SoVote

Mr. Pat Kelly (Calgary Rocky Ridge, CPC)

Feb/9/22 5:11:15 p.m.
Watch
Re: Bill C-8

Mr. Speaker, I am pleased to speak today to Bill C-8, an act to implement certain measures included in the fall economic and fiscal update. This debate comes amid a real crisis of leadership in Canada. We know the Prime Minister called a summer election that Canadians did not want, and by cleverly sowing enough division and fear in just the right places, he managed to squeak out another minority government with the same willing partners in the Bloc and the NDP. He claimed that the 2021 election was necessary because we were at the most transformational moment since 1945, and that he would need a new mandate to implement a bold new agenda befitting a grand historical moment. Once elected, with the same partners who were already giving his government a free hand to do anything he wanted, what did the Prime Minister do that was so transformational that it required an election and a fresh mandate? He did absolutely nothing. He waited weeks before making a few tweaks to his cabinet. Then he waited a few more weeks before finally reconvening Parliament, delivered a bland, recycled Speech from the Throne, and eventually, the week before Christmas, tabled what he was still referring to as the fall economic statement. What was in this much-delayed update? What worthy, once-in-a-lifetime transformational programs required a new mandate from an election to implement? We saw absolutely nothing. The statement was a continuation of the same trajectory the government has been on both since and before the COVID crisis began. The fall economic statement shows that the government is continuing down the path that it has long walked of out-of-control spending, higher taxes and continuing inflation that threatens to trigger a spiral of higher prices for consumers, higher interest rates, higher mortgage payments for consumers and higher debt service costs for governments, which will eventually mean higher taxes and service program cuts. This is the trajectory we are now on and it began long before COVID. Canadians are facing an affordability crisis. Inflation is now the highest it has been in decades. Families can expect their grocery costs to increase by $1,000 this year. For millions of Canadians, this means hard choices about what they will do without. The vast majority of Canadians do not have an extra $1,000 a year to spend on groceries. Before the pandemic, nearly half of Canadians were virtually broke after paying all of their monthly obligations, and they simply cannot absorb higher food costs. There is the cost home heating. This is an absolute life necessity in Canada. Nobody in Canada, not even on the west coast, can simply tough it out in the winter and just put on a sweater when it gets cold. When it does get cold, and it gets bitterly cold in every part of Canada, Canadians need reliable and affordable energy to heat their homes, and the government slapped an ever-increasing carbon tax on home heating costs for millions of Canadians. Transportation is also more expensive; gasoline is more expensive. This is also due in part to the carbon tax. This cost affects everyone, whether they own a car or not, whether they drive or take the bus. It makes driving to work more expensive, it makes bus passes more expensive and it puts pressure on municipalities, which have increasing costs to operate police, fire, ambulance, waste collection and transit vehicles. These higher costs have resulted in higher property taxes or cuts in services, and this will continue. Nowhere is the increased cost of living and inflation crisis more obvious than in Canada's housing market. A true crisis in affordable rent and home ownership has deeply taken root in Canada under the current government. It became much worse during the COVID crisis, and this bill does not give hope to would-be homebuyers or renters. In fact, it is a continuation of the very policies that have pushed home ownership out of reach for young families. COVID has had a devastating effect on the Canadian economy, resulting in a significant drop in GDP and massive job losses, yet the price of residential real estate has gone up, and not just by a little. The Canadian real estate market saw the most spectacular run-up in home prices ever seen. The average price of a Canadian home went up 30% in the middle of an economic contraction with massive job losses. How could that possibly happen? Was there a massive collapse in other asset classes to offset a rush of money into residential real estate? No. Stock markets also enjoyed a spectacular run during COVID, so where did the money come from? Can there now be no doubt that massive deficits, facilitated and enabled by central banks that massively expand the money supply by buying the government's debt with newly created money, inflate the value of assets without actually creating any real wealth? It is Justinflation. This bill, with its deficits and the absence of credible fiscal anchors or an acknowledgement of the inflation crisis, is a doubling down on the previous fall economic statement and last year's budget. There is nothing to give Canadians hope for a future where there will be affordable homes, manageable costs for basic necessities, relief from taxes or the better public services they want and need. There is nothing in this statement to give Canadians confidence that their leaders are prudent managers of the nation's finances. In fact, the Parliamentary Budget Officer has pointed out that the government's own stated rationale for the billions in additional spending contained in the update no longer exist. The PBO has also pointed out that since the pandemic began, billions of dollars have gone into non-COVID new spending programs. Furthermore, beyond the dollars and cents, the PBO has pointed out that the government is struggling with basic fiscal transparency. The PBO stated: This year both the Annual Financial Report and Public Accounts were published on December 14, 2021, the latest publication since 1993-94. Comparatively, Canada was among the last of the G7 countries to publish their financial accounts for the 2020-21 fiscal year. The PBO goes on to point out that the federal public accounts are published later than most provincial and territorial public accounts and that “Canada falls short of the standard for advanced practice in the International Monetary Fund’s [fiscal] reporting guidelines”. In some respects, these quotes from the PBO about basic competence and transparency might be the most disturbing part of all. For six years, the government has been increasingly paralyzing the country with incompetence. We watched a government just shrug off payment systems that do not pay, procurement systems that do not procure and create regulatory systems designed to kill projects. It dithered for years with a non-decision on Huawei, jeopardizing national cybersecurity. It defied parliamentary orders. It has presided over the resignation of eight generals, one clerk of the privy council and a governor general. Now we are adding the inability to file timely fiscal reports to the incredible litany of muddled and incompetent government. Today, as we debate the implementation legislation for the fall economic statement, Canada is as divided as it has ever been. The government has long pitted east versus west, urban versus rural, and now the vaccinated against the unvaccinated. The government operates under an “us versus them” mentality that has finally and courageously been called out by one of their own this week. To conclude, I will not support this bill. It is a matter of confidence in the government, and I have none.

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Context: House Hansard - 27 - Feb/9/22

Mr. Pat Kelly

Feb/9/22 5:21:06 p.m.
Watch
Re: Bill C-8

Mr. Speaker, there is a lot there, and I will do the best I can with the time I have. To start with the last point, yes, indeed there is inflation in other parts of the world, but in no other advanced economy is it like it is in Canada. This is a Canadian phenomenon compared with our peer countries. On housing, yes, indeed supply is an issue. We have seen nothing from this government to meaningfully address supply. It is quite the opposite. We have a continuation of regulation, and that goes to other levels of government as well, but certainly there are supply issues here. However, what the government has done is inflate the entire asset class with its deficits that were facilitated through the creation of new money, which I addressed. With respect to programs, yes, indeed we supported all of the support measures that were necessary to combat COVID. However, as the member might have noted in my speech, the Parliamentary Budget Officer has pointed out that the criteria for the stimulus portions, and the government's own rationale for them, have disappeared, yet the expenditures remain. Finally, I would like to thank the member for participating in the debate. It is nice to see somebody besides the member for Winnipeg North and the member for Kingston and the Islands actually doing their job and speaking in the House of Commons.

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Context: House Hansard - 27 - Feb/9/22

Mr. Pat Kelly

Feb/9/22 5:23:22 p.m.
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Re: Bill C-8

Mr. Speaker, the member is absolutely right. This government has spent a lot of air time during committee meetings, and occasionally in the chamber, paying lip service to the problem of money laundering in Canada, which is a very serious problem, and we see it in the real estate industry. It is not a new phenomenon, but it is one that this government has failed to adequately address. I would agree with the member on that point.

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Context: House Hansard - 27 - Feb/9/22

Mr. Pat Kelly

Feb/9/22 5:24:39 p.m.
Watch
Re: Bill C-8

Mr. Speaker, I agree with the member completely, and I am sure that in his riding most people rely on personal vehicles for transportation to get to work and back. There is no subway system in the member's riding, so the inflation impact, particularly on transportation, is a real problem for working people in Canada, and the PBO's concerns were well noted on the out-of-control spending.

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