44th Parl. 1st Sess.
September 29, 2022 10:00AM
- Sep/29/22 1:52:15 p.m.
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Madam Speaker, it is great to rise today to speak to this opposition day motion. I probably will not surprise members by saying that it is pretty much a non-starter for me, especially after one reads the first seven or eight words in the motion. It starts off stating, “That, given...the cost of government is driving up inflation”.
Here we are, once again, with a misrepresentation of reality being proposed by the Conservative Party, by suggesting that inflation is something unique to Canada. Inflation is a global issue right now. All developed countries around the world are dealing with it.
Let me just refresh for the members what is going on in the world. Of the G7 countries, Japan's inflation rate is 3%; France is 5.9%; Canada is 7%; Germany is 7.9; the U.S. is 8.3%; Italy is 8.4%; and the United Kingdom is 8.6%. The average inflation rate in the OECD countries right now is 10.3%,. For the Conservatives to come in here with their motion, saying it is the government's fault that inflation is where it is, is disingenuous at best and an outright misrepresentation of reality at worst.
Let us dig into why the Conservatives say that. What they are really saying is, and we will hear them say this from time to time, if the government had not spent all that money during the pandemic, we would not have inflation. What they are actually saying in reality, because all of the countries I listed did the exact same thing and are in the exact same position, is that if we had not spent that money during the pandemic, then we would not be in this position.
Therefore, what they are indirectly saying, and this is what the leader of the Conservative Party said about two years ago, is that they do not support giving Canadians the supports they needed during the pandemic. This is what their argument really comes down to even though it is very ironic that the Conservatives voted in favour of $300 billion of that spending during the pandemic.
The Conservatives are blaming the government for the inflation problem that is going on right now globally. I would remind them that it is slightly ironic, because they have a tendency to say the Prime Minister is incapable of doing anything, yet somehow he was able to create global inflation. We will set that aside for a second.
The Conservatives are saying that we should not have allowed that to happen, but they voted in favour of the money that we spent during the pandemic. If they are suggesting that it was the increased spending that has driven inflation, they are in the exact same boat as this side of the House, the Bloc, the NDP, the Green and, indeed, governments throughout planet Earth, as the leader of the Conservative Party likes to refer to it as.
I want to dig into something more important, and that is this newfound interest the Bloc Québécois has in calling out the Conservatives for the populism that is on full display right now. I want to hand it to my colleagues in the Bloc Québécois, especially today. A few times today they seem have jumped on board with the rest of the House, except for the Conservative Party, calling out the populous approach the Conservatives are taking. It is the populous approach we have seen in the House for the last year and a half. It is the same approach the Leader of the Opposition took during his leadership campaign. Indeed, it is the same approach they are taking now. What do populous individuals do? They suggest outlandish ideas to garner support from vulnerable people in particular.
What did the Leader of the Opposition do just six months ago? He showed up to buy a shawarma and paid for it with Bitcoin. He offered Bitcoin as an actual viable alternative to using the Canadian dollar. If he went out today and bought that same shawarma, he would effectively be paying $22.35 for that $10 shawarma he bought six months ago. Is that a viable alternative to the Canadian dollar?
The leader of His Majesty's loyal official opposition in the House of Commons in Canada has made the suggestion that Bitcoin should be a viable alternative. I think it is absolutely ludicrous that we cannot even get the Leader of the Opposition to state his official position on it now. I have asked the Leader of the Opposition three times in this House since he was elected as the leader what his position is on cryptocurrency, and if he could come clean and tell Canadians if he still believes that Bitcoin is a viable alternative. He would not even bring himself to utter the words “Bitcoin” or “cryptocurrency”.
I have asked other members from the Conservative Party the same question today. I asked if they would at least just say the words “Bitcoin” or “cryptocurrency”. It is like they have completely removed the words from their vocabulary. They absolutely refuse to even talk about Bitcoin and cryptocurrency, let alone the fact that the leader of the official opposition only six months ago waved around a shawarma, with his phone in the other hand, while he paid in Bitcoin for that shawarma. Now where is he? He is absolutely silent on the issue. In my opinion, it gives Canadians an opportunity to reflect on their position.
They have been heckling me almost from the beginning because they do not want to hear this. I understand that they do not want to talk about this issue. I get it. It makes perfect sense. Why would they want to talk about this when the centrepiece policy of the Leader of the Opposition has absolutely taken a 180° turn and gone in a different direction? I can understand where they are coming from, but I also think they have an obligation to explain to Canadians why they have taken this position on cryptocurrency, and more importantly, why they are absolutely silent on it now.
I think it is high time that the leader of the official opposition came into the House and explained this to Canadians, especially those Canadians he recommended Bitcoin to six months ago, who may have taken his advice and purchased it, and who would now have seen their life savings devastated. He owes it to them to come into the House and explain his position on cryptocurrency. He cannot wait for it to just go up and down, and pick and choose when he wants to talk about it based on where it happens to be. He owes it to Canadians to give them an explanation and I hope he does it soon.
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- Sep/29/22 2:23:38 p.m.
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Mr. Speaker, the only one draining EI of money is the government. It wants to raid the EI fund for $10 billion to take the money that Canadians pay in EI taxes and spend it on everything but EI. The minister admits that she is going to raise EI taxes by $2.5 billion starting on January 1, with Canadians facing the highest inflation in 40 years, just inflation.
With Canadians struggling to feed themselves, what is the government thinking by raising taxes on paycheques?
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- Sep/29/22 2:32:49 p.m.
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Mr. Speaker, if there is one thing all parties should agree on, it is the fact that Canadians should have enough to eat.
Unfortunately, because of inflation, four in five families have had to cut their food budget because of inflation. The government could have chosen to help Canadians directly. Instead, it committed to tripling the Liberal carbon tax as of April 1. That will have a direct impact on food. Canadians are already struggling as it is.
Could the Liberal government make the right decision and cancel this Liberal carbon tax hike, which is three times too high?
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- Sep/29/22 2:33:35 p.m.
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Mr. Speaker, we understand that the cost of living and affordability are major concerns for Canadian families. That is why we are going ahead with inflation relief payments.
I am very pleased that, ultimately, the Conservatives agree with us and have announced that they support our plan. It is now time for the Conservatives to do another political U-turn and support the other elements of our plan.
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- Sep/29/22 2:35:31 p.m.
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Mr. Speaker, Canadians are struggling to make ends meet under the Liberal government. In B.C., the cost of gas is now over $2.25 a litre. The cost of groceries has skyrocketed to a 40-year high.
The Liberals are set to make things worse. On January 1, the government is planning to increase taxes on paycheques, ripping money from Canadians' pockets and stuffing government coffers instead. Why will the Liberals not give Canadians a break from just inflation and just cancel their planned tax increases instead?
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- Sep/29/22 2:36:10 p.m.
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Mr. Speaker, the challenges facing Canadians on affordability are extremely important. That is why the government has acted to, for example, double the GST tax rebate to provide relief for Canadians who are struggling with inflation, which is a global concern.
With respect to the price on pollution, the hon. member knows full well that the rebates that are provided to the vast majority of families in this country are more than they actually pay. I would suggest to my colleague, who comes from the same province as me, British Columbia, that the price on pollution in British Columbia is a British Columbia-made price on pollution. It was implemented long before the federal system, because British Columbia was a leader in fighting climate change.
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- Sep/29/22 2:47:14 p.m.
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Mr. Speaker, the Deputy Prime Minister answers every question with mock bewilderment that we dare question her record levels of spending and the increasing taxes to pay for them. She seems obsessed with Stephen Harper, whose record is clear: In 2015, just seven years after a global economic meltdown, the Liberals inherited a balanced budget.
Our Conservative government had lowered virtually every tax that Canadians could pay and Canada's middle class had become the richest in the world. How things have changed.
Could the minister tell us if Canada's growing affordability crisis is due to just inflation or is it just incompetence?
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- Sep/29/22 2:54:44 p.m.
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Mr. Speaker, this government loves taxes. Payroll taxes are going up. The carbon tax is tripling with 8% price hikes. It is not just inflation. The cost of everything is going up.
Will this government have mercy on Canadian families and axe the taxes?
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- Sep/29/22 3:00:29 p.m.
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Mr. Speaker, the Liberal government and inflation are driving up the cost of living, especially for rural Canadians.
Mike, a senior living in my riding, wrote to me on Monday, saying that over the past year, his rent has increased by 50%, fuel costs are up by 40%, his medications are up 22% and his food costs are up by 12%. Like many Canadians, Mike is struggling under the burden of the government's taxes on basic necessities and the idea of tripling the carbon tax.
Will the Liberal government cancel its planned tax hikes on gas, groceries and home heating today?
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- Sep/29/22 3:16:47 p.m.
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Mr. Speaker, I spent eight minutes prior to question period trying to inform the Conservatives that inflation was a global issue. However, it did not seem to resonate with them, because they spent the entire question period talking about “Liberal” inflation and inflation as though it were a problem unique to Canada.
The reality of the situation, which I honestly believe the vast majority of Canadians understand, is that inflation is a problem happening throughout the world right now. It is not going to be dealt with by using cheap antics, like the Leader of the Opposition buying a shawarma with Bitcoin, which would have cost him the equivalent of $10 Canadian in March and would cost him $22.35 today. The reality of the situation is that we are going to deal with inflation and the effects it is having on Canadians by working with Canadians, by bringing supports to Canadians and by introducing numerous pieces of legislation. As the House leader indicated just moments ago, we will be focused on them next week and in the weeks to come.
The Conservatives have an opportunity here. They can be onside with the rest of the House and work together with us to support Canadians, or they can continue the games and antics that we have been seeing up to this point.
I think it goes without saying that I certainly will not be supporting the motion put forward by the Conservatives today. I really hope they have an opportunity to reflect on their role in this House and will start bringing forward issues, policies, ideas and motions that will genuinely have an impact on the lives of Canadians.
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- Sep/29/22 3:19:14 p.m.
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Mr. Speaker, I absolutely do. We can look at the initiative that this government has brought forward with respect to increasing the GST rebate for six months. On that issue, I heard Conservative members early on in the debate talk about the inflationary impacts, yet if we talk to any economist out there, they will report back that the inflationary impacts of that particular program are next to nil. It will not have an impact on inflation.
While the Conservatives continue to try to scare Canadians into trying to support them, as we have seen day after day, we will be focused on providing supports for Canadians that will have a genuine impact on their lives so that we can help them get through this time of inflationary impacts we are seeing throughout the world.
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- Sep/29/22 3:20:07 p.m.
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Mr. Speaker, I am happy join in the debate.
Does the member not realize that tripling the carbon tax will have a disastrous effect on the most vulnerable in our society? I get emails from people all the time who are now going to food banks. Food bank use has more than tripled in many cities across the country. With this carbon tax increasing by three times to $170 a tonne by 2030, does he really not think that it is going to have a cascading effect on the affordability crisis, which has been created by inflation and by the Liberals?
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- Sep/29/22 3:20:48 p.m.
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Mr. Speaker, I thank the member for Regina—Lewvan for taking one for the team, because it appears as though no other Conservative wanted to get up to ask me a question. I appreciate him doing that.
Nonetheless, once again, he referred to it as “Liberal” inflation. It is global inflation, and out of the G7 countries, we are the third lowest in terms of the inflationary measure.
How the Conservatives can get up time and time again to talk about inflation as though it is a problem unique to Canada absolutely gets me. By the way, as a piece of advice for them, the vast majority of Canadians realize this. I do not know who they think they are speaking to when they continually repeat that over and over, but Canadians do not believe what they are saying.
The member asked me specifically about the price on pollution, or the carbon tax, as he refers to it. What the Conservatives continually leave out of that discussion is the fact that Canadians get back, through the climate action incentive rebate, the price they pay into it. By the way, the only provinces that are impacted by that price on pollution are the provinces that have not stepped up to do their part. Unfortunately, the province I live in, Ontario, is one of them. However, members can look at British Columbia, Quebec, Newfoundland and Labrador, Nova Scotia and New Brunswick, which all have programs in place and as a result do not have a price on pollution.
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- Sep/29/22 3:22:19 p.m.
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Mr. Speaker, I think we agree on the fact that the Conservatives' motion is completely out of touch with reality. The Conservatives are conflating premiums, social programs, retirement investments and taxes.
On the subject of taxes, is it not true that the Liberals are lagging behind and that they are not getting on with taxing the superrich, billionaires, CEOs, all the major oil companies and grocery chains that are using global inflation as a pretext to hike prices and line their pockets?
When will the Liberals do something about this?
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- Sep/29/22 3:23:41 p.m.
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Mr. Speaker, it will be my absolute pleasure to split my time with the great member for Thornhill.
It an honour to be in the House today to address the affordability crisis that is gripping Canadians across our land, from coast to coast to coast, including in my great riding of Northumberland—Peterborough South.
Milton Friedman once said, “Many people want the government to protect the consumer [but the] much more urgent problem is to protect the consumer from the government.”
This is particularly true today, as the Liberal government is driving up the cost of living. For two years now, the Conservative leader has been pushing the government to put people first and to start fighting inflation. However, inflation continues to rise, at this point, over 7%. Canadians are feeling that pain.
Today, I am honoured to call on the government, along with the rest of my colleagues, to scrap its planned tax increases, including the payroll tax hikes slated for January 1, and the tax hike on gas, groceries and home heating scheduled for this April.
To give some context to the opposition motion, I think it is important to understand the relationship between the government and the economy.
A fundamental principle, which must be the bedrock of all political discussions of the economy, is the indisputable fact that wealth or prosperity is created by the businesses and workers of our communities. It is through the production of goods and the delivery of services that a country adds value to the economy. When the country increases its ability to produce goods or to deliver a service, or, in other words, enhances its productivity, that country, by definition, becomes wealthier and its people more prosperous.
A country can temporarily and artificially increase its economic performance through the printing of money or quantitative easing. However, this is always short-lived, and the consequences are nearly always worse than the initial increase in improvement in the economic times.
What happens with this government spending, is that some of it wasted, of course, but some of it hits Canadians' bank accounts. When this money hits the bank accounts, what happens to that money is that, by the time it is available to be spent, the cost of everything has increased. The illusion of the windfall is quickly taken away, and we see we are left with nothing but inflation.
The true path to a more prosperous nation, a wealthier Canada, a more successful Canada, is through productivity. In fact, enhancing productivity is really the only way that this affordability crisis will be cured. When we improve productivity, we increase real wages. We increase real profits, and we create jobs. Unfortunately, the government appears to be doing everything it can to reduce the productivity of Canadians.
There are at least three significant policy directions that the government must reverse course on if it really is serious about tackling the affordability crisis. The government must cap its spending. Excessive spending is eventually paid for either through taxation or inflation, which reduces the ability of our productive sector to make things competitively, be profitable and be prosperous. Worse yet, it continues to drive inflation.
Who ultimately pays the cost of inflation? It is not the wealthy in our communities. It is not the super rich. It is not the government. It is our workers, our workers who are going out there.
I ask members to think of the worker who is earning $50,000 a year. They are already subject to a high rate of taxation. Now, they have seen inflation eat thousands of dollars away from their real buying power. These are people who are already struggling to get by. Thomas Sowell famously wrote that inflation is one of the biggest and oldest forms of taxation.
The effect of our government's overspending is to starve the productive sector, or the private sector, of resources. Those resources are needed.
If one listens to my friends in the NDP, one will hear them say that those monies are just wasted on yachts and wealthy billionaires, and I am sure there is probably some of that. The reality is that the majority of that money is invested back into businesses.
Right now we are starving Canadian businesses of the ability to reinvest. We are dead last in the OECD in capital investment. For every dollar that the U.S. invests in capital investments, we are investing 43¢.
That is the money that is building our businesses in the future. These are the dollars that will make us competitive in the future. We are losing ground at a tremendous rate every single day. That will make our economy less productive and every worker less effective. It will impoverish our country today, as well as tomorrow.
The government must commit to no further tax increases. Tax increases, and it is simple and as plain as day, by very definition, increase costs for workers and for consumers. That will drive inflation. In fact, do not take my word for it.
Earlier this year, I had the opportunity to ask questions of the Governor of the Bank of Canada, Tiff Macklem. I asked him if the carbon tax was a driver of inflation and he unequivocally agreed. In fact, he said that it was a significant driver of inflation. I think all sides of the House would acknowledge that we are in an affordability crisis. We are at really high rate of inflation and that is making life more difficult for Canadians.
We would think the Liberal government would understand that the carbon tax at its current rate is driving inflation, so it should pause the carbon tax or maybe reduce it, but the government is taking the unthinkable action of tripling the carbon tax, which the Governor of the Bank of Canada has already said is fuelling the fire of inflation. Now it is going to triple it. It is really unthinkable.
Further, with every new tax increase, we are taking away the rewards and incentives of hard work. When entrepreneurs go out and put their whole lives on the line, risking their homes and families' futures, they need to be rewarded. When those workers work 20 out of 24 hours to ensure their families are fed at the end of the month, they should be rewarded for it, and they need to be incentivized. Because of our progressive tax systems and the clawbacks that exist in our current system, middle-class wage earners, and even low-income Canadians, are facing income tax rates of 30%, 40% or 50%. It is not fair that Canadians who are working the hardest should have to pay an exorbitant amount of taxes. This is really unconscionable.
Once again, what has been our Liberal government's response to that? It is going to increase taxes. The Liberals are going to dramatically increase the payroll taxes. This is not fair to Canadians. It also is detrimental to our economy. If we take away the rewards, the very dollars that people have worked so hard for, we reduce the incentive and the rewards for which these people have worked so hard.
Finally, we need to invest in those sectors of the economy that are extremely productive. We have a huge productivity gap. Productivity is measured by the contribution to the GDP per hour worked. Currently, Canada is at $50. Contrast that to Switzerland at $60; the United States at $65; and Ireland at $85. However, we do have sectors in the economy that are doing exceptionally well. In the oil and gas extraction sector it is at $664 per hour. To make life more affordable for Canadians, we need Canadian energy.
It is inescapable that we are all dealing with the consequences of these failed Liberal economic policies. Perhaps no problem is as pressing as food inflation. This is creating challenges for Canadians from coast to coast. According to Statistics Canada, 20% of Canadians are utilizing food banks. Life is getting more challenging for Canadians. Many are experiencing these incredibly difficult economic challenges: inflation is at near highs, rising interest rates and punitive rates of taxation. The government, however, has the opportunity to reduce people's pain, to give them some hope by cancelling their proposed and planned tax increases on gas, home heating and groceries as well as on paycheques.
It is time that the government stops blindly following its ideology and actually help Canadians by cancelling its proposed tax hikes.
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- Sep/29/22 3:35:11 p.m.
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Mr. Speaker, I thank my colleague for his speech.
I would appreciate an answer to my question. As I said in my speech this morning, I am surprised that the Conservative Party does not have more to say about the free market. We know that businesses are charging way too much and that the existence of oligopolies and monopolies has a huge impact on consumers. We know that this is a problem.
Yes, inflation is having an impact on the marketplace, but why target taxes when we could address free market issues directly and strengthen the Competition Bureau?
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- Sep/29/22 3:35:55 p.m.
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Mr. Speaker, I very much enjoyed working on the public accounts committee with the member. I always found her thoughtful.
I will say that, from Milton Friedman to Thomas Sowell, it is clear from history that, throughout the numerous inflation crises this world has experienced, including the last one under Pierre Elliott Trudeau, it is nearly always a government issue, either because it was printing too much money or taxing too much money. In this case, the government is doing both.
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- Sep/29/22 3:49:01 p.m.
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Mr. Speaker, 40-year highs in inflation and taxes that are going up on January 1 and on April 1, and this is what the member opposite is talking about. His constituents ought to see this. Instead of voting for tax relief, instead of voting to cancel the tripling of the carbon tax, he is talking about cryptocurrency. That is a shame.
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- Sep/29/22 4:00:11 p.m.
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Mr. Speaker, I appreciated my colleague's speech, in which she talked about the difficult situation that seniors are experiencing because of inflation and price increases. She talked about increasing old age security to better support them.
The problem we have with that increase is that only seniors aged 75 and over will benefit. The government is leaving out people aged 65 to 75.
In the fight against inflation, if the government wants to recognize seniors, why is it creating two classes of seniors? Why is it leaving out people aged 65 to 75?
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- Sep/29/22 4:03:39 p.m.
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Mr. Speaker, our government is well aware that we are going through a period of high inflation around the world. Families are feeling the pinch at the pumps and at the grocery store. It is not an easy time. However, the fact remains that Canada is doing well compared to its peers, with a slightly lower inflation rate. Inflation is 7% in Canada, but it is about 8.3% in the United States, 7.9% in Germany and 9.9% in the United Kingdom. Things are really not going well in Great Britain these days.
I also want to point out to the House that inflation is a global phenomenon that can be attributed in large part to Russia's illegal invasion of Ukraine, the consequences of the COVID-19 pandemic, and China's zero-COVID policy.
Although the causes of inflation are outside Canada's control, there are certainly things we can do here right now to help Canadians. That is why we are bringing in measures totalling $12.1 billion to make the cost of living more affordable for millions of Canadians in order to help them make ends meet and provide for their families.
Our affordability measures are a key part of the government's assistance plan to make life more affordable for Canadians from coast to coast to coast. Thanks to our plan, in July of this year, we increased old age security by 10% for people aged 75 and up. This will mean over $800 in additional benefits in the first year for seniors who receive the full benefit and increased benefits for over three million seniors.
We are also strengthening the Canada workers benefit with investments of $1.7 billion a year. That means a couple earning minimum wage could receive up to $2,400 more in support this year, and we estimate that this could put more money into the pockets of about three million Canadians.
In collaboration with the provinces and territories, we are putting in place a new universal system of affordable early learning and child care services. Thanks to this system, Canadian families will see their child care costs reduced by 50% on average this year.
Last week, our government introduced Bills C-30 and C-31 to implement three important measures to help Canadians. With Bill C-30, we will double the GST credit for six months, which will provide an additional $2.5 billion in support to those Canadians who need it most. Single Canadians without children will receive up to $234 more, while couples with two children will receive up to $467 more this year. I would like to point out that the official opposition said last week that it would support Bill C‑30. That is excellent news.
With Bill C‑31, we are moving forward with a one-time top-up of $500 to the Canada housing benefit for 1.8 million renters who are struggling to pay their rent. That is more than double the amount allocated in budget 2022.
With Bill C‑31, we are also proposing to create the Canadian dental benefit for families that do not have access to private dental insurance and make less than $90,000 a year. Oral health is so important to overall health for children and Canadians.
It would provide financial support to parents with children under the age of 12 starting this year. Families will receive direct payments of up to $650 per year for the next two years, for a total of $1,300 per child, to cover dental costs. This is the first step in the government's plan to provide dental care for families in need.
I hope that the official opposition will support Bill C‑31 as it supported Bill C‑30.
I want to remind the leader of the official opposition that, through the climate action incentive payment, our government is returning a significant amount of money to Canadians living in the provinces that do not have their own pricing system that meets the Canada-wide standard, which are Ontario, Manitoba, Saskatchewan and Alberta. I should note that Quebec has had its carbon exchange for a long time.
Approximately 90% of the fuel charge proceeds go straight back to residents of these provinces through the climate action incentive payment. In 2022-23, a family of four will receive $745 in Ontario, $832 in Manitoba, $1,101 in Saskatchewan, and $1,079 in Alberta. In most cases, the recipients will be getting more back than they paid.
We have a plan to help Canadians that puts more money into the pockets of those who need it most, when they need it most. I am very proud of our government's plan to make life more affordable for Canadians from coast to coast to coast. Canadians can continue to count on our government to support them as we move through this inflationary period.
As Bills C‑30 and C‑31 show, we continue to make progress in offering Canadians the measures they need to help them make ends meet.
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