44th Parl. 1st Sess.
March 22, 2022 10:00AM
- Mar/22/22 10:07:53 a.m.
- Watch
moved:
That, given that,
(i) Canadians are facing severe hardship due to the dramatic escalation in gas prices,
(ii) the 5% collected under the Goods and Services Tax (GST), the Harmonized Sales Tax (HST), and the Quebec Sales Tax (QST) creates increased revenue for the federal government as fuel prices rise which compounds the pain on Canadian consumers and the economy,
the House call on the government to immediately provide relief at the pumps to all Canadians by introducing a temporary 5% reduction on gasoline and diesel whether collected under the GST, HST, or QST which would reduce the average price by approximately eight cents per litre.
He said: Mr. Speaker, I am thankful for the opportunity to speak to something that concerns virtually every single Canadian: the skyrocketing cost of living in our country. Fifty-three per cent of Canadians today say that they cannot keep up with rising prices, and I suspect that percentage is going to keep going up. Things are going to get worse before they get better.
Yesterday, at the finance committee, we had a number of Canadian economists speak to us, and they very clearly said that the cause of the inflationary spiral we are in today, which is leaving so many Canadians behind, is our federal government. Our federal government has claimed that this is a global phenomenon and there is nothing to see here, and it has washed its hands of that problem. However, these economists noted that there are two types of inflation. One is CPI, consumer price index inflation, or the cost of everyday goods and services. The second is asset price inflation, which is for some of the big assets we purchase, like housing, that are not subject to the whims of the world markets.
What is the reason this is happening in Canada? We have this inflationary spiral, where millions of families no longer have the dream of owning their own home, and the cause is profligate borrowing and spending on the part of the Liberal government, facilitated of course by the Bank of Canada through its quantitative easing, asset purchases and government bond purchases. At the end of the day, the problem is this: We have an inflationary crisis in Canada because the government has pumped excessive stimulus into our economy, effectively pumping hundreds of billions of dollars into our economy beyond what it can manage. What has happened is that we have more dollars chasing the same number of goods and services, and that drives inflation.
I know that my Liberal friends are laughing at me, saying that is not true. However, we had some of the highest ranking economists in the country at our committee, including an economist from the C.D. Howe Institute, who confirmed that the liquidity in our economy now is driving inflationary pressures. Even the Governor of the Bank of Canada admitted that things will get worse before they get better.
I will let members know that I will be splitting my time with the member for Brandon—Souris, who is also ready to speak to this very important issue.
Today, we are calling on the government to pause the GST on fuel. We are talking about gas and diesel at the pumps. We are asking the government to at least temporarily lift the GST.
Members may be asking why we are using the GST to perhaps diminish the impact of inflation on Canadians. Well, the reason is that GST is a tax on a tax. When Canadians go to the pumps and pay for their gas, there is already a fuel excise tax built into the cost. There is a carbon tax built into it too. On top of that is layered the GST. Of course, the problem with that, and the pernicious part of it, is that as the price of gas goes up and up, GST revenues go up. The government has actually reaped windfall revenues from the oil and gas sector in Canada and has this windfall because the GST is generating more and more revenue due to the escalating price of gas at the pumps, so we are suggesting that it would only be fair for the government to at least temporarily lift that GST and provide Canadians with a break.
We are calling for the government to finally, after months and months of calling for a plan, fight inflation. We as Conservatives are coming forward now to say that we have a plan. This is part of the plan. It is not the whole plan, but part of the plan is to lift the GST. There are millions of Canadians across Canada who would appreciate the 8 to 10 cents per litre at the pump they would pay less if the government heeded our call for this GST relief.
Giving Canadians a GST break is actually a simple, common-sense solution to help Canadians who are suffering because of inflation. I used the term “ common sense”. That is a rare thing in the House under this Liberal government, but we are asking colleagues to listen. We are coming forward not only with complaints, but also with solutions for the government. I am asking the government not to pour cold water on our motion. We are asking for the government to support our motion and to provide relief for Canadians, because we need real action to help Canadians make ends meet.
Colleagues know that we, as Conservatives, are always the defenders of the taxpayer. This, of course, would help taxpayers who go to the pumps to pay less GST. I would also note that this is all driven by the fact that we have an inflationary crisis in Canada. It is a significant cost-of-living crisis. Today, millions of Canadians have been priced out of the housing market. Why? The economists yesterday told us that it is because the government has pumped so much stimulus into the economy, with so much cash sloshing around, that it is driving the spiking prices for houses across Canada.
In my own community, since the Prime Minister was elected, housing prices have doubled. A house that used to sell for $500,000 in Abbotsford is a million plus today. In fact, recently some friends of ours sold their home and were expecting to get about a million dollars for it. Of course, there was a bidding war. They got $1.2 million for a house that, five or six years ago, was half a million dollars. I feel happy for this couple because this is a tax-free gain that they are experiencing, but what about all the millions of families that are lining up behind this couple and waiting to get into the housing market? Their dream of home ownership has been dashed. It has been shattered, probably forever.
Day after day in the House, we have been asking the Liberal government for a plan to fight inflation. I have been doing it and my colleagues have been doing it. Where is the plan to fight the cost-of-living affordability crisis that is facing most Canadians across the country? There has been no plan and no response from the government. In fact, the finance minister effectively has washed her hands of the whole problem by saying it is a global phenomenon and there is nothing we can do about it. Yes, there is something the government can do about it. We have brought forward a motion that would be a start. It would be a head start to addressing the inflationary crisis we have in Canada.
It is time for the government to step up for Canadians and temporarily remove the GST on gas and diesel. The least we elected parliamentarians can do is to heed the voices of Canadians who are being left behind. Inflation is at 5.7%. Wages are only increasing by somewhere in the order of 2.5%, so Canadians are being left way behind as inflation roars ahead. We need to address this problem. We have come up with a solution, or at least a partial solution. I hope my Liberal friends are listening.
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- Mar/22/22 10:52:07 a.m.
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Mr. Speaker, it is true. There is an immediacy to this crisis and we need to make sure that we are tackling inflationary pressures right away. Certainly we had economists come and speak at the finance committee who talked about making sure that expected inflation is not anchored into the economy.
We have taken concrete measures that have helped with affordability and are going to help Canadians deal with these inflationary pressures. They include reduced costs of child care, which is going to not only reduce costs for families but give those children a better head start. That is going to provide benefits to Canadians in the long term, but it is also going to help those family members get back to work and give them more flexibility around their jobs.
We have implemented real changes that have helped seniors and students, and we have a national housing strategy that is working to make life more affordable and allow individuals to be able to afford their first homes as well. Those are some of the measures. There are many more and hopefully I will be able to talk about them in further questions.
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- Mar/22/22 10:53:29 a.m.
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Mr. Speaker, I thank my colleague for his speech, in which he talked about the importance of helping Canadians get through this inflationary period. He talked about helping families, but there is another group of people living on fixed incomes and that is seniors.
My colleague just talked about an affordable housing strategy. Having an affordable place to live is one thing, but having a fixed income is another.
Does my colleague understand that seniors need help? The government is planning to help those 75 and over by upping old age security, but seniors 65 and up need help too. That is what it means to help people on fixed incomes who need support during this inflationary period.
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- Mar/22/22 10:54:04 a.m.
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Mr. Speaker, this is one of the most important challenges that we as a government have to tackle. When it comes to our most vulnerable seniors, we needed to make sure that every Canadian retires in dignity and that is why our government moved to reverse the Conservative change that increased the age of eligibility for retirement to 67 years. We lowered that back down to age 65, which gives thousands of dollars to seniors right when they need it at retirement.
We have also moved to increase the OAS and the GIS to make sure that seniors have the resources they need. Importantly, and this is crucial, we are indexing those measures to inflation, which means that, as inflationary pressures grow, those benefits will grow as well.
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- Mar/22/22 10:57:47 a.m.
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Mr. Speaker, certainly I do not think anyone in this House on any side or any aisle would dispute the impact of the illegal war in Ukraine on energy prices. That, of course, is putting further pressure on a global inflationary environment that has seen pressures from supply-chain bottlenecks, that has seen pressures from climate change, that has seen pressures from increased demand on hard goods as opposed to services during the pandemic and, of course, seen pressure from the reopening of the global economy from the pandemic.
While the member for Abbotsford is correct that inflation in Canada is currently at 5.7% and that we need to work to reduce that inflation, I would remind him that our health-based and economic-based policy has led to better results than our neighbour's results in the U.S., where the inflation rate is at 7.5%. Of course Canada's average is less than the OECD, which is at 6.5%, and lower than the G20 average, which is at 6.1%.
Therefore, in all, through measures that our government is taking, Canada is working to tackle the inflation crisis and to improve affordability for Canadian families.
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- Mar/22/22 12:17:15 p.m.
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Mr. Speaker, I am pleased to rise today after a two-week adjournment, which my colleagues and I spent in our respective ridings.
As the saying goes, just because we are in our ridings does not mean we are not working. Some people think we are off duty, but nothing could be further from the truth. It is in our ridings that we have the pleasure, the opportunity, the privilege and the duty to meet the people we represent here in the House of Commons and to speak directly with them. We are first and foremost the representatives of our constituents, no matter who they voted for.
Over the past two weeks, I met and talked with hundreds of Louis-Saint-Laurent residents at charity and community events, restaurants, cafés and gas stations. One issue that affects them directly, along with people in all ridings in Canada, is inflation.
Here we are with inflation at a 30-year high of 5.7%. Some members of the House were not even born the last time the inflation rate was this high.
Inflation affects everyone. It affects people who have to buy groceries and realize that putting food on the table costs a lot more, around $1,000 more per year for a family. Buying fruits, vegetables and meats can cost 10% to 15% more than last year.
Inflation is hitting housing even harder because of the housing bubble our country is currently contending with and prices that have gone up over 29% in the past year.
Inflation affects everyone, but it comes as no surprise. It did not show up on the weekend or two weeks ago while we were in our ridings. Inflation reared its ugly head many months ago and is not going away anytime soon. It is actually gaining momentum, not losing it.
This is not the first time we are addressing this issue here in the House of Commons. A few weeks ago, I asked the Deputy Prime Minister and Minister of Finance what she planned to do to help Canadian families struggling with inflation.
If there is someone powerful in cabinet right now, it is the Deputy Prime Minister. We will see how things go, but, today, she is especially powerful in her capacity as Minister of Finance, since she has full control over the economic levers that can help and not harm Canadian families.
The Deputy Prime Minister and Minister of Finance answered that, according to the IMF, Canada has the second-highest growth rate among the G7 countries. That will certainly not help people who are having a hard time buying groceries today. The IMF says that things are going well: That is great for the IMF, but not so great for people buying their groceries.
What did she say next? She said that Canada was doing well, since its real GDP has grown by 0.6%. That is outstanding, and it will certainly put more food in Canadians’ grocery baskets, right? I do not know where she found that concept of the real GDP, but I did not find anything like it at the supermarket this weekend. The people I meet never talk about the real GDP, except the Deputy Prime Minister and Minister of Finance.
She is totally disconnected, but she is still very influential right now. We will see how things play out.
What did she say next? She said that we should not worry, that other countries are also facing inflation, and that the situation is worse in the United States. It is unbelievable that she would compare us with the worst case. The Conservatives and all Canadians worth their salt want to compare themselves with the best, not the worst.
Telling Mrs. Tremblay that she should not worry and that there is no problem because the situation is worse in the United States will certainly not help her do her shopping. It will not add any food to Canadians’ grocery basket. However, that is what the Liberal government has to say about inflation.
That is why we propose temporarily eliminating the GST in the fuel sector. I will explain why we chose this approach.
First of all, who benefits the most from high inflation? Unfortunately, the government does. I say “unfortunately” because it is unfortunate that the government benefits when inflation goes up. Indeed, when prices go up, revenues also go up. Of course, the tax is still 5%, but when people pay $20 for something today that cost $15 last year, that generates more tax. The one who benefits is the government, because the government increases its revenues with inflation. That is exactly what is happening right now.
That is why our motion uses the word “temporary”. At a time when we are in an inflationary spiral and the government is receiving millions in tax dollars because inflation is high, prices are high and more money is being collected, our temporary measure is meant to give Canadian families a little breathing room. We want to reduce the gas tax to zero, essentially eliminating it temporarily.
Why are we targeting that sector?
First, it is important to know that the gas tax brings in $3.5 billion for the government, generally speaking. That is the amount of money that will stay in the pockets of Canadian families. Let me be clear. Canadians know best how to manage their money. It is up to them to keep that money in their pockets and make the choices that are right for them, rather than paying a tax and giving that money to the government. Indeed, the tax increases when inflation rises.
Some people live in an area where they do not need to use their car. They do not need to drive anywhere. We can understand that. However, not everyone is in that situation.
I will paraphrase my friend from Louis-Hébert, who made an extraordinary statement a month ago about how we must be aware of the fact that not all Canadians are at the same level, but that everyone must be heard, listened to and, above all, respected. As he said so well, not everyone can earn a living on a MacBook at a cottage. That is the reality. He sharply criticized his own government in an extraordinary statement in which he repeated almost word for word what the Conservatives were saying. Unfortunately, two weeks later, he voted with his government. He will live with his decisions.
That is why we believe that temporarily removing the GST on gas is the right thing to do. Yes, that directly affects families and workers who must travel. However, we must stop thinking that the gas tax pertains only to the gas that we put in our vehicles. This gas tax has a much greater impact.
Do we think that the fruits and vegetables we buy at the grocery store just fall from the sky? Of course not. Food is not processed and transported from one place to another just by blinking as Jeannie did. Likely it is transported by gas-powered vehicles. That is why the impact of the GST on gas does not just affect those who fill up their big pickup with gas. It affects all Canadian families, especially the poorest among us, who we must respect.
In our view, this is the best measure. Now, what does the government plan on doing? First, which government are we talking about? Are we talking about the government that was duly elected about six months ago or the new NDP-Liberal government, which was just put into our Constitution? If that is the case, watch out dude, it is not going to be pretty.
What we have learned this morning is that now we have a brand new government in this country.
Did you vote, Mr. Speaker? I did not either. Canadians did not go to the polls, yet we learned this morning about a new NDP-Liberal government.
Who would have thought? Certainly not some of the current government ministers I saw this morning who did not seem to be in a good mood. Maybe they woke up on the wrong side of the bed or forgot to put sugar in their coffee. What I can say is that it is not party time for everyone on the other side. I say that, but we will see. Things are just getting started.
I am being sarcastic here, but I should not be. This is very bad news for Canadians, because although 80% of them did not vote for the NDP, both the NDP and the Liberals now have their hands on the wheel, or, at least, there is one big NDP hand on the wheel. This will unfortunately mean more taxes, more spending, more debt and more deficits.
The Conservatives are thinking about Canadian families. We are thinking about Canadians' wallets. We want to help Canadians directly, which is why we are proposing that the government temporarily stop collecting GST on gas.
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- Mar/22/22 1:31:23 p.m.
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Madam Speaker, I will be sharing my time with the member for Halifax.
The government is fully aware that there are currently inflationary pressures all around the world. Every country in the globe is facing the same challenge of reviving the global economy. We all have to deal with the disruptions in the supply chain.
Then we have to add to that the current instability of global markets because of Russia's attack on Ukraine. This invasion has resulted in rising costs for raw materials, which will put upward pressure on prices.
Canadians are worried about the rising cost of living and we understand that. I want to assure the House that the government is taking tangible measures to help Canadians absorb the rising cost of living. The government is there to support Canadians, especially the most vulnerable.
Let us also put things into context. Canada's inflation rate is currently 5.7%. The inflation rate in Canada is lower than it is in the United States and the United Kingdom. It is also lower than the average rate for the G7, G20 and OECD countries.
Canada does, however, have the highest rates when it comes to economic recovery. There are more Canadians working now than there were before the pandemic. There are more businesses open in Canada than there were before the pandemic. Canada's job rate sits at 112% of what it was during the worst of the pandemic, in spite of omicron's impact on Canada's job market. We have vastly outperformed the United States, where just 90% of the jobs lost have been recovered.
Canada's real GDP has now surpassed its prepandemic level. The economic recovery is well under way, even though progress is slower in some sectors. This is why we have maintained targeted measures to provide assistance where required.
Russia's invasion of Ukraine does, indeed, represent a major new source of uncertainty for the global economy, and it has led to a significant increase in the price of oil and agricultural products.
That said, I hope that the member for Abbotsford will agree that the measures taken against Russia were and still are necessary. Quick, decisive action was needed, and that is exactly what the Canadian government did. We worked together with the European Union, the United States and the United Kingdom to implement the harshest sanctions every placed on a major economy. For these sanctions to truly be effective and have a real impact, we have to be prepared for some temporary consequences for our own economy.
That said, I would remind the member for Abbotsford and everyone in the House that government assistance programs are indexed to inflation. This ensures that the benefits paid to Canadians increase in line with the rising cost of living. This is true of the Canada child benefit, the goods and services tax credit, the Canada pension plan, old age security, and the guaranteed income supplement.
Speaking of old age security, this pension benefit is going up as of July for people aged 75 and over. Roughly 3.3 million Canadians will benefit from this, and they do not have to take any action. These seniors will automatically receive the additional payment if they qualify. This 10% increase will provide an additional $766 in the first year for seniors receiving the full pension.
The Canada child benefit that I just mentioned is also a key part of our efforts to make life more affordable for Canadian families. This program helps 3.5 million families with children each year. Compared to previous child benefit plans, the program puts more money in the pockets of nine out of 10 Canadian families.
The benefit has already lifted 435,000 children out of poverty and, every year, the payments are indexed to keep up with the increase in the cost of living. We are also working with the provinces and territories so that Canadian parents across the country can access early learning and child care services at an average cost of $10 a day. We have entered into agreements with nine provinces and three territories, and we are continuing our discussions with Ontario.
I carefully read the motion moved by the member, and I have to say that it would not do much for many Canadians. The motion calls on the federal Parliament to reduce the Quebec sales tax on gasoline and diesel. That is not a federal jurisdiction and we cannot reduce a provincial tax. The Government of Quebec has already indicated that it has no intention of reducing the tax. The member for Abbotsford can challenge that if he wants to.
As I stated earlier, our government realizes that the high inflation rate around the world has a real impact on Canada. We will remain vigilant. We will continue to be there for all Canadians, to make life more affordable for families, to build a resilient economy, to ensure that no one is left behind, and to build a stronger, fairer, more competitive and more prosperous economy. We want to build a Canada, and a Quebec, that is sustainable and united, fairer and more equitable, because no one can be left behind.
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- Mar/22/22 5:10:28 p.m.
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Mr. Speaker, my speech will be the last one on today's motion. I have a question. Why does the official opposition think that the gas tax is the only way to solve the runaway inflation that is currently happening across the spectrum?
Anyone who must use a gas-powered vehicle is certainly feeling a little pinch when it comes time to pay. I heard people being interviewed on the radio recently who said that they were going to reconsider their daily use and their trips, and perhaps carpool or opt for a monthly public transit pass. Despite the inconvenience of changing one's habits, I am inclined to say that these are, in the end, good habits to develop. However, some people do not have these options.
Our comments on inflation felt at the pump should normally be followed by a dialogue. We should be seeing acts to justify reaching a consensus on such a motion to reduce taxes. However, there has been nothing of the sort.
The inflationary phenomenon does not affect only people who use gas. It is hurting other sectors of the economy, too. My colleague from Longueuil—Saint-Hubert talked about this in reference to housing and groceries, to name but two essential and unavoidable expenses.
What they are proposing is relief at the pumps. However, in 12 months, the price per barrel of oil went from $64 to $128. Who pocketed the increase for crude oil? The oil companies did. Who pocketed the refining fees, which have quadrupled? The oil companies did. The shareholders, which include several Russians by the way, are thrilled and are busy filling up tax havens. Who profits from inflation? Again, the oil companies do.
Who is against having the oil companies do their part to ease the burden on the public? That would be the Conservatives. They could have moved a motion to that effect and we would have been pleased to support it. However, that is not the case. They are proposing the opposite.
If the goal is to protect consumers from the oil companies that are fleecing them or—to put it another way—from inflationary increases in the price of gas, then they should draft a motion that would have the oil companies contribute their share, because they are at the root of the problems we are condemning.
Are we to believe that the average person filling up their tank realizes not only how much profit the oil companies are raking in, but also the obscene amount of money the government gives to the industry? We are talking about hundreds of billions of dollars, year after year, no matter which party is in power. I have a hard time believing that the average person would support this.
Unfortunately, the official opposition would rather make taxpayers, who are already struggling financially, pay so that consumers can get some relief at the pumps. The opposition would rather that everyone other than oil companies pay. When will the Conservatives stop moving motion after motion that benefits this sector while failing to propose fair measures for all sectors in our society?
We are locked into government policies that are all too often designed to make the rich richer. Instead we should be implementing meaningful policies that would focus on real opportunities, the opportunities we need to establish a solid, fair and equitable foundation for society as a whole and that would have a real, meaningful impact for people.
The problem of Inflation, which is going up and shows no sign of slowing down in the near future, will not be solved with measures like the ones the Conservatives are proposing. It will certainly not be solved by increasing oil production, as the Conservatives were calling for two or three weeks ago in response to the conflict in Ukraine.
What inflation shows us is that the poorest, those on fixed incomes, are the most affected. I am thinking of seniors primarily. There are structural economic weaknesses that must be corrected and that require short-term remedies, but, more importantly, they also require long-term measures.
I will try to explain what must be done in the short term. We must stop cutting right now—and not in one or even two months—the guaranteed income supplement cheques of the poorest seniors who received the Canada emergency response benefit or the Canada recovery benefit last year. At the same time, and not six months from now, we must increase old age security to ensure that seniors maintain their purchasing power in light of the increased cost of living. That is something concrete and responsible that can be done immediately. These are the firm positions the Bloc Québécois has called for for some time now, but such measures have so far failed to materialize.
It takes political will to implement long-term measures. There must be follow-through on the fine speeches and the positions we try to present. I will try anyway, as one never knows.
I am thinking of the small percentage point of state revenue that the government should permanently allocate to the construction of social housing and that it should send to Quebec, the only province that provides ongoing funding for the construction of social housing in Canada. These monies would make it possible for Quebec to more quickly implement its own programs. My colleague from Longueuil—Saint-Hubert spoke eloquently about this a few minutes ago.
When the government does not use the tools it has to tackle the labour shortage, which is what we are seeing now, obviously we have reason to worry about the future. Our aging population is real, and we need workers.
I cannot be the only MP who is getting calls about the never-ending application processing times at Immigration, Refugees and Citizenship Canada for seasonal or skilled foreign workers, and from businesses that are at the end of their rope. Once again, the Bloc has a real solution that will produce real results. We want to lighten the government's load by taking the temporary foreign worker program off its hands altogether.
This would be a great way for the government to lighten its load. This idea makes a lot of sense for those who like common sense. Quebec is already responsible for its labour policies. We have Emploi-Québec, industry committees and expertise on the ground already. This move would obviate the need for a study for every application, and it would expedite the process overall.
Solutions and government policies exist to address economic disruptions, some of which were exacerbated by the pandemic. Others have talked about this.
Going back to the motion we are opposing, the economic argument is used extensively to convince people of the need to continue with the fossil fuel approach. In reality, however, we do not decide the price of oil, as it is set on the London and New York stock exchanges. There is little we can do to limit the fluctuations and price increases. However, it is possible to make the economy more resilient to these fluctuations by reducing our reliance on oil and by accelerating the transition to renewable energies. My colleagues saw me coming, I am sure.
The truth needs to be told loud and clear when it comes to the real price of energy and gasoline. The price is much higher than what we pay at the pump. The real price includes social costs, including to our health care systems. Thousands of people die each year from illnesses directly related to air pollution, especially children with lung and respiratory conditions. The real price also includes all the public funds given in subsidies and tax breaks to the oil and gas sector to support an industry that will eventually disappear whether we like it or not. Finally, that price includes the environmental costs occurring upstream during a hyper-polluting extraction that causes environmental damage and downstream when these products are consumed or burned.
Everything this industry produces contributes to the climate crisis and our collective destiny. Today is World Water Day, as declared by the UN. I will remind everyone and the opposition of the devastation that this industry is inflicting on regional waterways with the foulest impunity.
Now we are being asked to continue enriching this sector even more. Is there no limit to the indecency? As they say, to ask the question is to answer it.
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