:
Madam Speaker, it is really wonderful to see you again. I thought the last time I would see you before the holidays was my last speech a couple of days ago, but it is a delight to see you in the chair again this evening.
It is a pleasure to rise on behalf of the constituents and residents of Simcoe North to talk about a very important issue. We are talking about tax relief for Canadians. If government members wanted to provide relief to Canadians, they would have done it in an easy way. They would have taken the GST off of everything. They would have made it administratively simple.
The Liberals want to talk about how in the previous election campaign, the Conservative leader at the time and the Conservative Party campaigned on a cut. They are trying to say this is the exact same cut the Conservatives ran on in the 2021 campaign. That is false. The Conservatives ran on a one-month GST holiday on everything: on fuel, on food, on every single item GST is charged on. That is not the same plan the government is proposing here today.
We should also talk about control. This is yet another example of the wanting to control our lives. He wants to give us a tax break, but only on the things he agrees we should get that tax break on. Let us go through the list. If I want to buy a hard copy of the Toronto Star, that counts for the tax break, but if I want to buy the renowned magazine The Walrus, I still have to pay GST. Christmas trees are on the list, thank God, but not decorations. I cannot buy that star to put on the top of the tree to get that tax break. I cannot buy that wreath to hang on the door to get that tax break.
Jigsaw puzzles are on the list. I can spend three weeks hiding out, putting that 1,000-piece puzzle together, but if I want to build something in my garage and use a jigsaw, I do not get the tax break on that. If I want to put my feet up and have a Coors Light, it is under 7% so there is no GST, but if I want to have a Boneshaker, at 7.1%, from Amsterdam Brewery, it is not going to be on the list. Maybe someone wants to go and talk to the Kingston brewery that makes Oats & Cream IPA, which has over 7% alcohol. It is not on the list.
Let us talk about some other things: candy and snacks. Why on earth would a government specifically single out sugar for a tax break, when many stakeholders, like Diabetes Canada, the Heart and Stroke Foundation, and the Canadian Cancer Society, have been promoting a special sugar tax? I do not think they are too happy with this tax break. Also, the Canadian Cancer Society came out publicly and said the government should not be taking tax off of alcohol.
Why are the Liberals picking and choosing these special things we might put in our grocery carts? Some are in and some are out. It is absurd. It is a list that only pointy heads in some government agency or department could put together.
I was at a local restaurant last night, a wonderfully run restaurant, and the proprietor said, “I do not even know how these rules are supposed to work. I called the GST line at CRA, and they did not even know how they are supposed to work. What if I am selling tickets to a party that has food and beverages, but some of the spirits do not have the the tax break and some do, and I am selling food, and I am selling those tickets today for a party that happens on New Year's? Do I charge the HST on those tickets today?” It is unclear. It is completely absurd.
The government should have either taken the tax off of everything or left it on everything. That is not to mention that we are in a deficit position. If the government had said it was going to spend $2 billion on this, and this is where it found the savings to pay for it, maybe that would have been a different conversation.
Let us talk about the NDP. A previous principled NDP stood in this place and decried, absolutely criticized, reducing the GST. Why is that? NDP members criticized reducing the GST because, as I will quote from the Canadian Centre for Policy Alternatives, which the NDP likes to quote very often in the House, imagine a tax cut that you only get when you buy stuff. In relation to GST cuts in a previous government, it said that this was a tax cut that disproportionately favoured high-income families. For every dollar of this tax cut received by low-income families, $3 went to families who were not low income.
What could the government have done? The government could have just doubled the GST credit, which, by the way, had the support of all major parties in the House just two years ago. Every party in the House agreed to increase the GST rebate cheque that goes to low-income households. Eleven million people would have doubled up on the payment that they got.
We believe that we should help the lowest-income people possible, but this is not a measure targeted to low-income people. This measure goes to every single Canadian, whether they need it or not. It is costly to administer and it is also costly to the treasury. The government is already in a deficit position. It could have come up with a dollar-for-dollar rule, to say that this is how it is going to pay for it.
Let us also remember, just two weeks ago, that the Governor of the Bank of Canada said, “The fight against inflation is not over”. When a government runs deficits, that is fiscal stimulus. The Governor of the Bank of Canada also said, almost two years ago, that if you want to help people with the effects of inflation, or those that have a problem with affordability, those measures should be very targeted.
It would have been very targeted to give an additional doubling of the GST/HST credit that low-income individuals have. It would have only gone to 11 million people. It would have reduced the overall cost. It would have been administratively very easy to deliver. We would have just doubled the payment.
By the way, when we talk about the cheques that will be going out, guess what? The people in this chamber get the cheques. Why on earth would they design a program to give cheques to members of Parliament when there are low-income people who do not work, like seniors who do not work or people with disabilities who do not work, who get nothing?
It makes absolutely no sense. Not only that, economists said, just two weeks ago, before this announcement, that the Bank of Canada was on track to reduce the interest rates by 50 basis points. Those same economists now say that the Bank of Canada cannot reduce as much. It might only reduce by 25 basis points or hold interest rates steady.
That means that when politicians spend, Canadians pay more for their mortgages. Conservatives are for permanent tax reductions, shrinking the size of the deficit and making sure that Canadians have more money in their pockets long term.
:
Madam Speaker, I will be sharing my time with the member for .
I am thankful for the opportunity today to debate Bill .
The past few years have been challenging. It feels like the price of everything has gone up, thanks to global inflation and the need for central banks all over the world to raise interest rates in response to the after-effects of a once-in-a-generation global pandemic. While inflation has cooled and interest rates are dropping, we know that Canadians are not feeling that in their household budgets quite yet. Our government obviously cannot set prices at the checkout, but we can leave Canadians with more money in their pocket to help them afford the things they need and save for the things they want, which is where the measures in Bill come into effect.
Starting December 14, we are proposing to give a tax break to all Canadians. With a GST/HST exemption across the country, Canadians would be able to buy things like prepared foods, snacks, kids' clothing, Christmas trees, books, puzzles and other children's toys, all tax-free. Lasting until February 15, 2025, this tax break would essentially make all food GST/HST-free and would deliver meaningful savings for Canadians with real relief at the cash register. This relief is about saying to Canadians: “Yes, things have been hard, but they are going to get better.”
Inflation was at 2% in October, which means that inflation has been within the Bank of Canada's target range all year long. The bank has cut interest rates four times now this year. Our economy looks like it is having a soft landing from a COVID recession. We are providing this new support for Canadians who have really gotten our country through a tough time. We are counting on powering a very strong recovery at the end of this year and the beginning of next year.
This new support is about making life a little bit easier at this time of year when costs are highest, because we have the space now to do it. With good economic news, and I just mentioned inflation cooling and interest rates dropping, we are able to do so in a way that is not going to stimulate inflation, but rather is going to help make ends meet and continue our economic growth.
Canada has one of the strongest balance sheets in the world, and the lowest net debt-to-GDP ratio in the G7. We have a strong fiscal position, and we are putting it to work to support Canadians with our temporary GST/HST relief. This can also help sustain the pace of our economic recovery. For example, consumer spending per capita has remained somewhat subdued, reflecting a lowering of household purchasing power due to higher inflation, elevated shelter costs and the impact of high interest rates over the past two years. Thankfully, inflation has cooled, interest rates are coming down and our government is delivering a plan to make housing more affordable. However, with some heightened global economic uncertainty, we have witnessed consumers and businesses adopting a more cautious approach when it comes to spending. We all know that the effects of lower interest rates can take time to be felt throughout the economy and make their way to impacting the pocketbooks of everyday Canadians.
Really, the Canadian economy has been operating below its potential capacity for over a year. This has largely been by design, as excess supply has put downward pressure on inflation, and as the monetary policy decisions from the Bank of Canada and other central banks around the world have done their job to stabilize inflation. Rather than reignite inflation, this time the GST relief would simply help Canadians to bridge that gap. It would build on actions that are already saving families and individuals thousands of dollars a year, like the Canada-wide $10-a-day child care system, which has already cut fees for regulated child care to an average of $10 a day or less in over half of all provinces and territories and by 50% or more in all the others. The Canadian dental care plan and the national school food program are saving Canadians hundreds of dollars a year, especially for those Canadians who are least able to carry the costs associated with those expenses. The Canada child benefit continues to lift children out of poverty, and then the Canada workers benefit provides a meaningful boost to our lowest-paid and often most essential workers. These are just a few of the ways that our government is already supporting Canadians, making everyday items cost less and putting more money back into middle-class pockets.
With Bill , we want to deliver new tax relief on groceries and seasonal expenses. This is about helping Canadians celebrate with family and friends and starting 2025 with a little extra money in their pockets. With Bill , we can make life a bit easier, so Canadians have more money for the things they want.
Please join me in calling for all parties to quickly and unanimously pass this legislation.
:
Madam Speaker, it is always a pleasure to rise and speak to the matters of the day and the issues as they impact Canadians, specifically as they impact my constituents back home in London. Global inflation is, by definition, a world phenomenon that has impacted the middle class and lower-income populations in particular, and we see that effect in Canada, too. The past few years have been very difficult for Canadians. They have counted on a federal government that has been there, that has seen them through the most difficult years of the pandemic and that has put in place landmark policy, groundbreaking policy, that is intended and is having the effect of helping make everyday costs more affordable.
I think of, for example, the dental care program. The Canada dental care program now has over a million people who have registered for it. Earlier today, the said it does not exist. It certainly exists. We can ask the seniors in my riding back home in London. My seatmate here is from Winnipeg. We can ask his constituents. We can ask my other seatmate from Brampton. They fought for it. Every single member of Parliament on this side, and I will say in the NDP as well, as it was behind the idea, recognized the importance of a dental care program, particularly in the context of inflation.
We also see a federal government that has moved ahead with child care, recognizing the importance $10-a-day child care has for young families. In fact, the vision for that did exist at one time from the Conservatives back in 1987. The only difference is that Brian Mulroney and his government were an example of a Progressive Conservative government. They tried to put in place a national child care program at that time, but because of political reasons, it did not work out. Certainly, former prime minister Martin and people like Ken Dryden attempted as well. Also for political reasons, that did not work out.
This government was able to get it done. We see that in excess of 110,000 women have been able to re-enter the workforce now because of a child care program that is affordable. In fact, the economist Jim Stanford says that over the next 10 years, he expects 1 million women to be able to re-enter the workforce because child care is now going to be so affordable in this country. It turns out that social policy is good economic policy. This is something Conservatives have never, unfortunately, understood.
There is the school food program to make sure kids are able to go to school and have some food in their bellies, that they have what they need to succeed as children. We are ensuring we have that fundamental basis of dignity to make sure kids in this country have what they need to succeed. That is not asking for too much. In fact, Canada is one of the advanced democracies that has come to this late, unfortunately. It was the government, working with other interested parties in the House of Commons, making sure we were standing by our constituents the whole way. That is now moving forward to ensure elementary schools and high schools will have the opportunity to offer hot meals to kids, whether it is breakfast programs, lunch programs or whatever the case might be.
We do have examples of that in Canada, but it is a patchwork quilt. It has been volunteer organizations that have offered it in the main. Here, we have a federal government that is going to fund that work. This is tremendously important for our future as well. We have put in place these measures, but we still see challenges. While inflation has come back to normal levels because of the financial stewardship of the government, we have to make sure that we continue to be there for Canadians who are faced with a difficult time when it comes to the cost of living.
I hear it from my constituents. We all do. When they go to the grocery store, it is difficult. When they go to purchase clothes for their kids, it can be difficult. When they want to go eat out, whether it is just as an individual or as a family, it can be difficult. If we go out to an average family restaurant, as a family of four, that bill is going to be a high one.
The federal government has recognized that people are going through these challenges, so it has put forward a tax break, a tax cut. This is something Conservatives talk about a lot. However, today we saw the announcing, in a declarative tone, which he seemed to be very proud of, that they are not going to support this measure of lifting GST/HST for the period starting on December 14 and continuing past Valentine's Day, ending on February 15.
The Conservatives are in a party that says it is for the everyday person, apparently. It is a party that says, only apparently, that it stands for tax cutting. No, it does not. In fact, we should not be too surprised at all, because when this government moved ahead not once but twice to cut taxes for the middle class, who stood against it? The Conservatives did. When this government moved ahead and cut taxes for small businesses, who stood in the way? The Conservatives did. However, we were still able to get those measures through. When we were able to, in the pandemic years, stand by small businesses to make sure they had the emergency supports they needed, who stood in the way there too? The Conservatives did.
They do it every single time. They present this mirage, a kind of fiction, that they are there for the everyday person, whether it is the worker, the family or the small business owner, but they do not believe in those things, as it turns out. What we have in the House of Commons that really shows what we are all about is our vote. The vote does the talking every single time, and the Conservatives' votes are where the proof in the pudding is. There is not much proof there; there really is not.
We have a measure that would go a long way for everyday people, for people in the middle class and for people working hard to join the middle class. In question period today, I talked about a young family, and I am a relatively new father myself. Child seats are expensive things, running into hundreds of dollars. We are going to lift the tax on them. I think of what that would mean for the young couple getting ready to start a family. It is expensive. They have to worry about all of the essentials and pay tax on top of that, but we would lift the tax on, for example, child seats, diapers and children's clothing.
Those are just examples that pertain to a young family. What about a family that wants to spend more time together, maybe take a bit of a load off, go out and enjoy a restaurant? The tax would be lifted there too. Who benefits? It is not just that family but entrepreneurs, who continue to be the backbone of this country's economy. That is something this government recognizes and something that parties in the House that will support this measure recognize.
I just heard my colleague from the Green Party say that he is onside with this. That is a very good thing. I know that NDP members have said they are onside with this, but I wonder where the Conservatives are on this, the so-called party of entrepreneurship and free enterprise. I want the Conservatives to go back and look at what Restaurants Canada has said. It said in a very clear statement that not supporting a measure like this would be irresponsible, because a measure like this would not just be good for families, as I said, for individuals and for businesses, but would also act as an economic stimulus during challenging times.
We have weathered the storm quite well. We still see historically low, at least relatively, unemployment rates in this country, just in excess of 6%, but that has come down significantly in the past few years. We see a AAA credit rating. We see the lowest debt and deficit in the entire G7, and Canada, according to the International Monetary Fund, is poised to lead economic growth in the coming years in the G7. I know my Conservative friends are not in the habit of quoting what they call “elite organizations”, but I think the views of the IMF should be taken seriously.
The economic fundamentals are quite strong. That puts those in the middle class and those with a lower income on a good footing for a good future, but they need this support right now in the immediate. That is why the government is seized with this kind of vision.
We are going to continue to be there for Canadians every step of the way, for my constituents in London and for constituents across the country. The Conservatives still have some time. I just hope they reverse their decision on this and stand up for a responsible vision. This policy is responsible. They should stand up for the idea that they have to be on the side of the people and have their backs during tough times. That is exactly what we are going to continue to do.
:
Madam Speaker, I will be splitting my time with the hard-working, common-sense Conservative member for .
It is always an honour to rise to address the House, but unfortunately I do so this evening without optimism and without enthusiasm. Instead, I am forced to rise with disappointment and frustration given the state of the House of Commons.
In the past 24 hours, we have seen the tired, weak and desperate Liberals use closure and programming motions to avoid accountability for their scandals and to attempt to distract Canadians with their temporary, two-month tax trick. What is interesting about Motion No. 43 is that it is a guillotine motion that has itself been guillotined by a guillotine motion. This is a motion that would introduce closure on a motion that is about closure and stopping debate.
Here we are this evening debating Motion No. 43. I want to say that Bill was written on the back of a cocktail napkin, but it seems more appropriately to say the bill was written on an Etch A Sketch. The Liberals have taken it, shaken it and changed it a few times to try to get the NDP on board, and no one knows exactly what the next shake will do.
The has shut down debate on not one but two matters of privilege today so that the Liberals can force through their temporary, short-sighted tax trick legislation. The problem is that the Liberals are afraid of the Canadian people. They know that their parliamentary calendar is slipping away and that the days they have left to bring legislation before the House of Commons are limited. They know that a strong, common-sense Conservative government is on the horizon. When our common-sense Conservative Party takes power after a carbon tax election, we will be able to deliver for the hard-working Canadians we have the honour of representing.
We know the Liberal government has allowed its entire legislative agenda to be paralyzed. Why is the House paralyzed from considering all other pieces of legislation? It is because the Liberals violated an order of the House of Commons from June 10 wherein they were required to table documents with the clerk so they could be turned over to the Royal Canadian Mounted Police. This begs the question: What is so damning in those documents that the Liberals would shut down Parliament for two months to prevent the Mounties from getting them?
What does this programming motion today actually do? It shuts down debate on Bill . In the House, there are 338 seats, yet all but five of the hon. members who sit in those seats will be prevented from debating this piece of legislation. Billions of dollars of spending will not be debated in the House because of this programming motion.
Even more egregious is that the Liberal programming motion means the temporary tax trick bill would skip the committee process altogether. This means it would not go to the finance committee so we could hear from experts. It would not go to the finance committee so we could hear from the Canadians who will be affected by the bill. It would not go to the finance committee so we could hear from the small businesses and small business workers who would be affected. There would not be an opportunity to make amendments to this piece of legislation.
No sensible legislative body ought to agree to this process outside of an emergency situation. Let us be clear: Plummeting Liberal poll numbers may seem like an emergency to the Liberal government, but it is not an emergency for the Canadian people, who we have the great honour of representing.
If we read this programming motion, this guillotine motion, it has the wording “deemed requested, “deemed referred”, “deemed considered”, “deemed reported”, “deemed concurred in” and “deemed read a third time and passed”. It is as lazy as it is reckless. This programming motion is not democratic. In fact, it is an affront to transparency and Canadian democracy.
Why is the Liberal government doing this? Why would the Liberals bring forward this temporary tax trick at this time? It is because it is a distraction from the other scandals that they are involved in. There is the ArriveCAN scandal, in which two guys in a basement were paid millions of dollars for no actual IT work. There is the $400-million Liberal green slush fund, which is currently under consideration in the House as a matter of privilege. There is the ever-evolving scandal around the disgraced former minister of employment, the member for , who falsely claimed indigenous status in order to gain contracts from the Liberal government; this has also led to its own question of privilege. The misconduct and ethical lapses of the Liberal government are outright disgraceful. Finally, last week, after weeks of opposition members' demanding action, the member for stepped down from the Liberal cabinet. However, I can assure members that the good people of Edmonton Centre are watching. I know that, after the next election, they will remove him as the member of Parliament for that riding so that a common-sense Conservative member can represent those fine people.
What happened right after the member quit being in cabinet? The and the obviously took to Google and typed in “ways to distract Canadians”. They came up with this new temporary tax trick. The Prime Minister may have been googling it at the Taylor Swift concert as he kept changing different ways of doing that. However, Canadians do not just see this as bad vibes, as might be noted, but as a real challenge for going forward and for their livelihoods.
As I know many colleagues on this side of the House do, I talk regularly with local constituents and local small business owners. These small business owners may have one, two, three or four employees. They put in long hours, late into the night, and they are up early in the morning before the sun rises in order to build a business for themselves, for their families and for their communities. While I have been speaking with local businesses over the last few days, they have told me of their real concerns about the impact this temporary tax trick will have on their businesses, on their point of sale and their computer systems. They will have to shoulder the costs of updating those systems for December 14 and then again on February 15, which is Flag Day in Canada, and they are going to have to bear those costs. They are also concerned about the potential for audits down the way for incorrectly applying these new rules, albeit through no fault of their own. What is more, because this falls over the new year, it is two fiscal years for most businesses, and so they would have the double challenge of being audited twice for the challenges of this program.
I have received a number of emails, and I will read one from a small business owner, who wrote that the “Federal government DOES NOTHING but expects us to eat the cost of trying to Make the Federal government look good” and “we then must do more work to turn all of this off in February”. He concluded, “[S]orry if I'm not very supportive of this very badly thought-out policy.” That is from a small business owner who is expressing the concerns that so many of us have heard about how this program was brought about.
Let us talk again about the temporary nature of this program. It goes until February 15. What happens about six weeks after that? First, the escalator tax on wine, beer and spirits goes up automatically. Even worse, on the Liberals' way to quadrupling the carbon tax on April 1, we will once again see the carbon tax rise on the way to costing 61¢ per litre. This is simply unacceptable.
This policy is poorly thought out. We should not have been at this point in Parliament, with the Liberals so desperate to implement a temporary tax trick to try to distract Canadians from their poor record as a government. The Liberals have made the House unworkable. This is not the policy that we should be going forward with. We should be having a carbon tax election so that Canadians can make the decision that they want to see a strong, common-sense Conservative government after the next election.
:
Madam Speaker, it is an honour to join in this debate tonight. A desperate government makes a transparent attempt to distract Canadians, Canadians who have been suffering. I listen to constituents in my riding of Fundy Royal, where individuals and families are struggling to make ends meet. They are struggling to put food on the table, to pay their mortgages and to pay their heating bills. Why is that? It has something to do with a government that has doubled the cost of a mortgage, doubled the cost of rent and increased the cost of groceries. Every April 1, by increasing the carbon tax, the government is also piling on new costs for people to drive their kids to a hockey game or to get themselves to work.
The government offers up what amounts to a tax trick after piling all these costs on Canadians, after making it so difficult for hard-working Canadians. I include small businesses in this, which I am going to speak about shortly. If it was not so serious, if people were not hurting so much, it would be laughable.
Who would think of an idea to lift the GST off a Christmas tree but only if someone buys the Christmas tree December 15. If they buy it before then, they do not get the break. This is just a small example of the kind of complication this is going to add and the misery this is going to pile on small businesses at what is sometimes their most challenging time of year.
Today I had the opportunity to speak to an individual at a small business in my riding of Fundy Royal. It is in a small community. Small businesses in my riding are the backbone of our community. They give back so much. They are the ones coaching and providing support to charities in the region. They are the ones helping out those who need a hand and providing employment in small communities. This individual, with desperation in her voice, was telling me that, after everything they had gone through with the pandemic, after barely hanging on, she cannot implement this change the government has brought in. At her busiest time of year, she does not have the resources to change all her systems over to accommodate what the government has just dumped in her lap.
Any one of us would struggle to decipher what the government is doing. The CRA, which is ever so helpful, has come out with some guidelines, and we need to take a look at them. Exempt now for two months from the GST are toys that “[i]mitate another item, whether real or imaginary” or “[i]nvolve building, creating or assembling structures, objects or models by using pieces, parts, materials or modelling compound”. Okay, that makes some sense.
However, not exempt are “[t]oys and model sets that are marketed for adults (for example, adult Lego or train sets)”. How is the small business owner in my riding supposed to decipher those things? The CRA directive on what qualifies as a toy includes this: “Card games, including playing cards and Pokémon cards”. A Pokémon card is eligible for this two-month reprieve. However, if someone buys their kids hockey cards, that is not eligible for the exemption.
Physical video games will be tax-free. When I was growing up, we finally got the opportunity to get an Atari because someone else had bought a Nintendo. It played physical games. When someone else got a Super Nintendo and I got a Nintendo, again, this played physical games. However, young people are now downloading video games. They are not buying physical games. According to the CRA, thanks to what the government has done, physical video games qualify, but online-only and downloadable video games are not included. I can assure everyone that the people on that side of the House, the Liberal government members, do not understand the confusion they have just wrought; Canadians are certainly not going to understand it. The person who will be responsible for all this will be the small business owner.
The individual I spoke to today told me how horrified she is that, in trying to interpret this mess, she will be on the hook and that CRA and the government will be coming after her if she gets it wrong and charges GST where she was not supposed to or exempts it when she was not supposed to.
Let us talk about children's clothing and footwear. “Sports clothing, dancewear, such as jerseys, ski jackets, leotards and dual-purpose swimwear that can reasonably be worn outside of sports or dance activities” are exempt. However, “Specialized clothing and footwear designed exclusively for sports or [those same] recreational activities” are not exempt. “Adult clothing and footwear...if it's purchased for a child”, so if someone buys clothing for a child, but it happens to be adult size, again, are not exempt.
It goes on when we are talking about physical books. They say on the other side that physical books are tax-free. Okay, that is simple enough to me, but now look at how the CRA helpfully explains that. “Guidebooks and atlases that do not mostly contain street or road maps” are exempt so if they do contain mostly street or road maps, they are not exempt. “Magazines and periodicals (that have no more than 5% of their printed space devoted to advertising)” are exempt, so for the entrepreneur in my riding who owns her business, who has to do all the accounting, if she sells a magazine that has 6% advertising, then it is not exempt, but if it is 5% advertising it is exempt. How is she, at the busiest time of year, supposed to decipher this mess?
The Liberals tell us that books are tax-free; however, “Colouring books, scrapbooks, sticker books, sketchbooks”; “Books designed primarily for writing on, such as address books, diaries, journals, and notebooks”; “Certain directories and collections of street or road maps”; e-books and audio books are not GST-free.
That is just a short example that just scratches the surface. I guarantee no one in here understands what I just said, and the individuals in my riding who are trying to run a small business should not be expected to have to deal with this.
At a time when people are suffering, on this side of the House we are offering actual help; we are offering to axe the carbon tax that has increased the cost of everything for my constituents who are seniors, have young families, are entrepreneurs or are farmers. The carbon tax has increased the cost of heating their home, driving to work and taking their kids to hockey. The government has increased the cost of food because it is taxing farmers, truckers and everyone along the supply chain who puts food on a family's table. In Canada, our food cost increase has outpaced the U.S. by 36%. What is the difference between us and the U.S. right now? We have a carbon tax and they do not. Canadian families suffer from the misguided policies of the government.
According to the Canadian Federation of Independent Business, “Only 4% of small business owners believe they will have stronger sales as a result” of these temporary measures. However, they go on to say that “small firms”, perhaps like the constituent I was talking to today, will face approximately “$1,000 in additional costs to reprogram their point-of-sale system to remove and then reinstate” applicable taxes. I think in some cases that $1,000 may be underestimated.
A constituent of mine, who is a business owner, wrote to me today, “The GST holiday is crazy. To take the GST off takeout, restaurant, alcohol and, considering the fresh, healthy groceries don't have the tax...is only taking taxes off less healthy junk food options.”
My constituents get it, small business gets it and we on this side of the House get it. We are going to provide real tax relief for Canadians by axing the tax and we are going to stand up against the Liberal government's gimmicks.
:
Mr. Speaker, I apologize to the member. It has been a long day in the House of Commons. Yes, I know Erin O'Toole was never the prime minister, but he was the leader of the Conservative Party. When Erin O'Toole was the leader of the Conservative Party back in the fall of 2021, when inflation was over 4%, he recommended a GST holiday in Canada to provide some tax relief to Canadians. That was bad timing. It was terrible timing, in fact, because inflation was going like this. It was 4.1% in the summer of 2022 and It went up to 8%. When inflation is on the rise, it is not a good time to do these types of measures. However, right now, inflation is on its way down.
This is good news for Canadians. We need to find ways to stimulate our economy and provide relief and affordability measures. That is why, over the last couple of years, through our economic measures and the hard work of Canadians, our policies have all reversed and reduced inflation in Canada faster than other countries have achieved that.
I had a meeting recently with somebody from Australia, and they were talking about how they have not seen an interest rate cut, and inflation is still quite high. Inflation is persistent in some places around the world, but our economy is recovering from the COVID economic downturn here in Canada. I want to credit Canadians with that. I want to acknowledge that a lot of our economic policies have created the terrain for that change, but this is really good. The inflation situation has abated a bit and that means it is a good time for this. This is a timely measure, supporting our economic recovery with a responsible affordability measure for everyone.
Our economy is actually recovering better than anticipated. Canada is in really good shape economically and fiscally. The Conservatives want to suggest everything is broken in Canada, but I will not tolerate that. Canada is the best country in the world to live in. It is a great country. We are strong. We are economically durable through these challenges. We endured the economic downturn of 2009 quite effectively, and we did this one too, and that is because of the hard work of Canadians, because we have a good regulated banking system and because we are used to challenges in Canada. When the snow falls, we get outside with our shovels and we shovel our neighbours' driveways. We do not sit around and complain and say everything is broken, because it is not.
All that work, the perseverance of Canadians, has paid off and we can afford nice things. We can afford to do nice things for Canadians right now because of the expediency with which our economic recovery has taken place. We have been through a lot over the last couple of years. I know the Conservatives want to heckle me and they want to suggest Canada is not in great shape, but I will not tolerate that. Canada is the best country in the world and Canada is in great shape because of the hard work of Canadians, not because of complainers, not because of people sitting in the back rows complaining, providing no solutions to anybody's problems but just barking, yelling and screaming about how everything is broken, because it is not. Canada is not broken. As well, we have the solutions.
An hon. member: Oh, oh!
Mr. Adam van Koeverden: Mr. Speaker, that member should get on the list to speak tonight. He has probably already done three speeches about the previous thing on the agenda. If he wants to speak, he can ask me a question. I hope he would learn to wait for his time. If he wants to speak, he has to get a tie. He is going to sit in the back row and complain.
There are things we can do to help Canadians. The Conservatives have been talking about lowering taxes since the member for has been the leader. He has said it every single day. We have introduced a measure to lower taxes for Canadians and they are all going to vote against it. The irony and the hypocrisy are not lost on me, but it is also ironic that the Conservatives like to consider themselves the economic stewards, the stewards of the economic purse. That is absolute horse crap. It is not true. That is clear because at a time when inflation was going up, they wanted to do a GST cut, and now that inflation has abated and is on its way down, they do not. That is just basic Economics 101.
The Conservatives have demonstrated time and time again that they do not know how to manage an economy. It was clear when Harper was the prime minister. It was clear when the member for was their failed leader. They always put forward economic policies that will not help Canadians, but this will. A two-month break on GST and HST between the Christmas holidays and Valentine's Day is going to help Canadians. We are going to give them a little bit of a break because they deserve it, because they have worked really hard.
A lot of Canadians right now do not feel like their hard work is paying off. It is a really challenging thing to go into work every day, similar to going to the gym, and not see that work paying off. We want to see the hard work that Canadians are putting forward pay off. We want to make sure they have a great holiday. If that means they want to go out to dinner with their family and their friends, 13% off of that bill is going to help. Restaurants Canada has come out and said this is great and we will see more people in restaurants. They are going to see a bit of a bump. That is something our economy could use right now.
As the holiday season approaches, a time when people spend a little more on quality time, with some time off from school or work, whether they are sharing meals with loved ones, buying gifts for the kids or just ordering some takeout and chilling out, they deserve a break and our government is there for them.
[Translation]
Canadians deserve this quality time, after the tough years they have been through. Our goal with this bill is to ensure that as many people as possible can benefit from it. As the holiday season draws near, people need a helping hand. We want to give them that help. In fact, we are giving them two helping hands.
First, there is the tax holiday for all Canadians. In concrete terms, what we are proposing is a nationwide exemption from the GST and HST on certain products. It would start on December 14 and last two months. That would mean not paying tax on the purchase of clothing, shoes, children's toys, diapers, prepared foods and snacks. There would also be no tax on restaurant meals, beer, wine and Christmas trees.
The purpose of this tax break is to make the holiday season more affordable, especially for families who find this time of year difficult because of the extra expenses that come with it. The GST and HST holiday will make the holiday season more enjoyable for these families. That is the first helping hand, which is included in this bill.
The second helping hand we are proposing is a $250 rebate for millions of Canadians. We will have time to debate that rebate in due course. The tax holiday is what is more pressing right now.
We know that the holiday season is the most expensive time of year for Canadians and that the new year does not always get off to a good start once people have paid off all the holiday spending.
[English]
I would also like to point out that we, as a country, can afford to offer this help to Canadians. Canada's net debt-to-GDP ratio is well below that of our G7 peers. The Conservatives suggest Canada has a balance sheet they would like to change. We all want to make sure that we are paying down our debt, that our debt-to-GDP ratio is going down and that our deficit is reduced, but the Conservatives did not do that when they were in power. Mr. Harper saw inflationary deficits and added to our debt without experiencing a global pandemic.
Liberals are good stewards of the Canadian economy, and our recovery is evidence of that. We are one of only two G7 nations with a AAA rating by at least two of the three major global credit rating agencies. That is good news for Canadians. This has been achieved through a responsible economic plan that has put Canada in a really strong fiscal position.
It is also time to put that to work for Canadians. Removing the GST from these qualifying goods for two months will provide an estimated $1.6 billion in federal tax relief. That means $1.6 billion is going to stay in the pockets of the people who earned that money, Canadians, hard-working Canadian families. When they earn that money, it is their money. They will not be spending that money on taxes on goods, and we should debate in the House whether these are things that should ever be taxed, like prepared food in grocery stores or diapers, whether for babies or for adults. That is a debatable topic. We should talk about whether or not those are essential items and perhaps this bill will provide us the opportunity to talk about some of those things.
Budget 2024 removed the GST on psychotherapy and mental health counselling. That was a good move. We should have done that, and we did it. It is a breath of fresh air to talk about a bill like this in the House of Commons. It is a good opportunity to discuss those and more issues.
:
Mr. Speaker, I thank the member for for sharing his time with me.
Quebeckers and Canadians have been asking for tax relief for many years, and we recognize that. However, people want permanent relief, not this temporary relief for just two months. If it is not permanent, it should at least be long-term. This measure offers only a two-month break.
The measure proposed by the government and supported by the NDP does not meet public expectations in many respects. To illustrate that, I want to go over the bill briefly, even though all my colleagues have already done so and pointed out certain inconsistencies. I will explain why this measure is aimed at the wrong people. This measure will also be very costly for business owners. In the end, it may be much less beneficial than some people think, not only for the poor, but also for the economy.
The bill provides for a GST exemption or holiday. In Quebec, by the way, the GST amounts to 5%. In other words, there would be a $5 discount on every $100 in taxable purchases. At the grocery store, clients who limit their purchases to staples like bread, milk, eggs, vegetables, fruit, flour, sugar and meat would not have picked up any taxable items. That means they would have saved no money on any of their purchases. As the member for pointed out earlier, when someone buys ready-made sandwiches or roast chicken instead of preparing their food at home, they will save a few pennies, because these items are taxable. However, unless they buy $200 worth of roast chicken or $200 worth of sandwiches, they will save only pennies. Since people rarely buy $200 worth of sandwiches, this person will save just a few cents on their groceries.
The bill includes alcohol, candy and video game cartridges. Physical video games are included, but, I assume, not video games bought online. We have to read between the lines. There is no mention of sports equipment, aside from balls. Books are covered, which is good. However, there are a number of restrictions when it comes to books. There cannot be too many maps or too much advertising. There cannot be this or that. It will be a nightmare for retailers. Parents will find it hard to know which books they can buy without paying the GST.
Then there is the list of toys. In fact, it is more like a description of eligible toys. It is like the government asked all of its employees to go to a department store that sells toys and describe each and every one of them without actually naming them. Those are the descriptions. Retailers and parents will probably be wondering whether a toy is taxed or not. They will wonder if they will save $1 on a $50 toy. Actually, let me recalculate: They will save $2.50 on a $50 toy.
We are also talking about clothing for children under the age of 14. That is something that I mentioned in one of my questions. I am five foot four, which is fairly normal. My husband is five foot nine, even though he claims to be five foot ten. That is fairly normal too. We are very normal, or so we hope. However, our youngest son is 14 years old and wears a size 9 shoe. He wears pants with a 32-inch waist and 32-inch inseam, so he does not fit into the category of children under 14, according to the definition. I will not even talk about the oldest of my three sons. When he was 14, he was nearly six feet tall and wore a size 14 shoe. For him, it is very clear. If he were 14 right now, he would definitely not meet that definition. There may be a bit of an issue with the definitions.
As I was saying earlier, we need to think about the fact that we are talking about essential products. During the holiday season, I can understand wanting to buy a bag of chips, especially since they are often two for $9.50. I would not buy them a few years ago because they were too expensive. A few years ago, I would not buy them because they were too expensive, at two for $5. Now they are two for $9.50. It is nice to be able to afford a little treat when you cannot usually afford it. It is nice when a bag of chips or a bag of candy, whatever it is, becomes the treat of the month. That is great. However, 5% off $9.50 is about 25¢ off the big treat of the month.
Furthermore, when people are struggling financially, they do not think about dining out. As I explained earlier, instead of spending $100 at a restaurant, plus $5 GST, plus $10 Quebec sales tax, plus $15 tip, which is a minimum, a family of four in financial difficulty will go to the grocery store with that $130. They will not go to a restaurant. As long as they only get $5 off $130, they will head to the grocery store and have a nice meal.
I invite folks to look at their grocery receipt to see how much tax they pay. If they have bought household goods and, yes, diapers, it will bee a few dollars. Actually, I do not understand why diapers and feminine hygiene products are taxed. Those things should never be taxed. In Quebec, total sales tax is 15%. Divide that by three to see what the GST savings will be. It is not very much. People will save a few cents on groceries a week.
Getting back to the bill, it would allow people to save the GST on catering. To be honest, ordinary people do not hire caterers, especially not if they are struggling financially. For the most part, this measure will help people with money. It will help people who already have money save even more money. They will save $50 in GST on a $1,000 catering bill. That means someone who can afford something that costs $1,000 will be able to save much more than someone who saves 25¢ on their grocery bill or a bag of candy, yet the person saving 25¢ is the one who needs it most. This measure is not targeting the right people.
There has been a lot of talk about business owners. Earlier, there was one member who mocked people, saying that 30 years ago, prices used to change every week. Yes, prices used to change every week 30 years ago because all we had to do was turn the dial on a little machine and re-label the products. Then computers came along, but they were often the 1980-88 models with the spinach-green screens. That was not the same level of programming at all. I used to work at grocery stores back then. I know how much time it could take. Then there are the extra costs. There is the cost of the time it will take to check the inventory, to determine what is taxable and what is not. Reprogramming will also cost thousands of dollars. In Quebec, there is the cost of administering the collection of the GST. This is going to be complicated, and there is nothing in the bill to support Quebec and the provinces, which will have to deal with the chaos that will be unleashed for two months.
To close, when I look at this, I see some things that are good, like books and diapers. I agree, but it should target the people in greatest need, the poorest, and this bill does not do that. It really seems like a purely vote-seeking strategy thought out by people who tried to predict who is going to vote. Will it be those with the most money or those with less? Will it be people who live day-by-day, or those who can see beyond the end of their noses?
I cannot vote for this bill because it does not target the right people, not to mention that it is only effective for two months. If this measure were permanent, then maybe, but that is not the case. People are not stupid. They will catch on.
:
Mr. Speaker, I would like to start by addressing some of the people in my riding.
I want to acknowledge the people who are still fighting for employment insurance reform, because they are already in the spring gap. They will not make it to Christmas. Never mind Christmas trees and all that; they will not even be able to put food on the table, not until April. They know all about vulnerability. Earlier, members were talking about sloppy, temporary half measures and so on, but these people have been waiting for more than 20 years, probably since the Axworthy reform, for a way to make it to the end of the year. That is why I want to acknowledge them and thank them for keeping up the fight, because this is another battle the entire Bloc Québécois is fighting.
I also want to acknowledge the people in my riding who live in remote communities. The government is talking about a 5% tax holiday for two months. However, there are people in my northern riding who live in isolated areas where there are no roads. There are sometimes boats and planes in the winter. Otherwise, people have to use snowmobiles to get around. These people are already struggling to afford groceries and the cost of living. They do not just need a 5% tax break so that they can buy a lavish amount of food or a case of champagne. I want to recognize the Canada Post employees who are on strike, but also the residents of the Lower North Shore, who are having a hard time right now because Canada Post is the only carrier in their area and one of the things it delivers is food.
That said, these are really tough times for everyone. It is not necessary to broaden our perspective to know that this bill is a bad piece of legislation. My colleague from explained that earlier, perhaps more calmly than I am now. I know she is very passionate and outspoken. She said that the bill is very flawed and that we cannot afford to support it.
First of all, people are going on and on about the idea of essentials. I have been hearing about all kinds of lists throughout the day. For example, a puzzle and a pair of dice are now essentials. This bill seeks to remove the 5% tax on dice, which will apparently bring great relief to part of the population for two months.
I know that is a ridiculous example. Not everyone is in a position to read bills, but I am, and I really have to wonder why the list contains toys and other items that will save people maybe a few pennies off the purchase price.
Of course, members have talked about food. My colleague talked a lot about that. This measure will not really help anyone. It will cover candy, catering services, alcohol, prepared foods, which are more expensive because they are prepared, and restaurant meals. I heard the party opposite say over and over again that, now, people will be able to go out to restaurants. For a family, dinner at a restaurant costs $100, $150 or sometimes even $200. For a family of four, five or six, going to a restaurant does not just cost $20. I have a family of six, and it is a lot more expensive than that. This measure does not cut it. This is not the kind of help that people need.
People here in Ottawa are living in a bubble. Perhaps the government should get out into the real world sometimes, rather than hastily cobbling a bill together without really thinking about how that bill will actually affect people. Then it might understand that this bill is not a real solution for ordinary folks.
My colleague opposite talked about heating, and I agree with him. Perhaps heating is an essential when compared to some of the items listed in the bill.
The Bloc Québécois has a problem with a second aspect of the bill. We tried as hard as we could to find a way to improve it, but we cannot amend the bill. We are in the House and things are moving very quickly. I saw it. Members were practically trying to keep me from speaking by saying that there was not really time for one last speech. Meanwhile, we had time for quite a few bells today. That is exactly why we need to take the time.
It is a technical issue. We are here as legislators to reflect and propose new ideas. We are not here simply to oppose in a foolish and stubborn way, but to oppose in order to improve things. Even if we are not voting in favour of the bill, the government still needs to listen the legislators. The Bloc Québécois proposed an amendment. I know that there are other parties that agree with this amendment proposed by my colleague from , who is calling for the bill to be studied in committee and for the to come testify.
Legislation cannot simply be introduced like that. All of this was clearly improvised. Earlier, one of my colleagues from the Conservative Party said that December 14 was too late to buy a Christmas tree, even if it will supposedly be cheaper then. When a measure arrives this late, it is obvious that it was thrown together quickly in the hope that it will not be so bad and no one will notice the glaring flaws. That is truly what is happening. The Bloc Québécois would have liked to simply discuss it, but that is not going to happen. I can say that I had a taste of that medicine earlier.
I would also like to talk about other aspects, like business owners, for instance. This subject has come up a number of times, here and there. It is true that, as a society, Quebeckers are strong supporters of small businesses. My constituents on the north shore are no exception, and I cannot help but think about these businesses.
The government is proposing a measure, but it is not thinking about how things work in the real world. In a bar, it is not that easy to know what percentage of alcohol is going into a cocktail. Will it be exempt from the GST or not? Should bartenders start measuring everything proportionally to make sure they are really following the rules? Again, it may sound far-fetched and absurd, but we need to think of every possibility when drafting bills in order to see where the blind spots are.
It sounds like a great idea. Then again, I do not know if alcohol counts as an essential, although I do want to encourage our business owners. I thought of a joke there, but I am not going to share it. I was going to say that maybe alcohol is an essential for those who have to think about this bill. There, I said it. Still, we have to think about the blind spots and try to identify what is not working in the bills to help businesses. Walmart and Costco are not the only ones that will be selling discounted products. Sometimes I get the impression that the government is only thinking about them.
Where I live, we have a Walmart, but no Costco. We have some very small businesses too. These small businesses are going to have to change their programming, and that does not happen with a snap of the fingers. Changing programming takes technicians. Where are people supposed to find technicians when there is already a shortage of technicians? On top of that, this all needs to be done right across the country. That requires technicians, and they do not work for free. Then they have to come back again mid-February to do exactly the same thing. Small businesses have fewer staff and will be forced to take on an extra burden at their busiest time of the year. People may be getting a 5% tax break to go to a restaurant, which amounts to a $5 discount, but businesses are having to spend $3,000 out of pocket to implement this measure.
I would like to remind the government that businesses are owned by people. These are people who put their heart and soul into their business all the time, who work seven days a week, who are trying to improve their companies, who also have to hire people and who also have families. They are also going to be affected.
In light of all that, I am wondering whether this is really going to be worth it. The government has not considered all these consequences. They did not think it all through, so they assumed it would be easy. My colleague gave a detailed list of all the difficulties that businesses could face. They will have to identify which products are be tax-free. It could be tough.
I heard a government member say earlier that adult diapers would be exempt from the GST. I would have liked to ask him about that again. I checked the bill. I could not find it in there. I do not know where he saw that.
If it is hard for a government member to keep straight the contents of the bill he is defending, and if the government does not want us to study it in committee because it wants to move really quickly, why should we pass something like that? The member does not even know what is in his own bill. I do not have the bill in front of me. Let us say I have it here.
How are the businesses back home going to sort this out? How are the parents or the people buying the products going to sort this out? Are they going to walk around with a copy of the bill in their hands and look at the shelves and ponder whether the item is truly a soft toy with accessories? That is how it is worded in the bill. Are they going to check whether an item matches what is written in the bill? Is a parent really going to do that? In the bill, books are GST-exempt, but cut-out books are not. The parent will have to check the books to see if there are any cut-outs or stickers.
It will get complicated. I think it is too daunting. Consumers might not want to bother doing all that for the sake of 30¢. Maybe people will decide to take the item anyway because it is what they want, so who cares if it is not GST-exempt. I do not know if this measure is going to be as effective as the government thinks.
Members have been talking a lot about families. That makes sense. As my colleague from said, it is the holiday season. Of course, not everyone celebrates Christmas, but it is the holiday season. Yes, there will be celebrations and family gatherings, so we want to help people. At the same time, the date is arbitrary. The list of goods that will be exempt from the GST and the timing are both very arbitrary.
I am the mother of three children, two of whom are over the age of 14. Parents are well aware that there are certain times of year that are more difficult, and I want to stress the word “times”. Ideally, there should be a GST exemption on children's clothing year-round. That is a huge burden on families. Let us not forget that, every year, in August and September, we hear about how expensive back-to-school time is. Lunch boxes, school bags, school supplies, clothing: all of those things are expensive. Then, of course, parents have to pay to register their children in this or that activity. In short, yes, back to school is a very expensive time of year, and Christmas is too, so we need to ask ourselves another question. Is this measure needed only at Christmastime?
I saw costumes included on the list of products in the bill. Maybe people need costumes. In any case, there is a big difference between costumes and clothing. What do people really need? What is the government really trying to give people?
Once again, it all boils down to the same thing. I apologize for repeating myself, but there is no thinking behind this. I have not talked about it yet, and I myself do not understand why. It is probably because the idea behind the bill was not properly thought out.
It was not about making a perfect bill. The goal was probably just to grab some media attention by telling people that the government was going to hand out a goody, a big treat. People were led to believe that it was a treat. Anyone with any sense at all quickly realized that this makes no sense. It is really just electioneering, but they are trying to pass it off as a treat. I almost said they are giving people a trick instead of a treat. It is too easy to make puns with this bill.
I am about to wrap up. Maybe we need to think about other things. This measure tells people to spend money on things that are not necessarily useful. I am not saying people do not want to go to a buffet every now and then for a festive occasion, or that they do not feel like cooking some nights because they are exhausted. Sometimes I pick up a rotisserie chicken at the grocery store, and that is on the list of GST-exempt products. It happens to us, too.
That said, is spending really saving? They say they want to help people. Are people really saving when they are spending money or when the government is trying to make them spend more? As I said before, these are not essential things. The Liberal-NDP government is so proud of itself, but this is not actually saving.
Besides saving money, the other thing we are interested in this evening is not the GST part, it is the part that has been set aside for the time being, the $250 cheque. I hope we can get back to that, because I have just as much or more to say about it. It is a measure that excludes people. The GST measure excludes things that people might appreciate having a discount on. It excludes some products that could really help people. The $250 cheque excludes some people outright.
It excludes people who do not have a lot of money, like seniors and students. Students may decide not to work during the year so that they can focus on their studies. It also excludes people with disabilities. It excludes people and actually penalizes them, if members can believe it, for not currently being in the labour market.
When people need housing, when they need food, when they need clothing—we cannot forget Maslow's advice to always go back to basics—a bill like this one, or a one-time cheque for $250 that goes to a select number of people, is not what they need.
I would like to talk about the amount. The Bloc Québécois introduced a bill for seniors, Bill , presented by my colleague from Shefford. It seeks to end discrimination. I just talked about discrimination when I spoke about the people who may be excluded from receiving the $250 cheque, but the same holds for seniors. We want to restore fairness and fix the situation, but the government refuses.
It says this would make the measure way too expensive. However, between the $250 cheques and the $1.7 billion, at a minimum, for the GST break, that is already double what the Bloc Québécois was asking for. This may be a clue that what the government is really trying to do with its tax break and its $250 cheque—which should of course be coming soon, although we might not get it until April—is simply buy votes.
As I read the bill, something occurred to me. It is important to have a sense of humour. People are going through a tough time. Our constituents are struggling. When a bill like this comes along and we get the impression that what will be exempt from GST is what people might need to celebrate Christmas and New Year's Day, or perhaps even the Epiphany, since the measures will be in effect until February, it occurred to me that it is a good thing this was not introduced at Easter.
Imagine if the bill had been introduced at Easter. What goodies would they have given out? We would have had tax-free chocolate eggs, little pet bunnies and maybe yellow, purple and pink clothing. I am being sarcastic, but when a bill like this comes along, it is not hard to believe that this was the degree of thought that went into it. It is all about buying votes.