44th Parl. 1st Sess.
September 26, 2022 11:00AM
Madam Speaker, I know the member for Timmins—James Bay is excited to hear the rest of my remarks and it sounds like he is chomping at the bit for the privilege of debate that may be coming. I look forward to his remarks. I would encourage him to make sure he has consulted with the rest of his party around the position he takes on that, because there may be some differences of opinion around that important and sensitive issue.
With respect to the remarks I was making, it is very clear that we have two different approaches in front of us when it comes to responding to the economy. The Liberals have started to try to adopt Conservative language, although not all of it, as maybe the point of order demonstrates. They do not want to acknowledge their own responsibility when it comes to inflation, but they have started to acknowledge that there is a problem of inflation. They just think it has nothing to do with the policies of the government, which obviously stretches credibility.
The government has, in the last two years, pursued a radically different direction. In some respects, it has the last seven years, but it has escalated in the last two years. They have pursued a radically different direction with respect to economic policy. We have gone from tens of billions of dollars of deficit, which felt quite significant, and was quite significant, to hundreds of billions of dollars in terms of deficit, and they want to pretend as if that approach has had no consequences with respect to affordability. The reality is that it obviously has and Canadians are seeing the direct impacts on their lives when it comes to rising costs of all sorts of different goods. The government's efforts to pass the blame for this onto everybody but themselves really stretches credibility. Now their proposals of more taxes, more spending and more borrowing are simply going to make the problem worse.
I appeal to the government, on behalf of my constituents and many Canadians who have raised concerns about affordability, that if it wants to show that it has a modicum of sincerity when it comes to the issue of affordability, it should cancel the planned tax increases for next year. It would be a simple way for the government to show that it is actually listening to Canadians.
I want to talk specifically about the issue of the carbon tax. The Liberals think that a tax increase is a replacement for a meaningful response to the challenges we face with environmental policy. It is clear from various reports that their carbon tax is not working to achieve environmental objectives. Many of the groups that have supported them on this are saying it is a dramatic increase they want in terms of the carbon tax, and the Liberals are planning, I believe, and forecasting it.
Before the previous election, they had promised that they would not increase the carbon tax, but then they did increase it. It is continually going up and up. When is it going to stop? Every time their carbon tax fails to achieve their environmental objectives, instead of changing approach and realizing that we actually need an approach that emphasizes technology instead of taxes, they are just doubling down on the taxation approach. It is just not working; it is not achieving the objectives they said it will.
The government really needs to be responsive to what Canadians are telling it and it needs to be willing to make changes in its direction when the evidence clearly suggests it. I repeat that appeal again: no new taxes. The least the government can do is stop the damage, and that means to commit to not proceeding with the tax increases that it has scheduled for next year.
It is a clear choice and a clear contrast. We have a government that is talking about borrowing, spending and taxation, and that is leading to inflation. Then in the official opposition, we are talking about more freedom, giving individuals back control of their lives, reversing tax increases, lowering taxes and fundamentally replacing big government with big citizens, with a big society, as David Cameron talked about, with the idea that a strong society, with people standing together and supporting each other's needs, is much better at bringing us together as communities and moving us forward than the government. I am proud to continue to champion that vision and make the case for that vision in the House and beyond.
At this point, I would like to move an amendment. I move:
That the motion be amended by deleting all the words after the word “That” and substituting the following:
"the House decline to give second reading to Bill C-31, An Act respecting cost of living relief measures related to dental care and rental housing, since the bill will fuel inflation and fails to address the government's excessive borrowing and spending that lead to the inflation crisis in the first place.”
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Madam Speaker, I thank my colleague from Beauport—Limoilou.
I will say that these measures we put in place are there to assist Canadians. As we go longer term and look toward the fall economic statement or next year's budget, I know with regard to stakeholders and constituents in my riding that everything is about economic growth and raising the standard of living for all Canadians from coast to coast to coast. I will continue to push for the types of measures that spur job creation and investment and that increase productivity and lift productivity in this country. That translates, for an economist, into making sure that Canadians have a higher standard of living tomorrow versus today.
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Madam Speaker, I was listening with interest to the hon. member across the way's perspective on inflation and the price on pollution. There is one thing that was going through my mind that maybe he can help me with, and that is the government's role in investing in triple bottom-line results.
In Guelph we had six housing projects, for 243 units, with $45 million invested by the federal government to help stimulate the housing supply. A lack of housing creates inflation, which we have been facing. We have created a circular food economy in Guelph, with an investment of $15 million, to reduce food insecurity so people have access to food.
Could the hon. member comment on the role the government plays in providing social, economic and environmental support for our citizens?
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Madam Speaker, normally I try to engage in French, but I want to make sure my point is very clear.
I was interested in the member's conversation around supply-side economics. Of course the inflationary period we are seeing right now is somewhat unique. The Bank of Canada is increasing its benchmark borrowing rate to try to bring down demand.
Does he have certain concerns on the monetary policy side such that if this is a supply-side economic issue that is driving inflation, and notwithstanding the Bank of Canada is trying to do its job to bring down demand, it may prove difficult to actually quell inflation because this is a supply-side economic issue?
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Madam Speaker, with reference to my hon. colleague across the way who was questioning as to whether this inflation was being driven more by supply-side economics, I wonder if the member could comment as to whether it is the supply side from economic goods or the supply of cash, in his opinion, that is driving this inflation.
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Mr. Speaker, I will be sharing my time with my hon. colleague from Whitby. Tonight is the first time since June that I have formally risen in the House. I would like to begin by greeting my colleagues. I hope that they had a great vacation and summer in their ridings with their families and constituents.
We are here tonight to debate Bill C‑30 which, along with Bill C‑31, represents a suite of federal measures to make life more affordable for vulnerable Canadians.
I think it is very important to put things in context. Over the last couple of years, we have seen the effects of supply chains that have been rocked by the pandemic. There have been weather events. Of course, there is the war in Ukraine, caused by Russia's invasion. There are also demographic changes. The economy, in Canada and in other countries, is very robust. Unemployment is very low, and that creates inflation in Canada and around the world.
I quite appreciated my colleague from the Bloc Québécois who talked about this being a supply-side economic issue. That is what I was trying to mention, while working on my French. Hopefully it came through in the translation. The fact is that some of what we are seeing right now is being driven by factors outside of Canada that relate to the products, goods and services that we, as global citizens, want to make sure we have as Canadian consumers. It comes down to two issues when we are talking about economics and affordability. The Bank of Canada has a role with respect to monetary policy and setting interest rates and trying to keep inflation to around 2%, and the Government of Canada has a role and obligation that pairs with that, albeit independent of the Bank of Canada, which is around fiscal policy.
It was mentioned today in the House, I do not think it needs to be repeated, that it is important that all parliamentarians respect the independence of the Bank of Canada and its expertise in setting monetary policy. Our job here of course is to perhaps understand the implications of those decisions, but to really focus on the government's fiscal decision-making as it relates to and couples with monetary policy. We have seen the Bank of Canada acting. It has increased its benchmark rate, which is having an impact on Canadians. It is quelling some of that demand. In fact, we are looking at forecasts right now with respect to trying to avoid a recessionary period, not only in Canada but indeed around the world.
I had the opportunity to review the decision by the Federal Reserve in the United States, which has significantly increased its interest rate. There will be a conversation that will have to be had by the Bank of Canada as to whether or not it will match that rate, such that we are not impacted from a consumer side with respect to imports and the value of the American dollar going higher, or whether or not we will try to pair a bit lower, such that our exporters can benefit with respect to that economic side. It is complex. I do not pretend to stand here as a pure economic theorist, but those are the decisions that are being made right now.
That brings us to this conversation on affordability, because we know particularly vulnerable Canadians are struggling right now. During the pandemic, I will remind members, the government was there to help support the small businesses and individuals who were impacted the most. As we come out of COVID–19, as we move beyond the pandemic, it is also our responsibility to look at the situation and be able to rein in government spending.
I will go on record to say, and it has not really been talked about here in the House, particularly by His Majesty's loyal opposition, that the government is actually in a surplus situation. I think that is pertinent right now given the fact the government has had to spend. It would be unwise if the government had not stepped up and provided that economic support at that time of uncertainty to make sure our economy continued to function and move forward, and indeed to set the stage for where we are at right now.
Again, it is Keynesian economics at its core. Government spends during a down period when help is needed and then reins back spending when the economy is strong, as is happening right now.
How do we try to help support Canadians without impacting what the work of the Bank of Canada is doing right now, which is to try to bring down demand? I think it is what we doing right now with Bill C-30 and Bill C-31, which are targeted measures. These are not just spending measures to provide support to all Canadians, including some of those who are the most wealthy. This is targeted to those who really need help the most.
I want to give some context to what we are talking about today. Bill C-30 proposes to double the GST credit for the next six months for both individuals and families who are eligible. That is about 11 million Canadians. The benefits at an individual level would be for someone without children with a household income under $49,000. That is what we are talking about in terms of providing very targeted support to those who need it. For those who have families, the example would be under $58,000. For anything above and beyond that, these individuals would not necessarily be eligible for these supports.
It is extremely important because it is targeting those who need the help without impacting Canada's fiscal position. This is a $2.5-billion spending measure. That is not insignificant, but it is not going to disrupt the work that the government is doing to rein in spending, at the same time understanding that the Bank of Canada has a mandate to bring down inflation. Indeed, in some contexts of what we hear His Majesty's loyal opposition calling for, the government is doing it. Perhaps that is not the narrative they want to spin, but we are working to do just that.
I just want to take a moment to speak about Bill C-31. I understand it is a different piece of legislation, but they are interconnected. This is about providing affordability measures on housing with a $500 housing benefit for those who are vulnerable, and providing dental care. We have heard great impassioned debate and context about how important this is. The dental care is for children who are under 12 whose household income is under $90,000 and who do not already have private insurance coverage.
Right now, conversations continue on how best to deliver this. I have asked some questions in the House of my NDP colleagues. There is merit in working out program delivery with the provinces, who are closest on the ground, who are going to be able to be there to help implement this and who would have relationships with dentists. I understand that right now this is an interim stop-gap measure to help provide that support to families.
I, as a parliamentarian, may disagree with the NDP assertion that this should be a federally administered program. Perhaps it should be for indigenous communities, where the Government of Canada shares a very close constitutional relationship. I think that is clear. Perhaps it should be for military families if there is a way to roll that out through the Department of National Defence and the Canadian Armed Forces. Otherwise, this is best suited for the provincial level.
I recognize that my time is coming to a close this evening. What I way to say and what I want to reiterate is that I think these measures are reasonable, balanced and targeted to Canadians who need the support the most. We are in a situation where there is some level of economic uncertainty. Inflation is coming down. The Bank of Canada is doing its work. The government is responding in a responsible manner to not drive additional liquidity at a time when the Bank of Canada is reducing its interest rates accordingly.
I look forward to the conversation and the questions from my colleagues here tonight.
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Mr. Speaker, it is a good point. We need permanent solutions to these problems. A temporary tax relief measure like Bill C-30 is helpful, as I said, but it is only temporary.
What we need to do is get government out of the way of our economy. The government is stepping in and messing around with the economy in ways that cause businesses to make decisions differently than they would have before. It causes us to lose jobs. It causes our economy to not have the economic output that it should have, which affects everything from jobs to incomes, from paycheques to government revenue. This is the direction we need to go in. We need to help the government get out of the way so we can let our economy do what it is supposed to do, which is better for everyone, including government.
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