:
Mr. Speaker, when I take a walk through this country, I cannot help feeling like everything is broken.
Inflation is at a 40-year high. In a single month, 1.5 million Canadians visited a food bank. In the GTA, the greater Toronto area, that number was 180,000, in one general metropolitan area. One in five Canadians is skipping meals, because they cannot afford their groceries. About half of Canadians are $200 or less away from insolvency. The number of insolvencies is up by a fifth compared to a year ago, the biggest increase in 13 years. One in six businesses is considering closing their doors.
Households now face the prospect of 15% of their income going to debt servicing alone, a recent record. Mortgage interest costs for the average family are up 11%. Year over year that is the biggest increase since 1991. If someone renewed their mortgage today, after having secured it five years ago, they would be paying about $7,000 more per year for the very same house they lived in last year.
If people think home ownership is expensive, they should be careful about renting. That now costs $2,000 a month in the average Canadian city. Vancouver has the world's third most inflated housing market. Toronto has the 10th. In fact, Vancouver is more expensive than New York, Singapore, London, England, and countless others of the world's most famous cities where they have more people, more money and less land.
If we took a walk out of our homes onto the street, we would find ourselves 32% more in danger of being attacked. That is the increase in the violent crime rate since the took office. In fact, there were 124,000 more crimes committed this year than in 2015, when the Prime Minister came to office. There were 788 homicides in Canada last year. That is up from 611 back in 2015, which is another 29% increase. There has been a 92% increase in gang-related homicide and a 61% increase in the reports of sexual assaults since 2015. Police have reported hate crimes are up 72% over the last two years alone. After the government tells us it is investing so much of its rhetoric and its money in fighting racism, we see hatred and hate-based violence has increased by three-quarters.
Some 31,000 Canadians have lost their lives to overdoses. If we take a walk down streets like East Hastings in Vancouver, we will see tent cities where adults are lying face-first on the pavement, having just completed their most recent dose, not sure whether they will actually awaken. Police and social workers literally have to scour the streets 24-7 to check pulses of people lying on the pavement, not as extraordinary circumstances or one-time emergencies, but as daily events. In fact, there were 71,069 Canadians who died of overdoses in 2021. Twenty-one people are dying of overdoses every single day. That is up from 11 per day.
More than six million Canadians do not have access to a family doctor. The most simple expectations that we have for our health, like going into a pharmacy and getting painkillers for our children have now become out of reach. Canadians are now forced to drive south of the border to get the same medications that are not available on this side of the border. In fact, according to an association of pharmaceutical wholesalers that represents businesses in 19 countries, only Canada is suffering from these shortages.
Meanwhile, speaking of the rest of the world, there are still people who want to come here, and we hope they do, but 2.6 million of them are waiting in immigration queues. Over a million have been waiting longer than the acceptable wait time. When they arrive, they would arrive at Pearson, one of the worst-ranked airports on planet Earth. Montreal is not far behind when it comes to records for delays. The port of Vancouver is now ranked 376th out of 380 ports around the world. Speaking of getting people into the country, 10,000 Canadians were sent wrongly into quarantine by a $54-million app that we did not need, that did not work and that could have been procured for $250,000.
Speaking of building stuff, whether it is apps or anything else, our country is now ranked the second slowest for the time it takes to get a building permit. The average building permit takes over 250 days in Canada, but only 28 days in South Korea. It is no wonder we cannot build the factories, the pipelines and, most important of all, the houses that give people homes. We import 130,000 barrels of overseas oil every day even though we have the third-biggest supply on planet Earth.
All of these things are broken. What is most interesting about them is that they all happened under the 's watch, while he refuses to take responsibility for any of them. Any one of these things in isolation would be considered a catastrophic embarrassment, but together they show the story of a country that cannot get anything done and that has accepted dramatic reductions in its quality of life and its expectation for what a person can receive living in this country of ours. The Prime Minister, who is in charge of the central government, ought to take some responsibility, but he takes none.
He says that a 40-year high in inflation has something to do with the war between Russia and Ukraine, even though inflation was already two and a half times the target before the war even began and less than 0.3% of our trade is with Russia and Ukraine combined. As for the stuff they produce, the stuff we already have here, he is not responsible for the massive increases in cost.
The is not responsible, he says, for the doubling of house prices or the fact that rental costs are out of reach. He is not responsible for the skyrocketing crime rates in our streets, even though his government oversees the Criminal Code and the national police force and border security. He is not responsible for the overdose deaths of so many Canadians. He is not responsible for the fact that so many people are going to food banks. He is not responsible for the fact that our children cannot get medication.
He says he is not responsible and he is right: He is not responsible. He is not responsible, even though he has the power to affect all of these things and, in many cases, he is the one who caused them in the first place.
I have never seen a prime minister who is so desperate to have more power with less responsibility. He wants to take over what we see and say on the Internet. He wants to control a greater share of the money that Canadians earn by constantly increasing spending faster than the economy grows. He wants to have more power over dental and pharmaceutical and child care, rather than allowing Canadians to control those things for themselves. He wants to have more control over health care by dictating terms to our provinces on how they should run their hospitals, even while he does not want to be responsible for any of the health outcomes that we see in our emergency rooms across the country. He wants more power, but he does not want more responsibility.
When we ask him about these failures, his constant refrain is that he is spending more money, and on that count he is right. There is no question that the government is the all-time heavyweight champion of spending. It has increased spending by 30% over pre-COVID levels even though COVID programs have now ended, but the results, as I have just listed, speak for themselves.
It is not a consolation prize that we are spending more to achieve these failures. The only thing worse than failing is failing expensively, and that is what the is doing.
Only in government, by the way, would politicians think that it is acceptable to measure their success by how expensive they can be. For example, this week, the Auditor General came out and said that the Liberals have spent an extra $1 billion-plus specifically on homelessness. Well, that sounds good, but they cannot keep track of how many homeless people there are in Canada. They have no idea what the results are. They have an overall housing program of $40 billion, which is supposed to make housing more affordable, but all the while house prices have doubled. The more they spend, the more things cost and the worse the results.
In the real world, people judge things by the outcome. For example, if I go to the grocery store, come back home, pull out a receipt and say to my wife, “I spent $700 on groceries” while I am holding two bags of groceries, she is going to say, “Where did all the money go?” I would say she has to give me a high-five because they were really expensive and that whatever I have in those bags must be terrific because it cost more than when she goes grocery shopping.
The reality is that nobody in the real world judges their success that way. We do not have restaurants that say, “Come dine with us. It is $500 a night to be in our dining room. We will not tell you anything about the service, the ambience or what ends up on the plate. What is most important is that our meals are the most expensive and therefore must be the best.” Only in politics do people think it is appropriate to judge success by how expensive government can be. What if instead of judging our success by how much we spend, we judged it by how much we delivered and the results that we actually achieve?
Everything feels broken in the lives of everyday Canadians, but the good news is that we can fix it. We live in the greatest country in the world. Our country has overcome these difficulties before and has rebuilt and given new hope where before there was hurt. There is a very clear path to achieving that result, and that is to start with the issue of money. Instead of spending more, let us achieve more.
How do we do that? Why do we not cap government spending and cut waste, and bring in a dollar-for-dollar law that requires the government to find a dollar of savings for every new dollar of spending measures? That would force politicians to make the same either-or trade-offs when they spend our money that everyday Canadians make in their lives.
When a local mechanic decides he is going to spend a little more on advertising, he has to spend a little more somewhere else in order to free up that money. When a family decides they are going to build a new porch, they might decide not to go on vacation or might try to find a bargain on both. They might get a deal on a vacation and go to the local construction yard to get some discarded lumber in order to build a porch more affordably.
Politicians and bureaucrats do not make those kinds of calculations because they do not have to. There is always more in the pot. They can tax more, borrow more or print more.
That scarcity gets passed on to the taxpayer. Every creature in the universe has to live with scarcity. The great economist Thomas Sowell once said that the first law of economics is scarcity. There is always more demand than there is supply. The first law of politics, however, is to ignore the first law of economics. That is what politicians do by simply putting scarcity onto other people by driving up their costs and externalizing the consequences of spending decisions.
If instead we forced politicians by law to live with the same laws of scarcity as every other business, consumer or taxpayer, we would force better results. Politicians would need to go into their departments and ask themselves, “If I want to increase spending on this initiative, where can I find savings somewhere else?" They would be incentivized to go line by line, year after year, to find low-priority items in order to redirect the money to high-priority results for Canadians.
Let us get the Bank of Canada back to its core mandate of 2% inflation rather than printing money to pay for political spending. Let us also get rid of the obvious examples of wasteful spending. We could cancel the ArriveCAN app and get rid of the multi-billion dollar Infrastructure Bank, which has achieved no projects but has guaranteed the profits of large multinationals and the bonuses of executives. Getting rid of this waste would allow us to save money and free up more resources for things that could achieve results for our people.
Instead of creating more cash, why do we not create more of what cash buys in this country? Why do we not grow more food, build more houses and generate more Canadian energy?
Speaking of energy, I had the privilege of visiting the single largest infrastructure project in Canadian history, LNG Canada, a $40-billion private sector investment approved by the previous Conservative government. It could only come to pass because the Government of British Columbia agreed to exempt the project from the carbon tax. Otherwise, it would not have been economical. What result will actually be achieved by this project? The answer is that it will cut 60 million tonnes of carbon out of the atmosphere by replacing overseas coal-fired plants with clean Canadian natural gas.
Is it not interesting that this project had to be exempt from both Bill , the government's environmental law, and the carbon tax in order for it to go ahead and reduce emissions? In other words, for this environmentally friendly project to occur, the government's environmental policies had to be ignored. That proves how backwards they are.
If the carbon tax had been in place, the project would not have been economical. If Bill , the anti-energy law, had been in place, there is no way it would have been approved. What would have happened? About 60 million more tonnes of greenhouse gases would have gone into the global atmosphere because there would not have been clean Canadian natural gas to replace the dirty coal in Asia.
We have an enormous advantage reaching Asia. B.C. is the shortest North American shipping distance to Asia. We also have the shortest North American shipping distance to Europe from the east coast of Canada. Speaking of the east coast, when the visited there, he was asked about approving natural gas projects in Canada's east coast. He said there might not be a business case. He was standing next to the German Chancellor when he said that.
Ironically, the Germans just announced that they completed a new natural gas import terminal in 194 days. Do members know what they will not be importing there? It is Canadian natural gas. Why? It is because we do not export any natural gas overseas. We do not have any terminals completed. Despite 15 of them having been proposed when the took office, not one of them has been completed. Only one is under construction, the aforementioned LNG Canada. The rest are in limbo.
We could be sending the Germans our natural gas to break European dependence on Putin and to transform dollars for dictators into paycheques for our people in this country. Why do we not do that?
Let us think of the human benefit that would bring. When I was in northern British Columbia, I spoke to a Haisla Nation grandmother who broke down into tears when she said that her granddaughter had been diagnosed with autism. After decades of federal promises that these kinds of conditions would be met with services and treatment, there is no treatment in her region of rural, remote northern British Columbia. She said that if natural gas projects like LNG Canada were allowed to go ahead, and if her nation could sign agreements to share in the benefits of those programs, there would be local resources under the control of first nations communities to provide children like her granddaughter with autism treatment and countless other things. Why do we not empower first nations to do more things like that by allowing these projects to go ahead?
We need to get the government out of the way so these opportunities can occur. We need, for example, to incentivize more home building by requiring our large municipalities with overpriced markets to approve fast and affordable building permits so that we could build the millions of new homes that are required for our existing population and for those who have yet to come to our country. We need to require that every federally funded transit station be pre-approved for high-density housing around it so that our young people do not even need to own a car to live in an affordable house.
We also need to sell off 15% of the 37,000 underutilized federal buildings so they can be made into affordable housing for our young people. We need to get government out of the way so that our projects can get completed and our people can have homes and energy.
Finally, we need to get government out of the way and off the backs of our farmers so they can produce more nutritious food in this country. Is it not an outrage that Canada has the sixth-biggest supply of farmland per capita on earth, but in one in five households, people are actually skipping meals because of the excessive cost of food?
We should not only be able to feed our own families but be the breadbasket of the world by cancelling the carbon tax, not just on primary farming but on drying food and transporting it. We need to cancel the carbon tax on our truckers so they can bring that food affordably to our supermarkets. We also need to remove the ridiculous fertilizer tariffs and taxes the government is bringing in so we can produce more food on every acre of land in order to have greater output and reduce the amount of fuel that has to be burned to produce that prodigious output. Let us unleash the fierce power of our farmers to feed us again.
Let us also make it possible for our people to walk safely in the streets once again, something we used to take for granted. The answer is clear: The vast majority of crime is committed by a tiny minority of criminals. A recent letter from the Union of B.C. Municipalities demonstrated the number of instances of crime and criminality that are generated by a tiny minority. For example, in Vancouver, 40 individuals were responsible for 6,000 negative interactions with the police, most of them arrests. Let us think about that. The same 40 people were arrested 6,000 times in a year. That is like 150 arrests per person per year.
We all agree that if a young person makes a mistake, we should invest in rehabilitating them to get them back on the street once they are ready and into a job as productive members of society. However, when someone commits 60, 70, 80 or 100 violent offences and we consistently and automatically release them early on bail and even after they are convicted, that is contributing to the criminality that has grown by one-third since the took office. Let us target that small minority of criminals with serious consequences to get them off the streets and keep the streets safe.
It is not out of hatred for the criminal that we take these actions. It is out of love for the victims, the people who desperately want to live safely in our neighbourhoods. Instead of investing money in going after the lawful, licensed, trained and tested hunters and sport shooters, we should put that money into bolstering our borders to keep the smuggled drugs and guns that are terrorizing our communities out of our country altogether.
Finally, we need to come to the rescue of the people living in these all-too-common tent cities, whether they are in Vancouver, Toronto or Montreal, or in smaller centres like Peterborough, where this phenomenon is growing out of control. We see people who could be our brothers, sisters or, God forbid, sons or daughters who have lost their homes, are living on the streets and are playing Russian roulette with their lives. Every single time they ingest these poisons, they risk stopping their hearts, and we can change that.
We know that the government's current approach is to liberalize access to the most dangerous opioids and, in fact, use taxpayer funding and public resources for so-called safe supply to make them even more abundant. There is no such thing as safe poison; it is all deadly. We know what we can do to save these people's lives, because they are doing it in Alberta today.
Alberta has redirected the resources away from a so-called “safe”, taxpayer-funded supply of drugs over to recovery and treatment, getting addicts off the street and into a recovery centre, where they are first given detox, which cleans the poison out of their system, and then given 60 to 90 days of treatment, in-patient care, building up the habits of a clean, drug-free life. They are then gently reintroduced into society in jobs and opportunities, during which time they have counselling that keeps them on the right track. What is the result of that approach? It has cut overdoses in half and they are saving lives, proving there is always hope. It is possible to save these people.
Everything feels broken in this country, but it is our role in the House to turn all of that hurt into hope. It is our job to come forward with the practical, common-sense solutions that have made this the best country on earth. It is our job to take responsibility for the suffering that exists in this country today and replace it with opportunity, to give people back control of their lives here in Canada, the freest country on earth, where people can chart their own destinies and be masters of their own fate.
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Madam Speaker, we are here talking about the 's fall economic update. It is really just an update on how government spending is going in relation to the budget from some months earlier this spring.
The bottom line is that we are going further and further into debt. Inflation is at a 40-year high, and interest rates, inevitably, are going up to combat out-of-control inflation and spending. The Liberals say they had no choice. We were in a crisis, and we had to avoid a financial crisis around the COVID-19 pandemic.
However, we have learned now from the independent Parliamentary Budget Officer that a large amount of that spending was not even COVID-related. This is the Liberal government, with the support of its NDP cousins, saying that it just wants more government spending, and that government should be involved in a bigger piece of the economic pie. It is saying, “Down with free enterprise, and up with big government”.
Our leader, the member for who just spoke, has been warning for a long time that this type of reckless fiscal policy is going to lead us into trouble. We are seeing that now. There are real-world consequences. We are seeing signs of these pressures on everyday Canadians. Almost half of Canadians are less than $200 away from not being able to pay their bills. Twenty per cent, one out of five, are skipping meals, and 1.5 million Canadians have used food banks within the last month.
I received an email from a constituent. I am sure every member in the House receives these types of emails. Cory wrote to me recently. He said:
Me and my wife have a high cost of living like everyone else. With the cost of living increasing at an insane rate, we're not sure what to do.... We've done the following: driven to the United States to get our child medication...cut down on our spending, including buying less meat. We don't want to go to a food bank, so we are eating cheaper food on a regular basis.... We have both started driving on our extra time with Uber Eats but we find we are making less than minimum wage.
Cory sums up with this, and I could not have said it better myself, “I honestly don't know what to do from here. This is ridiculous and the government has [messed] up our lives.” There are many Canadians who feel that way.
When we are talking about the economic statement, we need to talk about the flip side of the government's happy-go-lucky “spend, spend” attitude. The Bank of Canada's driving up interest rates is the response. That is the consequence, the only tool it has available to react to the government's reckless fiscal policy.
Other than bond holders, no one is happy with high inflation. Let me talk about a young family who reached out to my office just recently. They bought their dream house two years ago. They tied down their mortgage rate for two years. They have just recently received a letter from their bank saying that, unfortunately, interest rates are up, so their mortgage payments are going up $700 a month. That is $8,400 a year. They get nothing extra for that. They do not get a new car. They do not get a trip to Disneyland with their kids. All they get is more money from their hard-earned paycheques going to people who are already wealthy, investors who can afford to lend out mortgage money.
As the member of Parliament for Langley—Aldergrove, I speak to many small and medium-sized businesses in my communities, including a woman who runs a small retail business in the business district of Langley. She told me about what inflation is doing to make running her business much more difficult. She was talking about what interest rates are doing. She is paying more money on her operating line of credit with the bank right now. Profit margins are already very tight, and they are just becoming tighter. She thinks that maybe she is going to have to cut costs by laying off workers. Nobody is happy with that except, of course, the Bank of Canada governor, Tiff Macklem, who is signalling that, in order to tackle inflation, we have to kill jobs.
I heard our , the member for Carleton, ask earlier this week if the government's position agrees with the Bank of Canada governor that we need to kill jobs in order to tackle inflation. Is that the government's position? I do not think we have heard an answer to that yet. Maybe we will get some comments on that.
I want to mention a meeting that took place in Vancouver just recently with the ministers of health of the provinces and territories. They met with our federal . It was a disaster, quite frankly. Everybody was pointing fingers at everybody else, saying it is everybody else's fault that this meeting fell apart. The provinces want more money for health care, with no strings attached. They say the federal Minister of Health just is not listening.
On the other hand, the is finally feeling the reality of scarce resources. He says the provinces just do not understand his dilemma. On the one hand, he is having to work with his government's inflationary spending, and that it is never enough for the provinces. On the other hand, he knows that inflationary spending is driving up inflation and driving up interest rates.
We are now in a position where just the interest cost to service the national debt is going to be roughly equivalent to the amount of money the federal government pays to provinces in health transfers. The Bank of Canada's posted interest rate of 3.75%, times $1.3 trillion, if my math is correct, works out to roughly $40 billion. The federal government pays $45 billion in health transfers. These are the pressures we are facing. This is the result of the government's reckless inflationary spending. This is the legacy the current government is going to have to carry with it.
What will the Conservative Party do when we form government? When I listen to my constituents, that day cannot come early enough. As our has said on many occasions, instead of creating more cash, we will create more of what cash buys: more homes, more food and more resources here at home. We will remove government gatekeepers, get more homes built and make Canada the quickest place in the world to get building permits.
I was talking to marine operators in the Port of Vancouver, and they were telling me how long it takes to get an approval for any kind of project. One who also operates in the United States told us that within 18 months of applying for the approval, they actually had shovels in the ground. We can compare that to what happens in Vancouver, in Canada, and it is no wonder our productivity is so low. Everything gets bogged down with government gatekeepers.
We will make energy more affordable by approving projects more quickly. We will tackle climate change by making alternative energy cheaper, not by making Canadian energy more expensive.
We will reform tax and benefit systems to ensure that whenever anybody works and puts in some extra hours, it will pay off for them. The message I want to give to Cory in my riding is that a Conservative government will ensure that hard-working Canadians will be able to keep more of their paycheques to feed their families.
We will be voting against the fall economic statement because it did not respond to the demands we put forward, which I believe Canadians think are very reasonable.
First of all, we had asked that there be no new taxes. This includes cancelling all planned tax hikes, including the payroll tax increase that businesses in my community are fearing is going to make business even more difficult. We are asking for no new spending: a dollar for a dollar. If the government wants to spend an extra dollar, it needs to find a dollar somewhere else, pay-as-you-go style. This, I think, is completely reasonable.
Canadians are expecting the government to manage its finances properly. Under the current government, our economy is not being managed well.
:
Madam Speaker, I appreciate this opportunity to address the fall economic statement.
Recently, I had the honour and privilege to go to Washington with the defence committee. My friend from was also on the trip. I want to thank the ambassador publicly for her contributions to the utility of our trip. We could not have been treated better. We went to the Wilson Center, the Pentagon, the Atlantic Institute, and other places. With respect to defence contacts, Washington is, frankly, the centre of the geopolitical universe.
In addition to chairing the defence committee, I also co-chair the Permanent Joint Board on Defence, which harkens back to the times of Roosevelt and Mackenzie King. I want to assure hon. members that I was not chairing the board at that time, but can expect some push-back from the member for on that. It is an opportunity, on an annual basis, for our respective militaries to exchange public policy issues, in particular, to update their own military policies. The American government has just updated its military policy and the Canadian government is about to update its “Strong, Secure, Engaged” policy, because, frankly, the threat environment has changed dramatically in the last 12 months.
Members may wonder why I would start a speech about the fall economic statement by referring to defence. Over the course of these many meetings, I started to joke that we really should rename the defence committee to the defence, trade and commerce committee, because the threats that Canada and other western nations are facing are not merely threats that relate to what we would describe as security and military threats. Rather, they are societal, economic and business threats, which are in fact far more insidious and multi-faceted than stand-alone military and security threats.
It was clear when we arrived in Washington that the Americans regard China as what is called a pacing threat. A pacing threat is a threat to which we have to maintain our technological military superiority. They clearly regard Russia as an acute threat, one that can literally do damage, but it does not penetrate into the threat analysis in the same way as does China. The pacing threat that China is creates a grey zone of conflict. This is where it relates to our fall economic statement, because in the grey zone of conflict, there is an economics challenge, a business challenge, a democracy challenge, an intellectual property challenge, a rule of law challenge, and we could isolate many more.
The PRC uses all of these areas of access points to undermine the very fabric of our society, to steal when it is appropriate to steal, to loot when it is appropriate to loot, to sow disinformation when it is appropriate to sow disinformation. Anything of any value gets returned to Beijing one way or another, which in turn takes those intellectual, scientific and technological advantages that we currently enjoy and uses them against our western society.
Those who briefed us expressed a real worry that we need to keep ahead. A cold war mentality is setting in, but unlike the Cold War mentality of the mutually assured destruction that existed between the U.S.S.R. and the U.S. in times past, it is a top-to-bottom, layer-by-layer contest over anything of any value in western societies. There is a huge advantage for the Communist Party of China, because it is a closed society. Ours are relatively open societies, and the contest is heavily weighted in favour of a closed society that has a unitary view of dominance at all costs and wishes to turn us all into vassal states.
In sharing our intellectual resources, we will see our universities are relatively open. The concept in western society is that we share knowledge with a view to building knowledge, and the real question is whether we can actually continue that. The argument, if one was looking at this from a threat analysis standpoint, is that we cannot.
We have a patent regime that exists to protect investor and property rights. Again, a society that routinely abuses the patents that exist and takes no responsibility to compensate the creator is a system that may not continue to be able to exist.
Further, we have open real estate markets. We have heard a lot about the cost of living. What is, in part, driving the cost of living are massive infusions of monies from abroad, somewhat from China in particular, which drives up the prices of housing. In turn, that makes housing unaffordable to our own population and distorts our entire market system. That cannot continue.
We have an open investor system in mines and minerals. Again, we cannot allow state-owned enterprises to own critical minerals and critical mines.
We have an open democracy. We cannot continue with the misinformation and voter influence campaigns that are run from the People's Republic of China. When we hear the threat analysis from the people in the Pentagon and leading thinkers in all of these institutions, we realize all these layers of threat are significant to our way of life and significant to the prosperity that, frankly, is reflected in our fall economic statement.
These are just a few examples of the layered threats that go from a traditional military threat right through to abuse of our democracy.
I looked at the fall economic statement and compared it to the Parliamentary Budget Officer's view of the same set of numbers. Frankly, there is not a great deal of difference between the two. Occasionally the government is a bit more optimistic than the PBO and on occasion the PBO is a bit more optimistic than the government, but on several layers we are necessarily simply going to need to adjust.
Capital flows from the PRC are going to need to be restricted, and these capital flows will need to be replaced internally or from abroad, probably primarily from the U.S. In fact, the United States military has set up a fund, where it is available to invest in various technologies but also various mines and minerals that will be needed to keep ahead of a pacing threat.
I have a relative, for instance, who works at a leading research company, and the Department of Defense is actually one of the significant investors in that company. Rare earth minerals require a lot of capital and are critical to the 21st century economy. They are also critical to weapons technology.
Canada is treated as a domestic supplier for defence procurement. We will start to draw down on that status much more vigorously as we reshore, we nearshore and friend-shore critical investments.
I see that Madam Speaker is hinting that my time might be finished, so I will end here.
:
Mr. Speaker, before the introduced Bill , the fall economic statement implementation act, on November 3, the Conservative leader made two clear demands on behalf of our party.
First, we wanted the Liberal government to stop the taxes. This included cancelling the planned tax hikes and the tripling of the carbon tax. Second, we wanted the Liberal government to stop the spending. Any new spending by Liberal ministers in the government must be matched by an equivalent saving to cut wasteful spending and stop the inflationary deficits that drive up the cost of everything for Canadians.
Unfortunately, neither of our demands was met by the government and, for that reason, I will be voting against this bill.
Simply put, the fall economic statement does not address the cost of living crisis facing Canadians right now. In fact, it makes the crisis worse. After seven years of the Liberal government, we pay more today for goods and services and get less. Groceries, gas, home heating and more are getting more and more expensive by the day because of the Liberals' reckless spending habits, the same reckless spending habits that have played a big role in driving up inflation.
Many of the inflationary issues and concerns we face are of the government's own making. For months we have been warning the Liberals that their out-of-control spending would lead to an increase in interest rates. The government responded by telling Canadians not to worry and to go ahead and take out big loans and mortgages, because interest rates would remain low for a long time and there would not be any negative consequences.
Well, fast-forward to now, and interest rates are increasing at the fastest rate in decades. Families that bought a home five years ago with a typical mortgage that is now up for renewal will pay $7,000 more a year. The Bank of Canada has signalled that interest rates will have to rise even higher to tackle inflation. Many Canadians will not be able to afford their mortgages and will risk losing their homes.
Through the government's bad spending habits, as inflation soars, so does our national debt. Since they were elected in 2015, the Liberal government has doubled our national debt, spending more than all previous governments combined since Confederation in 1867. Let that resonate for a moment.
Here are some recent examples of reckless Liberal spending contributing to inflation and our national debt.
The government wasted $54 million on the disastrous ArriveCAN app, yet it refuses to tell us who got rich off those massively excessive contracts.
The federal government paid out generous bonuses to Destination Canada executives when the tourism industry badly needs to recover.
The Liberal government recklessly spent $400 million on random testing at our borders, when medical experts said this policy was no longer needed.
Just last month, the spent $6,000 to stay for one night in a luxurious European hotel room.
Despite all the reckless and record Liberal spending, Canadians have less to show for it and are worse off because of it. Is it any wonder, then, that Canadians are struggling? The cost of groceries is up almost 11%. The cost of transportation is up over 10%. Gas is up over 22%. Next April, the excise tax on alcohol will increase by nearly 7%.
Under these deteriorating conditions, people work harder to try to get ahead, but they take less home because of the higher cost of the things they buy and the higher cost of punishing taxes to afford all this reckless Liberal spending. As a result of the Liberal government's incompetence, goods and services are more expensive and we have less money to pay for them.
How are Canadians reacting to this new reality? Families are downgrading their diets to cover the jump in food prices. Food bank usage is at an all-time high. Seniors are delaying their retirement and watching their life savings evaporate with inflation. Younger adults who did everything right are now trapped in 400-square-foot apartments or living in their parents' basements. No wonder Canadians feel like they have lost control. Many are falling behind, and others are struggling to get ahead.
The fall economic update shows that federal government revenues have increased by $40.1 billion this year alone. As Canadians suffer financially, the Liberal government is actually profiting from increased inflation that it generates and Canadians pay for.
How did it do that? Well, when Canadians pay higher prices on goods and services, they are also paying higher taxes. When they pay higher taxes, the government makes more money.
My NDP colleagues in this place have a history and reputation for taking issue with big corporate greed, yet when it comes to big government greed, apparently it is different and they turn a blind eye.
Rather than rein in the spending to begin slowing down the vicious cycle of spend and inflate, the Liberals drive the cycle of inflation even faster by spending more money at every opportunity they get. In addition to driving inflation, the federal government is also incurring tremendous amounts of debt. In fact, debt interest payment costs will have doubled this year. Next year, interest payments will be nearly as much as the Canada health transfer, and it is projected to be larger than what the government spends on the budget for the Department of National Defence.
Let us think about that. This is not good governance. It is dangerous governance. Anyone with a stake or interest in the good governance of our country should be alarmed and concerned.
Today, the federal government spends more money than any federal government before it. It is bigger, in terms of workforce, than ever before, yet what are the results? Millions of immigration applications are backlogged. Passport applications are severely delayed. New NEXUS and FAST applications are far behind schedule. The Phoenix pay system disaster continues. Government transparency is all but gone as journalists, researchers and Canadians cannot access federal information because the access to information system is broken in many federal departments.
Another irony I will point out is that despite the record number of federal employees and a track record of nothing working, this big-spending Liberal government spent $14.6 billion last year on outsourcing contracts to businesses outside of the public service to do public service work. This is yet another indication that the federal government is too big, which is causing it to break down.
Canadians are paying for reckless Liberal spending. We are not benefiting from it. In fact, future Canadian generations are at risk because of that and the debt the Liberal government has incurred. Canadians must realize that as the Liberals make more promises for a better tomorrow to detract us from the issues of today, none of the problems they have created, which Canadians now face, are getting fixed. After seven years of Liberal government incompetence in Ottawa, Canadians are realizing they are worse off today compared to when the Liberals first took office in 2015. We need real solutions to these real problems that Canadians are facing right now.
Instead of creating more cash, the Conservatives would create more of what cash buys. Enough with the talking, we need to get more homes built. We need to make energy more affordable, and to do so we would repeal anti-energy laws and get Canadian energy out to market. We would cut corporate welfare and axe the carbon tax. We would tackle climate change by making alternative energy cheaper, not by making Canadian energy more expensive. We would reform the tax system to ensure that whenever people work an extra hour, take an extra shift or earn an extra bonus they are always better off and would keep more of that dollar for themselves and their needs, not for the government's political agenda.
Conservatives have an ambitious vision and plan for when we form government after the next election, but for now, I am going to do my part by voting against Bill .
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Madam Speaker, I am pleased to rise to add my voice to the debate on the fall economic statement.
The bill is a disappointing but unsurprising continuation of the high-tax, high-inflation policy that we have come to expect from the Liberal government. The bill offers Canadians more debt, more taxes, more spending and the prospect of more inflation and higher interest rates in the months and years ahead. I say that Canadians have come to expect this kind of bill because this is consistent with what these Liberals have delivered for the last seven years.
Back in 2015, these Liberals promised three years of what they called “modest deficits” that would be incurred entirely for the purpose of a transformational infrastructure construction program, which would lead to the budget balancing itself by 2019. It was obvious right from the start that this solemn election promise was a lie told to Canadian voters. They immediately started piling on new spending without any fiscal restraint and drove Canada straight into deficit, and they have never talked about a balanced budget since.
It was as if no Liberal MP had ever heard the promise they made to millions of Canadians on doorsteps that, if Liberals were elected, they would get short, modest deficits offset by gleaming new productivity-improving infrastructure. Instead, we have structural deficits and industries struggling under the weight of ever-increasing regulation. I would remind members of the House, and Canadians watching or reading this, that this government's track record is how its credibility should be measured.
After ignoring their promise by pretending they never made it, Bill Morneau assured Canadians that what really mattered was not deficits but that the debt-to-GDP ratio would constantly shrink. Then, when his own departments' projections looked like this so-called fiscal anchor was in jeopardy, he suddenly said that, no, what really mattered was Canada's AAA credit rating. Then, at the moment when one agency downgraded Canada's credit rating, when Canada was paralyzed by rail blockades, when Canada's lack of pipeline capacity was helping drive Canadian energy prices below zero, when the economy was teetering on the brink of recession, and when this government was about to table a massive deficit budget, COVID struck. It is critical for Canadians to remember this important point. This government squandered four years of a booming world economy by creating new taxes and regulations that decimated Canadian industries and racked up $100 billion in new debt before the pandemic. All of this happened before the pandemic.
Conservatives warned this government throughout the first four years that it was grossly irresponsible to run large deficits and fail to build promised infrastructure while times were relatively good. Conservatives repeatedly warned the government that it was leaving Canadians vulnerable by leaving the cupboard bare during good times. The Conservative leader certainly did not predict the COVID pandemic, but he did warn the government that it had a responsibility to act prudently to maximize Canada's capability to manage an economic downturn.
Now, nearly three years later, according to the fall economic statement, Canada's debt is nearly $1.2 trillion, more than half of which was piled on by this government alone, and the majority of the new debt this government has added had nothing to do with COVID response measures, as $100 billion of it came before COVID, and $205 billion was added to the debt after the pandemic for spending that had nothing to do with the pandemic.
While the current and previous finance ministers were running these huge deficits, they assured Canadians that this was all okay. They said that interest rates were low and would remain low for the foreseeable future. They even said that rates were so low that they could run a deficit while lowering the debt-to-GDP ratio.
While the finance ministers were racking up the debt, the Bank of Canada was cranking up the printing press. The Department of Finance issued new debt, and the Bank of Canada bought it with cash created out of thin air. Current and previous governors of the Bank of Canada assured Canadians that this was fine, that there was nothing to be concerned about.
In fact, I asked the Governor of the Bank of Canada if buying up all this debt with newly conjured money would eventually trigger inflation, and he said no. He dismissed the concerns that I raised two and half years ago about inflation. He said that there would be no inflation, and even if there was, they had plenty of tools to deal with that. Our Conservative leader also raised these concerns consistently over the past two and a half years.
The dismissed these Conservative concerns about inflation and said that any inflation was simply transitory and nothing to worry about. Now here we are. We are in a full-blown cost of living crisis. Canadians are increasingly unable to afford basic necessities of life such as food, groceries, gasoline, housing and home heating.
Inflation has been called the cruellest tax of all. It destroys the life savings of seniors. It destroys the purchasing power of workers whose wages do not keep up with the cost of the goods they need to live. Canada now has the highest inflation in 40 years, yet there is absolutely nothing in the fall economic statement that would meaningfully address this crisis.
Milton Friedman said, “Inflation is always and everywhere a monetary phenomenon in the sense that it is and can be produced only by a more rapid increase in the quantity of money than in output.”
As the Conservative leader has put it, there is too much money chasing too few goods. The cost of government is driving up the cost of living. We must stop printing cash and start producing more of the things that cash buys, such as food, houses and affordable energy. Now that inflation is out of control and wreaking havoc on Canadians' ability to feed, house, and transport themselves, and heat their homes, the Bank of Canada is raising interest rates faster than at any point in decades.
This has two important consequences for Canadians. First, it means that thousands, perhaps even millions, of Canadians are going to see their monthly mortgage payments shoot up drastically in the months and years to come. Second, it means that the interest on Canada's debts will soon approach $50 billion per year, according to the fall economic statement. The Canadian government will soon spend more on interest than it does on health transfers or national defence.
On top of all that, this bill offers no meaningful tax relief for Canadians. The government is proceeding to triple the carbon tax on home heating, gasoline and groceries, again breaking a previous Liberal election promise to not raise the carbon tax above $50 per megatonne. This is in addition to the payroll tax, which is set to increase in just a few weeks. Canadians cannot pay a higher carbon tax with a smaller paycheque. They cannot afford higher food prices, higher home heating costs or higher gasoline and transportation costs. As the interest rates rise and house prices remain out of reach, Canadians despair that an entire generation has given up on the dream of home ownership.
However, the problems with the government go way beyond this terrible bill and deeply flawed and disappointing fall economic statement. It is a government that has failed Canadians so thoroughly that it is almost incomprehensible. The government is so hopelessly incompetent that Canadians cannot get a passport. The government cannot ensure access to basic children's medication. There are nearly two and a half million people waiting for an immigration decision, and 10,000 people who were ordered into quarantine and threatened by a useless and dubiously acquired phone application.
The government's payroll systems cannot pay, and its procurement systems cannot procure. Our Arctic is inadequately defended. Public officials have denied and defied democratic orders of Parliament. Emergency powers have been declared under false pretense. Cabinet ministers interfere with police investigations. Basic information is routinely denied to members of the public and to journalists. Our energy resources remain in the ground while Europe freezes and Putin laughs. Canadians cannot afford food. They cannot heat their homes. The continues to jeopardize Canada's future with reckless spending and punishing taxes, while mocking desperate, suffering Canadians by having them believe that she shares their hardships and can relate to them because she cancelled her Disney+ subscription.
I have no confidence in the government. I oppose this bill, and I oppose the government. It is time for a Conservative government and hope for Canadians.