SoVote

Ms. Julie Dzerowicz (Davenport, Lib.)

Mar/22/22 12:47:16 p.m.
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Madam Speaker, it is a true pleasure for me to rise in the House on behalf of the residents of my riding of Davenport to speak on the opposition day motion put forward by the Conservatives that calls on our government to introduce a temporary 5% reduction on gasoline and diesel, whether collected under GST, HST or QST, which would reduce the average price by approximately eight cents per litre. The federal government is acutely aware that many Canadians are being squeezed by higher prices for gasoline and by elevated inflation in general, but I believe that this motion will not help Canadians. A tax holiday on oil and gas could result in energy companies pocketing the difference in cost. There is no guarantee that savings will pass on to Canadian consumers at the pumps. Increases in prices for a variety of goods is a global phenomenon, driven by the unprecedented challenge of restarting the world's economy, as well as the instability of global markets as a result of Russia's attack on Ukraine, which has jolted commodity markets with a surge in prices, particularly for oil, natural gas and wheat. Obviously, the most direct impact of the war is on the people of Ukraine. As we have repeatedly said, we remain steadfast in our support for Ukraine and will continue to put pressure on Russia and choke President Putin's ability to fund his unprovoked and illegal act of aggression. As we know, and as do the members of this venerable House, the federal government has been swift and decisive in its actions, along with Europe, the United States and the United Kingdom, to put in place aggressive sanctions on Russia. Indeed, they are the toughest sanctions ever imposed on a major economy. However, in order to really be effective and in order to really have an impact, we have to be prepared for there to be some adverse consequences for our own economy, which could also affect Canadians' cost of living temporarily. Along with higher prices for a broad range of commodities, the Russian invasion threatens renewed global supply disruptions, all of which are expected to add upward pressures on prices. The OECD recently estimated, in a special report on the economic and social impacts and policy implications of the war in Ukraine, that global growth could be reduced by over one percentage point over the next year, while global inflation could be 2.5 percentage points higher. While Canada's natural resource sectors will benefit from higher commodity prices, higher prices will additionally disrupt supply chains and will have significant further impacts on inflation in Canada, including what we are currently seeing at the gas pumps. The pandemic also remains a threat to global supply chains and inflation with the recent surge in cases in China and another wave beginning in Europe. As global economies have unwound COVID-19-related restrictions and reopened their economies, the price of goods has gone up around the world. Indeed, the Bank of Canada and private sector economists anticipate that inflation may stay higher for somewhat longer than initially expected, but they expect it to ease back toward the 2% target over the next two years as pandemic-related forces fade. 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 pandemic. That said, Canadians should rest assured that when it comes to government benefits and concerns over inflation, the federal government indexes the Canada child benefit to inflation, as well as the Canada pension plan, old age security, the guaranteed income supplement, the goods and services tax credit and other benefits for the most vulnerable people. I am very proud that the key government supports for those most vulnerable in our society are indexed to inflation, so that while inflation will have a huge impact on our society, our most vulnerable are protected. This is not the case in many other countries. Other measures we have implemented to support Canadians include the cutting of taxes for the middle class while raising them on the top 1%. We are also working very hard to address housing affordability. In addition, 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 will 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. All provinces and territories have signed on to this national plan except for Ontario, and I know Ontarians, especially the residents of my riding of Davenport, are hopeful that they will sign on to this plan very soon. A strong monetary policy framework is also an excellent weapon in our arsenal to keep prices stable and keep inflationary pressures in check. The federal 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, we announced with the Bank of Canada 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. It has also contributed to our economic growth, as well as to our prosperity. Maintaining a stable environment for the prices that Canadians pay is the paramount objective of Canada's monetary policy. That has been the case for the past 30 years and will remain the case for the next five years as well. Doing so supports a strong and inclusive labour market that provides every Canadian with opportunities for a good quality of life. That is why the review and renewal of Canada's monetary policy framework every five years is such an important moment. 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 colleagues can see, the federal 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 toward growth-enhancing and job-creating initiatives, initiatives such as the investment to support child care and the adoption of new technologies that will help boost supply, increasing space for the economy to grow without the risk of higher inflation. The federal government has moved from very broad-based support to far more targeted measures that will provide help where it is needed the most, 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 and has the strongest jobs recovery in the G7. In fact, as of February, despite the temporary effect of omicron on Canada's labour market, 112% of the jobs lost since the peak of the pandemic have been recouped in Canada, significantly outpacing the U.S., where just 90% of lost jobs have been recovered so far. Canada's GDP has now returned to prepandemic levels with the economic recovery well on track and the focus now shifting to sustaining and enhancing Canada's growth potential. 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 earlier, the government is mindful of the global phenomenon of elevated inflation and its impact on the cost of living, including higher prices at the pumps. The federal government has and will continue to focus on actions that will create jobs and growth and make life more affordable for Canadians, not through a temporary 5% reduction on gasoline and diesel but through meaningful and concrete actions that will grow our economy, provide good-paying jobs to the middle class and create prosperity for Canadians now and into the future. This will be a core priority that will form the foundation of the upcoming budget.

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Context: House Hansard - 43 - Mar/22/22

Ms. Julie Dzerowicz

Mar/22/22 12:58:03 p.m.
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Madam Speaker, I thank the hon. member for his question, and it is a really good one. I want to remind everyone that since we were first elected in late 2015, we have been very focused on trying to support Canadians in terms of costs. To support seniors, we have increased the guaranteed income supplement. To support families, we have introduced the Canada child benefit and now the national child care system. There have been a number of items that we have introduced to support Canadians and reduce income inequality, and we will continue to provide additional supports for Canadians as we move forward.

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Context: House Hansard - 43 - Mar/22/22

Ms. Julie Dzerowicz

Mar/22/22 12:59:55 p.m.
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Madam Speaker, I mentioned the old age security, the Canada pension plan and the child benefit in my speech because I wanted to remind everyone that all of these supports are actually indexed to inflation, which will help the most vulnerable in our society. This is not the case in many other countries. In terms of what additional supports we will be providing to Canadians, we have and continue to implement the national child care plan and we continue to provide support for our seniors. As I mentioned, we increased the guaranteed income supplement and we plan on supporting and increasing old age security for those seniors 75 and older. We are also looking at the housing affordability issue and we are looking to take urgent, concrete steps to help resolve this issue moving forward.

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Context: House Hansard - 43 - Mar/22/22

Ms. Julie Dzerowicz

Mar/22/22 1:01:27 p.m.
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Madam Speaker, I support any type of effort that is going to ensure that our oil and gas sector decarbonizes and works with all other Canadian sectors to move to a low-carbon economy, any effort that works to transition their workers into decarbonized areas and anything that will support Canada in achieving our net-zero targets by 2050.

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