The House resumed consideration of the motion that Bill , be read the second time and referred to a committee.
:
Madam Speaker, that was quite an introduction to my speech. It basically took all the oxygen out of the House.
Let me start by saying that this bill is effectively the budget implementation act, which would implement a portion of the last federal budget, budget 2022, which was tabled just over a month ago. Not surprisingly, after having given this much thought, considered it and looked at all the different elements of this particular bill, as well as the budget itself, we as the Conservative opposition have no choice but to oppose it. I will tell the reasons why.
When I spoke earlier to the budget itself, I highlighted the fact that there were a number of issues we took very seriously. One was that, contrary to expectations, it was not a growth budget. In fact, it was very much like the previous budget in 2021, which was panned by the Liberals' own former advisers, who said that the claims that that budget was a growth budget were actually profoundly wrong. In fact, it was a spending budget. It turns out this budget, budget 2022, is also a spending budget.
Why can I say that it is a spending budget? We know the figures, and the officials have confirmed them. There is somewhere in the order of $57 billion or $58 billion of new spending in this bill. That is not just carrying over from the previous year or established programs simply carrying those forward. This is, on top of that, $57 billion more that the government would spend.
I believe we need to place this all in context because the government took over some six and a half years ago in 2015, and over those six and a half years, and members will not believe this, spending has grown 53%. To put this into further perspective, just between 2019, so just before the COVID pandemic, and today, spending has increased by 25%, so by all measures this is a tax-and-spend Liberal government. Canadians should not be surprised. That is the reputation they have earned over many decades.
Is this a growth budget, which is what it was supposed to be? It was intended to be about fundamental changes that were going to improve the prospects for long-term growth for our country. About the growth we are seeing in the economy today, the Parliamentary Budget Officer has said that growth is actually “GDP inflation.” In other words, it is not organic or substantive growth that is generated by improving productivity within the economy that would improve our competitiveness on the world stage and the global marketplace.
For example, there was nothing in this budget about comprehensive tax reform, which would clearly position our tax system as being fairer, making sure the wealthy pay their share, and also position Canada to be competitive within the global marketplace. Such a tax system would attract investment from all around the world, because today Canada has a reputation of being a place people do not invest in. They shy away. It has too much regulation. Taxes are too high. There is no certainty that the investment will ever be approved, and it has a federal government that is not supportive of this investment, certainly not investment in our resource sector and certainly not investment in our oil and gas sector.
This is also not a growth budget because there is nothing in it about regulatory change or about regulatory reforms that would speed up the approval process for worthy projects. That just is not here.
There is nothing in this budget about interprovincial trade barriers, which have bedevilled governments for many, many decades. It is tougher to do trade among the provinces and territories than it is to do trade with some of our free trade partners around the world. What a sad comment on the performance of the government, which had nothing in the budget or in this bill that addresses that serious problem.
There is nothing in the budget that addresses Canada's lagging investment performance. In fact, Canada is at the bottom of the list of the 38 OECD countries when it comes to investment performance. Investors from around the world just do not see Canada as an attractive place to invest.
I want to hearken back to a comment that the just made. She made it seem like Canada's growth rate is the best in the world. There is nothing to see here. It is all great. “Don't worry, be happy.” In fact, she quoted the IMF, which said that Canada is going to have a good growth rate for a couple of years.
Do members know what the OECD has said? Canada ranks 38th of 38 countries when it comes to expected future growth of our economy over the next 30 to 35 years, between 2030 and 2060. Canada will be at the bottom of the list of the developed countries of this world. That is a failure on the part of the Liberal government. This is not a growth budget. The prospects under the government are bleak when it comes to future growth.
Second, let me address the issue of inflation. Inflation is the biggest challenge to Canadian families today. The affordability crisis stretches from coast to coast to coast. Yes, there are external influences that have driven inflation from around the world, supply chain challenges and spiking commodity prices, but the government has to take responsibility as well. Economist after economist notes that governments cannot keep spending and spending and pumping more money into our economy without paying a price, and that price is the inflation we see today, especially in our housing market. The housing affordability crisis is as severe as I have seen in my lifetime. It has never been so bad in this country. Right now, the government cannot give Canadians any hope that things are going to get better in the near to mid-term.
The problem is this. The Liberals had something in their budget called a housing plan. They said they were going to pump $10 billion into Canada to help ease the housing crisis, but $4 billion of that is simply a transfer from the federal government to municipalities across the country. It will not create one extra house in Canada. It will not build one extra house over the next few years. It is going to be used, purportedly, to help the municipalities improve their application processes, to make sure they are more efficient, more timely and speedier, so they can get more permit approvals out the door, but that is going to take years to manifest itself. I think we all in the House know that this is not a quick fix.
The other $6 billion from this $10-billion fund is going into a program that will allow first-time homebuyers to set up a savings plan where, over a period of five years, they can invest $8,000 per year for a total of $40,000 in an account that has tax-deductible investments into the fund and one can take money out tax-free. It sounds great, but it is only $40,000 and it is over five years.
Over five years, these families are going to be left far behind by a housing market that is raging out of control. To boot, that program is going to increase demand for housing in Canada even more as more Canadians take advantage of this. We are going to have a problem on the demand side and a problem on the supply side of housing in Canada.
The real challenge here in Canada is the housing crisis itself, and the inflationary aspect of it is a made-in-Canada crisis. Some of the elements that go into our home construction would be impacted by global forces, but for the most part, housing inflation in this country is a made-in-Canada crisis. We had the Governor of the Bank of Canada, Tiff Macklem, at our committee not long ago and we specifically asked him if it was possible that some of the inflationary spending that the federal Liberals had done, the borrowing and spending, with record deficits and record debt, could be contributing to housing inflation. He admitted that yes, that was true. Housing inflation can be driven by excess liquidity in the marketplace.
It is not available to the Liberal government to simply wash its hands of the inflation crisis besetting our country and afflicting homes across this country. It has to take some ownership and responsibility for a crisis of its own making. It is not solely of its own making, I will be the first to admit, but it is significantly of its own making.
That was the cost of living, and of course it is going to get worse because on one side we have inflation. How do the Bank of Canada and Mr. Macklem fight inflation? He now has to increase interest rates. At committee last week, he admitted he was going to have to do that quickly and that the increases in interest rates would be significant.
Now we are between scourges afflicting families across this country: on one side, we have skyrocketing inflation, and on the other side, we have rising interest rates. Canadians who have mortgages that are due for renewal are going to be paying higher mortgage rates. That means higher payments, which in turn mean less disposable income for those families. That is the story and the legacy of the Liberal government.
I will go to the third problem that we see with this budget and this bill. The was expressly directed by the , just over a year ago, not to engage in any more new permanent spending. That was in the middle of the COVID pandemic, and the government I thought had realized that we could not keep spending. We need to discipline spending because, at the end of the day, we also have a duty to future generations of Canadians who have to pay back this massive debt that has been incurred because of the COVID pandemic and because of the government's reckless spending.
Instead, after receiving that clear directive, a year later what did the do? He gave the another mandate letter in which he purged any reference to eliminating new permanent spending. I do not know. Maybe the Prime Minister already knew that he was cooking up a coalition between the NDP and the Liberals, that it would cost taxpayers a lot of money, and then the government would have to borrow a lot of money to satisfy the NDP. I do not know that, but I do know this.
Shortly after the received that mandate letter, she started crafting her 2022 budget, which introduced a massive amount of new permanent spending, including a dental care program. In the last budget, it was a child care program. In the next one, we expect there will be a pharmacare program.
What was shocking to me, as a member of the finance committee, was the process when all of these requests were pouring in as we did our pre-budget consultations. There were stakeholders from across Canada. Five hundred written submissions came in, and many more witnesses were basically asking the government to fund this program or that program or to give them this subsidy or that subsidy. We asked the other members of the committee if we could at least go through a process of prioritization and triage all the requests flooding in, so that we could bring a critical eye to them to determine which ones were actually affordable for Canadian taxpayers and future generations, who would have to pay the bill.
The Liberals, NDP and Bloc said that they were not interested in prioritization. They wanted to take all the recommendations and send them up to the to see what she would do with them. What a reckless way of doing business. That is not the kind of country I want to live in. I want to live in a country that is fiscally responsible. I want to have a who actually thinks about monetary policy, not who shuns it and says it is something that does not concern him.
It is the monetary policy of this country that is requiring interest rates to go up because of the reckless borrowing and spending of the Liberal government. That is the permanent spending part of it. There is $57 billion of new spending just in this budget alone, and that will saddle future generations with an albatross. It is a huge indebtedness that they are going to have to pay back with rising interest rates.
The last point is taxation. The Liberal government often talks about having Canadians' backs and being there for the middle class. “Hear, hear,” they say, yet the budget is tax after tax. It is unbelievable. Look at the escalator on wine excise taxes, for example. It is unbelievable. The escalators automatically drive up the taxes on goods that Canadians purchase every single day. It is tax after tax. What is worse is the fact that with the dramatic escalation in the price of gas at the pumps, Canadians who already had a tough time filling up their tanks are now realizing, because we Conservatives are telling them, that on top of that gas price, they are paying GST, which means more revenues for the federal government but less disposable income for them.
We, as Conservatives, brought forward a proposal, because we are solution-oriented. We are problem-solvers on this side. We came forward to the and said that we could at least temporarily suspend carbon taxes and temporarily suspend the GST on gas so we could give Canadians a break. The Liberals said no.
Let me close by saying that there is no way the Conservatives, the official opposition and the loyal opposition, can support a budget bill that is irresponsible. I have a motion that I would like to table in this House.
I move:
That the motion be amended by deleting all the words after the word “that” and substituting the following: “the House decline to give second reading to Bill C-19, an Act to implement certain provisions of the budget tabled in Parliament on April 7, 2022 and other measures, since the bill fails, among other things, to address inflation, provide tax relief for Canadians and take immediate action to increase housing supply.
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Madam Speaker, I may not be able to say that I had time to study all 500 pages of Bill , but I have a few comments.
There is a lot of talk about work, workers and the importance of employment. I wanted to know what the government had put forward for workers, whether it had an ambitious agenda and vision, and whether it was able to do something tangible to support workers and improve their conditions. After all, at the end of the day, labour is an important part of the economy.
Based on my analysis, I find that the sights are set too low when it comes to workers. I will provide a few examples. In the last budget and in the ’s mandate letter, the government promised legislation to prohibit the use of replacement workers under the fundamental right to associate and to bargain. There is nothing in this bill to indicate any intention or action in this area. What happened with that?
Another issue is fair employment. I do not know if anyone knows this, but the Employment Equity Act was passed in 2018. Currently, in federally regulated businesses, there is differential treatment based on employment status using “orphan clauses”. The Act was passed in 2018, but there is still no plan or vision to move forward with this. What is going on there?
Recently, we passed Bill here in the House to give workers 10 days of paid sick leave. That legislation will come into effect at a later date fixed by order-in-council, but we still have not found anything yet.
Climate change is one of the reasons we opposed the budget. We want to see an end to fossil fuel production and a just and fair transition to green or clean energy. What is there for workers?
Last week, the Commissioner of the Environment and Sustainable Development said that Natural Resources Canada and Employment and Social Development Canada were not prepared to support a just transition to a low‑carbon economy for workers and communities. It is serious: There are more than 200,000 workers, and there are no plans or measures to support this just and necessary transition.
I would also say that the government is abandoning health care workers by firmly refusing to increase Canada health transfers, as Quebec and the other provinces are calling for. If we want quality health care, we must rely on these workers. To do this, Quebec needs the necessary subsidies to match the expenses so it can better support the health sector.
I looked everywhere in the budget and found only one paragraph on employment insurance. This is where workers are being totally abandoned, even though comprehensive EI reform had been promised. Once again, the government missed an opportunity to act. In one paragraph of the budget and in Bill , the government announced the extension of pilot projects that provide up to five additional weeks of EI benefits to seasonal workers. That is it, nothing more.
The 's mandate letter clearly states that she is to work on modernizing employment insurance by the summer of 2022. The himself said that he asked the minister to focus her energy on building a more equitable system by June 2022. On January 1, she indicated that this was likely to happen.
Right now, workers everywhere, in all regions of Quebec and Canada, are struggling to qualify for fair and accessible benefits. There are serious shortcomings that need to be addressed. We know what the issues are, we know what it will take to fix them, yet there is still a delay in implementing the changes that are needed.
Surely we do not need to be reminded that the EI system is a social safety net that protects workers who lose their jobs. It also protects them in the aftermath of life events, as the minister said. For example, sickness benefits are still capped at 15 weeks when they promised to extend them to 26 weeks. We are being told that this may not happen in July, as first thought, because the computer system will not be ready. They are abandoning people.
I am quite surprised and disappointed that the orange team did not leave its mark in the budget when it comes to workers; it clearly lacks teeth.
All unemployed workers' groups and labour groups support employment insurance reform. More consultations are on the books. Consultations have been going on for years. When will the government get on with it? This is a broken promise at present.
EI reform is important for workers. I meet with workers, unemployed workers' groups, community groups and civil society groups to look at the economic and social realities in some regions. In regions where the seasonal industry holds a predominant place in the economy, five extra weeks in the event of job loss is not enough. There is the issue of the spring gap, which is when a worker does not have enough weeks of benefits to cover the period between the end of the job and when the job resumes. We could tell workers to go work somewhere else, but that is not the answer; rather, we have to support the seasonal industry when it comes to tourism, the fishery. We know that major sectors are affected. A region's economy depends on that. It is not by once again carrying forward a five- to 10-week pilot project that we are going to give the regions the capacity to support their economy and give workers the capacity to maintain good jobs and experience. We need to protect the vitality of the regions.
The inequities in the EI system for women and young people are another example of needed reforms. The current rules are outdated and significantly discriminate against them. All kinds of criteria regarding hours of eligibility need to be changed. I think the government needs to send a clear message that EI reform is a priority. It is a priority for workers and for the economy. This program is a social safety net that is very much needed, but what the government is doing is very disappointing.
I want to mention the little note about reviewing the Social Security Tribunal and creating a multi-stakeholder tribunal. All the better, since workers have been calling for this for 10 years.
Since I have just 30 seconds left, I want to conclude by saying that workers are in dire need of support. The Liberal government must send a very clear message in its budgets and financial policies that we are counting on them. If we are counting on them, then they need support and they need it now.
:
Madam Speaker, I thank the House for granting its consent, which gives me the opportunity to say a few words today. I hope to use this time to make some relevant remarks.
Let us get one thing straight. The member for tacitly accused my colleague of finding excuses, false reasons and pretexts for voting against Bill C-19. Let me be perfectly clear. We will be voting in favour of the principle of the bill. We will work hard in committee to rework the bill, but we will vote in favour of its principle.
Incidentally, I would encourage my colleague not to applaud me too quickly. I would be concerned. Several things need to be addressed. The only reason we are voting in favour of the bill is to amend it, and quite extensively in certain areas.
Let us talk about the process first. We are dealing with a bill that is a real juggernaut. It is a thick tome of some 500 pages with about 60 measures that amend 37 laws, along with several concurrence amendments. The summary alone is eight pages long. This is a bit of a kitchen-sink bill. It includes budgetary measures, non-budgetary measures, minor measures, as well as apple pie measures, as we say back home. At the same time, it also includes much more substantial things. I think a distinction should have been made between minor legislative amendments or small measures and much more substantial and profound measures that should have been examined separately. It includes measures to update certain things, as well as provisions from three bills that presumably would have died on the Order Paper.
That is the issue we have with this government and this parliamentary culture. We are constantly having these tomes forced on us and have to live with “all or nothing”. We have to agree with it all or reject it all. What we call a parliamentary monarchy is a bit of a paradox that way. We are told that, in this system, Parliament is the ruler. However, we are still in a system where, as the word “monarchy” implies, transparency is sorely lacking and where, all too often, a parliamentarian's purpose is to rubber-stamp mammoth bills, legislative monstrosities, like the ones that have been surreptitiously foisted on us.
What it boils down to is that the Bloc Québécois opposed the budget statement. As everyone knows, we voted against the budget. However, we are prepared to live with the principle at this point. I said “principle” because we are not ready to commit to supporting it to the full extent, unlike a certain other opposition party. We will see what happens next, when it is studied in committee, but we are willing to live with the principle because we think that many of the bugs that were in the budget are not in this bill. For example, the budget announced massive oil subsidies, including for carbon capture. There was also the issue of small nuclear reactors, and the budget contained major conditions and major intrusions on the health care systems of the provinces and Quebec. Fortunately, none of that is in this bill.
In addition, there are a few urgent measures that have been mentioned and on which we agree, particularly with regard to EI. My colleague from explained that well, and there are some significant grey areas that were well clarified in the last speech.
There are also some measures that look interesting on paper and several that require closer inspection. One that I find particularly interesting is the obligation for federally regulated pension fund managers to disclose climate-related information. That is a first step towards what we call green finance, which is an important issue for my colleague from . What we need to do is reorient our banking and financial systems toward supporting the energy transition instead of the energy of the past, fossil fuels. That calls for political will.
Some things look interesting on paper. One of those is aerospace, which is a very important file.
Bill includes a tax on select luxury items. This was already in budget 2021, which reads as follows:
... it is also fair to ask those who have prospered in this bleak year to do a little more to help those who have not. That is why we are introducing a luxury tax on new cars and private aircraft [manufactured after 2018 and seating up to 39 passengers] worth more than $100,000 and pleasure boats worth more than $250,000.
Here is another excerpt:
If you've been lucky enough, or smart enough, or hard-working enough, to afford to spend $100,000 on a car, or $250,000 on a boat – congratulations! And thank you for contributing a little bit of that good fortune to help heal the wounds of COVID and invest in our future collective prosperity.
When we read that on paper, there is no problem. The Bloc Québécois is fine with the wealthy contributing more. The division of wealth takes political will as well. It is too bad there is not as much will to combat tax havens, but that is another story. The Bloc Québécois agrees with the division of wealth because it is a social democratic party. We have no problem with that.
Now, the problem is that, unfortunately, the devil is all too often in the details. The way the bill is written, all new aircraft designed after 2018, including planes, helicopters or gliders with a maximum capacity under 40 seats, including corporate aircraft, will be subject to the tax. Aircraft usually used for commercial activities, like the ones equipped for carrying passengers or designed exclusively for transporting goods, are excluded.
As I was just saying, the Bloc Québécois agrees in principle. The idea of a tax on luxury items and luxury jets sounds good.
However, we do have major concerns about the negative impact of the tax. As described in Bill C‑19, it is a tax on the Quebec aerospace industry. I can say that we have had various meetings with the aerospace industry, which is a key sector. The late Jean Lapierre used to say that aerospace was to Quebec what the auto sector was to Ontario.
Quebec is the third-largest aerospace cluster in the world, after Seattle and Toulouse. These three clusters are in three different countries. Canada is the only country with such an important cluster that does not have an aerospace policy, and Bill C‑19 does nothing to fix that.
I want to come back to the luxury tax. We have had meetings on this. I have had meetings with several industry players. Both the unions and the companies, including Bombardier, are concerned about this, as are the associations that represent small and medium-sized businesses in the industry. Obviously, when we think of aerospace, Bombardier immediately comes to mind, but there are a lot of very innovative, powerful and dynamic SMEs in the greater Montreal area, especially in Longueuil and on the north shore. There are a lot of them. Everyone is worried. Generally speaking, workers' associations can hardly be said to favour seeing the bosses line their pockets and not getting a share of the income and wealth, so when workers' associations, SMEs and large companies are in agreement, it is a sign that there is a real consensus on the fact that this tax must be reviewed and reworked. As it stands, it will fundamentally harm an industry that has not gotten the policy it deserves.
Last November, my colleague from and I issued a statement. We would have liked to see the government get involved in aircraft salvage. North America is a huge aircraft graveyard right now. Given that Airbus has announced that it intends to accelerate aircraft recycling by creating partnerships with several regions in the world, we would have liked to see Ottawa hurry up and seize this opportunity.
We therefore reluctantly support this bill, but the Bloc Québécois will be extremely active when studying it in committee in order to fix its many problems.