44th Parl. 1st Sess.
March 21, 2022 11:00AM
- Mar/21/22 12:12:06 p.m.
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Madam Speaker, virtually from the very beginning, the government has been very much focused on the issue of equity. We saw this when, for example, we put in the special tax on Canada's wealthiest 1% and reallocated that revenue toward Canada's middle class, to which we gave a tax break.
As to the resolution today, one of the parts I want to highlight is what the member talked about regarding inflation. I am wondering if the leader of the New Democratic Party could provide his thoughts on this: When we talk about inflation, one of the things we have to take into consideration is what is happening around the world. Canada is doing reasonably well on that particular front.
Could the member provide his thoughts with regard to the notion that inflation is not just in Canada and that it goes beyond our borders?
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- Mar/21/22 12:29:37 p.m.
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Madam Speaker, I listened carefully to what my colleague said, and I understand one thing. I get the impression that the more proposals and measures we come up with to deal with a situation like inflation and the problems associated with growing vulnerability, the more the government puts its head in the sand.
There are parties in the House that have a lot of proposals, and there is not much time left for the government to decide what it will put in its next budget.
We are hearing a proposal regarding 3%. There is another proposal to use 1% of the government's budget to address the lack of housing renovations and new construction since 1995.
Does my colleague agree that it is important that the government listen to and consider every proposal?
I would also like my colleague to explain why the government almost always votes against such proposals.
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- Mar/21/22 12:55:32 p.m.
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Madam Speaker, to clarify, while I find some portions of the NDP motion acceptable, I do not think we can support the motion in its entirety as it is currently written. I do not believe that growing the size of government is going to address the cost-of-living crisis.
My submission would be that we need to let consumers take these excess profits from companies in the form of lower prices. In fact, with respect to public transfers and what we would do with money should we have an excess amount of revenue, and by the way government revenues are increasing substantially during inflation, absolutely, we should be giving no-strings-attached additional money to provinces for health care transfers and other social programs.
I think the provinces well understand how to best use that money to support their own jurisdictions. I would support my hon. colleague with that suggestion.
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- Mar/21/22 12:58:09 p.m.
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Madam Speaker, I rise today to oppose this motion put forward by the NDP, the content of which borders on the ridiculous: It sounds like it was written by a 4th-grade student.
We certainly agree that we are experiencing a cost of living crisis. There is no mistaking that. In fact, the Conservatives were the first to speak out against the skyrocketing prices Canadians have been and still are facing, whether it is the price of gasoline, groceries or other consumer goods.
However, the NDP seems oblivious to what caused these price increases. In my opinion, the remedies it is proposing will only exacerbate the inflation we are currently seeing. It seems to think that everything is going to be magically solved with this 3% surtax on banks and insurance companies proposed by the Liberals. It wants to extend the surtax to the New Democratic Party's arch-enemies, the oil companies, and to big box stores. I do not know why it is targeting these two economic sectors in particular, since many other economic sectors could be taxed.
The first sector they are targeting provides jobs for hundreds of thousands of Canadians across the country. It makes a significant contribution to Canada's economic development and the social services funded by the huge tax dollars it already pays. I am talking about the oil sector, which fortunately meets a major share of Canada's and the United States' energy needs at a time of multiple conflicts around the world and in an era where alternatives to this energy source will take us years to access.
We find the NDP's decision to target big box stores even more perplexing because they are kind of the saving grace of the middle and working classes. These people and their buying power depend on the impressive supply chains that deliver essential goods across Canada.
I will not sing the praises of major chains because I am from a region where people have to do whatever they can to promote buying local. However, these chains are one option for the things we need to buy. Over the past two years, local markets have been hit hard by COVID‑19. That is why chambers of commerce have worked so hard to encourage buying local as a way to help our small businesses, which have had such a tough time, stay alive.
The fact is that big corporate chains play an important role in everyday life by offering products that are as affordable as possible to a clientele that does not necessarily have the financial means or the time to visit small specialty shops.
We are under no illusions. Merchants are very much affected by increases in the cost of living and supply chain challenges. CP Rail employees are on strike at this very moment, for goodness' sake. Once again, we are talking about a major hurdle that will further increase the cost of living. As we know very well, basic commodities like western Canadian wheat and barley will not be able to leave Canada, inevitably preventing them from getting to processors.
Retail prices are not the only ones that have gone up. Wholesale prices have risen, too. Farmers are having to spend more money on soaring energy costs. Processors are being forced to increase wages to attract and retain staff. Goodness knows I can speak to this from my own personal experience with my business. Trucking companies are struggling with both a driver shortage as well as increases in the cost of fuel, which has risen by 30% in recent months.
Inevitably, merchants also have to pay to get products in a competitive market like ours. It is not always easy to increase prices quickly, since consumers have fortunately learned to use coupons, now that everyone is forced to deal with the skyrocketing price of products in stores. Profit margins are not huge at these major chains, nor at our local stores, who have to recover their loss somewhere.
Prices have also increased considerably at grocery stores. I went grocery shopping on the weekend. I could not get over how much the price of butter, milk or bacon has gone up in a year. It makes no sense. People are worried that these prices will continue to go up since all the other costs in the supply chain are going up as well.
I just listed a host of factors that led to these price increases over the past year.
Does the NDP truly believe that the big box stores will simply accept this new proposed tax and not pass it on to the consumer?
It is absolutely ridiculous to think so. Make no mistake: If there is a government-proposed tax or surtax, even with the billion dollars or more in profits that those companies are making, they will pass it on to the consumer. There is no doubt about it. That is what will happen. At the end of the day, it will still be the consumer and every socioeconomic group who will be paying.
Let me give an example. I live in La Pocatière, or, more specifically, Saint‑Roch‑des‑Aulnaies, which is an hour and fifteen minutes away from Quebec City and major chains like Costco and so on. What kind of compensation would I get with the surtax, compared to someone who lives in Lévis and is a two-minute walk from the major chain in question?
That is what life is like in the regions. Longueuil, for example, is not a big region. My region covers 7,500 square kilometres. When I am travelling around my riding, it can take three hours to get from one end to the other. I do not cycle that. When I go shopping, I obviously try to shop as close to home as possible, but if I want to shop elsewhere, I have to pay for gas, travel and my time. That will obviously have an impact on my total costs.
Why is the NDP not trying to address the root cause of these price increases?
It must know that printing money to finance the Liberal government's astronomical deficits has devalued the Canadian dollar. It is sad to say, but the current government's poor management has weakened our petrodollars, which, in the past, increased along with the price of a barrel of oil. This is definitely not the case at present.
Members will recall that in 2007 and 2011, under the Conservative government, the Canadian dollar was practically on par with the U.S. dollar, and even briefly pushed above it, in some cases. Not everyone was pleased, especially exporters, but it did at least give consumers some breathing room and let them take advantage of prices that were stable and even dropped for some imported goods, such as food items that we cannot grow because of our climate.
This year, however, we find ourselves with the worst of both worlds: gas prices that continue to increase significantly and the purchasing power of our dollar that is decreasing across the board. We all know the results of the government's record over the past six years, which consists of financing deficits not just with borrowed money, but with printed money as well.
Why does the NDP believe that everything can be solved by increasing taxes?
I cannot wrap my head around that. I cannot understand it. What we need to do is lower taxes and reduce the size of the government to try to save money in a lot of different places.
I would remind the House that, in 2015, the Liberal government said that it would run three small deficits of $10 billion, but it ran a $100-billion deficit after three years. Then, the pandemic hit. Imagine what that would mean if a recession were to hit. That would add fuel to the fire. The Liberals are going to make the inflationary spiral we are experiencing in Canada even worse.
Canada must be able to compete in a global economy, and the worst thing that can be done for investment in Canada is to entrust this government with the task of determining which industries are more deserving of preferential tax rates and which ones should be given punitive tax rates. It can take years before a company takes off and becomes profitable. There is still a lot of uncertainty in the business community right now. The government cannot just suddenly decide how a society will pay taxes based on public discontent. We need to maintain a predictable business environment.
Did the NDP think about how many more public servants it will take to administer this new tax and to redistribute the funding? How much will that cost in paperwork alone?
The government is slow enough as it is in delivering its current programs. This would only make things worse. In rural ridings like mine, people are tired of paying more and more taxes. This only increases the cost of travelling long distances to work, to school, to kids' activities or simply to the grocery store.
We say no to any more taxes. The cost of living is high enough as it is.
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- Mar/21/22 1:07:51 p.m.
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Madam Speaker, the member said that the Liberal government has devalued the Canadian dollar. I am wondering by which measure he is making this claim.
If the member is claiming it is based on valuing it against the U.S. dollar, the exchange rate is actually among the highest in the last five years. If he is talking about it in terms of what inflation has done to the Canadian dollar, indeed that inflationary impact has been felt around the entire globe. The value of our dollar still remains significantly higher than other countries'.
Can the member clarify what he meant when he said the Liberal government has devalued the Canadian dollar? By most measures, that is just factually untrue.
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- Mar/21/22 1:11:52 p.m.
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Madam Speaker, I have another question for my colleague from Montmagny—L'Islet—Kamouraska—Rivière-du-Loup. I am not sure if the member for Kingston and the Islands already asked this.
The Conservatives think the value of our dollar has dropped relative to other countries. Is that just because of inflation? I do not think I understood his response.
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- Mar/21/22 1:27:45 p.m.
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Madam Speaker, I would first like to thank my esteemed colleague, the hon. member for Mirabel, for sharing his time with me.
We are here to debate the motion put forward by the hon. member for Burnaby South, highlighting several wealth gap issues that have been exacerbated by current inflation. Let me remind the House that, during the last election campaign, this government promised to levy a 3% surtax on the profits of banks and insurance companies.
We agree with this measure. Let me also remind the House that, while the public finances recorded colossal deficits and the pandemic forced SMEs out of business, several sectors of the economy besides banks and insurers became richer. Today's motion seeks to leverage the huge profits that certain companies earned in spite of the crisis. Their support will essential.
We are currently experiencing a period of high inflation. In December, the consumer price index rose by 4.8% on a year-over-year basis. This major acceleration of inflation significantly affects the purchasing power of Canadians and Quebeckers. The price of groceries rose by 5.7%, and the price of housing grew by 9.3% compared with December 2020. The simple fact is that inflation is affecting almost all goods. That in turn is affecting both individuals and businesses.
The Russian invasion of Ukraine has had a significant impact on the price of energy. Even if the price of gasoline does go back down eventually, its current volatility and unpredictability are enough to worry Quebeckers. We were used to countering inflation by addressing surges in demand, but we are now also facing problems with supply, including increasing pressure on labour and energy costs.
That being said, it is important to implement measures to protect the general public, especially the most vulnerable members of our society, from price increases. Let us look specifically at who could be doing more in this situation. In the past 12 months, several financial groups have earned record profits. National Bank, Laurentian Bank, Royal Bank of Canada, Bank of Montreal, TD Bank, Scotiabank, CIBC and Mouvement Desjardins collectively earned $60.68 billion in profits. That is 39% or approximately $17 billion more than the previous year, which was also a pandemic year.
The year 2020 was a good year for some businesses, according to an analysis of the profits of the largest Canadian businesses published at the end of last year. According to Canadians for Tax Fairness, 111 publicly traded companies headquartered in Canada made profits of at least $100 million in the first nine months of the year, and 34 of them posted record profits. The top profit-maker was TC Energy, formerly TransCanada, whose Keystone project has been in the news for years. The company made $3.5 billion in profit on $9.7 billion in sales in the first three quarters, for a profit margin of 35.6%.
This stands in stark contrast to what has been happening with our SMEs. Many went into debt to get through the pandemic, wagering that the economy would eventually get back to normal. Even if the economy recovers, they will still be in debt. There is a reason the Canadian Federation of Independent Business says that one in four SMEs could close down permanently in 2022 because they went into debt during previous waves. Small business confidence in Canada and Quebec remained especially low in January because of supply issues, the health restrictions and labour shortages.
The Bloc Québécois agrees with the idea of implementing a tax on profits over $1 billion for banks and insurance companies, as well as oil companies and big box stores. The tax should be used for assistance programs, in particular for SMEs.
Such significant measures require an explanation. They are aimed at increasing the government’s revenues to help it deal with the deficit and assist struggling SMEs. These measures would directly help those who are hardest hit by inflation. I can already hear our Conservative friends say that taxing corporate profits makes it more difficult for those that keep the economy rolling to reinvest. However, they are well aware that the large profits made by these companies mean that they already have considerable reinvestment power.
In the final analysis, we would be taking 18 cents out of every dollar of the profit made by billionaire companies. They would still have a bit of a margin left.
In the case of oil companies, we need to make sure that the plan includes programs aimed at reinvesting in the urgently needed energy transition. If we collect these funds, it will have to be to better guide the investments of corporations that have a significant societal impact.
The purpose of taxes is to take a small portion of the surplus of wealth-creating businesses to correct market failures and thus redistribute wealth, while redirecting the funds with a plan and coherent vision aimed at improving Canadians’ well-being. Let us keep in mind that we are talking about 3% for businesses that make more than $1 billion in profits. We are in the middle of a climate crisis and economic tensions that often require state intervention to redistribute wealth.
In short, we support the spirit of today’s motion. The Bloc Québécois will support any measure that effectively benefits the most vulnerable. We cannot just stand idly by while workers and businesses struggle with the effects of the pandemic.
The objective of the proposed surtax is to get revenues from those who benefitted from the crisis to help those who suffered from it. That is why governments exist. We know that the extremely costly measures taken during the pandemic increased the deficit. Now it is time to take stock, and we must correct the failures of a market we know to be imperfect, especially when it is faced with the uncertainty of a pandemic.
What is our purpose as members of Parliament in these critical times if not to propose and support measures aimed at protecting the most vulnerable and promoting a vision whose only goal is the well-being of society?
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- Mar/21/22 2:28:44 p.m.
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Mr. Speaker, the opposition member is discussing the issue of affordability.
We lowered taxes for the middle class twice. We increased them for the wealthiest 1%, but the members across the aisle voted against. We created the Canada child benefit, which is indexed to inflation, but they voted against.
On this side of the House, we are here to address the issue of affordability, and that is what we will continue to do.
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- Mar/21/22 2:30:28 p.m.
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Mr. Speaker, ever since this finance minister took charge, the cost of living has skyrocketed. Inflation is at a 30-year high. We know Canadians are struggling to balance their own budgets, and paycheques do not go as far as they used to. The cost of everything is out of control, including gas, groceries and housing, yet the minister does not seem to care. Things are not getting better for Canadians. They are getting worse.
When will the minister tell Canadians how she plans to fight inflation, and when will she table her next budget?
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- Mar/21/22 2:31:04 p.m.
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Mr. Speaker, since the hon. member has raised the issue of affordability, let us review what we have done since taking office. We lowered taxes for the middle class twice and raised them on the wealthiest 1%, and Conservatives voted against. We created the CCB indexed to inflation and Conservatives voted—
Some hon. members: Oh, oh!
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- Mar/21/22 2:32:02 p.m.
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Mr. Speaker, the question was for the finance minister.
Inflation is raging across our country and Canadians are being left behind. The cost of everything is skyrocketing. I mentioned gas, groceries and the price of home heating. Worse yet, millions of Canadians have lost their dream of home ownership as house prices spiral out of control, yet the minister does not seem to care.
When will she finally tell Canadians what she plans to do about the affordability crisis, and when will she table a budget?
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- Mar/21/22 2:45:54 p.m.
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Mr. Speaker, the third of many facts that I will share in this answer is that, at $2.5 trillion, our economy is exactly the same size it was before the pandemic. We are on track and we will continue to fight COVID inflation on behalf of Canadians.
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- Mar/21/22 3:05:01 p.m.
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Mr. Speaker, in northern Saskatchewan, every product on every shelf has a significant freight cost. Transport companies I met with last week have been forced to raise their fuel surcharges just to survive. That increase must be passed on, and the cycle of inflation spirals out of control. Life gets more expensive every single day. The government ignores this fact, but my constituents do not have that luxury.
Where is the Prime Minister's plan for rising fuel prices? Will he, at the very least, cancel the scheduled increase to the carbon tax on April 1?
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- Mar/21/22 3:05:41 p.m.
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Mr. Speaker, we absolutely understand that inflation and affordability are pressing challenges for Canadians. We also know that this is a global phenomenon and not a made-in-Canada problem.
I want to assure Canadians that we are working hard to make life more affordable and remind the opposition benches that eight dollars out of $10 that sustained Canadians during the global pandemic came from the federal government. We are committed to addressing housing affordability. We will continue to pursue child care. We will continue to increase the CCB. On this side of the House, we are focused on affordability.
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- Mar/21/22 3:12:40 p.m.
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Mr. Speaker, on a point of order arising our of question period, the parliamentary secretary for Global Affairs was misleading the House regarding cuts, going back 60 years, by the Conservative government. I would like to table a Library of Parliament report on operation expenditures and authorities covering 2000 to 2021. It shows that the highest amount spent, adjusted for inflation, was during the Harper years and it is more than is being spent now.
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- Mar/21/22 3:55:59 p.m.
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Madam Speaker, I will be sharing my time with the member for Whitby.
We are fully aware that the effects of high inflation are being felt across the country. As the member for Burnaby South surely knows, it is a global phenomenon, and the price of goods has increased around the world. This is due to a number of factors.
First, during the pandemic, millions of people reallocated money they usually spent on services to the purchase of physical goods. This put extraordinary pressure on global supply chains and led to shortages and bottlenecks. Furthermore, droughts in the main food-producing regions, including the Canadian Prairies, resulted in higher grocery bills. All of this has been exacerbated by the current instability of global markets following Russia's illegal and unwarranted attack on Ukraine.
President Putin's unjustified war has led to an increase in the price of raw materials and again threatens to disrupt the supply of goods. This puts upward pressure on prices. There is also the pandemic, which continues to threaten global supply chains and increase inflation as a result of a resurgence of cases in China and another wave starting in Europe at this time.
Many factors are putting upward pressure on prices. Canadians are worried about the rising cost of living and I am too. The Bank of Canada and private sector economists predict that inflation could remain higher for a little longer than initially thought. However, they expect it to go back down to the 2% target over the next two years, as the repercussions of the pandemic start to fade.
Let us face it, these are truly uncertain times on many fronts. The Russian invasion of Ukraine is a new major source of uncertainty. The price of oil and energy have recently spiked. Our government acted swiftly and decisively with the European Union, the United States and the United Kingdom to impose the harshest sanctions ever placed on a major economy. For those sanctions to be truly effective and have a real impact, we must be prepared for any adverse consequences to our own economy. This could temporarily affect the cost of living for Canadians.
Opposition members often bring up the rising cost of oil and gas. It is true that prices have risen sharply as of late. However, my colleagues have an unfortunate tendency to make obscure connections to explain this increase, for example by tying it to our pandemic spending or our tax on pollution.
They are obviously ignoring the main factor behind this increase, which is, of course, Russia's unjustified war against Ukraine. The Conservatives like to say that we must do more for Ukraine. They even brought up a no‑fly zone over Ukraine before changing their minds a few hours later. They seem to be not only unsure of where they stand, but also completely oblivious to the economic consequences of this war and of our sanctions.
That said, I remind members that the federal government's assistance programs, such as the Canada child benefit, old age security, the guaranteed income supplement and the GST credit are indexed to inflation. This ensures that the benefits will increase in tandem with the increase in the cost of living.
In recent years our government has also lowered taxes for the middle class and increased taxes on the wealthiest 1% of Canadians. We are also working very hard to address the high cost of housing.
Over the longer term, Canada's monetary policy framework is the best weapon in our arsenal to keep prices stable and keep inflationary pressures in check. That is why, last December, our government and the Bank of Canada announced the renewal of the 2% inflation target for another five-year period. This renewed framework will keep the bank focused on delivering low, stable and predictable inflation for Canada.
Since Canada adopted an inflation targeting framework about 30 years ago, inflation has averaged close to 2%. This has contributed to our country's strong labour market performance, to our economic growth and, of course, to our prosperity. Maintaining a stable environment for the prices that Canadians pay is a paramount objective for Canada's monetary policy, as implemented by the Bank of Canada.
I trust that my fellow members are aware of the efforts that our government is making to address the rising cost of living and to make life more affordable for Canadians. It is also important to remember that the significant support our government delivered to Canadians and businesses during the pandemic has contributed to a rapid and resilient recovery so far.
Canada has far exceeded expectations, surpassing its goal of one million new jobs and posting the strongest job recovery rate in the G7. Still, we recognize that the recovery is happening more slowly in some sectors. That is why the government has shifted from very broad support to more targeted measures that provide help when and where it is needed.
It is also true that some sectors and businesses have seen their profits go way up during the pandemic. We know that banks have continued to make a lot of money during the pandemic. That is why one of the planks in our campaign platform was to raise corporate income taxes on the largest, most profitable banks and insurance companies in the country and on corporations earning more than $1 billion per year.
That is very important, because we want to build a sustainable, united Canada. We want to build a fairer, more equitable Canada where nobody is left behind. That means focusing on jobs and economic growth. It means making sure the cost of living is within everybody's reach.
I know our government will have much more to say about this in our next budget. I am looking forward to debating it here in the House.
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- Mar/21/22 4:09:54 p.m.
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Madam Speaker, it gives me great pleasure to rise today and speak to the opposition motion before the House.
We are acutely aware that many Canadians are being squeezed by higher prices for groceries and gasoline. Our government knows that elevated inflation, a global phenomenon, is driven by the unprecedented challenge of restarting the world's economy and the instability of global markets as a result of Russia's attack on Ukraine. These factors are leading Canadians to worry, and rightly so, about the cost of living.
The pandemic also continues to be a threat to global supply chains and inflation, with a surge in cases in China and another wave beginning in Europe. As global economies have unwound COVID-19-related restrictions and re-opened their economies, the price of goods has gone up around the world.
This is a result of several factors. One is that during the pandemic, millions upon millions of people redirected the money they usually spent on in-person services towards durable physical goods. This has put an extraordinary strain on global supply chains, leading to shortages and bottlenecks. This has been a significant driver of inflation around the world. Furthermore, the droughts in key food-producing regions, including our prairies, have caused grocery bills to go up, and energy prices have increased at rates not seen in decades.
Indeed, the Bank of Canada and private sector economists anticipate that inflation may stay higher for longer than initially expected, but they expect it to ease back towards the 2% target over the next two years as pandemic-related forces start to fade and as market conditions begin to rebalance and equalize and hopefully return somewhat to normal.
As we have always said, restarting the economy is a complex process, and the Canadian and global economies are still feeling the impact of the COVID-19 pandemic. Now, along with higher prices for a broad range of commodities, the Russian invasion threatens renewed supply disruptions, all of which are expected to add upward pressure on prices.
Our government has been swift and decisive in its actions, along with Europe, the United States and the United Kingdom, to put in place the toughest sanctions ever imposed on a major economy. We remain steadfast in our support for Ukraine and we will do whatever is needed to continue to put pressure on Russia and choke President Putin's ability to fund his illegal and unprovoked war of aggression on Ukraine.
However, in order to really be effective, in order to really have an impact, we are going to have to be prepared for some adverse consequences for our own economy, which could also temporarily affect Canadians' cost of living. That said, Canadians should rest assured that when it comes to government benefits and concerns over inflation, the government indexes the Canada child benefit to inflation, as well as old age security, the guaranteed income supplement, the goods and services tax credit, and other benefits for the most vulnerable people.
Our government has also cut taxes for the middle class while raising them on the top 1%, and we are working to address the housing affordability issues that we see across our country as well. In fact, we have put in place Canada's first-ever national housing strategy, a $72-billion investment over 10 years that has created hundreds of thousands of affordable housing units, and we have now added a large package of new measures in addition to the national housing strategy, which should help to control the affordable housing problem.
We are also working with provinces and territories to implement a Canada-wide $10-a-day community-based early learning and child care system that would make life more affordable for families, create new jobs, get parents back into the workforce and grow the middle class while giving every child a real and fair chance at success. Ontario is the only province that has not signed on to these agreements, and we are looking forward to getting that done. It would save families in my riding of Whitby up to $600 per month in just the first year through a 50% reduction in fees. That is a pretty significant amount of savings for the average family. We could think about that in terms of per-child savings, so if a family has two or three children, there would be even more savings.
I also want to mention renewing Canada's monetary policy framework. Additionally, a strong monetary policy framework is the best weapon in our arsenal to keep prices stable and keep inflationary pressures in check.
Our government and the Bank of Canada believe that monetary policy can best serve Canadians by continuing to focus on price stability. That is why, last December, our government and the Bank of Canada announced the renewal of the 2% inflation target for another five-year period. This renewed framework will keep the bank focused on delivering low, stable and predictable inflation in Canada.
Since Canada adopted an inflation targeting framework 30 years ago, inflation has averaged close to 2%, which has contributed to our country's strong labour market performance, to our economic growth and to our prosperity. Maintaining a stable environment for the prices that Canadians pay is a paramount objective for Canada's monetary policy. That has been the case for 30 years and it will remain the case for the next five. Doing so supports a strong and inclusive labour market that provides every Canadian with opportunities for a good, high-quality way of life. That is why the review and renewal of Canada's monetary policy framework every five years is such an important moment for our country. This renewal of Canada's monetary policy framework is fundamental to Canada's economic success. It is about continuity and about continuing to do what we know works.
As members can see, our government is already working hard to address the cost of living and to make life more affordable for Canadians. Thankfully, by delivering significant fiscal policy support to Canadians during the pandemic and avoiding harmful austerity policies, we have seen a rapid and resilient recovery so far. The vast majority of the government's recovery plan is targeted towards growth-enhancing and job-creating initiatives, such as investments to support child care and the adoption of new technologies that will help boost supply and increase space for the economy to grow without the risk of higher inflation. Our government has moved from very broad-based financial supports to more targeted measures that will provide help where it is needed and when it is needed.
I am pleased to say that our plan is working. Canada has exceeded its goal of creating a million jobs, well ahead of expectations. It has the strongest job recovery rate in the G7. In fact, as of February, despite the temporary effects of the omicron variant on Canada's labour market, 112% of the jobs lost since the peak of the pandemic have been recouped in Canada. That is significantly outpacing the U.S., which is at just about 90% of jobs recovered.
Canada's GDP has now returned to prepandemic levels. It was reported in the fourth quarter of 2021 that the annualized growth rate of GDP in Canada was 6.7%, which is a pretty incredible economic recovery. We are well on track, and we focus now on shifting to sustaining and enhancing Canada's growth potential. That is going to be important as we move forward.
However, we know that more can be done, especially as we emerge from COVID-19. Despite impressive economic performance in certain parts of the economy, as I stated, our government is mindful of the global phenomenon of elevated inflation and its impact on the cost of living, and mindful that housing continues to be top of mind for many Canadians. As we look to the years ahead, the government's focus will continue to be on jobs and growth and making life more affordable, priorities that will form the foundation of the upcoming budget. The cost of living crisis and making life more affordable have been priorities for our government, and I have given many examples in my speech today. There is much more work to be done, of course, and this is an ongoing concern for Canadians.
To wrap up, there are many factors due to the current geopolitical context. Our country and Canadians have gone through many crises over the last two years, and our government is doing its very best to remain responsive to the needs of Canadians and address the affordability challenges that every Canadian experiences. By no means have we solved it all, but at the same time we have made a lot of progress, and we will continue to work hard to alleviate the stresses and strains that many Canadians face with the cost of living challenges.
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- Mar/21/22 4:21:46 p.m.
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Madam Speaker, the member mentioned child care in his speech as part of this debate on affordability. He is keen that his province sign on. I will share a big challenge that I am hearing of from child care providers in my province, a province that has signed a deal with the federal government, and that is that the federal plan effectively involves deregulation and limited increases to fees, which are actually below the current rate of inflation.
Child care providers are very concerned. They are being told that they cannot charge more than a certain amount, that they cannot raise their fees beyond a certain amount, and that is severely limiting their ability to expand to offer more child care services and do what this plan is theoretically supposed to do, which is to increase the availability of child care.
In the short term, it sounds great to say the fees are being regulated, but in the long term, if child care providers cannot expand, cannot afford to offer services and are being forced to close as a result of the cost squeeze on them from inflation and other factors, there is a serious problem. It is a real sort of ticking time bomb in the availability of child care services.
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- Mar/21/22 4:23:51 p.m.
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Madam Speaker, the last two government members who spoke talked to us about the monetary policy framework and tried to reassure us by telling us that there are still two years of higher inflation ahead before it goes back down to 2%.
Let me do the math for my colleague. If we include energy and food, inflation was 6% last year. If that percentage stays the same this year and the next before going back down to 2%, that translates to a 20% increase in prices over four years, or the equivalent of 10 years of inflation in 48 months.
That is why we are asking that old age security be increased by $110 a month for our seniors. I would like to know if the Liberals do not know how to count or if they have simply forgotten about our seniors.
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- Mar/21/22 4:24:30 p.m.
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Madam Speaker, I appreciate the member's lesson in mathematics. Our government has not forgotten how to count.
As I said in my speech, old age security and the guaranteed income supplement are indexed to inflation. The Bank of Canada has set 2% as a target, and over the course of the next five years, it will be putting a monetary policy in place, including the recent increase in the base interest rate, that will help to control inflation.
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