44th Parl. 1st Sess.
April 29, 2022 10:00AM
- Apr/29/22 10:03:34 a.m.
- Watch
- Re: Bill C-8
Madam Speaker, it is always such an honour to rise in this place and speak on behalf of my community of South Shore—St. Margarets.
Today, we are debating the report stage of Bill C-8, an act to implement certain provisions of the economic and fiscal update tabled in Parliament on December 14, 2021 and other measures, in other words, more government spending on COVID‑19. Let us look at the NDP and Liberal COVID spending to date in this bill. The fall fiscal update added another $70 billion in new spending, and this spending is on top of that. The $70 billion I mentioned does not even include the Liberal campaign promises, which would be tens of billions more if, and that is a big if, the NDP-Liberal government lives up to their campaign promises and their coalition. The bill is going to add $70 billion on top of what we saw in the public accounts, the $1.4 trillion of debt that Canadian taxpayers are now on the hook for. Let us think about that: $70 billion more, on top of the $1.4 trillion that has already been added until now.
It is said that one should know history so one does not repeat it. I guess the current government does not know history, because if it did, it would see that the son is repeating the mistakes of the father. To understand the context of what this bill and this spending's impact on the economy will be, let us take a look at what the father did. It tells us what the country will face in the coming years because of the fiscal mismanagement of the son and the father.
In the federal election of 1968, Pierre Trudeau reassured Canadians that a Liberal government would not raise taxes or increase spending. The government, he said during the election of 1968, is not Santa Claus. How did that work out?
When Pierre Trudeau became prime minister, real government spending increased from 17% of GDP to 24.3%. In other words, the federal government's share of the economy rose 42% under Trudeau senior. Every single area of the federal government's spending increased under Trudeau senior, except defence spending, where he cut spending in half as a percentage of the budget. When Pierre Trudeau took office, we spent more on national defence than we did on servicing the country's debt. When he left office in 1984, for every dollar the government spent on defence, we spent three dollars on paying just the interest on his national debt.
How did he do it? He created 114 agencies and commissions. He created seven new government departments, for a total of 464 Crown corporations with 213 subsidiaries. The annual deficit rose to almost $40 billion. That does not seem so unreasonable, given what we have seen with the spending in this place lately. However, that $40 billion was on a base budget, an annual Government of Canada budget, of $100 billion.
I raise this because, as the adage goes, “Like father, like son.” Pierre Trudeau once said, “We're going to build socialism here.” Well, he did, and his son just formalized it.
People who grew up in the 1930s, such as Pierre Trudeau, saw Roosevelt's New Deal of massive government infrastructure spending to pull the U.S. out of the Great Depression. They thought that this approach in the 1970s would stimulate us out of the “stagflation” of that time, which was, for those who do not remember, high inflation combined with high unemployment and a stagnant demand in the economy. It was disastrous.
It was so bad that at one point Pierre Trudeau brought in wage and price controls. He said, “Zap, you're frozen”, and froze all wages and prices. When those socialist wage and price controls came off, the floodgates of wage demands and price adjustments went up even faster. By the time Pierre Trudeau left office, 38¢ of every dollar collected in taxes by the Government of Canada was to pay interest, and only interest, on the debt. The biggest single government program was paying interest on Pierre Trudeau's debt. The government in 1984 spent more on debt interest payments than it spent on defence spending and health care combined. Trudeau's policies of massive spending led to a rapid rise in interest rates to try to reduce inflation. All that government spending simply made it worse.
In the early 1980s, banks were creating home mortgages at 21% annual interest rates. When Brian Mulroney took office in 1984, and I joined that government as a young staffer, we had to break the cycle of spending and deficits that were killing Canada's economy and jobs. By 1987, Mulroney was managing the government in an operating surplus position, reversing the structural deficits created by the Liberals. The deficits after 1987 were entirely as a result of paying interest on Pierre Trudeau's debt.
The government remained in an operating surplus through successive prime ministers until the current Liberal government came to office. The Mulroney government reined in spending and fundamentally restructured the economy with a new vision to deal with the economics of the day. There were fundamental changes, such as a complete restructuring of Canada's financial services industry; the first introduction anywhere in the world of free trade, which did not exist anywhere before then; the replacement of the 13.5% manufacturers' sales tax with the 7% goods and services tax; the elimination of the national energy program and the job-killing foreign investment review agency; and, yes, the privatization of 23 Crown corporations, which I was proud to be a part of, including Air Canada.
The Chrétien government continued this work with further cuts in government spending, although it took a different approach. It collapsed the separate unemployment insurance fund into the consolidated revenue fund, and then artificially kept payments high in order to build up a surplus that was not needed to pay unemployment insurance but was used to pay down the debt. It dropped the government spending on health care by 50%.
It took the governments that followed more than 25 years to break the back of Trudeau's disastrous spending, but he was a piker compared to his son, who has added more debt to Canada's national accounts in six years than all other governments since our founding in 1867. The son, in 2015, promised small stimulus deficits that would be balanced by 2019. Just like his father did in 1968, when he said he would not spend, the son promised the same thing in 2015. We know how that turned out.
The government spent $600 million on high school students living at home in its first round of COVID spending. The government also spent $11.8 billion on CERB for 15- to 24-year-olds who were living with their parents; $7 billion on spouses in households with more than $100,000 in earnings; $110 billion on the Canada wage subsidy. Some studies have found that the money did obviously go to struggling companies during COVID, but many were strong enough to withstand it on their own; 24% of that money went to companies whose revenue actually increased during COVID, and 49% to companies whose profits increased during COVID.
Spending more than $600 billion in two years, printing more than $3 billion a week in new money, has caused the structural inflation of almost 6% we now see. In the coming year or two, we will start to see wage inflation as a result of the way companies, both unionized and not, determine how their employees get pay raises, which is usually based on inflation. As publicly traded companies raise salaries at all levels, because consultants and their HR board committees will say they need to do so or risk losing their employees to other competitors, combined with the demands for CPI adjustments in union contracts, that is what is going to create wage inflation. We have not seen anything yet. Wage inflation will fuel further goods inflation as more dollars will flood the market chasing limited goods, which in turn leads to higher inflation.
The consequences of providing all these universal government COVID programs, pushing all this money into the economy at levels not needed, and now new social programs when the government is not even properly funding health care, will add to the structural deficit that the country has. The government has no plans to reduce the footprint of government in the economy, which means we are heading toward stagnation, a 1970s-type of situation.
I cannot support this bill, because Bill C-8 and the recently tabled budget will just make Canada's finances drastically worse. The NDP and the Liberals have not learned in their pact from what happened in the 1970s, and they had a pact in the 1970s, too. History is repeating. Like father, like son.
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- Apr/29/22 10:48:34 a.m.
- Watch
- Re: Bill C-8
Madam Speaker, the weight of a Canadian one-dollar coin, what we call the loonie, is 6.27 grams. This is a simple number that even a child can understand. I bring that to the House's attention because it seems me that members opposite have lost touch with reality, while at the same time losing their ability to manage Canada's economy. Let us go back to basics in the hope that the Liberals and their NDP friends can gain a glimmer of understanding. I will try to use simple numbers, ones that even a Liberal can understand.
Bill C-8, the economic and fiscal update 2021, adds an additional $70 billion to government spending and brings our national debt to $1.2 trillion. Until the government, such a number was inconceivable, which means the members opposite can be forgiven for not understanding the number, even if Canadians cannot forgive them for their spendthrift ways.
A trillion dollars is a million million dollars. That is a one with 12 zeroes, if we are writing it on paper. It is tough to visualize a trillion dollars. However, if we were to take that debt and pay it off with loonie coins, the weight of cash would be 8,400,000,000 kilograms. That is still a difficult number to comprehend, but since the Liberals have no plan to ever reduce the debt, let alone pay it, maybe it does not matter if we cannot visualize it.
Let us look at it in a different way. Using imperial measures, this debt of 1.2 trillion loonies would weigh 7,860,428 tonnes. This is also an unfathomable number, but let us visualize this. The Liberal disaster weighs 150 times as much as the RMS Titanic, the unsinkable ship that went down off the coast of Newfoundland 110 years ago this month in one of the biggest maritime disasters in history, or of all time, to be specific.
The government's fiscal management is a disaster that is 150 times as bad. It is no wonder the Liberals hide behind the big numbers that they hope people do not understand. They have used the pandemic as an excuse to make changes to the economy, to bring in $176 billion in new spending completely unrelated to COVID-19. They are hoping Canadians will not notice, that they will be too distracted by events to notice that the Liberals are spending without any concerns about the future.
Canadians are, on the whole, a financially responsible people. We know that we should not spend more than we earn and that bills must be paid. We know that money for government programs comes from taxes paid by each Canadian. Canadians understand that we are already taxed at the breaking point. The taxpayers of this country cannot afford new taxes and tax increases. At least most Canadians understand that. Those who do not apparently become Liberal or NDP members of Parliament. Those two parties seem determined to spend this country into bankruptcy.
I was born in a country where the government has had to declare bankruptcy. The suffering of ordinary citizens there is heartbreaking. I do not want to see this happen here in Canada.
People in my riding of Edmonton Manning are concerned about rising prices. They feel they will not be able to make ends meet. They want to know when the Liberals will get serious about the economy. They are not happy that the answer seems to be “never”.
Inflation was 6.7% in March, the highest level in more than 30 years. The government response has been a collective shrug. It is an international problem, they say, as they add more inflationary taxes to Canadians' burdens. As gasoline prices reach record highs, the Liberals' response is to raise the tax on fuel to make things more expensive for Canadians. Gasoline costs are up almost 40% in the last year, and groceries are up by almost 10%. Furniture prices are up about 8% in March alone. Housing prices have doubled under the government.
Young Canadians used to dream of graduating from university, getting a job and buying their first home. These were the milestones of adulthood and rites of passage. With the Liberal government, that dream has changed to a nightmare of crippling student debt and living with parents forever because they will never be able to afford a house of their own.
My constituents are concluding that either the Liberals do not understand the problem or they do not care. Canadians deserve a government that will take real action to fight the cost of living crisis and outline a clear commitment to control inflation. We will not find that in Bill C-8.
Under the government, the cost of a typical house has risen from $435,000 to $810,000. With inflation, purchasing power is down, not up, and wages are not keeping pace. Who can afford a house under this titanic disaster of a Liberal policy? Our economy has hit an iceberg and is sinking fast under the weight of 150 Titanic ships.
We are told inflation will cost Canadians $2,000 each this year. We already know the Prime Minister does not shop for his own groceries, so he has not noticed the increases in prices on everything in the store. Bread, milk and other dairy products, meat and vegetables are all more expensive than they were this time last year. What is the government doing to address the concerns of Canadians concerned about their ability to afford nutritious food? It is doing absolutely nothing.
Rising prices and inflation are happening everywhere, they say. That is just an excuse for inaction. If the government does not understand how the economy works, if it cannot figure out how to help average Canadians in their time of need, maybe it should do the honourable thing, step aside and let someone else fix its problems, someone who will have Canadians' backs instead of stabbing those backs with high prices. That, of course, is not going to happen. The Liberals have no idea what a trillion dollars is, or how much 1.2 trillion loonies weigh. They do not seem to understand that there is a problem.
The Prime Minister has asked Canadians to forgive him for not thinking about monetary policy. That is a disaster. How can we forgive him and his government for polices that make things worse for families and worse for the middle class? How can we forgive him for a $1.2-trillion debt that our grandchildren will still be paying off?
The government is a fiscal disaster of titanic proportions. There is nothing in this bill that can hide that fact.
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- Apr/29/22 11:39:36 a.m.
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Madam Speaker, the leader of the Conservative Party herself has already admitted that the extraordinary investments that were made over the course of the pandemic were necessary to protect Canadian families and Canadian workers.
Our plan has worked. In fact, we have maintained the lowest net debt-to-GDP ratio in the G7 while growing the economy and recovering 115% of jobs lost due to COVID-19. Canada was able to do this because of our prudent fiscal management. It is now time to unwind the pandemic deficits and continue to grow our economy while reducing our debt-to-GDP ratio. This is what good fiscal managers do, and it is going to allow us to make Canada and life—
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- Apr/29/22 11:40:50 a.m.
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Madam Speaker, we just recently had an election where the Conservatives committed to spending more than what we proposed. They pretend to be good fiscal managers, but this is impossible if they are not committed to evidence-based decision-making.
Our government will lower our debt-to-GDP ratio every single year for the next five years. Unlike the Conservatives, we will do this while fighting climate change, investing in housing affordability and building a Canadian economy of the future alongside our indigenous partners.
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- Apr/29/22 11:47:07 a.m.
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Madam Speaker, before the pandemic, it took only two Conservative governments to accrue more than 70% of Canada's prepandemic debt. That is because their fiscal ideology is to cut taxes for the wealthy and to cut services for everyone else.
In stark contrast, our last Liberal government paid down our national debt significantly. We have demonstrated that one can be a good fiscal manager while investing in Canadians, growing the economy and continuing to fight poverty and climate change.
Budget 2022 lowers our debt-to-GDP ratio and will help build a Canada where no one is left behind.
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- Apr/29/22 12:37:40 p.m.
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- Re: Bill C-8
Mr. Speaker, what a pleasure it is to see you in the chair. It suits you well. We never know what will happen in the future, but I think you would really appreciate being on the other side in three years, just as the Conservatives would and as all Canadians would like to see, by the way.
We are therefore gathered here today to talk about Bill C-8, which deals with the economic update and implements some of the government's financial measures.
I want to say from the outset that my speech will deal exclusively with something that is currently affecting the financial situation of all Canadians, and that is inflation, of course.
For many months now, Canada has been grappling with its highest inflation rate in 31 years. It is important to remember that, at that time, there were also substantial interest rate hikes and we finally managed to bring inflation under control. However, we have not had an inflation rate of 6.7% in 31 years, and it is affecting all Canadian families. Everyone, without exception, has been directly affected by the high inflation rate.
Why do I want to talk about that today?
It is simply because I do not think there is anything at all in Bill C-8 that directly addresses the problem of inflation, which is having an impact on all Canadian families. The bill provides no relief for them. However, there are two things that the government could do but has failed to do.
Inflation affects everyone. However, as the report issued by the Royal Bank of Canada a few days ago indicates, unfortunately, the poorest among us are those who are hardest hit by inflation. Why? The reason is that essential goods, such as food, housing and transportation, are directly impacted by inflation.
A high-income person eats just as much as a person with a lower income. If the price of food goes up, those with a very high income will be much less affected than people with a low income. We are not talking about luxuries here, or the proverbial cherry on top, but about essential goods that have been drastically affected by inflation. That is why this affects every Canadian family and that is why the government should focus its financial and budgetary efforts on helping Canadians cope with inflation.
I must have asked the government dozens and dozens of questions about inflation, as has my colleague from Carleton, and as have all my colleagues on this side of the House.
The Minister of Finance generally tells us that it is not the government's fault, that this is happening all around the world. She says it is because of the health crisis we had, the supply problems affecting the entire globe, and the war in Ukraine. It is not Canada's fault; this is happening all around the world. To that, I say no.
Let us not forget that when Bill C‑8 was introduced and we were asking questions about inflation, this government told us that it was temporary. We were told that this problem would sort itself out, which brought to mind the sadly infamous and pitiful statement of the current Prime Minister, who said in 2015 that budgets balance themselves.
That is not true. A budget does not balance itself. Nor is it right to say that inflation resolves itself, as the government claimed just six months ago. As the Governor of the Bank of Canada says, it is here to stay, and we must get a handle on it.
The government needs to take two measures to directly address inflation, and this has nothing to do with what is happening in Ukraine, or with the supply chain or with the pandemic. The government needs to freeze price and tax increases and control spending. Why?
When people have concerns about their personal budget and are unsure whether they can buy something, invest in a place, or pay for an unexpected expense, they have to ask themselves questions and think twice. They cannot just spend as much as they would like, and they have to make choices.
This is exactly the approach that should be taken by the head of any family—father, mother or anyone taking care of a family. Sometimes the entire family deals with it, and that is what needs to happen. People take action, think twice and control their spending. That is the responsible way to govern. However, this government has done everything except control spending. Everything that has been done since 2015 shows a total lack of fiscal responsibility.
Let us not forget that in 2015 they got elected on a promise that they would run three small deficits and in 2019 there would be no deficit—zero deficit. That was the proposal, the solemn commitment from the Liberals in 2015. The reality is that we have not had three small deficits and then, poof, none at all. We have had one, two, three, four astronomical deficits each time. They just cannot help themselves. It increases year after year.
I cannot help but laugh at the budget tabled by the government, which states that, in five years, the deficit will be a tiny $8 billion. No one believes that, because these people have not governed properly since 2015.
Of course we understand there had to be extraordinary spending because of the pandemic. That is completely understandable. We will give the government that. However, just because the government was spending does not mean it could not keep that spending under control. That is the issue. Let me point out that, when our party was in government, it had to deal with the worst economic crisis ever, the 2008 crisis. That was the worst economic crisis since the 1920s and 1930s. Our government governed responsibly. Yes, there were deficits, but we had a plan. As a result of that plan, in 2015, under the Conservative government and thanks to the sound management of our finance ministers, we were the first G7 country to recover after the 2008 crisis. That is something to be proud of, and our management of public monies was realistic and responsible.
The current government went on a spending spree, even though economic growth was strong from 2015 to 2019 and money could have been set aside. We are not against the extraordinary spending and the very high deficits that happened because of the pandemic, but now that it has been done, the government needs to manage matters properly and accountably and keep things under control, which it is not doing. The more the government spends, the more that spurs inflation. The more money is injected into the economy, the more prices rise. The first thing to do is control spending.
The second thing to do is freeze increases. In an ideal world, we might ask for taxes to be waived. That might be nice, but it would not be realistic or responsible. Yes, there are some taxes that we do not agree with, such as the Liberal carbon tax, but at the very least, to give Canadian families a break, the government should not increase these taxes. It had a golden opportunity to give families a break on April 1, but it decided to go ahead as if it was business as usual, as if there were no inflation, as if money flowed like water and everyone had money jingling in their pockets, as if no family had any problems. Consequently, today, because of the Liberal carbon tax, the cost of transportation is spiralling upwards and not downwards, and that is unfortunate.
The government should have looked to President Macron and his management approach. I may perhaps surprise many people by saying that, but it is true. France had opportunities to freeze certain prices and it did so. The inflation rate in France is 4.1%; in Canada, it is 6.7%.
Those are some tangible things that the government could have chosen, and should choose, to do in order to give families a break. Every Canadian family has been affected by inflation. The hardest hit are the most vulnerable. This government must pay close attention to this situation and the reality on the ground. This government must do two things: control spending and stop scattering money willy-nilly, and immediately freeze all rate increases and tax hikes.
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- Apr/29/22 12:52:26 p.m.
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- Re: Bill C-8
Madam Speaker, it is always a pleasure to rise in the House and contribute to a debate. Today, we are debating at report stage Bill C-8 , an act to implement certain provisions of the economic and fiscal update tabled in Parliament on December 14, 2021, and other measures. I always enjoy the long titles to bills because they give a sense of what the bill actually is. An economic statement or a fiscal update is kind of like a mini-budget. It is a chance for a government to provide some economic and budgetary measures without having an entire budget.
However, what we have seen now is that we have had the fall economic statement, we have had Bill C-8, we have had the actual budget, and in the coming days we will have the budget implementation act for this year's budget. Those are four different opportunities for the government to take meaningful action to help the people of Canada, to help people who are struggling with the cost of living, to help people struggling with inflation and to help those small business owners who over the last two years have faced lockdowns and restrictions, including restaurants, hospitality and tourism sector. The government has had all these opportunities and yet time and time again we have seen the government fail to meaningfully act to help the people in Perth—Wellington and the people across Canada.
What is equally concerning is that today's debate is being done under the threat of a guillotine motion. That guillotine motion is a time allocation motion, a motion that cuts off debate. We have seen this before. We have seen the Liberals rail for years against time allocation and against closure and then flip around and use that themselves. What is especially interesting this time is that it is being done in the shadow of Motion No. 11. Here we have the government using time allocation on this bill and yet at the same time it has given notice for closure on Motion No. 11.
Some may not know what Motion No. 11 actually would do. Motion No. 11 would allow the government not to show up for work. Motion No. 11 would allow the House of Commons to function without quorum. Just to show how out of the ordinary this is, the concept of quorum in the House of Commons, a minimum number of people being present in the chamber, is constitutionally protected. It is not a large number. We can count it on two sets of hands. It is 20 people. Some people may want to take off their socks to count that high, but it is not that high a number. That is including the Speaker. It is the Speaker plus 19 members.
In fact, if we consult the authorities of this place, including Beauchesne's Rules and Forms of the House of Commons of Canada, 6th edition, edited by our good friend Mr. John Holtby of Brockville, Ontario, we see that it says this at paragraph 280: “The Constitution Act, s. 48 specifies that the quorum of the House is twenty, including the Speaker.” Paragraph 281 states, “Any Member may direct the Speaker's attention to the fact that there is not a quorum present.”
This is something that is provided for in the authorities of this place, consistent with the Constitution of our country, Constitution Act, 1867. The government, with Motion No. 11, would withdraw the concept of quorum, allowing this place to function without the bare number of 20 people. This is simply unacceptable and in the coming days I hope to contribute more specifically to this debate. However, for now I will leave it at that and I will move on to some of the issues included in Bill C-8.
As I have mentioned in this House many times, the great riding of Perth—Wellington includes some of the most fertile farmland in the world. Quite literally, Perth—Wellington is the heartland of Canadian agriculture. There are more dairy farmers in Perth—Wellington than in any other electoral district in the country. Wellington County is number one for chicken production in Canada and in the top five in Ontario for beef and pork. What I hear all the time from farmers and farm families is the struggle they are facing, particularly when it comes to the rising cost of things. One thing in particular that we hear about time and time again is the carbon tax. The carbon tax is adding extra costs to farmers and farm families with no way to recoup those costs.
The Liberals will point to Bill C-8 saying there is going to be a rebate in it and that farmers can apply for those rebates. That is not what farmers are asking for. They are asking for the bill that was brought forward in the previous Parliament by my colleague, the member for Northumberland—Peterborough South, Bill C-206, which passed through the House of Commons with support from our friends in the Bloc, the New Democrats and the Greens. It made it through this place and was in the Senate. However, as we all know, it was killed when the government dissolved Parliament to call its unnecessary election. With the budget, the fiscal update, Bill C-8 and the budget implementation act, the government had the opportunity to do the right thing and adopt the measures that were contained in Bill C-206.
Our friend, our colleague, the member for Huron—Bruce, has introduced Bill C-234, which is in direct response to what farmers and farm families are asking for. They are asking for the on-farm use for drying of grain to be excluded from the carbon tax, when there are no alternatives. There are no ways for farmers to use other alternatives to dry their grains. They must use carbon-based fuel. Therefore, it makes no sense that the government is charging them, time and again, with no results. Once again, this is a missed opportunity for the government to take meaningful action when it comes to the cost of on-farm fuel.
That is not the only problem farmers are facing today. The other is the rising cost of fertilizer. I want to be clear. Every farmer, every farm business and every Canadian I have spoken to agree that tough sanctions against Vladimir Putin and his thugs are needed and warranted. However, those farmers and agri-businesses that purchased and have purchase orders for fertilizer pre-March 2, before the sanctions were introduced, should not be subject to a 35% tariff. That 35% tariff does nothing to Vladimir Putin and his thugs, because the purchase has already been made; it is simply money coming out of the pockets of farmers and farm families and going into the government coffers.
The government has not yet even addressed this. It has not provided a response. Yesterday in question period, in response to a question from the Bloc Québécois, the Minister of Agriculture and Agri-Food said:
Mr. Speaker, I want to assure my colleague that we are taking the situation very seriously. We are looking at various options.
We want to make sure our farmers have the inputs they need for a good season so Canada can contribute to food security at home and around the world.
The planting season is upon us. Farmers and farm families are making decisions right now. They are paying for fertilizer right now with a 35% tariff that they did not anticipate and could not have anticipated in October, November or December when they purchased it. They are now being levied a 35% tariff on top of it. It is completely unacceptable, because it hurts only farmers, not Vladimir Putin and his regime. I again encourage the Minister of Agriculture and Agri-Food, if she has any sway at the cabinet table, if she has any influence with her own government, to stand up for farmers and for those who are working hard to literally feed our country, to feed the world, and do the right thing.
We are going to be seeing challenges in the years to come based on the out-of-commission farmland that is currently in Ukraine. We are going to be called upon as Canadians, as Canadian farmers, to address that shortage, and if the government is hamstringing and preventing Canadian farmers from feeding the world, then it is a crying shame and simply unacceptable.
I have been given the one-minute warning, so I want to address very quickly the point of housing.
We have seen house prices in Canada skyrocket over the last two years. I have seen it in the small rural communities within Perth—Wellington. We are seeing prices skyrocket, which makes housing unaffordable for young families, people getting out of university and newly married families with young kids trying to find a spot. It is unacceptable. The cost is being driven up for young people and it is driving them out of the market. The government needs to address it. We need to increase the supply of housing in Canada, and it needs to be done now, not five or 10 years from now.
I look forward to questions from my colleagues.
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- Apr/29/22 1:07:52 p.m.
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- Re: Bill C-8
Madam Speaker, like my colleague from Perth—Wellington, this is my first opportunity to speak to Bill C-8 at any stage of this bill's process going through the House of Commons, and I appreciate the opportunity to actually have the ability to speak to Bill C-8 at least while I still have it under the guillotine of Motion No. 11.
I find it more than a bit strange that the Liberal leadership has managed to mismanage this House so much so that we are debating an act to implement provisions of the 2021 winter fiscal update two days after we voted on the 2022 budget. I suppose Liberal incompetence really should not be a surprise after all we have seen in the last six years.
The economic and fiscal update 2021 committed to add an additional $70 billion of spending that would do little more than continue to drive up inflation. The fiscal update also made it clear that the so-called fiscal guardrails that the government likes to reference when it abandons any semblance of a fiscal anchor are simply a communications tool and not actually something the government is committed to using to guide their economic decisions.
The need for stimulus right now is simply non-existent. The notion has been panned by the Parliamentary Budget Officer and virtually every reasonable private sector economist. Despite this, the government has committed to all kinds of unnecessary spending in the fiscal update, and now it has added even more in the 2022 budget with numerous costly campaign promises still waiting in the wings.
To make matters worse, much of this spending is not actually stimulus, because it would not do anything to stimulate the economy, attract investment or promote long-term, sustainable growth. Much of the government's proposed spending is simply about ideological goals. It has been using the excuse that interest rates are low, so the debt service payments will also be low. Well, the bill has already started to come due on this line of thinking.
The Bank of Canada has increased interest rates twice already in order to combat inflation that is in large part being driven by the government's out-of-control spending, most recently by a full half a percentage point, the single largest jump in more than two decades. The reality is that the Bank of Canada has been very clear that it is not even close to being done when it comes to raising rates. The Governor has said it will use the interest rate policy to return inflation to target and will do so forcefully if necessary.
The chief economist at BMO Capital Markets suggested there is a solid possibility that we can expect another half a percentage point increase in June of this year as well. We expect the rate to double at an absolute minimum, and the suggestion that it could triple or more is completely within the realm of possible.
That should give the Liberals and the NDP consideration to pause, and to think that the more money they spend, the more they drive up inflation, the higher the interest rate is going to go and, ultimately, the worse off Canadians would be. Unfortunately, it appears there is absolutely no foresight in the government. The focus is on the announcement and the photo-op. It is all style, with very little, if any, substance, and on giving the social media influencers on its payroll something to work with so they can go out and actually try to convince and mislead Canadians that it is accomplishing a lot, when in reality it is spending a lot with no results at all.
This also is not just about affordability now either, though that is certainly a vital component. With 53% of Canadians less than $200 from insolvency, the cost-of-living crisis we are currently experiencing cannot be overstated. As inflation drives up the costs of goods, ever smaller unanticipated issues are hitting Canadians hard. Some are one car repair away from insolvency.
As interest rates increase, it will become more and more expensive for Canadians to take out a loan, add debt to their credit card or put more on their line of credit to deal with these types of emergencies.
We also need to consider the generations to come, and the moral implications of the NDP-Liberal spending and how it will affect our children, our grandchildren and subsequent generations.
The Deputy Prime Minister and Minister of Finance described the housing affordability crisis in Canada as an “intergenerational injustice”. While the budget she has presented certainly did not seem to treat it like an issue of importance, it is good to know that at least somebody understands the words "intergenerational injustice”. What about the intergenerational injustice and impact of all of this spending, housing only being a small part of it?
We have an aging population. In fact, the census data that came out just yesterday from StatsCan showed that the working-age population in Canada has never been older and over 21% of the population is close to retirement, which is an all-time high. Between 2016 and 2021, the number of children under 15 grew at a pace six times slower than those over the age of 65.
Even with ambitious immigration, the NDP-Liberal government is creating the perfect storm that will absolutely devastate our society for future generations. We are going to have fewer people starting from a place of disadvantage being required to repay the debt the government is racking up through some unholy combination of either increased taxes or reduced services. Instead of pulling back, the Liberals are pushing expensive ideological pet projects and buying off the support of the New Democrats with programs that provinces are not even asking for and Canadians simply cannot afford. They are doing this to avoid any accountability or scrutiny for another four years.
How is this any less of an intergenerational injustice than the 100% increase in the average cost of a home, which has been what the current government has overseen in the last six years? It is not, but the elites in the Liberal Party are not worried about that, because they measure success by dollars out the door, not any outcomes whatsoever. When someone has a standing invitation to Davos they are not too worried about the future financial tremors that feel like seismic quakes to us poor lowly working-class Canadians.
Embracing fiscally responsible spending is not just an economic imperative; it is a moral one. Unfortunately, when it comes to the current government, those are the two areas—
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