This, in and of itself, should be a reason to set politics aside and support this motion.
I want every member to think about this when considering how to vote. My electoral district of Miramichi—Grand Lake has the historic county of Northumberland within its boundary. In the most recent StatsCan survey, it was revealed that the average income is less than $40,000 per year. What would it be like to try to pay the utility bills, rent or mortgage, gas and car payments to get to work on that amount of money per year?
I want members to think about that amount of money, then think about tripling the carbon tax and putting up the cost of everything we buy, and then try to picture themselves in that situation. Canadians are living that situation every single day in this country. Members should ask themselves what it would be like to try to feed themselves and possibly their family on that amount of money.
All the while, costs are continuing to rise. If any member in this House is willing to support any additional taxes that pile more stress and suffering onto Canadians who are already having a hard time keeping their heads above water, it would be the opinion of the constituents in my riding that they do not belong in this place.
I will be voting to protect my constituents and all Canadians, as we cannot see the government force new taxes on a struggling Canadian society.
:
Madam Speaker, it is a pleasure to speak in the House today on behalf of my constituents in Chilliwack—Hope.
I will remind everyone that today we are discussing a motion that states:
That, given that the cost of government is driving up inflation, making the price of goods Canadians buy and the interest they pay unaffordable, this House call on the government to commit to no new taxes on gas, groceries, home heating and pay cheques.
It is a pretty simple motion. Basically, we are asking the government not to make things worse. It has already gotten us to where we are today. The price of gas in my hometown in British Columbia is $2.25 a litre today. That means a student driving a Honda Civic has to pay over $100 to fill the tank to get to school. The cost for a mother to fill up her SUV is over $135, and a contractor filling up their pickup has to pay over $250 just for the fuel to get to work to conduct the duties they perform in our communities. In my community, that is often agricultural work. It is work done in the construction industry, work that cannot be done with a Prius, work that needs to be done with a truck.
My community is rural. It is a community where there are not a lot of rapid transit options. There are long distances between places people need to go to. However, the Liberals want to make the cost of gas, which is $2.25, a record high, worse. They propose tripling the carbon tax next April.
B.C. has its own carbon tax. It has been a failure on every level. It has not reduced emissions; it has increased the cost of everything in British Columbia and, unlike in some of the other provinces in the country, there is no federal rebate. The money goes to Victoria to spend as it sees fit. It gives some of it back in rebates, but the rest of it goes into government coffers. This is just what the independent Parliamentary Budget Officer indicated, that 60% of Canadians pay more in the tax than they get back in rebates. I would anticipate that in British Columbia it is at least that bad, but this is what the government wants.
It pays lip service every once in a while and pretends that it cares about these high gas prices, but that is actually what it wants. It wants the prices for Canadians to go up. It wants people who are driving their aged parents or grandparents to doctor's appointments to pay more for gas. It wants moms and dads who are taking their kids to after-school activities to pay more. We heard it in the House earlier this week. It is a market incentive somehow. It is trying to incent people to drive less.
In my community, people have to drive to get from place to place to place. The government disrespects rural Canadians. It disrespects people who need to drive to get from A to B. It also disrespects, quite frankly, people who need to heat their homes. It tells seniors that it is going to drive up the price of their home heating fuel, whatever that may be, natural gas or furnace oil, etc., and that it is going to triple the price of the carbon tax, further driving up the fuel price. It suggests that maybe they can do without, perhaps turn the heat off. Seniors can shiver so that the Liberals can put more money in government coffers. It is unacceptable, and Conservatives are calling on them to stop making it worse.
There are articles that we should all be aware of and be seized by: “B.C. soup kitchens, food banks struggling with increased demand, decreased donations”. We heard this yesterday in question period. The member for indicated that former donors to a food bank have become clients, and, according to Food Banks BC, “the number of new clients accessing its 105-member hunger relief agencies has increased 50 per cent between December 2021 and March.” We are also seeing that the majority of Canadians are making changes to their grocery store habits amid higher prices. According to Bloomberg, almost a quarter of Canadians are cutting back on how much food they buy, because of higher inflation. This is more prevalent among female shoppers, such as single moms in many cases, with 29.6% of them buying less food, compared to 18% of men who are making that choice. It is not a choice, though; they are forced into it.
What do we see? We know that when the price of fuel goes up, which the government wants, as that was its policy change and the effect it desires, the price of transportation goes up, which means the price of the goods that need to get to a grocery store go up as well. We are already at a 40-year high in grocery inflation. It is up over 10% year over year, and growing at a rate that is at a 40-year high. We have not seen these numbers since the eighties.
The response of the government should simply be to stop making matters worse, stop raising the carbon tax and stop taking more money out of the pockets of workers through increasing taxes on their paycheques, which is what it is planning to do on January 1.
I have heard the Liberals now say that it is not a tax and that these are not taxes. Their website says they are taxes. The Government of Canada's website lists these as taxes because they result in lower take-home pay for Canadians.
Paul Martin thought they were taxes when he made it a priority to make the country more efficient and more competitive. He said payroll taxes kill jobs and drive down competitiveness. He got it, but he would not recognize the Liberal government today because it has abandoned all of its fiscal anchors. It has completely—
Mr. Mark Gerretsen: I wonder what Brian Mulroney thinks of that.
Mr. Mark Strahl: Madam Speaker, the member does not seem to care that the price of food has gone up for Canadians. He laughs when I bring up things about food banks. He simply cannot stand to hear the truth, and he wants to make it worse.
The member for wants to vote to make gas prices higher. He wants to vote for less money in the pockets of Canadians. He can defend that, and I will defend cutting taxes and holding the line for Canadians.
If the member is not hearing from his constituents about affordability, that means he is not listening, which would put him in good company with the Liberal government. All of us on this side of the House are getting messages. A message I received said the following:
Budgets were tight and money was short before, and now with rental prices almost doubling, gas higher than we've ever seen, and grocery prices increasing, it is getting impossible to afford the bare necessities.
Having a child, I'm not left with many options. I already have a second job, living in my car is not an option and moving back with parents also would not work so I'm not sure what else I can do. Will there be any solutions? I know I'm not the only one struggling.
For this constituent, the solution is not to have more money taken off her paycheque. The solution is not to have more money taken away from her when she has to fill up her car to take her son to school. She said she had to drop out of university because the affordability is so bad under the government.
Another constituent wrote:
My husband and I work full time [at] great paying jobs and we are still struggling. [We] can hardly afford groceries because the costs are rising in B.C. The fact that families cannot even purchase groceries without repercussions is astonishing to me. We are dual income...and we struggle. We don't spend on anything but the bare minimum necessities and even then sometimes we try to do without.
People are struggling and the government is threatening to make things worse. It is set to raise taxes on paycheques on January 1. This motion calls for it to stop that. It is set to raise prices on gas, groceries and home heating in April. We are calling on the government to stop those tax hikes.
We will be voting to protect the interests of Canadian workers and Canadian families, and to leave more money in their pockets, because they know how to spend it better than the wasteful Liberal government.
:
Madam Speaker, I will be sharing my time with the member for .
I could not be more opposed to this opposition day motion. I am not sure how they could pack more falsehoods into one short motion, but they have certainly done their best.
It is a privilege to rise in the House today to speak to this motion, although I am opposed to it. These past few years have not been easy with the pandemic and its impacts, and now we have the war in Europe and the rising cost of living. It is easy to point fingers and call out for quick solutions, but it is reckless to take advantage of the challenges communities across Canada and the globe are facing.
In recent years, climate change has had unprecedented effects on Canadians. Impacts from climate change are wide ranging, affecting our homes, cost of living, infrastructure, health and safety and economic activity. Of course, we have seen disruptions in our supply chains and how that contributes to inflation right across Canada in all of our communities.
The latest science warns that, to avoid severe impacts of climate change, greenhouse gas emissions must be reduced significantly and urgently to limit the global average temperature increase to 1.5°C. However, in taking action, it is no longer a question of choosing between our economy and climate action. It is well understood that the two go hand in hand and that the long-term health of our people, our planet and our economy depend on our taking ambitious climate action. That is what Canadians want to see. They want to see that from the government, and they want to see that from the opposition parties. They want to see us raising our level of ambition and not backing off and going backward, as the Conservatives would have us do, into the Harper era of inaction.
Let us look at some of the actions that our government is taking. In April 2021, the Government of Canada responded to the latest science by submitting a strengthened national emissions target of 40% to 45% below 2005 levels by 2030, in addition to its goal of achieving net-zero emissions by 2050. In March of this year, the government released the 2030 emissions reduction plan, outlining how Canada will meet our 2030 target. The plan builds on a strong foundation, starting with Canada's first-ever national climate change plan in 2016 and then our strengthened plan, which was released in 2020. I could not be more proud of the work that this government did in consultation with provinces and territories right across the country in order to develop our climate action plan. The plan shows that we can build a cleaner economy while making people's daily lives better.
Carbon pricing is central to all of these plans because it is the most efficient and lowest-cost policy to reduce greenhouse gas emissions. I know members on the opposite side do not believe that carbon pricing is the way to go, but there are many case studies and examples across the world that show it is by far the most effective system for incentivizing the type of behaviour we need to see and the type of innovation we need to see in order to get to a sustainable economy.
We have heard from stakeholders across the country that consistency and predictability are key to unlocking investments in the low-carbon economy. We also know that businesses and industries are developing innovative technologies and approaches to reduce emissions, including carbon capture. There are many other technologies out there. There are many renewable energy projects and things that we can be investing in. They need clear incentives and supports to put those technologies into practice. That is what our government's plan intends to do and is actioning.
Carbon pricing creates those incentives without dictating any particular approach. It lets businesses decide how best to cut their emissions. Let us remember that, if they do not pollute, they do not pay a carbon price.
At the same time, Canadians, especially the most vulnerable Canadians, are facing affordability challenges. We get that. The federal approach to carbon pricing is designed to maintain the consistency demanded by industry and investors while prioritizing affordability for Canadians. We know it is not enough to create a cleaner economy. We have to make sure that Canadians can afford it as well.
It is true that carbon pricing of pollution is modestly increasing fuel costs, by about 2¢ per litre of gasoline this year. We know every bit counts, but carbon pricing has never been about raising revenues or raising prices on Canadians. In fact, under our plan, most households end up with more money in their pocket than they pay.
Wherever federal fuel charge proceeds are returned directly to households, eight out of 10 families get more back through the climate action incentive payments than they pay in direct carbon costs, meaning the system is helping with the cost of living for a majority of Canadian families.
Let us remember, just this July, Canadian families got the first quarterly payment, which was a double payment. In Ontario, they are getting $745 this year, and they got half of that. I noticed that come into my bank account. I am sure many other members of the House and their families noticed that direct quarterly payment from the climate action incentive.
Members on the opposite side cannot claim that those dollars, 90% of those funds, are not going back to Canadian families, because they got those payments in their bank accounts.
It is lower income households that benefit the most. High income households tend to spend a lot more on fuel and energy, so they will face a net cost. However, the lowest income Canadians come out the furthest ahead.
For example, the average cost impact of carbon pricing per household in Alberta is expected to be about $700 in 2022, but this is less than the average climate action incentive payment of about $1,040 per family.
In Ontario, the average household cost is estimated to be about $580, but households will receive back, on average, about $710 to $745. These estimates take into account the direct costs, like paying more for fuel, and also indirect costs, like paying a bit more for goods and services.
Families in rural and small communities are eligible to receive an extra 10%. Households can use these funds however they want. They can use them to absorb the extra 2¢ per litre of gasoline if they choose. Households that take action to reduce their energy use come out even further ahead.
Zero-emissions vehicles are an option, with federal purchase incentives helping reduce the cost. The federal government is also supporting home energy retrofits, through the Canada greener homes grant, to reduce energy used in the home, save money and cut pollution all at the same time.
The Government of Canada has also committed to return proceeds collected from the federal output-based pricing system, or OBPS, to the jurisdictions of origin. Provinces and territories that have voluntarily adopted the OBPS can opt for a direct transfer of proceeds collected. Proceeds collected in other backstop jurisdictions will be returned through the OBPS proceeds fund aimed at supporting clean industrial technologies and clean electricity projects.
Climate change is a serious challenge, but it is also an opportunity, a very big economic opportunity. Canadians want to take advantage of the significant economic opportunities in the low-carbon economy. Analysis by the global commission on the economy and climate estimates that transitioning to a low-carbon economy will deliver a direct economic gain of $26 trillion U.S. and generate 65 million new jobs globally.
Just as we are putting a price on carbon pollution, we are also making historic investments in clean technology, innovation and green infrastructure to drive growth and reduce pollution, including $9.1 billion in new investments to cut pollution and grow the economy as part of the 2030 emissions reduction plan.
The 2030 emissions reduction plan, Canada's next steps to clean air and a strong economy, reflects submissions from over 30,000 Canadians, provinces, territories, indigenous partners, industry, civil society and the independent net-zero advisory body. The plan represents a whole-of-society approach, with practical ways to achieve emissions reductions across all parts of the economy.
Canada is not alone, by any means, in fighting climate change and pricing carbon pollution. Around the world, markets are changing, industries are moving away from products and services that create carbon pollution and are turning to cleaner and more sustainable options. The cost of inaction on climate change is enormous, and it is far greater than the cost of addressing it today.
As emphasized in the most recent IPCC report, the cost of inaction is—
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Madam Speaker, it is great to rise today to speak to this opposition day motion. I probably will not surprise members by saying that it is pretty much a non-starter for me, especially after one reads the first seven or eight words in the motion. It starts off stating, “That, given...the cost of government is driving up inflation”.
Here we are, once again, with a misrepresentation of reality being proposed by the Conservative Party, by suggesting that inflation is something unique to Canada. Inflation is a global issue right now. All developed countries around the world are dealing with it.
Let me just refresh for the members what is going on in the world. Of the G7 countries, Japan's inflation rate is 3%; France is 5.9%; Canada is 7%; Germany is 7.9; the U.S. is 8.3%; Italy is 8.4%; and the United Kingdom is 8.6%. The average inflation rate in the OECD countries right now is 10.3%,. For the Conservatives to come in here with their motion, saying it is the government's fault that inflation is where it is, is disingenuous at best and an outright misrepresentation of reality at worst.
Let us dig into why the Conservatives say that. What they are really saying is, and we will hear them say this from time to time, if the government had not spent all that money during the pandemic, we would not have inflation. What they are actually saying in reality, because all of the countries I listed did the exact same thing and are in the exact same position, is that if we had not spent that money during the pandemic, then we would not be in this position.
Therefore, what they are indirectly saying, and this is what the leader of the Conservative Party said about two years ago, is that they do not support giving Canadians the supports they needed during the pandemic. This is what their argument really comes down to even though it is very ironic that the Conservatives voted in favour of $300 billion of that spending during the pandemic.
The Conservatives are blaming the government for the inflation problem that is going on right now globally. I would remind them that it is slightly ironic, because they have a tendency to say the is incapable of doing anything, yet somehow he was able to create global inflation. We will set that aside for a second.
The Conservatives are saying that we should not have allowed that to happen, but they voted in favour of the money that we spent during the pandemic. If they are suggesting that it was the increased spending that has driven inflation, they are in the exact same boat as this side of the House, the Bloc, the NDP, the Green and, indeed, governments throughout planet Earth, as the leader of the Conservative Party likes to refer to it as.
I want to dig into something more important, and that is this newfound interest the Bloc Québécois has in calling out the Conservatives for the populism that is on full display right now. I want to hand it to my colleagues in the Bloc Québécois, especially today. A few times today they seem have jumped on board with the rest of the House, except for the Conservative Party, calling out the populous approach the Conservatives are taking. It is the populous approach we have seen in the House for the last year and a half. It is the same approach the took during his leadership campaign. Indeed, it is the same approach they are taking now. What do populous individuals do? They suggest outlandish ideas to garner support from vulnerable people in particular.
What did the do just six months ago? He showed up to buy a shawarma and paid for it with Bitcoin. He offered Bitcoin as an actual viable alternative to using the Canadian dollar. If he went out today and bought that same shawarma, he would effectively be paying $22.35 for that $10 shawarma he bought six months ago. Is that a viable alternative to the Canadian dollar?
The leader of His Majesty's loyal official opposition in the House of Commons in Canada has made the suggestion that Bitcoin should be a viable alternative. I think it is absolutely ludicrous that we cannot even get the to state his official position on it now. I have asked the Leader of the Opposition three times in this House since he was elected as the leader what his position is on cryptocurrency, and if he could come clean and tell Canadians if he still believes that Bitcoin is a viable alternative. He would not even bring himself to utter the words “Bitcoin” or “cryptocurrency”.
I have asked other members from the Conservative Party the same question today. I asked if they would at least just say the words “Bitcoin” or “cryptocurrency”. It is like they have completely removed the words from their vocabulary. They absolutely refuse to even talk about Bitcoin and cryptocurrency, let alone the fact that the leader of the official opposition only six months ago waved around a shawarma, with his phone in the other hand, while he paid in Bitcoin for that shawarma. Now where is he? He is absolutely silent on the issue. In my opinion, it gives Canadians an opportunity to reflect on their position.
They have been heckling me almost from the beginning because they do not want to hear this. I understand that they do not want to talk about this issue. I get it. It makes perfect sense. Why would they want to talk about this when the centrepiece policy of the has absolutely taken a 180° turn and gone in a different direction? I can understand where they are coming from, but I also think they have an obligation to explain to Canadians why they have taken this position on cryptocurrency, and more importantly, why they are absolutely silent on it now.
I think it is high time that the leader of the official opposition came into the House and explained this to Canadians, especially those Canadians he recommended Bitcoin to six months ago, who may have taken his advice and purchased it, and who would now have seen their life savings devastated. He owes it to them to come into the House and explain his position on cryptocurrency. He cannot wait for it to just go up and down, and pick and choose when he wants to talk about it based on where it happens to be. He owes it to Canadians to give them an explanation and I hope he does it soon.