44th Parl. 1st Sess.
April 26, 2022 10:00AM
- Apr/26/22 10:07:17 a.m.
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Mr. Speaker, it is a privilege for me to rise this morning to discuss budget 2022 and to share the views of my constituents from Kings—Hants. I will be sharing my time with the hon. member for Ottawa Centre.
The budget contains many initiatives. Since I have only 10 minutes, my speech will focus on the following three areas: initiatives that are of particular importance to my riding of Kings—Hants, the importance of promoting economic growth and prosperity while remaining fiscally responsible, and the announced initiatives that support our energy and food security.
Before I elaborate on these three areas, I would like to give a bit of background, especially in light of the past two years of COVID-19.
We came into this pandemic with the lowest net debt-to-GDP ratio in the G7. Unemployment was at a 40-year low, and our economic growth was outpacing the cost of financing our country's debt. Sometimes it is easy to forget that, given the two years we have been through.
We can all remember back to March 13, 2020. It is a moment frozen in time. I remember arriving home on a Thursday night flight to Halifax. I was in my constituency office on a Friday when the Prime Minister, and indeed most of the world, was recognizing the gravity of what the COVID-19 pandemic represented for our collective health and well-being.
We had a choice. Either we could have stepped up to be there for Canadians and businesses as we asked them to take precautions to protect our collective health or we could have asked them to fend for themselves. We made the choice to be there for Canadians. It came with a cost; let us recognize that. This government has spent significantly over the past two years to protect Canadians and make sure there was financial support in place.
The results are telling. We have recovered 112% of our prepandemic jobs. We actually have more jobs in this country right now than we did before the pandemic. Our economy has not only recovered, but is larger than it was prepandemic. Unemployment is at a truly historic low. In fact, it is the lowest since we started recording it in 1976.
It is an interesting dynamic. I am an MP from rural Nova Scotia in Atlantic Canada. If we talk to my predecessor, Mr. Brison, or other MPs who have served in the region, sometimes the biggest concern was having jobs for people in our region to let them stay home, be with their families and have opportunities. Now it is reversed: It is about having the people to fill the jobs we need for our small businesses to continue to grow our rural economy.
Our GDP had 4.6% growth last year, and we have a strong projection in the days ahead. However, it is important right now to recognize that we have to wind down the pandemic-related expenditures and be mindful of our fiscal position. I was very pleased to see the Minister of Finance, the Deputy Prime Minister, in her remarks two weeks ago highlight that importance and that we have a fiscal anchor and will be fiscally prudent in the days ahead.
This budget shows a declining debt-to-GDP ratio over the next five years. By and large, yes, there will be perspectives on this across the country, and indeed in my own riding, but Canadians are expected to make sure they keep their fiscal houses in order, and they expect their governments to do the same. I believe this budget presents a pathway back to balance given we have had to be there for the past two years.
I want to compare that with the Conservative record. I was just graduating high school in 2009 when we were going through the global economic recession. At that time, the Harper Conservative government was slow to react to the situation. It was slow to be there to inject the necessary stimulus to keep our economy moving, and the economic scarring lasted for the next five or six years. In fact, we never really got back to our economic strength until after 2015.
I have listened to some of my Conservative colleagues in the House, particularly those in the 43rd Parliament and perhaps early in this Parliament, who have suggested that this government is doing too much. I want to compare our record, in a fiscal sense, on economic growth with their record back in 2008. By and large, I think Canadians believe that what we are doing and what we are moving forward with are extremely important.
I will now talk about initiatives for Kings—Hants.
When I knocked on doors during the 2019 election campaign, many homeowners in rural areas were worried about not being able to sell their homes.
The pandemic has shown how important quality of life is, and Nova Scotia's communities are an excellent place to feel at home. We welcomed thousands of Canadians from across the country.
In fact, housing is up 40% in valuation, year over year, in my riding of Kings—Hants. Of course, we need to be concerned about that in terms of affordability, but as I just mentioned, back in 2019, people were concerned about even being able to sell their house and people wanted to be in our communities. Nova Scotia is booming right now and we have to embrace that, but we also have to be there to try to support individuals who want to live in our province, and indeed those who want to live in Canada, because we know this is not just a Nova Scotia challenge. This is a challenge across the country.
I thought the Minister of Finance had important remarks in her budget speech two weeks ago when she highlighted that we are going to be there. We are going to focus on housing as an economic growth sector to make sure that people have a place to call home. She also readily recognized that it is not the Government of Canada's sole jurisdiction. We do not have the ability to go at it alone. We need to make sure we have other partners at the table. She recognized that and I think it is important to recognize it today.
I am one of the younger members of Parliament here in the House, and I have friends and individuals I went to high school with who, in this situation right now, are finding it very difficult to find a home. That is why we have introduced the housing accelerator fund. This is a $4-billion initiative to partner with municipalities to try to expedite some of the red tape and municipal planning to make sure that our municipalities are partnering with the private sector to deliver the housing we need. We need 3.5 million houses by 2031. On average, we have 200,000 housing starts per year. We have a gap to fill. The government is stepping up by putting money on the table to incentivize that initiative, but again, we will need municipalities at the table and we will need the private sector at the table.
We are also putting $1.5 billion to the rapid housing initiative. This program has been rolled out to try to expedite housing approvals in the country. Indeed, it has supported the construction of approximately 40 units in Kings—Hants alone. I know it has done upward of 4,000 or 5,000 across the country, although I do not have the number right in front of me. It is an important initiative to continue moving forward.
We are banning foreign buying for two years. Obviously, there are individuals moving to the country who are going to come to study, but we are not banning that activity. This is for anyone who is going to simply buy housing as a speculative asset. We are making sure that this is not going to be possible.
We are introducing the first-time homebuyers' savings account. How this works is that a person is able to take $8,000 a year, deduct that from income and put it into a savings account, up to $40,000 per individual. It can then be withdrawn tax-free to help support the purchase of a new home. I know that is going to be extremely important to Canadians across the country, and indeed to many of my contemporaries who are trying to get into housing right now.
These are good initiatives, but this goes back to supply. We need more supply and we are putting initiatives on the table. We are also focused on social and co-operative housing. Admittedly, I would argue that, over time, the Government of Canada has not been in this space to the extent that it should, but we are stepping up and being there.
I am going to highlight a final couple of things.
On supply management, we are there to make sure we are compensating our farmers in Kings—Hants. Indeed, for the wine industry, we have signalled that we will have a program in place to represent their interests. Our Minister of Agriculture has been working with her provincial counterparts on the Canadian agricultural partnership. That will be extremely important, as will the specific agricultural worker program.
I wish I had more time, but I look forward to taking questions and perhaps re-engaging with my colleagues on points I might have missed.
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- Apr/26/22 11:22:55 a.m.
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Madam Speaker, it is my pleasure to rise today to speak in support of budget 2022: a plan to grow our economy and make life more affordable.
Let us talk about the budget, finally. What is this budget all about? It has become apparent that fiscal prudence and economic growth serve as two major themes throughout this plan, and there is a clear reason for that. With a prudent and responsible approach, this is a budget that acknowledges and addresses the biggest concerns for Canadians based on four pillars: housing, climate protection, affordability, and jobs and growth.
Before I get into my budget speech, I want to emphasize that the budget’s comprehensive approach to these concerns is not by accident. It is a result of numerous consultations, community feedback sessions, town halls, emails, phone calls and more. For that, I want to thank everyone who has participated in the process of developing this budget. I want to specifically extend my gratitude to my constituents in Richmond Hill, because they took the time to engage with this process by attending my five community councils or contacting my office with their concerns.
I would like to start by giving some context for the fiscal prudence of this budget.
Throughout the COVID‑19 pandemic and during the lockdowns, the economic downturns and more, our federal government quickly and effectively rolled out our major financial support programs that helped keep businesses, workers and families afloat. We have been at a 115% recovery in jobs since April 2020, over three million jobs have been created since the depths of COVID‑19, and our unemployment rate has declined to 5.3%. It is lower than it was prior to the pandemic, and lower than it has been since 1976. Our focus has been on keeping Canadians safe and financially stable, and that continues to be the case today, but we know that we need a different approach from the one that was necessary during the pandemic. In essence, budget 2022 outlines a fiscally prudent plan to reduce deficits, lower the debt-to-GDP ratio and drive toward a near-balanced budget within five years.
Now, we need to turn our attention to growing an economy that is still in recovery, but we know that we cannot strengthen our economy without first thinking about affordability. That is why this budget continues to highlight our investment in affordable child care while touching on new commitments for affordable housing and dental care.
The overarching pillars of this budget can be further broken down.
The housing measures focus on building and supply, saving, and the banning of foreign investments.
The climate pillar invests in zero-emission vehicles, clean electricity, oceans and fresh water, and clean technology.
Under the jobs and growth pillar, we are helping small businesses benefit from tax cuts, establishing the Canada growth fund, and focusing on supporting tradespeople across the country.
Lastly, affordability plays a role in all of these pillars, but its own particular investments are most explicitly seen in child care and dental care.
I am really going to hone in on housing, which is a topic I am passionate about, because I know that it will likely have the greatest direct impact on Canadians and the constituents in my riding.
Budget 2022 targets affordable housing through increasing supply and making it more obtainable for buyers, especially young and first-time homebuyers whose dream of home ownership is in jeopardy due to the continuing rise in costs.
On the supply front, we have made a commitment to doubling the number of housing units built over a 10-year period. This commitment is going to come to fruition in several ways, including with the launch of a new housing accelerator fund. The $4 billion investment for this fund will be put toward creating 100,000 new housing units over the next five years.
In order to further speed up the construction of housing, we are also investing $200 million in the affordable housing innovation fund, which will encourage new innovative building techniques in the affordable housing sector. In fact, this fund will dedicate $100 million to support not-for-profits, co-ops, developers and rent-to-own companies in building new rent-to-own units, and will turn the discussion of affordable housing into a reality for our communities.
We also recognize that increasing supply does not always work effectively unless it is accompanied by quick and timely execution. For vulnerable populations that are in urgent need of affordable housing, waiting years for the supply to increase is simply not an option. Thanks to the tireless efforts of housing support providers in my riding, such as Blue Door, Home on the Hill, Yellow Brick House, Sandgate Women’s Shelter and more, there are services in place to help address the housing needs of vulnerable groups, but we need to do more to reduce the burden on their shoulders.
That is why our government launched the rapid housing initiative with the goal of delivering affordable housing units for vulnerable people in an expedited manner. Budget 2022 highlights our $1.5-billion investment in this initiative, which will create at least 6,000 additional affordable housing units across Canada. This budget also proposes to advance $2.9 billion in funding on a cash basis under the national housing co-investment fund, which will speed up the creation of up to 4,300 new units and the repair of up to 17,800 units for the Canadians who need them most.
All of this is going to mean more generous contributions, faster approvals, and an overall quicker and more efficient process that will make affordable housing more accessible, sooner.
Now let us talk about our future homebuyers: first-time homebuyers and youth who are going to be saving up for places they call home. In my riding of Richmond Hill, the cost of owning a home is at an all-time high. First-time homebuyers in Richmond Hill are now faced with the difficult decision between staying at home in a community that they know and love and having to move further away to be able to afford a place that fits their needs.
Our federal government is aware of these issues, which is why we are proposing a series of new measures, starting with the tax-free first home savings account. Through this, we are giving prospective homebuyers under the age of 40 the ability to save up to $40,000. This could mean around $725 million in support over five years for Canadians who are trying to save their money by having it go in tax-free and come out tax-free. We are also going to be doubling the first-time homebuyers’ tax credit to $10,000, which means up to $1,500 in direct support to home buyers. This amount is not insignificant for young people: every penny towards their home matters.
Providing financial support is not the only way to address the rising costs. We need to implement preventative measures that will protect buyers and renters. Through Budget 2022’s commitment to prohibiting foreign investment in housing and the development of a homebuyers' bill of rights, we will tackle the issue of foreign commercial enterprises using homes in Canada for non-residential purposes such as parking their money, and we will also put forth a national plan to end blind bidding.
There is one more component to housing, and it is something that we see quite often in Richmond Hill. The concept of multi-generational homes is very important to my community, as families prefer to stay together and feel connected to their homes and to their relatives. This budget’s introduction of the multi-generational home renovation tax credit helps provide up to $7,500 for families hoping to construct a secondary suite in their homes for seniors or adults with disabilities. This means more money for more space, without separating families from one another.
In closing, all of these are targeted and responsible investments that align with the themes of fiscal prudence as well as economic growth, while giving more Canadians safe and affordable places to call home. This really is a responsible and responsive plan, and I hope that every member of the house joins me in supporting it, because its supports are necessary to build a more affordable and resilient Canada.
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- Apr/26/22 12:08:45 p.m.
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Madam Speaker, I am pleased to see you in the chair and pleased to be back in the House. I hope everybody had a restful period of time and we are all back here now.
As I rise in the House today to speak to this year’s budget, I will be sharing my time with the member for Mississauga—Streetsville, a wonderful new member of Parliament we have here who is doing great things and who is great to work with.
Several weeks ago, when it was announced that our Liberal government had made a supply agreement deal with the New Democratic Party, I was concerned about that, and I made that known. I am a firm believer in helping and supporting not just Canadians, but those all over the world as we continue, but I am also, like many of my colleagues, a very strong believer in fiscal responsibility. With our country still in an unknown due to COVID, a war on Ukraine, and any other potential things that could come our way, I was unsettled about how we could meet those needs and still remain financially responsible as a government.
I have to congratulate my hon. colleague, the Minister of Finance, as I no longer have those concerns because she struck the perfect chord in this budget. My concerns about the arrangements that we had made on the supply deal and the impact it was going to have on the direction of our government were very much unfounded, because we were able to produce a budget that, yes, delivered on things that mattered to other people but, importantly, we were fiscally responsible, and I was very pleased with all of that.
Before I speak further on the budget, I want to mention page 101, which says “Protecting Our Freshwater”. It might sound like an odd thing to be concerned about as a Toronto member, but we have to be concerned about our lakes. It is an ongoing subject that I have been involved with for some time when it comes to the invasion of sea lamprey in our lakes and the agreements that we had between Canada and the U.S. We were not paying our share to ensure that the invasive sea lamprey were not allowed to continue to cause the kind of damage that they do in the Great Lakes.
I have been lobbying on that issue with my former staff member Greg McClinchey and others. With the help of the member for Niagara Centre and his continued persistence, it is in the budget, with significant funds that will truly be our support in dealing with invasive species like that. I want to congratulate Mr. McClinchey and the member for Niagara Centre for pushing it over the line. I am glad it is done. It does not matter who gets the credit if it gets done, and it is going to make a difference in the Great Lakes and our cities.
The other issue that matters a lot to the residents of Humber River—Black Creek is that all of the provinces have finally signed an agreement for affordable day care, something with which I go back to the previous prime minister Martin, trying to get child care then. That was at least 12 years ago. Well, we finally got it over the finish line and we have agreements with all of the provinces and the territories for an early learning and child care infrastructure fund in the budget. It is going to make a huge difference in the lives of residents in Humber River—Black Creek. Many of the parents in Ontario will be able to save an average of $6,000 per year per child by the end of 2022.
What I see as most important for the residents of Humber River—Black Creek is the fact that many of the families have had to have one member of the partnership stay home, and I know that these women, many of them, wanted the opportunity to go to work. They could not find child care that was affordable. Well, now they will have child care that is affordable. They will be able to go back to school. They will be able to pursue a career. It will make a huge difference in their lives. Otherwise, they had to wait until their children were significantly grown up in order to be able to actually get on to work.
When we look at seniors in poverty, which is an issue we have talked a lot about over the many years I have been here, every year we manage to reduce the number of seniors in poverty. However, if we turn around and make sure, and this is what we are doing with child care, that we provide women and men the opportunity to work, because their children are going to be in a safe day care, an affordable day care opportunity, they can go to work and contribute to their pensions from early on, not having to wait until their children are completely grown up and out of the house before they can go to work. The cost of child care has been exorbitant and parents were simply having to make a choice. They could earn money, but they would pay it all out in child care, so it just did not make any sense for them to go forward. The more Canadians are working, the better our economy will be.
Since our government took power in 2015, we have brought forward six other budgets. Many of them have included great things that have helped the residents of Humber River—Black Creek, such as the Canada child benefit. We should not forget all the families that are benefiting throughout this country. We have helped 435,000 families out of poverty since 2015 and continue to provide almost $7,000 per child to families this year. We are increasing the minimum wage. We have also increased the amounts for the GIS and the old age security pension, things that matter to many people.
We have made investments in workers. As a result of the pandemic, we realized just how important it is to have paid sick days. We can keep our head in the sand all we want, but the reality is that if people are sick and have to pay rent and put food on the table, they are going to go to work, sick or not, and that is very unfortunate. Having 10 paid days of sick leave for federal and private sector employees will make a difference in the lives of many Canadians as we move forward.
We are increasing climate action incentive payments. Most families in my riding are going to receive over $800. I am certainly talking to them about paying attention to how they file their income tax, because there is almost $800 coming back as a result of the carbon tax that they continue to hear people criticize. It is putting money back into the pockets of many people.
I talk a lot about how important it is to use a budget to be fiscally responsible, but also to give people a hand up as we move forward, and dental health is one that we as a party and certainly I have talked about many times. I talk to people in my riding who are having a tough time and cannot get a job. They have missing teeth, and even when they try to pull themselves together to present themselves for a job, clearly they do not present themselves well because they do not have the money to have proper dental health care. We, as Liberals, have talked about it, and I think this agreement we have is a major boost. Yes, it is going to cost a lot of money, but if it makes people's mental health and physical health better as a result of having proper dental care, I think it makes a huge difference. We are phasing it in, again, in a fiscally responsible way. I think those things are very important as we move forward.
On housing, I cannot tell members how happy I am to see the amount of money going into housing, and how well we are doing with that. It is a huge subject. If people do not have a place to live or a roof over their head, it does not matter what else we do for them; that is what they need, so investing in affordable housing and making it all move forward is an extremely important thing. I am thrilled to see the amount of money that is going into housing. Co-op housing in particular is something that I have a real interest in. I would like to see a lot more of that built throughout the country, especially in Humber River—Black Creek, for the residents there.
Madam Speaker, I can see that my time is up. Thank you very much for the opportunity. I think it is a great budget, and I am very proud to stand and support it.
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- Apr/26/22 1:09:45 p.m.
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Madam Speaker, I will be sharing my time with the member for Labrador.
Budget 2022 has been tabled at a time when Canada is seeing historic growth in our economy. Canada’s GDP is higher than it has ever been, and the IMF is projecting Canada to have the fastest-growing economy in the G7 both this year and next year. Canada has recovered 115% of the jobs lost at the height the pandemic, compared to only 93% in the United States, and we have the lowest unemployment rate that we have had in almost five decades. Canada entered the pandemic with the lowest net debt-to-GDP ratio in the G7, and budget 2022 will maintain this position by ensuring our clear fiscal anchor of a declining debt-to-GDP ratio remains in place to have a fiscally prudent path forward.
Despite these lofty numbers, inflation caused by COVID-related global supply chain disruptions, the Russian invasion of Ukraine and record low interest rates are impacting Canadians through rising prices as they buy their groceries, fill their cars or look for a home. This is why budget 2022 prioritizes tackling affordability challenges to make home ownership more attainable and to relieve health care costs, while we simultaneously focus on growing our economy and protecting our environment.
The rising cost of housing is the most visible and alarming example of affordability challenges in our country as home ownership continues to fall further out of reach for many Canadians. For example, in two of the three largest communities in my riding, the average house currently sells for over $4 million, while the fastest growing areas saw homes increase by about 40% year over year. This is clearly not sustainable, and the large shortage of housing Canada is facing plays a big part.
Foreign investment and speculation have taken housing off the market for Canadians, while unfair real estate practices have driven up prices, and high prices have made it particularly difficult for young Canadians to enter the market. To respond to this, budget 2022 takes action on all these fronts.
Canada’s population is growing faster than any G7 country, and, with fewer homes per capita than most OECD countries, which cannot continue if we want homes to be affordable. To address this, Canada will double new housing construction over the next decade. We are proposing to invest $4 billion to launch the housing accelerator fund to work with municipalities to build over 100,000 of the right sort of housing in our communities. We are also tying our infrastructure investments to densification to do what we can as a federal government to discourage the Nimbyism that is shutting out young Canadians and workers from the communities they grew up in or work in.
We are also extending the rapid housing initiative to quickly build more supportive housing units, creating a rent-to-own program to help young professionals get into the market, and making the largest investment in co-operatives in over three decades, among many other initiatives.
We also need to keep building more housing in indigenous communities. As difficult as it is to find housing is for most Canadians, it is even worse in indigenous communities. Fixing that is a vital step along the path of reconciliation. Budget 2022 proposes investments of $4.3 billion to build and expand housing in indigenous communities and to co-develop and launch an urban, rural and northern indigenous housing strategy.
To tackle the commodification of housing, we are banning non-resident foreign investment in Canadian housing for two years to ensure the Canadian homes are owned by people that live and contribute to our country. We are also introducing a tax on home flippers where property is sold within 12 months of acquisition, and taxing assignments of new builds. We are also working with the provinces to develop a homebuyer bill of rights to eliminate unfair practices, such as blind bidding, that unnecessarily drive up housing prices and to ensure that buyers have the right to a home inspection when they are making the largest investment of their lives.
We are also creating the tax-free first home savings account to assist young Canadians to get into the housing market. This account will give prospective first-time homebuyers the ability to save and invest up to $40,000. Like an RRSP, contributions would be tax deductible, and withdrawals to purchase a first home, including investment income, would be non-taxable, like a TFSA.
While housing is the most prominent factor in the affordability crisis, it is by no means the only one. One of the things I have consistently heard across my riding is that the high cost and lack of availability of child care has hurt both families and businesses. That is why our government created the Canada-wide early learning and child care system last year. By the end of this year, child care fees will be reduced by an average of 50%, or to $20 a day in British Columbia, and will average $10 a day by 2026. This will save B.C. families $6,000 per child, on average, by the end of the year, and over $9,000 per child by the end of 2026.
To build on the 40,000 new spaces that will be created as part of this, budget 2022 will invest another $625 million to create even more spaces. Parents have told me that this, in many respects, is an even greater challenge than the cost, where some families are waiting over two years for child care. This is not just an important social policy. It is also an important economic policy, as it will allow both parents to return to the workforce.
Getting people back to work is in fact one of the largest challenges we have in our economy with almost 875,000 unfilled jobs across the country. Child care and building housing address two main factors, but the backlog in immigration processing caused by the pandemic is the third. Budget 2022 contains $2.1 billion to clear these backlogs. Importantly, it will support improvements that will streamline the temporary foreign worker program, which is crucial to find workers in sectors and regions with the largest labour shortages, including in tourist-dependent areas that have been hit hard by the pandemic.
Canada's public health care system is a source of immense national pride. It protected us through the worst of the pandemic, but it is not complete. Budget 2022 fills an important remaining gap with the creation of a new dental care program. Starting this year, children under age 12 will have access to dental care. This program will be steadily expanded so that all Canadian families with income under $90,000 will have access by 2025. While the federal government provided 80% of the pandemic relief programs to mitigate the impacts of the pandemic, a backlog of surgeries formed over the last two years. That is why the federal government is going to be stepping up once again to provide provinces the supports of over $2 billion to top up the Canada health transfer to clear them.
Last year’s devastating flooding and wildfires in B.C. were a wake-up call for many in B.C. that we are living in a climate emergency. Budget 2022 shows that the Government of Canada is both ensuring we are resilient to an already changing climate, while following through on its now legislated commitment to reduce emissions by at least 40% by 2030. Total investments in climate action and greening the economy will exceed $28 billion in this year’s budget, building on the over $100 billion already committed. Importantly, to mitigate future wildfires, we will be training 1,000 new firefighters, increasing our satellite monitoring capability, investing in new firefighting equipment and working with indigenous peoples on traditional ways of mitigating wildfires.
Our government knows that climate policy must be implemented in a way that creates jobs and does not overly burden Canadians. That is why this year’s budget will expand and extend incentives in zero-emission vehicles to tackle our second highest source of emissions. We will also invest in the charging networks to support them. New tax benefits for heat pump manufacturing and additional capital from residential retrofits will build on the $5,000 grants and the $40,000 no interest loans for home retrofits to save Canadians money and reduce household emissions.
Investments of $15 billion in the Canada growth fund and $3.8 billion into our critical minerals strategy will allow Canada to be competitive in the entire battery supply chain, which will play a crucial role in the clean economy, which will drive job growth around the world. Scrapping tax credits that support new oil and gas production while creating new tax credits that support clean technologies will help the private sector play an increasing role in the transition to a cleaner economy. As we increasingly electrify our economy, we are investing to expand our green electricity generation with almost $900 million to develop new clean electricity projects and modernize our electrical grid.
Our environment has a special place in the hearts of British Columbians, but many of our most important land and marine ecosystems are at risk. To protect our last remaining old growth forests in British Columbia, we are creating the old growth nature fund. This fund will leverage provincial and private capital to protect more of B.C.’s irreplaceable old growth forests and the many species at risk that call them home. We are also expanding the highly successful and the oceans protection plan, which has done incredible restoration work throughout our most sensitive marine areas, with an additional $2 billion to do even more.
As I see my time is running out, I will not have time to touch on the many other areas of this budget that will make a real difference in the lives of Canadians and help us continue to accelerate along the path to more sustainable development. I want to end by saying that these policies and investments mark the beginning of the post-COVID world. Through prudent yet ambitious spending, our government will help Canadians build a future in which everyone can prosper while maintaining a strong and sustainable fiscal position.
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- Apr/26/22 1:41:39 p.m.
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Mr. Speaker, I appreciate the opportunity to rise today and join in the debate on the 2022 budget. I would like to congratulate the government for having a string of two years in a row where it tabled a budget. It kind of broke that historical trend for a while.
In many ways, this is a historic budget, and one that may well be remembered for generations to come. It will be remembered as a budget that failed to rein in reckless spending and restore fiscal responsibility, a budget that has put the financial well-being and access to government services for future generations at risk, and a budget that doubled down on failed policies in the pursuit of ideology.
It will also be remembered as the New Democratic Party's first federal budget, which is no small feat for a party that officially won only 25 seats with less than 18% of the vote just six months ago. It is a government nobody voted for and was not even debated in the last election.
It has never been clearer that we have an NDP Prime Minister who just happened to be born into the Liberal Party. Instead of going his own way as a New Democrat, he decided it would be easier to turn the once fiscally reasonable Liberal Party of Sir Wilfrid Laurier and Jean Chrétien into a mirror image of the NDP, complete with a coalition-style partnership, to avoid scrutiny and accountability. That reality is reflected in this budget, and it is future generations who are going to bear the burden of it.
It was necessary to engage in extraordinary spending in the early days of the pandemic in order to ensure that Canadians had the support they needed to make it through the incredibly difficult times brought on by the pandemic and the various public health measures brought in across the country by all levels of government to address it. Unfortunately, the government treated—
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- Apr/26/22 1:43:56 p.m.
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Mr. Speaker, I would like to thank my colleague from the NDP for reminding us of the napkin budget brought in a few years ago. That was with the Liberals as well.
Unfortunately, the government treated this rationale as an opportunity to spend wildly and recklessly on policies that did nothing to support Canadians through the pandemic or that would help create sustainable economic growth in the future to help pay for their spending.
This budget continues this practice, with a deficit of $52.8 billion and no plan to reach a balanced budget. At the end of the 2014-15 fiscal year, the federal debt was just over $612 billion with a budgetary surplus of $1.9 billion.
Now, the federal debt is almost $1.2 trillion, and is anticipated to reach $1.3 trillion in the next couple of years. The cost to service our debt this year alone will be $26.9 billion. Inflation has reached a 31-year high, and we have just seen the largest rate hike in decades by the Bank of Canada: a full half a percentage point, bringing the overnight rate to 1% in order to deal with government spending-driven inflation. We know that the Bank of Canada will continue to aggressively raise interest rates, making this spending even less sustainable. In fact, one of the reasons why the Bank of Canada had to increase it so aggressively was because of this unsustainable spending, something the NDP-Liberals would realize if they were not all following the Prime Minister’s example and not thinking at all about monetary policy.
We are all aware of the devastating impact that inflation is having across Canada. Too many people who have been just getting by for the past couple of years, or even longer in some cases, now find themselves in a situation where they no longer can get by. Groceries, fuel and pretty much everything else we can think of is getting more expensive. Housing costs have skyrocketed, with the price of the average house doubling since the Prime Minister came into office and increasing 30% in the last year alone.
Young Canadians, who have seen their dream of home ownership evaporate under the government, were hoping for some sort of inspired measure in this budget: something that showed the NDP-Liberal coalition understood the issue and was actually trying to fix it. Instead of hope, the government doubled down on more of the same failed policies that have not helped young people get homes in the past six years. Nothing in the budget will help get homes built this year. In fact, the solution that the coalition government has put forward seems to be a plan to increase the size of the bureaucracy, not the supply of houses.
The budget almost acknowledges that the government is not even trying to help young people get into their own homes. Instead of a serious plan to cut red tape, cut costs and build homes, the government decided that a multi-generational home renovation tax credit was the way to go. Families are the cornerstone of our society, and supporting our loved ones as they age or when they are facing hard times is admirable. I am sure we would do it for our families, and most Canadians would want to do the same if they were able to do so. However, considering the housing crisis, this tax credit, which gives up to $7,500 for renovations to make a secondary suite, is not a nice social policy to help support strong families. It is an admission of failure by the NDP-Liberals.
It is an admission that they are going to give up on helping to get young people out of their parents’ basements and put them into their own homes. The government is telling young people that instead of trying to fix the mess it created and helping to get them into homes, it is going to help families fix up basement suites so that they feel like their own places.
Young Canadians want the pride of home ownership and the ability to build some equity, and they want to have the autonomy that comes with living on their own or with their partner or spouse. They do not want the government to help put a shower in the half-bath in mom and dad's basement and call it a day. Without a meaningful plan to increase supply, bring prices to a reasonable level and help new people enter the housing market, that is exactly how this tax credit is going to be interpreted by Canadians, and who could possibly blame them?
Another thing that was in this budget is the expected increase in the amount of equalization payments. Members will recall that in 2018, Bill “no more”, I mean Bill Morneau, quietly locked in the equalization formula until 2024 with virtually no consultation.
The Liberal government members of the day did not really care that Alberta and other western provinces were going through hard times; they just saw my whole province as a piggy bank that they were willing to shake every last dime out of while they could. After all these years of Liberals taking from that piggy bank without putting anything back in, there is not much left to give, but that will not stop the NDP-Liberal coalition from trying, and if that means smashing the bank open, they are going to be quite all right with that.
The feeling that the government does not understand Alberta or that it is actively trying to dismantle its economy and way of life is not new. Some held out hope that, with the finance minister being at least born in Alberta and the associate finance minister representing an Edmonton riding, there could have been some sort of consideration given to our province, but that certainly was not the case with this budget.
The attack on the energy sector continues, with the NDP-Liberal government doubling down on the plan to phase out the oil and gas sector. With this budget, the government will no longer allow the use of flow-through shares for the oil and gas industries, so smaller firms that rely on this important tool will find it that much harder. The government has asked them to reduce their emissions and navigate an ever more complicated regulatory system, and at the same time the Liberal-NDP government is working to ensure that oil and gas companies do not have the resources that they will need to accomplish either of those goals.
The budget did include, however, a tax credit for carbon capture and storage, but unfortunately it is deeply flawed. The budget suggests that there is a credit for carbon capture, utilization and storage, which means that the recovered oil can also be utilized, but in the case of the energy sector in my province, that is simply not true. The tax credit specifically rules out enhanced oil recovery, where the carbon that is being sequestered can be pumped back into the well to be permanently sequestered and in the process help extract oil that is at the bottom, which otherwise can no longer be accessed. This technology creates the lowest-emission oil possible and allows for wells to be fully utilized, resulting in jobs and royalties, and the CO2 is still sequestered.
Enhanced oil recovery sequestration is already taking place. There is already a process, a regulatory regime, and there are businesses operating in this space. In my riding, enhanced energy has used this method to sequester CO2 and recover the cleanest oil in North America. A year ago, they announced that they had reached the monumental milestone of sequestering one million tonnes of CO2, an equivalent of taking 350,000 cars off the road.
If anyone is puzzled by the fact that the government is against this technology, so is absolutely everybody in Alberta. If the NDP and the Liberals want to see emissions reduced, they need to put their ideology aside, support the oil and gas sector and support CCUS.
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- Apr/26/22 3:41:48 p.m.
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Madam Speaker, respectfully, the hon. member makes a fairly obvious error in his economic analysis. He is talking about the fact that the Bank of Canada controls monetary policy, but he misses the fact that fiscal policy can impact inflation as well. It is fairly well established. The first-year economics professor he spoke about at the beginning of his speech could, I am sure, confirm the fact that monetary levers and fiscal levers can both impact inflation. In fact, the expansionary fiscal policy being pursued by the government is having a significant impact on inflation.
Of course, it is also important to acknowledge that the Bank of Canada, as a Crown corporation, acts within the general ambit of established policy on things like the inflation target, which is set by government. The member and other members of the government who try to absolve the government of responsibility for inflation by saying that it is just about the independent Bank of Canada are missing the obvious fact that the fiscal decisions of the government do impact inflation as well.
Will the member acknowledge that fact and call his government to account for its fiscal decisions?
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- Apr/26/22 3:47:00 p.m.
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Madam Speaker, I have a brief follow-up to my earlier exchange with the member. I think it is clear there are a variety of government policies at the fiscal level that are impacting inflation, and that impact is especially strong at this point as we are seeing the highest level of inflation in decades. This is at a point when we have very much come out of the depths of the pandemic.
There is also a question of the target the federal government sets and how seriously it sets that target, because the Bank of Canada operates within the target that has been set by the federal government. It is ultimately the government that establishes the policy framework that governs the way the Bank of Canada, which is an independent but Crown corporation, operates.
To re-emphasize my previous question, does the member acknowledge that the policy choices of the current government are driving inflation and making things more expensive, and that it could be making different policy choices that would address this problem of inflation and the rising prices of goods that people are seeing?
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- Apr/26/22 4:49:50 p.m.
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Madam Speaker, the Conservatives have it so easy. Their problem is that they never have enough oil, so their solution is to have more oil. There are times I would love to be in their position.
We are talking about investment credits. When an oil company invests $1 but ultimately pays less than $1 because the government makes up the difference, that is an economic subsidy.
I do not need any lectures from my colleague on equalization or transfers. It is like a dog chasing its tail. The Conservatives blame us for equalization and use that as an excuse to produce even more. When they produce even more and the fiscal gap gets even bigger, they will blame us even more.
The Conservatives are creating their own problems and their own solutions. Sometimes I wonder what it would be like to be in their head.
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