44th Parl. 1st Sess.
September 26, 2022 11:00AM
Madam Speaker, we are here in Parliament today talking about the affordability crisis that so many Canadians are dealing with, and in a way it feels like progress that we are even talking about this, because most of the debates that happen in Parliament are scheduled by the government, and for two years the government has been ignoring the problem of “Justinflation” that so many Canadians have been dealing with. For two years the government has been ignoring the cost of living crisis, but the election of the member for Carleton as Leader of the Opposition has really focused the mind of the government. Immediately after the Leader of the Opposition took his position, the government started saying that now it needs to try to talk about the affordability issue.
However, unfortunately, the measures the government has put in place are not moving us forward. They are not actually addressing the problem. In fact, in some respects they are making the problem worse. The government still does not appreciate the degree to which it really is its policies, the policies of the current Prime Minister, that have created and continue to create the kind of affordability crisis we are talking about.
At the outset, I think it is important to go over a bit of the history of this. Back in 2020, the member for Carleton, who was at the time our shadow minister for finance, said that Canada was about to face this problem of significant increasing inflation. He said that the significant increase we were seeing in government spending was going to drive inflation. Government being more expensive was going to make it more expensive for everyday Canadians to buy the various goods they needed.
At the time, those concerns were dismissed by the government, including the finance minister, who is still the finance minister. She was more concerned about apparent impending deflation, and that of course turned out to be very wrong. It was clear from the arguments being made at the time, and it is clear now, that when we have the government pouring more and more money out there, borrowing more and spending more but not actually driving increases in production, that is simply going to be inflationary. When we have more money chasing fewer goods, that is going to make everything more expensive.
These arguments were made and have been made over the last two years, but they have been continuously ignored by a government that clearly would rather talk about other issues. It clearly would rather be trying to shift attention away from those things, which really are the fundamental priorities of Canadians.
The government also, first of all, denied it. It was refusing to acknowledge the inflation crisis that it was causing, but as the numbers have come out and as we have seen increasing inflation, it has been harder and harder for the government to deny it. The new form of denial is for them to say, “It is not our fault,” and that they have nothing to do with it. They say that inflation is happening everywhere and is the result of the invasion of Ukraine and other such events, or it is supply blockages and is really an issue of the challenges in global supply chains.
I have a few responses to that. Number one is that this inflation was clearly an issue prior to the invasion of Ukraine, but it was two years ago that we started sounding the alarm on this issue of inflation. Of course, the invasion of Ukraine, as such, started in 2014, but this particular further invasion of Ukraine started six months ago.
It is also hard to make sense of the claim that global supply chains are responsible for instances where the goods are produced here in Canada yet the prices have been going up. Global supply chains can hardly be blamed for the escalating price of property and real estate that makes it increasingly difficult for Canadians in my age demographic and younger to be able to afford housing.
The government is constantly looking for other people to blame. It no doubt will blame the previous government at some point in today's debate, as well as global events that are beyond its control, but the reality is that the government is pursuing policies and pouring more money through borrowing and spending, without proper controls or encouraging more production. These economic policies of the government are driving inflation.
Canada is not the only country with rising inflation, but the point is that other countries that have this problem have pursued the same policies that the Liberal government has pursued. Some countries that are pursuing policies that entail exactly the same problems are getting the same results. However, other countries that are being more prudent and responsible in their spending are not experiencing the same challenges, and that is the reality. The escalating inflation is the result of the economic policies of the government, and it needs to own that challenge.
This is where we have been for the last two years. The government has been trying to distract attention on other issues, but then we have the Leader of the Opposition come into his position and continue his laser focus on issues of affordability and cost of living. Then, right away, the government says that perhaps its needs to talk about this affordability and cost of living thing, so it has tried to come up with a solution. Unfortunately, when we have a hammer, every problem looks like a nail. The government's approach when it comes to the economy is always the same: more spending, more borrowing and higher taxes. That solution to the inflation crisis is going to make the problem even worse.
The government wants Canadians to believe that their lives will be made better and more affordable by giving away more money. I will share a little story.
I have five children and my three-old son recently came to me with a wad of U.S. dollars. I knew exactly where he got them from, because I had just returned from a trip to Washington and had left the money on the counter. He said, “Daddy, look what I got.” Then he very generously said he would give me one. I told him that was great, but asked him where he got it from. I think that is how Canadians feel when the government offers them more money. The government says that it will be generous and give more money to people, but Canadians want to know where that money has come from.
The government does not generate any money of its own. Government does not work to produce money. It takes money from taxpayers and then redistributes it. Just like my son, who I know is not going out, earning that money and generously offering it to me. I know that he is finding it somewhere around the house. When the government says that it will give more money, it clearly has to find it somewhere around the house, and that is the issue with it. It wants everyone to see how generous it is being, that it is giving away more money. In question period the other day, the Deputy Prime Minister said that the government was giving $1,000 to these families and $500 to those families, but Canadians are asking where the money is coming from.
We have run up more debt under the current Prime Minister than in the entire country's history prior to 2015. That is incredible. That is more debt than in the country's entire history from 1867 up until 2015. This is driving the challenges in the cost of living and inflation. Then the government's solution to the problem it has caused is to do more of the same. We have inflation because of high taxes, high borrowing and high spending and the government tries to solve that problem through more taxes, more borrowing and more spending.
The definition of insanity is doing the same thing over and over again and expecting a different result. The Liberals' approach is going to cost more, and any of these giveaways that they are promising to Canadians, such as these $500 here and $1,000 there, is real money. This is significant money for people, but I think they also understand that the money comes from somewhere and that those dollars are eaten up every day by higher prices. The same government that is saying that it is going to do more on these spending items is actually eroding the value of that money as it is handing it out.
This is a failed policy. Again, doubling down on the same failed approach of more borrowing, more taxes and more spending is not going to achieve a different result. It is “Justinflation” from start to finish. This is what we predicted two years ago. That is what we are seeing now and that is what is going to be further exacerbated by these new policies.
I note that expert analysis from Canada's leading banks said that these policies from the government are going to be inflationary.
l listened to the leader of the NDP, the coalition partner of the government, talking about this issue on CBC's The House. I think it was this past weekend. He said that the NDP did not agree with the analysis from the big banks. The leading economists in the country are saying that the government's policy is going to be more inflationary. Dismissing that expert analysis because people have an axe to grind with the big banks is really missing the point. The government talks about drawing from experts. It should listen to experts and acknowledge that its policies will continue to be inflationary going forward.
The Conservatives are offering a better approach, a common-sense approach for moving us forward.
First, we need a dollar-for-dollar rule when it comes to new spending. If the government is going to approve new spending of $1, $10, $1 million or $1 billion, it should first find an equivalent amount of savings. If there are new areas needing money to be spent, it should identify areas for those savings, areas to find efficiencies, and then put those dollars to toward the new areas.
There are new emerging priorities. There are always going to be new things needing money, but there are also going to be plenty of examples where dollars that were spent in the past no longer need to be spent or, perhaps, should not have been spent in the first place.
I think about some of the things that the government has spent money on, like the $25 million on the ArriveCAN app, which could have been easily saved. We could talk about the failed $35-billion Infrastructure Bank. We could talk about the subsidy package for private media, which is unfortunately eroding confidence in the media. We could talk about the government's various corporate welfare programs. All of those things have, frankly, hurt Canadians instead of helped them.
There have been many opportunities with respect to wasteful spending within the government or spending that was poorly targeted toward objectives. It is great to find new areas to make investments. Let us apply the same discipline that households and businesses have to apply by having a dollar-for-dollar rule.
A great way to help make life more affordable for Canadians would be to stop increasing taxes. Of course, we would like to see lower tax on this side of the House, but as a first step for the government, stop making the problem worse. Right now, the government has automatic scheduled tax increases for next year. On January 1 of next year, happy new year, and on April 1 of next year, which is sadly not an April fool's joke, tax increases are currently scheduled: increases to the carbon tax, which will drive up the cost of gas, groceries and home heating; increases as well to payroll taxes. Those payroll tax increases will take effect on January 1 and then subsequently the carbon tax hike.
It would be a very basic first step for the government to acknowledge it is in a hole right now, so it should stop digging, stop making the problem worse and stop inflicting more pain on Canadians by raising their taxes. Although that would be against the basic instincts of the government, that would be an important step to take, to recognize there is actually a problem that needs to be solved. If the government is unwilling to listen to us and reverse these planned tax increases, then I think it will be clear that the government's words about affordability are just that, only words. We have seen this before. When Canadians are connecting with and responding to a Conservative message, sometimes the government tries to use the same words. It tries to talk about the same things.
The proof is going to be in the pudding. The proof is going to be whether the government follows through with its planned tax hikes, or whether it continues with its approach of borrowing, spending and taxing always going up, or whether it will listen to Canadians, who are feeling the squeeze as a result of “Justinflation”, stop this damage and try to reverse the planned tax—
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Madam Speaker, I had the privilege of sitting in the 43rd Parliament, and I listened to Conservatives saying both that the government was spending too much and that the government needed to spend even more in certain areas.
I heard that reiterated today when this member was talking about debt levels and the need for government to rein in spending. I did not hear him once mention that the government is actually in a surplus position for this current fiscal year. I think that this is really important to recognize, that the government is reining in spending.
However, that is not going to create an affordability element overnight. His proposition is, essentially, that the government should stop spending and that would create affordability.
Why will this member not support targeted measures for vulnerable Canadians? What he is proposing would not have any direct benefit on households for, probably, a couple of years' time.
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Madam Speaker, I would be happy to have that debate in detail at another time. I think that, in front of us, we are discussing the issue of affordability for Canadians. There is a lot of work to be done on the health care front. There is no doubt about that. There have been many challenges that have been exposed through the COVID pandemic that require significant work.
I look forward to further analyzing, discussing and debating those issues when that issue is up for debate in the House.
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Madam Speaker, we have seen over the last two years that the Prime Minister has refused to meet with the premiers who have concerns about addressing health care. Perhaps if the Prime Minister had taken those meetings, he would have learned that all provinces, except for one province and one territory, offer dental care support for children in low-income families. In addition, 70% of Canadians already have dental care.
Does the hon. member think that if the Prime Minister had had those consultations and negotiated with the provinces in good faith, we could have addressed other affordability issues Canadians are facing? Does he think that perhaps instead of adding new spending that would not help children and would not help provinces because it is duplicating programs that already exist, it could have eased some of the inflationary burden that is eating away at people's ability to pay their rent and provide care for their children every month?
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Madam Speaker, I will be splitting my time with the member for Skeena—Bulkley Valley.
Today, as I rise to speak to Bill C-31, an act respecting cost of living relief measures related to dental care and rental housing, I feel proud. I am delighted. More important, as indicated in the name of the act itself, I feel relief, relief from the fact this legislation lays out the groundwork, complements programs and through its two main elements, serves to address some of the most prominent affordability concerns in Canada, more specifically in my riding of Richmond Hill.
It is a known fact that, following the COVID–19 pandemic and all the global and domestic challenges that have arisen since, Canadians have been deeply impacted by the rising cost of living. Addressing such large-scale issues cannot happen overnight, but rather through a multi-step, gradual process, which is exactly what is offered in Bill C-31.
Allow me to provide a brief overview of the bill by breaking it down into its two main components: dental care and housing. These are two domains that affect not only the financial, but also the physical well-being of each and every Canadian. Our government's focus on enhancing each of them is widely apparent through the bill.
To give a quick summary, Bill C-31 would make life more affordable for families across the country by providing dental care for Canadians in need with a family income of less than $90,000 annually, starting with children under 12 years old in 2022.
It would also provide immediate relief for individuals and families struggling with housing affordability through a one time $500 supplement to the Canada housing benefit.
Canadians are entitled to good oral health, regardless of their financial situation. It is estimated that about one-third of Canadians do not have any form of dental coverage and that one in five have avoided dental care because of its overwhelming cost. This is a dark reality for many low-income families. Canadians should not sacrifice their well-being and face long-term health issues because of their inability to afford seeing a dental professional. This is why we continue to work tirelessly across provinces and territories to ensure that accessible dental care is delivered to those who need it the most.
While our government continues to develop a durable and inclusive national dental care program, which will provide $650 a year to eligible parents for the next two years, it will also ensure timely dental appointments and checkups for children.
As a member of the health committee, I had the pleasure of hearing remarks from the president of the Canadian Dental Association, Dr. Lynn Tomkins, during my study on the topic of children's health. Dr. Tomkins testified that tooth decay remained one of the most common and preventable childhood chronic diseases in Canada.
Beyond the risk of pain and tooth loss, the effects of the absence of dental care for children can be devastating. Missing school, improper eating and lack of sleep are among the factors that arise from the lack of dental treatment for children. In the words of Dr. Tomkins, “nothing is more heart wrenching than having to treat a young child with severe dental decay.” The experience can cause lasting dental anxiety and fear.
This is why the Canadian Dental Association welcomed our government's once-in-a-generation federal investment in dental care.
The Canadian Dental Association expressed its appreciation of the phased approach being taken by government toward this issue. This gradual approach will allow time for consultation and collaboration with all relevant stakeholders on a long-term solution to improving access to dental services.
Bill C-31 also puts another key objective forward, which is ensuring every Canadian has a safe and affordable place to call home. We all know that the affordability crisis is top of mind for Canadians.
As such, during the summer, I had the opportunity to catch up with many community members and leaders through events such as our community council breakfast meeting where my constituents shared their concerns about their daily struggle to make ends meet.
For many renters, the high cost of living has resulted in an increasing challenge to find housing they can afford, which is why this legislation has arrived at the perfect time.
When passed, this will put hundreds of dollars back into the pockets of millions struggling with increased rent costs through a one-time $500-top-up to the Canada housing benefit. This top-up would be in addition to the Canada housing benefit, which already provides an average of $2,500 to thousands of working individuals and families from coast to coast to coast. I want to emphasize that this payment is part of a larger comprehensive plan to assist Canadian families nationwide.
Our housing strategies and programs have been successful in many ways. As a singular example, the launch of the affordable housing initiative back in 2016 aspired to create 4,000 units of housing. Instead, it has yielded 19,000. Following the legacy of this initiative, our plan will put Canada on the path to double housing construction over the next decade.
These are only two highlights of the consistent initiatives our government has taken to achieve affordable and sustainable housing for more Canadians. At this time, we are on the right track to accomplishing just that, through the passing of C-31.
Allow me to demonstrate just how important this legislation is to the people of my riding and, most important, to the key community leaders and service providers that strive to provide life-saving support for people experiencing homelessness year after year in Richmond Hill and across York Region.
Blue Door, as the largest emergency housing operator in York Region, strives to provide emergency housing support services to children, youth, men, women and families at risk of homelessness. Blue Door's housing emergency program has lifted over 500 individuals out of poverty by helping them navigate through COVID-19; provided over 19,000 nights of safety for homeless individuals; and served over 64,000 meals for the vulnerable population across York Region.
I continue to hear about the tremendously positive impact Blue Door makes in Richmond Hill through programs such as the mosaic interfaith out of the cold program.
Every year, from November to June, homeless adults and youth in Richmond Hill are provided with essential support at the Richmond Hill Presbyterian Church, which is one of Blue Door's emergency housing sites.
Speaking of community leaders and heroes, the 360° Kids organization in Richmond Hill is yet another key community service provider, which provides kids in crisis with care. Day in, day out, Clovis Grant and his dedicated team at 360° Kids help youth make positive changes in their lives by overcoming barriers and moving from crisis to a place of safety and security.
I can confidently affirm that passing this important legislation will have a direct and positive impact on the lives of people, as the 360° Kids and Blue Door service users.
I urge members to support community leaders across all ridings like Michael Braithwaite, Clovis Grant and their dedicated teams from Richmond Hill, who provide housing services to our most vulnerable, by passing the legislation so we can provide a safety net for those who need it the most.
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Madam Speaker, I want to quote Bea Bruske, president of the Canadian Labour Congress, who said, “Moving forward on rental and dental relief is essential and will help to ease the affordability crisis being faced by families today. The rising cost of housing and out-of-pocket dental care has put many families under water.”
Although the Liberals voted against the NDP's 2021 motion to give Canadians access to dental care, I am happy they have finally agreed to follow suit.
Does the member agree that this much-overdue dental care is necessary for all Canadians and would benefit us all?
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Mr. Speaker, I appreciate the opportunity to participate in today's debate on Bill C-30, the cost of living relief act, no. 1. As my colleague has already mentioned, inflation is a cause for concern for Canadians and their families. While inflation is definitely a global challenge, the impacts on Canadians are nonetheless real, which is why our government has been working directly to help Canadians have more money in their pockets.
Investments we have already made in the last two federal budgets and the new measures in today's legislation and in Bill C-31 will help Canadians who need it most. For example, the government's $12.1-billion affordability plan includes doubling the GST credit for six months, as proposed in Bill C-30. This would provide $2.5 billion in additional targeted support this year, to roughly 11 million individuals and families who already receive the tax credit. It will also enhance the Canada workers benefit at a cost of $1.7 billion in new support for workers this year to put up to an additional $2,400 in the pockets of low-income families. As well, there is a 10% increase to old age security for seniors over 75, which will provide up to $766 more for seniors. That will impact over three million seniors this year alone.
The affordability plan includes cutting child care fees by an average of 50% by the end of this year. Looking at the child care fees in my riding, for example, families are paying $1,800 a month per child, at least. When we think about it, a 50% reduction in fees means $900 back in the pockets of those families, not to mention that in some families, both parents do not go back to work. This, in essence, supports families in having two incomes. That is almost a mortgage payment for many families.
Dental care is another one that we have added to the affordability plan for Canadian families earning less than $90,000 a year, starting this year with hundreds of thousands of children under 12. That will obviously be extended to seniors and individuals with disabilities in years to come.
We also must remember that our affordability plan has indexed to inflation a number of benefits, including the Canada child benefit, the GST credit, the Canada pension plan, old age security and the guaranteed income supplement. The federal minimum wage, which we increased to $15 an hour, is also indexed to inflation. Also, a $500 payment will go out to 1.8 million Canadian renters this year who are struggling with the cost of housing.
I want to talk a little bit about the housing challenges that we have experienced and some of the solutions. My colleagues have already eloquently touched on some of the aforementioned points, including the doubling of the GST credit for six months that is proposed in Bill C-30. I would like to focus my remaining time on the housing measures proposed in Bill C-31, introduced by the Minister of Health earlier this week, which is a critical component alongside Bill C-30 in making life more affordable for Canadians.
Our government believes that everyone should have a safe and affordable place to call home. However, that goal, one that was taken as a given for many previous generations, is increasingly out of reach for far too many Canadians. Young people cannot imagine being able to afford the house they grew up in. Rents in our major cities continue to climb, pushing people further and further away from where they work. All of this has an impact on our economy as well.
This is why Bill C-31 proposes a one-time top-up to the Canada housing benefit program that would consist of a tax-free payment of $500 to provide direct support to low-income renters. This payment would provide direct help to those most exposed to inflation and those who are experiencing housing affordability challenges. With the support of this House, the payment would be launched by the end of the year. Specifically, the benefit would be available to renters with adjusted net incomes below $35,000 for families, or $20,000 for individuals.
The Canada Revenue Agency would deliver the money through an attestation-based application process. In order to determine eligibility, the CRA would proceed with an up-front verification of the applicant's income, age and residency for tax purposes. Applicants would need to have filed their 2021 tax return and provide information and attest that they are paying at least 30% of their adjusted net income on rent, are paying rent for their own primary residence in Canada, which would include the address of the rental property, the amount of rent paid in 2022, and the landlord's contact information, as well as consent to the CRA to verify their information to confirm eligibility.
It is estimated that 1.8 million low-income renters, including students, who are struggling with the cost of housing would be eligible for this new support. In total, the proposed funding will be $1.2 billion, of which $475 million were committed in budget 2022. This is a one-time top-up and would not reduce other federal income-tested benefits, such as the Canada workers benefit, the Canada child benefit, the GST credit and the guaranteed income supplement.
That is not to say this is our only measure that impacts people who are having affordability challenges with housing. The one-time top-up is part of a broader set of initiatives introduced in budget 2022, indeed probably the largest chapter in the federal budget, that will provide more than $9 billion to help make housing more affordable, including by alleviating the supply shortages that are one of the main causes of the high price of housing. These are measures that will put Canada on the path to double our housing construction over the next decade, including with a new multi-billion dollar housing accelerator fund.
Our government has a comprehensive plan to make housing more affordable by both funding and incentivizing new builds and by helping people get into the housing market.
We are, for the first time, directly tying federal funding for infrastructure in transit to a requirement for municipalities to approve the building of more homes. All of this is in addition to further investments in affordable housing, the building of new social housing units and an additional investment of half a billion dollars to help end homelessness.
While no government can solve the challenges of affordability overnight, we remain hard at work to address the cost of living and set Canadians up for greater success. We are also doing so by laying the foundation for longer-term economic growth.
What today's legislation means is that most of our most vulnerable in Canada will receive more financial support now and, when combined with other measures in our affordability plan, will continue to receive new support in the weeks and months to come.
For the Canadians who need it most, this will make their lives more affordable exactly at the right time. This is why I strongly encourage all members of the House to support Bill C-30.
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Mr. Speaker, I am glad to hear an hon. member on that side of the House acknowledge that inflation is indeed a global problem and also acknowledge that Canada fares much better than many of our peer countries around the world.
Inflation obviously is a challenging problem and the inflationary pressures that we see today are not just the result of pandemic relief spending, which I know the Conservatives continually purport in the House, falsely. I really believe that Canada has been set up for success. That is why we have seen the economic growth and the job recovery rate. In comparison to our peers, we are faring much better in terms of job recovery and growth. We really have set ourselves up to come out of the dip in our economy from the pandemic. We have seen a strong V-shaped recovery. Now we have to work on labour challenges, supply chain disruptions, etc.
I do not believe that these new affordability measures will increase inflation.
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Mr. Speaker, I do agree there are members of her community, my community and all our communities who are vulnerable.
As I think about this package of affordability measures, I think about a low-income family of, say, four people, which I think is, generally speaking, the average size of a Canadian family. It might be less than four, but let us just say four for the sake of it.
Low-wage workers are going to receive the workers benefit. There is a housing rental benefit of $500. There is the GST credit they will be able to take advantage of. There is dental care coming online for kids in low-income families. They are getting a 50% reduction in child care fees and the Canada child benefit is increasing at the rate of inflation.
I think there is quite a lot there to support the most vulnerable families across Canada.
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