44th Parl. 1st Sess.
September 29, 2022 10:00AM
- Sep/29/22 12:21:58 p.m.
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Madam Speaker, today we are talking about inflation, which is taking a toll on Canadians. This inflation was entirely foreseeable. The government could not keep printing stack after stack of money and not expect any consequences.
The ratio between the money supply and our GDP has increased drastically lately. It is unfortunate that nothing was done earlier on to regain control of the money supply. From the start, the government has been blaming inflation on the global situation, more specifically, supply chain disruptions. True, these disruptions are having an impact on supply and demand, but there are many other factors for which the Liberals have been responsible from the moment they took office, and those factors are behind this economic situation.
I do not want to be all doom and gloom today, but the Liberals' policies are leading us right for a cliff. There are two things that stand out to me regarding the situation we are now. The first is the Liberal government's inordinately large deficit, which is undermining Canada's financial stability and, even worse, endangering the economic prosperity of future generations.
When the Liberal Party formed government in 2015, Canada was in an enviable economic position. Not only did we have one of the lowest debt-to-GDP ratios in the G7, but we also had a budget surplus accompanied by positive economic growth. Canada was one of the best countries to invest in.
When the Liberals took office, they embarked on a spending spree that was unnecessary, considering the economic context. Canada's debt rose dramatically, going from $626 billion in 2014 to $1.049 trillion in 2021. Of course, part of that increase is a result of managing the pandemic. I want to talk about that management, though. Canada borrowed more than any other industrialized country, except Japan, and got little in return. Canada ranked 21st out of 33 industrialized countries in terms of average economic growth in 2020 and 2021, with the fifth-highest average unemployment rate.
Even so, this is still a level of debt that, all in all, could be managed well with historically low interest rates. However, by being short-sighted and failing to plan ahead, which is a recurring theme in the Liberal Party, the government was playing with fire. This situation could not continue if certain parameters changed, and now they are changing. As interest rates rise, servicing the debt will become increasingly expensive. Government forecasts will have to be revised.
The yield curve is inverted, probably signalling that a recession is coming. The 10-year treasury yield is rising very quickly, pointing to a growing lack of confidence in the Canadian treasury. Lastly, the increase in 10-year treasury bonds is making Canadian debt more expensive.
Who is going to pay for this debt? Who is going to pay the interest on it? Will it be Canadians? Can the government assure the House today that it will not raise taxes and other charges on Canadians, who are already struggling to fill up their cars and put food on the table?
The Liberals' silence speaks for itself. Why is that? This brings me to my second point about why the Liberals are responsible for the current situation. The Liberal government has been waging war on Canada's energy sector since 2015, which has made it hard for us to respond to global energy shocks. Canada has the third-largest oil reserves in the world and the 18th-largest natural gas reserves. Not only do we have quantity, but we also have quality, because we produce oil and gas more cleanly than countries like Saudi Arabia and Venezuela.
With energy and gas prices soaring, let us imagine what Canada could do if it were an energy superpower. First, we could put more barrels on the global market, which would increase the supply and ultimately lower prices. Second, we could meet the energy needs of countries that really need it right now. I am thinking in particular of our allies in Europe, who are being held hostage by an authoritarian regime that controls the flow of energy into western Europe. Being an energy superpower is not just about meeting local demand, it is also about meeting an international need.
Instead, the Liberal government is trying to convince itself that Canada's energy industry is a thing of the past and that exporting our energy would be difficult because the product is far from the coasts. However, this is the same government that killed off over $100 billion worth of Canadian energy projects and cancelled the development of key infrastructure meant to reach export terminals on the east and west coasts.
President Biden would rather ask Saudi Arabia to increase its production, even though we are the United States' closest neighbour. That is shameful and embarrassing, not to mention hypocritical.
Yes, it is hypocritical, because the Liberals keep talking about fighting climate change, but they have done nothing to stop the supply of dirtier oil from Saudi Arabia and Venezuela.
Canada's Minister of Natural Resources is talking about increasing natural gas exports to the United States, which will then export it to Europe. How out of touch is that? Instead of putting Canadians to work, developing Canadian expertise and creating Canadian wealth, which would help fight inflation, we are acting as the United States' lackey.
Canada's energy policy is a disaster for Canadians' pocketbooks. It is also a disaster in terms of making a positive contribution to the fight against climate change. Furthermore, it is directly responsible for the significant increase in energy and gas prices.
The government plans to triple the carbon tax soon. Is that still in the cards? Is it really a good idea to increase gas prices when Canadians are struggling to make ends meet?
Gas is essential for transportation, in particular the transportation of food. Last August, food prices rose 10.8% over the previous year, when they were already trending upwards.
Is it reasonable to consider adding an indirect tax on food by increasing the price on carbon at a time when food prices have jumped by nearly 15% in two years? It is utterly ridiculous to even be considering it.
Families are losing faith in the economy and are going deeper into debt. The ratio of household debt to income is now 181.7%. It is not just a question of what rising interest rates will do to Canada's ability to service its debt. We also have to consider what Canadians will do as interest rates continue to rise. How will they be able to pay down their debt if everything gets more expensive and their loans get more expensive but their income does not keep pace with inflation?
We could be headed for some dark days if we do not address this crisis quickly. The government must first provide certainty for Canadians by committing to not increasing taxes of any kind in an attempt to make up for its own oversights, mistakes and inaction.
The current situation paints a bleak picture for Canadians who will end up in debt slavery if this trend continues. It will be extremely difficult for the next generation to buy property. We cannot afford to ignore the economic importance of property. Canadians see it as a symbol of prosperity and independence. For many, it is a retirement fund; for others, it is financial leverage. It is a place to raise a family, the bedrock of society. We have to put families first and give them all the tools they need to prosper.
We are talking about the rising cost of consumer goods, but I would like to conclude with some comments about the other issues hanging over our heads. The 0% interest rate policy was in place for years. How did that affect the structure of Canada's economy? That is a question we have to consider, because our party's motion makes even more sense given how much money was injected into the system and the unnecessary risks that companies and governments take when money really has no value because interest rates are near zero.
To get back to the main point of my speech, the government must give Canadians as much certainty as possible by not increasing their taxes.
I urge all parties to support our motion. To resolve the current inflationary crisis, I urge them to be prudent when it comes to government spending in the future and to stop the war on Canadian energy.
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- Sep/29/22 12:32:20 p.m.
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Madam Speaker, my riding had a great liquefied natural gas project planned. Through that project, we would have been able to export natural gas and reduce the number of coal-fired power plants. It would also have reduced Europe's dependence on Russia.
I do not understand why we are not developing our natural resources as much as we should. The government is holding us back. I welcome the use of all kinds of energy. Why is the government shunning Canadian energy?
For the sake of our country, we should be making use of all sources of energy, particularly our fossil fuels.
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- Sep/29/22 12:34:16 p.m.
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Madam Speaker, our fossil fuels have come a long way thanks to new technologies. We must never forget that.
As I have already said, I am not opposed to other energy sources. We are simply not there yet. Let us stop burying our heads in the sand. The demand for energy continues to rise. As I said, back home we had a great energy transition project planned involving liquefied natural gas, which would have reduced the number of coal-fired power plants in the world and eliminated Europe's dependence on the Russians.
I think we need to take another look at this, all of us together. We need to sit down and work together to develop the resources we have here in Canada.
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- Sep/29/22 12:35:52 p.m.
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Madam Speaker, if the government had properly managed the budget from the beginning, we likely never would have gotten to this point.
I recall that in 2015, stimulus measures meant that there was no need to inject money into infrastructure or the economy, because the stimulus drove economic growth.
This government is unable to predict anything. Everyone knows that what goes up must come down. The economy goes through highs and lows. The economy was on a high and the government was just throwing money around. Now, we are struggling. People are struggling. Interest rates are skyrocketing. People are struggling to put food on the table. People no longer know what to do. They are very worried about debt.
The government has been irresponsible.
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- Sep/29/22 3:07:01 p.m.
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- Re: Bill C-5
Mr. Speaker, the streets of Montreal are like a violent video game where the mission is to shoot anyone and anything.
Last week, a mother was taking a stroll with her partner in Longueuil when they were gunned down by a drive-by shooter. In response to this violence, what is the Prime Minister doing? He is proposing legislation that eliminates mandatory minimum sentences and reduces sentences for serious crimes in Canada.
Can the Prime Minister ask the families of the victims what they think of Bill C-5?
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