:
Mr. Speaker, colleagues in the House and Canadians, I have the honour to table, in both official languages, the economic and fiscal update 2021.
Twenty-one months ago, a global pandemic reached our shores. Few of us had any idea how long it would last or the toll it would take and, today, we are facing omicron, an even more virulent variant of this virus. However, we can be confident we will get through this, because our government did understand from the very outset that to save lives our economy would have to be locked down, so we put in place unprecedented measures to meet this unprecedented challenge.
We supported municipalities and we supported provinces and territories. We supported our health care system and we supported schools. We provided free vaccines, PPE, rapid tests and therapeutic medicines.
[Translation]
Our focus was on people and jobs. We helped millions of Canadians with income supports. We delivered direct payments to seniors and families.
We kept businesses going, particularly small businesses, and helped workers stay connected to their jobs, with the wage and rent subsidies and loans for small businesses. We did this because it was the right thing to do. We also did it because we knew it was an investment in our economy that would pay off.
Our goal was to prevent economic scarring. We wanted to emerge from this with our economic muscle intact, ready, as a country, to come roaring back. Keeping the Canadian economy on life support as we went into COVID-19 hibernation was expensive, but we knew that keeping Canadian families and businesses solvent would help our economy rebound.
[English]
This economic and fiscal update provides Canadians with a transparent report of our nation's finances. It also includes targeted investments that will ensure we have the weapons we need to finish the fight against COVID-19, an effort more urgent now than ever with the surge of omicron.
First, we are protecting children with pediatric vaccines, now available for free for all children five and over. Booster shots are free for all Canadians too, just as first and second doses have been.
Omicron makes boosters more urgently important now than ever. I ask people to please go and get a booster as soon as they are eligible. I have booked mine and I am very glad to have done so. We have enough boosters for everyone, and boosters are an essential defence against the mounting threat of omicron.
We are investing in new antiviral drugs for COVID-19 patients that prevent hospitalizations and will save lives. We are investing in ventilation improvements to prevent outbreaks at schools and workplaces.
[Translation]
To date, our government has delivered nearly 80 million rapid tests to provinces, territories and indigenous communities, free of charge. This fiscal update sets aside a further $1.7 billion, enough to procure more than 180 million additional rapid tests. Rapid tests are a useful tool in the intensifying fight against omicron. We are buying and distributing them, and we encourage Canadians to use them. We are also providing support to provinces and territories for proof of vaccination credentials. As we brace ourselves for the rising wave of omicron, we know that no one wants to endure new lockdowns. That is why vaccines, vaccine mandates, boosters, ventilation and rapid tests are so essential.
Over the past 21 months we have all learned that fast, local action to limit outbreaks is much less costly than waiting and being forced to impose wider and deeper restrictions. In that knowledge, and out of an abundance of caution, we are proposing local lockdown support for workers and businesses. These measures are an insurance policy for our country, and are in place to help local public health officials make the right decisions in the coming months, knowing their communities will have the support they need. We are also moving forward on 10 days of paid sick leave for workers in federally regulated businesses.
[English]
We are also provisioning an additional $4.5 billion to pay for possible further costs of fighting omicron and other COVID‑19 surges, including spending on border measures and on income and business supports.
The COVID pandemic triggered the steepest economic contraction in Canada since the Great Depression. At its worst, it cost three million Canadians their jobs, as our GDP shrank by 17%. This was a once-in-a-generation trauma. When it first hit, many predicted it would take years to rebuild. That is why we are so pleased to report that Canada has largely recovered from the economic damage inflicted by COVID‑19 and is poised for robust growth in the months to come. We have now surpassed our target of creating a million jobs. In fact, we have recovered 106% of the jobs lost at the peak of the pandemic, significantly outpacing the United States, where just 83% of lost jobs have been recovered so far.
From the start, we have understood that few things are more central to the economic well-being of Canadians than having a job. That is why our investments have been so singularly focused on employment and why Canada has experienced the second-fastest recovery of lost jobs in the G7.
Our GDP has already returned to near pre-pandemic levels. Our GDP growth of 5.4% in the third quarter outpaced that of the U.S., the U.K., Japan and Australia. OECD projections suggest that by 2023, Canada's recovery will be the second fastest in the G7.
This update shows that the size of the Canadian economy this year will be $2.48 trillion. When we published our economic forecast in the 2018 budget, that is almost exactly the size we expected our economy to grow to by this year, and we made that forecast when none of us had any idea that our economic growth and our lives would be so deeply disrupted by COVID‑19. We are back on track and that is good news for all Canadians.
Canada posted a $25.1-billion surplus in our trading goods in October as our exports rose. Fewer businesses went bankrupt over the past year than in 2019, before the pandemic. There are now an additional 6,000 active businesses in Canada compared with before the pandemic. Household employment income is now 7% above its precrisis level, and Canadians have used this difficult time to pay down their personal debt relative to their income.
Our recovery from the COVID‑19 recession has significantly surpassed Canada's recovery from the 2008 recession. We have already more than recovered lost jobs, a healing that took eight months longer after the much milder 2008 recession. We are on track to recover lost GDP five months more quickly than after the 2008 contraction.
[Translation]
Provincial government balance sheets were sheltered from the pandemic thanks to strong support from the federal government. Provincial and territorial government revenues actually increased in 2020-21 because of substantial federal support, both through direct transfers and through Canada's COVID-19 economic response.
This assistance helped put a floor under provincial and territorial government revenues thereby limiting their deficits and debt. Fully $8 out of every $10 provided to fight COVID-19 and support Canadians through the pandemic came from the federal government. Our government will continue to be agile as we navigate the highly volatile and evolving global economy and health industry.
We need to continue to manage the spread of this sneaky and unpredictable virus. The pain of the families who lost a loved one can never be measured. Our guiding principle will continue to be the conviction that the best economic policy is a strong health policy. Because we have been steadfast in putting saving lives first, this is the approach that has driven our strong economic performance and the second-lowest mortality rate in the G7.
As we look ahead, we are mindful of elevated inflation and its impact on the cost of living for Canadians. We know inflation is a global phenomenon driven by the unprecedented challenge of reopening the world’s economy. Turning the world economy back on is a good deal more complicated than turning it off.
During the lockdown, Canadians' incomes remained strong, on average, but opportunities to spend on services were severely restricted. The result was that Canadians spent more on durable goods, without spending on meals in restaurants, personal care or vacations. Canadians spent their disposable income on renovations, new furniture, appliances and cars. It will take some time for supply chains to catch up and for our economy to rebalance itself.
To help unsnarl Canada's supply chains, today we are announcing $50 million to launch a call for proposals that will help Canadian ports acquire cargo storage capacity and take other measures to relieve supply chain congestion.
[English]
Our government understands that a strong monetary policy framework is the best weapon in our arsenal to keep prices stable so that Canadians can afford the cost of living. That is why yesterday we renewed the Bank of Canada's 2% inflation target to ensure that the current rate of inflation does not become entrenched.
Canada was a pioneer when we established an inflation target to guide our central bank in setting interest rates. In the 30 years since, the Bank of Canada has successfully maintained price stability in our country. Our government has every confidence the bank will continue to deliver on this essential mandate. Canadians should be wholly confident in their central bank.
[Translation]
Many Canadians worry about paying their bills. That is why we are glad we indexed the Canada child benefit to inflation, and are committed to continuing to index old age security, the guaranteed income supplement, the goods and services tax credit, and other benefits for the most vulnerable.
We are committing today to provide guaranteed income supplement or allowance beneficiaries who also received the Canada emergency response benefit with a one-time payment to alleviate the financial hardship they may have faced as a result of an unintended interaction between the two benefits. We are also laying out a plan to provide debt relief to students who need to repay the Canada emergency response benefits they were not eligible for by proposing to offset their debt with the Canada emergency student benefit amount for which they were eligible.
We are establishing the $60‑million Canada performing arts workers resilience fund, which will support initiatives that improve the economic, career, and working conditions of live performance arts workers, including independent contractors.
[English]
Early learning and child care costs are like a second mortgage for many young Canadian families. Child care that is too expensive or just not available keeps many mothers from going back to work, which is an unacceptable brake on our economy at a time when we are facing labour force shortages.
We knew that high-quality, $10-a-day child care would make life more affordable for Canadian families and drive economic growth. That is why our $30-billion investment in early learning and child care was the cornerstone of the April budget.
Our plan was widely supported, but many Canadians were skeptical about our ability to get the job done. I understood them. After all, Canadian women have been trying to establish a national system of early learning and child care for more than half a century and, with the exception of Quebec, we had not succeeded.
Today, I have great news for Canada's working mothers and fathers. Less than eight months after we announced our bold project in our budget, we now have child care deals with nine provinces and one territory. Within five years, Canadians will proudly rely on $10-a-day child care just as our universal, publicly accessible health care system has come to define us as a society. This is a historic accomplishment that will transform the lives of every parent in Canada and of every future parent in Canada for generations to come.
Let us give this effort a final push and conclude agreements with Ontario, the Northwest Territories and Nunavut. We can and we must get this done now.
Immigration is another important driver of economic growth and is a Canadian competitive advantage. Our government is committed to bringing in 411,000 immigrants in 2022. It will be the highest number in Canadian history. To help support this effort and reduce processing time for permanent- and temporary-resident and Canadian citizenship applications, we are investing $85 million in our immigration system.
Housing prices are a real concern, especially for middle-class Canadians hoping to buy their first homes. Housing affordability remains a priority for our government, and we will take further action in the upcoming budget. As we announced in the spring budget on January 1, 2022, our government will apply Canada's first national tax on vacant property owned by non-resident non-Canadians.
As we said we would, the government is also bringing forward legislation to extend the northern residents deduction so Canadians in the north can claim up to $1,200 in eligible travel expenses on their taxes starting next month. The government will also bring forward legislation to extend small businesses' deadline for the repayment of Canada Emergency Business Account loans, and to ensure that seasonal workers who received pandemic benefits can still qualify for the EI seasonal workers pilot project.
[Translation]
Climate change is causing increased volatility in the economy. Recent and tragic floods in British Columbia devastated homes, farms, and critical infrastructure, and further disrupted supply chains. Severe droughts, including across our Prairies, have contributed to increases in food prices. We are taking action to fight climate change.
Canada has a world-leading price on pollution that is helping to lower emissions and grow a cleaner economy. In fact, as many countries in the world look to up their level of ambition they are seeing inspiration in our plan. We are also working to finalize Canada’s first National Adaptation Strategy by the end of next year. The green transition of the global economy is under way. It is one of the great economic opportunities, and one of the great challenges, before us.
Our government is determined that Canadians must emerge from this international transformation even more prosperous than we are today. We will ensure that there are good sustainable jobs for Canadians in every corner of the country, for decades to come.
[English]
Above all, we know that our national focus, once we emerge from COVID-19, must be growth and competitiveness. Measures to promote them will figure prominently in the budget. Our government understood from the start of this pandemic that the best way to maintain strong public finances was to keep our economy strong. That is what our emergency spending achieved. This fall, Moody's and S&P both reaffirmed Canada's AAA credit rating.
We know that Canadians work hard to earn a living, and expect us to be careful with their money. We know we have a duty to do the right thing for today and for tomorrow. We understand that our debts must be repaid. We came into this crisis with the lowest net debt-to-GDP ratio in the G7, and in fact we have increased our relative advantage during the pandemic.
We remain committed to the fiscal anchors that we outlined in the spring budget: to reduce the federal debt-to-GDP ratio over the medium term and to unwind COVID-19-related deficits. In October, we pivoted from necessary but costly broad-based support programs to more narrowly targeted, less expensive measures, as we had promised we would. Our government will continue to be a responsible and prudent fiscal manager.
This update reports a deficit of $327.7 billion for the last fiscal year and of $144.5 billion for this fiscal year. This compares favourably with our forecast of $354.2 billion and $154.7 billion, respectively, in the April budget.
Our debt-to-GDP ratio in the last fiscal year was 47.5%. It will peak at 48% in this fiscal year and then fall steadily, as will the deficit. This contrasts positively with our prediction in the April budget.
In budget 2021, we forecast that in this fiscal year, 42% of our bond issuance would be long-term debt of 10 years or more. Today, we can forecast that it will be 45%. Members will recall that in 2019, only 15% of our debt was locked in over a long-term horizon. Pushing more of our debt into bonds with a longer maturity ensures that Canada's debt servicing costs are sustainable.
Thanks to an improving fiscal outlook, the amount of money we will need to issue and borrow into this year is $35 billion lower than forecast in budget 2021. Despite a necessary and unprecedented level of spending to support Canadians during COVID-19, our public debt charges as a share of GDP will be the same this year and next year as they were in 2018 and 2019, before the pandemic.
This fiscal update includes a provision to settle the cases on harm to first nations children currently before the Canadian Human Rights Tribunal and to invest in transforming the services offered to first nations children and their families. We have provisioned $20 billion for compensation and $20 billion to improve the system going forward.
The Government of Canada is working toward an agreement with the parties on this issue. We know that paying our historic debt to indigenous people is paramount, and that we must act to ensure that these injustices do not happen again. We will not and we cannot evade this essential commitment. That is why we are today setting aside the funds to pay for it.
It has been a hard 21 months, but we are succeeding because we are doing what Canadians do in a crisis. We are helping each other, we are working together and we are doing what needs to be done, whether it is as big as the wage subsidies or as small as wearing a mask at the grocery store.
With winter upon us and omicron now among us, we know that there will still be tempests ahead, but we are resilient. Our plan is working and once we finish the fight against COVID-19, we will turn our resolve toward fighting climate change, advancing reconciliation with indigenous people and building an economy that is stronger, fairer, more competitive and more prosperous for all Canadians.
:
Mr. Speaker, the has proven her government has no economic plan for our country. That is how I started my response to last year's economic update and, unfortunately, the exact same thing rings true today.
Today, the Liberal government shared a snapshot of Canada's economic position. The is actually hoping to fool Canadians into thinking everything is fine. After shutting down an economy for over a year and spending half a trillion dollars, of course one will see some growth and some employment gains. What the minister neglected to point out is how the government's mismanagement has led our country and Canadian families to the edge of an economic cliff. Inflation, in fact, is helping to fudge the Liberal numbers while hurting families and seniors across this great country. “Just inflation” is good for the 's budget but bad for Canadians' budget.
Canadians are living through a cost of living crisis. We hear that all across the country people are living through an inflation crisis that the predicted a year ago would be deflation; she was wrong on all the fundamental projections upon which the cost of living is based.
Canadians, new families and seniors are struggling with a housing crisis across the country, and the Liberal government is now focused on making life more expensive for Canadians. It plans to tax the sale of homes, including colleagues' homes. On January 1, 2022, it is going to start raising taxes. While the Liberals have no plan for our recovery, they certainly have a high-tax, high-debt agenda, and that is the last thing Canadians can afford right now.
During my response to the Speech from the Throne last month, I spoke about Peter from Nova Scotia, who owns a boat charter and lobster eatery in Peggy's Cove. Small businesses like his are struggling with rising costs. They are struggling to make ends meet, and they are going to be struggling to pay the government's new payroll tax.
I spoke about Clifford from rural Alberta, who felt completely left behind by the Liberal government. Clifford is a senior on a fixed income and he is struggling with rising prices. Gas is up; food is up; home heating is up. Everything is going up except his benefits.
Do the and the Liberal know about the real struggles these Canadians are facing? Are they listening? Sadly, Canadians like Peter and Clifford, like millions of Canadians across this country, are being left behind by a government that is continually out of touch. That is why the Conservative opposition will be here to be a voice for the millions of Canadians being left behind in the Liberal economy.
[Translation]
Canadians are under increasing pressure. Their paycheques are not keeping pace with the rising cost of living. Average salaries are increasing by about 2%, while inflation is increasing by almost 5%. This means that the average family has had a 3% drop in salary this year alone.
[English]
Canadians are getting priced out of their own lives. Merry Christmas from the Liberal government.
To cope with rising home prices and stagnant wages, Canadians have been piling on more and more personal debt in recent years. Now many Canadian families have their finances close to a breaking point. Is the government listening? Twenty-seven per cent of Canadians say they are insolvent and cannot pay all monthly bills and debt payments as costs are going up. Half of Canadians say they are $200 or less away from financial insolvency each month. Canadian household budgets are fragile. When we see increases of 20% to 30% for gas, fuel, rent or food, that crisis is out of control. Thirty-five per cent of Canadians are concerned that future interest rate increases could drive them toward financial bankruptcy.
The Bank of Canada recently said that interest rates will go up next year. Some experts expect rates to be increased five times or more next year. In The Globe and Mail, the head of C.D. Howe had a column that warned about this, called “Brace for impact: Rate hikes are coming”. He said, “Investors, homeowners, businesses, and our big-borrowing governments need to get ready,” as interest rate increases are coming. This is at a time when the government is starting the new year by raising taxes on Canadians on January 1. Happy new year.
This is why inflation matters. This is why monetary policy matters. This is why the budget, job creation, our competitiveness, trade with the United States and our economic future matter. By 2023, the will have doubled the national debt, spending more than all previous prime ministers combined. That is astounding, and there is hardly even a notice from a Prime Minister who thinks that budgets balance themselves and might think that Canadians' credit card bills do the same. That is not the case.
We have a government coming out of COVID that spent more per capita than all our allies and has some of the worst results. In today's fall economic statement, cleverly snuck in just before the Christmas break, the bragged about how Canada's deficit numbers are better than expected, so let us take a look at that. We know the Minister of Finance has already been flagged for a misleading video on Twitter. Maybe we should look at the numbers behind her claim.
Inflation is boosting the Liberals' tax revenues. If they raise the general price level by almost 5%, that boosts GST revenues by 5%. Our deficit numbers are smaller because their inflation is higher. When the shadow minister for finance asked a simple question of the Minister of Finance on this issue, namely how much more revenue the government has collected from driving up inflation, she would not answer the question. Canadians are paying the price. Inflation may look good to pad the Liberals' budget, but it makes it impossible for Canadians to meet their budgets.
Inflation is rising by almost 5%, the highest in 18 years, and the Bank of Canada is warning that it will get even higher in the months ahead and stay that way through parts of next year. For families with tight budgets and seniors on a fixed income, these are alarming numbers. Our country is drowning in the rising waters of debt that is being fuelled by inflation and by ideological policies that are driving away investment and making Canada one of the last places people will come for their economic recovery. Now we are watching the consequences of the government's decisions in real time.
Heating our homes as we head into the Christmas holiday will be more expensive, with natural gas prices up nearly 20%. Filling up a car to go visit grandparents on Christmas Eve will be too, with gas up almost 42%. Even the cost of that big breakfast on Christmas morning will be higher, as eggs are up 7.4%, juice is up 5%, jam is up 8% and bacon is up 20%. We are almost losing our appetite with the rising inflation.
However, the Liberals' lack of action on competitiveness and supporting Canadian workers is the real canary in the coal mine for our economy.
Canada is bleeding capital investment. More investment and production are going to the United States and overseas. This means that we are becoming even more dependent on foreign countries and on foreign supply chains that are not choosing to get supply to Canada but to themselves.
This is a government whose only record achievement beyond debt is record failure in negotiations with the United States. It has failed energy workers, it has failed forestry workers, it has failed farming families, it has failed auto workers and, with buy American, it is failing every supply chain in manufacturing, including steel and aluminum, across this great country. It is failing millions of Canadians. It is no wonder President Biden said that Canada under this is his “easiest” relationship. It is easy for the U.S. to win under this government.
[Translation]
Businesses are grappling with a dire labour shortage. Everyone can see it, except the Liberals.
My question is for the . Does he have a plan and concrete solutions that will solve the labour shortage crisis?
As always, the Prime Minister refuses to listen. It is time for the Liberal government to tackle the labour shortage affecting Quebec and all of Canada. That is why he must make it easier for immigrant workers to enter Canada, invest in specialized training programs and encourage people to embrace the trades. He must also offer incentives to employers and employees, as this will encourage people to return to work.
Time is running out. Business owners are out of patience, and so are we.
[English]
Business investment declined by an average of 1% every year from 2016 to 2019, reaching a 25-year low as a percentage of GDP, and that was just before the pandemic. Canadian factories are operating with the lowest levels of capital investment in 35 years, which will lead to lower productivity, fewer jobs and lower wages. Businesses across Canada, but particularly in southern Ontario, are investing and creating jobs, but Michigan, Pennsylvania and Ohio are moving to a more competitive, less burdensome regulatory environment where they do not see payroll taxes going up the first of the new year and where they see incentive and opportunity as opposed to being held back by ideology.
The saddest part is that we are losing an opportunity to build the future economy. Canada should be booming, firing on all cylinders, investing in new technologies, innovating and providing upward pressure on wages because of growth. We can get back to building prosperity and great jobs for Canadians, but the Liberal government, it is clear, has no plan to make that a reality.
The Conservatives believe in a Canada where everyone has the chance to work hard, everyone has the chance to own a home and everyone has a chance to build this country up and give it to their children for a successful future. However, half of Canadians under 30 are giving up on owning a home. That is a failure of leadership of epic proportions. Nationwide, the average price of a home has jumped by $54,000 in just the last few months, up 30% and worse. According to RE/MAX last week, real estate prices are expected to surge another 9.2% next year.
Do we really want to be the country where young people, a generation of them, are giving up on the idea of owning a home? Do we really want to be increasingly a nation of part-time and contract jobs, and no long-term jobs with growth potential for all Canadians? The government is giving up on the next generation of Canadians.
For those who already own a home, the Liberals are going to tax the sale of it. They are slowly coming after Canadians' home equity under the guise of a solution to the housing crisis they have presided over in the last five to six years.
[Translation]
This tax targets hard-working Canadians who want to use the sale of their homes to fund their retirement. Simply put, this tax deprives them of their hard-earned savings.
[English]
The government's solutions will only make the housing crisis worse and will attack people as they approach retirement. The Conservatives have pressed for concrete actions to address our housing crisis, build more homes and return the dream of home ownership to millions of Canadians. Unlike the Liberal government, we are not giving up on Canadians under 30.
What we see in another hollow economic statement released on the eve of a Christmas break is empty promises, massive debt, higher taxes and no real economic plan. The is not telling Canadians the real story. Inflation is hurting Canadian families but helping Liberal finances.
The Conservatives will continue to be a voice for the millions of Canadians being left behind by the Liberal government. We are going to fight to build more housing, tackle the cost-of-living crisis and hold the Liberal government to account for giving up on the next generation. We are going to build a plan to restore Canadian prosperity and make Canada an economic powerhouse.
Right now, Canada should be focused on proposing solutions to lift up Canadian families with great jobs and rising wages. We need to build a dynamic economy that benefits people in all sectors of our economy and in all regions of the country. From the resources in the ground to the ideas in our heads, we need Canada to build, discover and strive. We need a generation of Canadians who want to win, not settle for second, third or 10th best.
[Translation]
It is time to simplify the tax system and cut red tape. It is time to make Canada the best place in the world to invest, create, develop, build and start a business.
We will make Canada a country with the most innovative economy in the world, a country with ultra-competitive tax rates, a country with incentives for innovation and an advanced research agency focused on the private sector and the economy of the future.
[English]
Let us provide financing and investment capital to small businesses so they can flourish. Let us build world-class infrastructure all across this great country, not fund more bureaucratic programs. Let us also be proud of our resource sector and the millions of direct and indirect jobs from it. It is the only thing really driving our current account balance, and the and his ideological ministers want to end it. Our energy is the most ethical, our critical minerals are the most accessible and our commitment to emission reduction and indigenous participation is the most reliable in the world.
It is time for a new approach, not more empty words and failed promises. It is time to create a dynamic and more prosperous Canada, one that grows, that strives, that wins. It is time to stop being happy with last place. It is time to stop being happy with record debt, higher taxes and more government intervention.
Canada's Conservatives are here to build. We are here to hold up. We are here to win. We are here to fight for our children's future.
:
Mr. Speaker, at the risk of repeating myself, there was an election at the end of the summer.
There was certainly no need for that election.
We wondered why the election was called, what purpose it served, what were the priorities, what should be asked and what should be changed. Today, we are right back where we started: The Liberals have a minority government. Again, the people did not have enough confidence in the Liberals to give them a majority. In Quebec, we kept the same breakdown and the same number of seats for each party.
Instead of calling a pointless election, we could have carried on working and sitting. We could have followed through on support measures. We could have followed through on everything that was in the previous budget, the one tabled in April 2021. We could not do any of that because of the election. Then we were subjected to what I would call an insipid throne speech. What was the next logical step? What vision did the throne speech have to offer? In the wake of a so-called necessary election, there was nothing new under the sun.
Today we got the economic and fiscal update. We were expecting it because it was promised in the last budget. We were told there would be one in the fall. Quite frankly, the economic and fiscal update was a bit lightweight compared to what we are used to, both in the number of pages and the measures and vision within it. I suppose that was to be expected given the unnecessary election and the vacuous throne speech.
Two months after the election the Liberals called, the government has run out of steam. It is exhausted. It has no ideas, no new proposals. This is ridiculous, unprecedented and discouraging.
Five days ago, all the provinces got together for the Council of the Federation. United, they asked Ottawa to deal with the health care problem. They want a meeting. It is urgent; it is a priority. This is not a frivolous ask, anything but. As the Parliamentary Budget Officer's analyses remind us year after year, when it comes to spending and the budget, the problem is with the provinces. That is true. Why is it true? The reason is that Ottawa has not been paying its fair share for a long time. Ottawa is not spending enough money on health care.
The Conference Board of Canada, the Council of the Federation, the Parliamentary Budget Officer and all the provinces are saying that, the way things are going, the provinces are heading towards a tax wall, while Ottawa's fiscal situation will be exceptional, despite the extraordinary expenses incurred during the pandemic. Health care spending is increasing, and Ottawa's transfers are not keeping pace.
The provinces repeated all of this five days ago. What was Ottawa's response? The government is basically telling them to take a hike. Why do I say that? It is because, based on the projected numbers and budgets, there is no increase relative to what is being requested. Until 2027, there is no increase. The government is on the warpath, and the provinces are being challenged. They need health care funding, but they will get nothing.
The document is about 50 pages long, not including the annexes. Two or three pages are devoted to the speech, and about two and a half pages are used to explain why the provinces will not get a penny more for health care. The Liberal logic is that extraordinary spending was needed during the pandemic, so they feel they have done enough. Since the provinces have benefited, they will not get a penny for health care until 2027. The government's logic is to say that it paid the wage subsidy and indirectly helped the provinces because the people who received the wage subsidy pay taxes to the province. I want to believe that this was necessary and important spending, but it does nothing to address the fundamental problem. The federal government needs to pay its fair share of health care spending. Nothing has been resolved, and war has been declared on the provinces. This is unacceptable and we strongly condemn it.
Furthermore, there are few measures in the update, although there are some that we applaud, in particular the measures for working seniors who receive the guaranteed income supplement.
My colleague and I have been raising this issue since the summer. We wrote to our respective counterparts on the government side during and after the election and as recently as this week. The government said that it would solve the problem. We proposed solutions, such as including the CERB as employment income when calculating the GIS, or recalculating the amount for the current year for those who were not supposed to receive the CERB or who received too much money and now have to pay it back. To resolve this situation, Service Canada and the CRA really should sit down together and talk.
The government listened to our suggestions and responded that technical considerations ruled them out. In the economic update, the proposed solution is altogether different from what we suggested. We are disappointed because we had some good solutions. That said, we do not have the inside track, and since we do not have access to the inner workings of government, we may be unaware of certain considerations because we do not know what they are. For example, there may be some software that cannot process this information, even though it seems quite straightforward.
Throughout the pandemic, the government responded in the same way to all the measures we suggested. That said, the government is nonetheless proposing a solution, which is a payment to make up for the loss of income, as seniors will no longer receive the CERB after one year. It is a big, rather odd band-aid approach to solving the problem, but it might work. The stumbling block here is the time frame.
As my colleague from knows, seniors in these situations are facing serious challenges. We hear horror stories in our ridings. Some seniors are having to leave their homes, sell their furniture and move. They sometimes have to stop taking medications and go to the hospital, where their medications are covered. They cannot afford medication because of the drop in their income. These are actual, real-life situations.
The government has proposed to solve the problem by sending them a payment, but not until next May. This situation has been going on since the summer, so that would mean that seniors will have been struggling with this issue for nearly a year. What will happen to them? We are very concerned about this. We will certainly do everything we can to get this payment out quicker, because there is a serious need. This wait is neither reasonable nor acceptable.
We also spoke out about the fact that the government created two classes of seniors, which is unacceptable. Seniors do not like it. We are calling on the government to fix this by increasing old age security by $110 a month for all seniors. It is a simple, concrete and effective measure that would support seniors whose income is not adjusted to inflation, which is currently hitting record highs.
There was not a single word about this, however. There are still two classes of seniors, and the government did not propose a single meaningful measure to combat inflation, aside from child care, which does not exactly make up for the increase in grocery bills. We are still very worried about seniors. We appreciate that a solution was proposed to the problem with the GIS and the CERB, but it comes too late and is flawed.
As I said, the budget was pretty slim. Our in camera meeting began at 11:45, and I would say we had covered pretty much everything by 1 p.m. Members of our party had to stay in camera until 4 p.m. Thank goodness people had some good jokes to tell to help pass the time.
It was our understanding that one element of this budget, as detailed in annex 3, would be in the notice of ways and means we would be voting on. During questions and answers in camera, we were told that the notice of ways and means contained nothing else. That is what I told reporters. By the time I returned to the House, the notice of ways and means had been tabled. It was 92 pages long and included the digital services taxation issue. I was surprised to see that, and I will get back to that in a minute.
That is a good thing, but the fact remains that annex 3 of the economic update includes a measure to tax residences, dwellings, condos and homes of foreign owners who do not occupy them. This is a token measure to slow housing inflation, curb speculation and make housing a little more affordable. The idea is to create an incentive so that non-residents and non-Canadians find it less appealing to buy housing in Canada that they do not intend to occupy and therefore contribute less to the economy.
We agree with that principle. Yes, we have to be careful, and, yes, all the housing units have to help people. The Bloc Québécois has major reservations, however, because this is a property tax. I am sure the federal government's reasons for collecting a property tax are noble, but the tax would supposedly be temporary. What has history taught us? Every time the federal government pokes its nose into a new tax field, no matter how small or temporary, there is no going back. The government has kept increasing this form of taxation every time.
Among the various forms of taxation that exist, such as consumption taxes, income tax, corporate taxes and many others, there was one tax field that was not yet occupied by the federal government, to my knowledge: property tax. This is essentially managed by municipalities, under provincial legislation. For instance, Quebec gives municipalities the power to levy property taxes.
Ottawa had been staying out of it, until now. However, according to annex 3 and the budget, Ottawa wants a cut. We have serious concerns, because this leviathan always tends to have an unquenchable thirst for tax dollars. We will certainly have to revisit this. I would remind the House that the principle is interesting, but seeing Ottawa interfere in this area of taxation is really worrisome for us in the Bloc Québécois.
During the election campaign, we kept hearing the same complaint from small and medium-sized businesses day after day. My colleague from could attest to that more than anyone here. I am talking about the labour shortage. We thought that with an economic and fiscal update in the last week before the break, the Liberals would take the bull by the horns and come up with some solutions.
During the election campaign, the Bloc was the political party that proposed the most solutions, in particular to address productivity, to make it easier for seniors to return to part-time work by putting fiscal measures in place, and to accelerate the whole immigration process, for both temporary and permanent workers.
I could go on like this, talking about innovation and increasing productivity, and so on.
Other than that one line that says that the government is investing in immigration to try to speed up the process, everything else in the document just says that the government will propose something in the coming year. However, today was not the time for the government to say that it would come up with something in the next year; it was the time for the government to say what action it would be taking. Our party has put forward a number of solutions, and the update was an opportunity for them to be put into practice. That did not happen and we are speaking out about it. We are very disappointed.
As I was saying, this feels like a government that is exhausted and out of breath, that no longer has any ideas and proposes nothing, barely two months after it was elected. That is worrisome.
Another thing that concerns us is the issue of inflation. The document contains private sector forecasts. For this year, they say they expect a rate of 7.6%, which is higher than what we are seeing now. Prices could continue to rise if these forecasts are accurate. Now, on the bright side, the rate will come back down as early as next year and the problem will resolve itself in subsequent years, which was our read on the problem.
We would have expected the government to be more focused on this issue. We need only consider low-income households or, as I was saying earlier, seniors whose income is not indexed to the cost of living.
In rereading my notes, I see that many small measures were announced, such as an increase in the tax credit for teachers and ECEs purchasing supplies for children, up from 15% to 25%. That is fine, but the government could have brought in better measures.
There is one thing I would like to address. In April, the budget that we had been waiting for for two years was finally tabled. That budget contained a lot of announcements about money and measures, and it was thick and wide-ranging. The government pushed it through. It contained some worthwhile measures, notably those pertaining to support measures, the recovery and the green recovery. We said that we would pass it.
After the budget came Bill , an act to implement certain provisions of the budget tabled in Parliament on April 19, 2021 and other measures, which incorporated a small part of the budget. We adopted that one as well, figuring that we would wait to see what came after the budget.
Nothing came after the budget, however, because the government called an election. The Liberals campaigned on measures that were in the budget that we had adopted, but today's update, which was presented after the election campaign, does not incorporate those measures. They are gone, which means they were nothing more than election promises that were only useful on the campaign trail.
The budget presented last spring contained 52 legislative measures and 100 pages of tax measures. Most of them did not end up in Bill and are not in today's update either. With this update, the government is therefore telling us that everything it announced in its last budget was only there to get the Liberals re-elected and to win a majority. It did not win that majority, however, because we wanted to keep it a minority. It is trying again with this budget.
That is the message being sent. It is very worrisome. The government seems to have no vision. I cannot get over it. This is my third election, and it is the first time that I have seen Parliament's return delayed, since we had to wait two months to come back. The ministers were late getting appointed. The Speech from the Throne was short, and there was not much in it. It was also boring, especially in the way it was read. I will refrain from being too critical about that, but it is true that the person who read it has to be held responsible.
The update is the logical next step in all this, having been tabled by a government that acts because it is forced to, but that is tired and breaking down. It needs a bit more pep.
If the government is out of ideas, the Bloc Québécois has plenty. It has energy too. The government needs to listen to us because we are going to propose some legislation to bring in.
Let us start with resolving the issue of health. Polls show that it is the top priority. We do not want conditions imposed on the provinces, we want transfers. That is what the provinces are calling for. The government needs to fix this because it is urgent, and so is the situation with seniors.
:
Madam Speaker, Canadians are currently grappling with extremely serious economic challenges. They are paying more for food and housing, and they are having trouble finding work. At the same time, some employers are having trouble finding workers. Canada is at a crossroads.
We want to figure out how to bring about a just post-pandemic economic recovery. We also have important questions about the climate crisis. We want to figure out how to bring about a just transition for the climate and for workers. What we need right now is leadership.
The economic update was an opportunity to showcase the government's leadership, but what we got was a defence of the status quo. This is not an innocent status quo; it is a status quo that works very well for the wealthiest but makes the lives of ordinary working people more difficult.
We wanted the government to propose solutions, but there are none to be found in the economic update.
The NDP believes that when it comes to the big economic issues, it is very important that the basis of our analysis be the most financially vulnerable people, or the workers who have a little bit of money but are wondering if it is enough to pay all the bills, considering the pressures of inflation.
[English]
We are at a crossroads in this country, just as we are in the world. Depending on the day, the Liberals will tell us that we are out of the pandemic, the economy is back to normal and everything is good, or, when it suits their purpose, they will tell us what most people already know to be true, which is that we are not out of the pandemic. Some things are better, but many things are still very bad.
People are still looking to find their way, whether it is collectively, at the level of their country, province, city or community, or individually. They are looking to find how they will fit into what will become the new economy as we come out of the pandemic. To be sure, this is because of some of the pressures we are still facing around supply chains and other things that have been caused by the pandemic, but it is also an economy that was already going to change because of climate change.
We have seen so much evidence. I look to my colleagues from B.C. who are seated around me. They know all too well the real cost of climate change, and the economic consequences and real financial cost of not dealing with climate change.
Here we are, at that crossroads, trying to figure out what this recovery from the pandemic is going to look like, and how to transition into a sustainable economy that can mitigate, as much as possible, the impact of climate change.
New Democrats believe that, in all of this pain and all of these challenges, is an opportunity to build the infrastructure and the framework for a more just economy and a better Canada. We need an economy that recognizes it is wrong to have an economy in which, and we just heard this from the Parliamentary Budget Officer last week, 25% of all the wealth produced in this country goes to just 1% of the population and where 40% of all the people in this country are asked to share just 1%. That was not always the case. That is getting worse and worse.
When we see the government defending a status quo that is creating those kinds of outcomes, Canadians have to know it is not just defending 25% of the wealth going to 1%. It is defending the trend line that continues to see more of that wealth going to fewer people. While Canada's economic pie has been growing, the proportion that goes to the 1% at the top has been growing much faster, leaving less for the rest of us.
As we come out of the pandemic to the extent that we have, which is not anywhere near as far as the government sometimes likes to pretend, and as we venture into this uncertain future with so many more extreme weather events as a result of climate change, we need to make sure we are getting the principles right that will ensure that everybody gets to partake in a prosperous future, not just the people who already own all of the important assets.
The word there is “capitalism”. We have had less and less regulation of the market and less and less fair taxation, which has allowed the people who own assets to continue to own more and more. Unless there is a way to rein that in, eventually we will get to a point where what is shared among the rest of us is not enough for most of us.
That is why I am very proud to be the finance critic for a party that is talking about a pandemic excess profits tax. The tax recognizes that while many businesses have suffered through the pandemic, some have done extraordinarily well compared with their pre-pandemic performance, and it would make sense to ask them to pay a bit more on that extra they have made to help with some of the things we need to get the rest of the way out of the pandemic and to build a just future.
That is why I am proud to be the finance critic for a party that ran on imposing a 1% wealth tax on fortunes of over $20 million. That is not a lot of people, but it is a lot of money that could do a lot of good. It is money that would go to people who benefit from the investments that we all make in public infrastructure. It is right and good that, when they receive such a disproportionate amount of the benefit, they pay proportionally more to create infrastructure and to do things that protect people at the bottom.
There has been a lot of talk in this place about inflation over the last three and a half weeks. The fact of the matter is that the money that went to the financially vulnerable is not what is driving inflation. It was not the CERB payments and it was not the wage subsidy payments. People bought groceries. They paid bills. They fixed their cars. The people who were on the wage subsidy got 75% of what they were used to making. I do not know how it would cause inflation when people have a 25% decrease in their salaries. Let us not pretend that the help that went to people who needed it was the cause of the inflation here. That matters because those folks are still hurting and they still need help. It is why it was wrong of the government to cut the CRB with just two days' notice.
It is also why it is wrong for the Liberals to be dragging their heels on promises such as a Canada disability benefit. That is something that they promised a while ago now, and is something people living with disabilities who are not able to work need in order to be able to live life with dignity.
It is why the government should be doing the same for seniors on the guaranteed income supplement. We have talked a bit about the clawbacks, but I want to talk about the fact that even when it is not being clawed back, the guaranteed income supplement does not provide enough for a person to live at the poverty line. It is still below the poverty line. That is all part and parcel of working toward a time in Canada when we can have a livable basic income for everyone who needs it. We got close with the CERB. It was an interesting time.
That is why it is such an important moment. We could say that these were just temporary things: we are out of the worst of it now, and we are going to drop all these people like bricks again and get back to the status quo that led us to the point where 1% of people own 25% of the wealth. It could also be an opportunity to say that we learned how to do things differently and that it was an important moment in our history and, notwithstanding some of the very real problems with the way programs were delivered, the principle is an important lesson for our future.
Today, the Liberals could have taken some real action on one of the structural things driving inflation in Canada right now, which is in the housing market. Anyone knows. Whether it is somebody trying to get into the housing market or parents who are contemplating the futures of their children, everyone is worried about the housing market, and we know that a record number of mortgages now in Canada are actually held by investors.
There are things the government could seriously consider, such as a moratorium on allowing real estate investment trusts to acquire more property while the market is so hot. The government could create an acquisition fund so that non-profits in the business of creating social housing and other forms of affordable housing can compete with some of these investors in the market to snap up buildings and land as they become available. Those are some of the things it could do now to help bring down the temperature in the housing market and create some hope for Canadians for the future so that even if they cannot afford a home tomorrow, they know we are on a trajectory that will allow them or their children to afford a home in five to 10 years. There is nothing in the statement that talks about that. There is a little bit of poking around the edges, but we are in a difficult time that calls for real leadership and real measures.
When we talk about affordability, what is one of the biggest cost pressures for Canada's seniors? It is the price of prescription drugs. The Liberals promised an answer to that as long ago as 1997. The temptation is to get tired of talking about it because we talk about it so much and nothing happens. However, that would be a victory for the Liberals, who have cynically promised it so often, and it would be a victory for the pharmaceutical industry, which would like nothing more than for the NDP to shut up about pharmacare so that it can get on with making money without having to worry that one day we are going to do right by Canadians, organize our purchasing and make sure that everyone is covered and they actually save money. I hope I get to see the day when we do that with dental care as well.
When we talk about what to do to create employment and fight inflation, there are opportunities when it comes to the climate challenge as well. We ought to be out there helping people retrofit their homes to make them more efficient and transition the way they heat their homes so they get off fossil fuels. If we do this in the right way, particularly for lower-income households, they could realize savings in their monthly budgets. That is an investment we absolutely have to make if we will ever have a hope of realizing our emission reduction targets. It could provide some tangible financial relief to households that are struggling right now. What better time to do it than now? However, we do not see anything on this.
This is also about committing to a large-scale, ambitious retrofit project and a real nation-building project that is not about building a pipeline but about building the other critical things we need, like a western power grid that would allow for solar and wind energy produced in Alberta and Saskatchewan to work collaboratively with the hydro energy we have on both ends of our western region. That could create a lot of jobs. An ambitious retrofit program, together with that, could create a work forecast that would allow employers in the trades to plan well into the future while working with the government to train a whole generation of tradespeople who are working on environmentally sustainable infrastructure and helping us reduce our emissions. They could have good, well-paying jobs that are building the future economy of Canada. What better time to do that than now? However, there is hardly a mention of the climate crisis in this economic statement.
One would think it has not happened. There is much-needed money for our brothers and sisters in British Columbia who are hurting after the severe weather events there, but that is just a response to what has happened. As we heard earlier in the House, the only proactive thing the government talks about is coming up with another plan. I do not know how many times we will have to hear about the next great plan the Liberals will come up with to finally start reducing emissions while we are an embarrassment in the OECD with the highest emissions increases. Stop it with the plans. Pick something and do it. This has been researched to death.
When we talk about inflation we are also talking about supply chains. In particular, we are talking about the exposure of supply chains not only to things like the pandemic, which we saw, but also to the climate crisis. We saw that in B.C. One of the inflationary pressures in Canada right now is the Port of Vancouver, which was decimated by the extreme weather events there.
One solution that the government might adopt, when we talk about supply chains and trying to reduce the extent to which Canadians are exposed to that kind of international pressure, is to actually talk about things that we want to make here. We heard we had a hard time getting personal protective equipment and other essential medical goods during the pandemic. There were a lot of Canadian companies lining up to say they could do that work here. They would have loved nothing more than to train Canadians to do that work in their facilities.
They said they could scale up, but all they needed was for the government to choose to invest in them instead of giving more money to the multinational companies that have been offshoring their manufacturing for decades. They wanted the government to invest in them, in Canadian success stories, because they knew they could do it. However, that was not the path the government chose. There is nothing in here talking about how we could reshore some important manufacturing.
I just went to Washington. They are contemplating things there, and Canada is going to be collateral damage in its efforts to reshore. We are at a disadvantage in a place like Washington because we cannot talk about our automotive strategy. We cannot talk about what we are going to do to ensure that future generations of Canadians get to work in a high-paying, highly unionized sector, which is incidentally not a coincidence, in Canada because we do not have a plan. Instead, we keep reacting to what other people are doing. That means the U.S. is going to continue to drive the agenda, and we are going to have to continue jumping up and down to get its attention to try to be at the table.
What would be helpful would be to be able to say, “This is Canada's plan.” There is a lot of talk these days about producing batteries for electric vehicles. If Canada is going to get serious about that, we are going to need partners. China is knocking on the door. Germany is knocking on the door. The U.S. should be knocking on the door.
I would love for the government to be able to show them a national automotive plan for Canada that is working and continuing our long-term partnership with the United States, as well as one that would see Canada partnering with China or Germany. That would allow us to say, “This is our preferred option, to continue the well-integrated automotive sector we have, so don't cut us out.” I believe that would have been a far more effective argument in Washington, but we refused to plan.
I am from Winnipeg, where the aerospace industry is important, just as it is important in the province of Quebec and other areas. We do not have a national plan for that. We saw our government scramble in the pandemic, not knowing really what to do. Aside from the wage subsidy, which the Liberals were unfortunately not open to taking advice on how to close the loopholes so it ended up being abused in a number of ways, there was no sense of urgency that it was important that Canada maintain passenger air service, even though we are one of the largest countries in the world, with the most distance to travel.
We even need it for this place to work, and for people to be represented in the House of Commons, so each part of the country requires a well-functioning passenger air service. That is a fundamental strategic asset for Canada, yet the government had no plan and continues to have no plan. There are the one-offs of doling out money here and there, but there is no cohesive strategy for how such an integral sector will be maintained and how its benefits will be maximized.
Those are just some of our reflections on this side of the House about the fall economic statement. As I think members can tell, the real problem with it is that it is not unlike the Speech from the Throne. We had this election because the government said that we were at a pivotal point in our history, there were big decisions to be made that would go above and beyond what we were already doing in the House of Commons, and it had to get a mandate, which is meh.
That is what we got out of that $600-million election that nobody, except for the , wanted. We saw it in the Speech from the Throne, and we have now seen it in this so-called fiscal update. It is just not good enough for the moment we find ourselves in, when more Canadians are struggling to get by while people at the top are taking a larger share of the economic pie. It is not good enough when Canada is a laggard in reducing its emissions and our housing market is getting out of control. The government has no real proposals about what to do about it all.
Let us look at other countries. New Zealand, for instance, has brought in a policy stating that people who already own a home will need a larger down payment if they purchase a second home, and so on and so forth. This is to discourage people who are in the financial position from snapping up properties and ensure more people are able to acquire a family home.
That is just one example of a government that is clearly serious about doing something and is being creative. We see some creative work at the municipal level in the city of Vancouver by the mayor, who is a former NDP MP. He is doing some interesting work in trying to figure out how to enable more density on residential lots, and not so developers can take all that money. They will get some of it.
The guys at the top always seem to be worried they will not make any money. There is a lot of money to be made while one pays one's fair share. We are not talking about them not making any money, we are talking about them making a fair amount of money and ensuring they are reinvesting in the communities and the infrastructure that allows them to make that money in the first place. It is about ensuring that the people who live in the communities around their developments are able to live in dignity even if they cannot buy the premium apartment on the top floor. That is what we are talking about.
I think most Canadians can get behind that vision for Canada, but it is not one that will happen spontaneously on its own. It is one that will take some leadership. It is one that will take good public administration and good public policy instead of the kind of chaotic mess we have seen over the last number of weeks with a government that can hardly get its own legislation through the House.
We are here to try to hold the government to account. We are here until we are the government, which I hope happens soon, to try to help its members be their best selves. It can make a big difference in the lives of a lot of Canadians. We see that with the guaranteed income supplement. We have an announcement today that is the result of a lot of public pressure. It was not a negotiated solution. We know that because it is not the solution we proposed.
However, it is some kind of solution, but we have yet to see the details. We are hoping it is going to actually help and it is going to help quickly, but we need more. I wish the Liberals would stop hanging on to it for the big reveal. Some people are living in their cars, waiting for that reveal, when they would much rather be in a home.
Let us get past the suspense and the buildup and let us get to the project of getting those people back in a home, as they were just four months ago before the government decided callously to claw back their GIS benefit.
That is why this is a very dissatisfying economic statement. For Canadians listening, if they do not take anything else away from this speech, there are people in this place who are thinking about real actions the government could take. We are not all just here to blow steam. We are also here to do a real job and to try to find the policies that will find their way to them and make a concrete difference in their lives. We are here to continue to apply that pressure and ensure those things really happen instead of passing by in a sound clip on the news and then people thinking the issue is settled.
We are here to remind the government these issues are not settled. They will not be settled until there is real action. That is what we are here to push for, and we will keep pushing. We will keep pushing for some of these concrete things to be in the Liberals' budget. They missed the opportunity on the Speech from the Throne and they missed it in the fall economic statement. Let us be damn sure to have some of it in the budget.