44th Parl. 1st Sess.
September 29, 2022 10:00AM
Madam Speaker, I am very pleased to be here today with my friends and colleagues to speak to the very important issue of making life more affordable for all Canadians.
I am pleased to contribute to the debate today on this motion. Making life more affordable for Canadians is a key priority for our government, and I would like to highlight some of the measures that we are taking to address the cost of living.
The pandemic has been, we hope, a once-in-a-lifetime and generation crisis. However, like any major crisis, this has aftershocks and inflation is chief among those aftershocks.
Inflation has made the cost of living into a real struggle for a lot of Canadians and for many of my constituents in Milton, especially the most vulnerable. We understand that our neighbours are going through many tough times right now and these measures are designed to address some of those.
This is not a made-in-Canada challenge. Inflation is affecting people around the world. We are fortunate to recognize that inflation is not as bad here as it is in some other places, but we do have made-in-Canada solutions for the impact that our neighbours are feeling.
Over all, the government's affordability plan is delivering targeted and fiscally responsible financial support for the Canadians who need it most, with particular emphasis on addressing the needs of low-income Canadians who are exposed to inflation.
The government's affordability plan includes an enhanced Canada workers' benefit that will put up to $2,400 more into the pockets of low-income families. There is a 10% increase in old age security for seniors 75 and over, which will provide more than $800 in new supports to full pensioners over the first year and increase benefits for more than three million seniors in Canada. The main support programs, including the Canada child benefit, the GST benefit, the Canada pension plan, old age security and the guaranteed income supplement are all indexed to inflation and they will be increasing.
Last week, meeting a commitment made earlier this year, the government tabled two important pieces of legislation in Parliament. The bills represent the latest suites of measures to support Canadians with the rising costs of living without adding fuel to the fire of inflation. Bill C-30 would double the goods and services tax credit for six months. Bill C-31 would enact two important measures: the Canada dental benefit and a one-time top-up to the Canada housing benefit.
Doubling the GST credit will provide $2.5 billion in additional targeted support to the roughly 11 million Canadians and families that already receive that tax credit. That includes about nine million single people and almost two million couples, and more than half of Canadian seniors as well. Single Canadians without children will receive an extra $234 and couples with two children will receive an additional $467 this year. Seniors will receive, on average, an extra $225.
The next important measure is the Canada dental benefit, which will be provided to eligible Canadian families with children under 12 who do not already have access to dental insurance, starting this year. Direct payments totalling up to $1,300 per child over the next two years, which is up to $650 per year per child, will be provided for dental care services. This is the first stage of the government's plan to deliver comprehensive dental coverage for families with adjusted net incomes under $90,000 and will allow children under 12 to receive the dental care they need, while the government works to develop a comprehensive dental care program. As I have said many times in the House before, healthy children today is a healthy Canada tomorrow.
The one-time top-up to the housing benefit will deliver an additional $500 payment to 1.8 million renters who are struggling with the cost of housing right now. This more than doubles the government's budget 2022 commitment, reaching twice as many Canadians as initially promised. The federal benefit will be available to applicants with an adjusted net income below $35,000 for families and below $20,000 for individuals who pay at least 30% of their adjusted net incomes on rent, which is, unfortunately, a high proportion of those folks.
In addition to those important pieces of legislation and the rest of the affordability plan, I would also like to speak about an important key measure to help Canadian families; that is the early learning and child care program that we have launched in every province and territory across the country.
Despite legitimate doubts that it was possible, we have already signed agreements on early learning and child care with every province and territory. Our plan makes work and life more affordable for middle-class Canadian families. It means an average reduction in fees of 50% by the end of this year. By 2026, regulated child care will cost an average of just $10 per day right across the country.
Just recently, I heard from a constituent who is going to save $9,000 a year, because he and his wife have two children. They are both going to get to work slightly longer hours, and neither of them will be part-time this year. They were so grateful to the Milton Community Resource Centre for signing on to the early learning and child care plan. I have visited the Milton Community Resource Centre a number of times to ensure that its priorities have been met through that program. It is serving my constituents in Milton and so many families are going to save thousands of dollars next year, thanks to that program.
Labour force shortages are a problem right now for our economy, and affordable early learning and child care is going to be such an important part of Canada's solution.
At this point, I feel that I should make a comment on the so-called payroll taxes about which the Conservatives keep talking.
Canada pension plan contributions are not a tax; they are an investment in one's own retirement, security that receives a tax credit or a tax deduction. The CPP provides an affordable, low-cost and modest pension for Canadian workers outside of Quebec, who are covered by similar benefits of the QPP.
Many Canadians are worried that they will not have put enough money away for their retirement, and fewer and fewer Canadians have workplace pensions or large savings on which to fall back. Our government has delivered on a commitment to Canadians to strengthen the CPP, in collaboration with provinces, to help them achieve their goal of a strong, secure and stable retirement.
The measures I have mentioned today would deliver targeted support to Canadians who need it most, without exacerbating inflation. That is an important balance, and the government's affordability plan is already putting money back in the pockets of Canadians who need it most.
Even as we deal with the very real challenges of the global economy, elevated inflation and increasing interest rates, it is important to take comfort in the reality that Canada has a really strong economic foundation as we face these global challenges. We will continue to provide timely support where it is needed most, all while maintaining fiscal discipline and responsibility.
It has been a tough couple of years for all of us. It does seem like we have to overcome one thing after another, but there are better days ahead, and Canada is in a really good place right now. The numbers today dictate that, and our plan is a strong one. I hope all members in the House will support it.
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- Sep/29/22 11:18:51 a.m.
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Madam Speaker, I think that my NDP colleague raises a good point.
Some people took advantage of the pandemic to line their pockets, unlike others, who are now tightening their belts. With the current rate of inflation, oil companies are making extraordinary profits. It appears that the banks also made huge profits and that some food industries increased their profit margins. It is not acceptable that these profits be made at the expense of poor people who are struggling to make ends meet.
I very much agree that measures need to be put in place. For example, we need to do more to make sure that those who are taking advantage of the situation are held accountable and made to justify their decisions. Also, as members of Parliament, we should encourage the government to implement tax measures in an effort to limit these types of practices. I am in full agreement with my colleague.
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- Sep/29/22 1:36:37 p.m.
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Madam Speaker, I will be sharing my time with the member for Kingston and the Islands.
I could not be more opposed to this opposition day motion. I am not sure how they could pack more falsehoods into one short motion, but they have certainly done their best.
It is a privilege to rise in the House today to speak to this motion, although I am opposed to it. These past few years have not been easy with the pandemic and its impacts, and now we have the war in Europe and the rising cost of living. It is easy to point fingers and call out for quick solutions, but it is reckless to take advantage of the challenges communities across Canada and the globe are facing.
In recent years, climate change has had unprecedented effects on Canadians. Impacts from climate change are wide ranging, affecting our homes, cost of living, infrastructure, health and safety and economic activity. Of course, we have seen disruptions in our supply chains and how that contributes to inflation right across Canada in all of our communities.
The latest science warns that, to avoid severe impacts of climate change, greenhouse gas emissions must be reduced significantly and urgently to limit the global average temperature increase to 1.5°C. However, in taking action, it is no longer a question of choosing between our economy and climate action. It is well understood that the two go hand in hand and that the long-term health of our people, our planet and our economy depend on our taking ambitious climate action. That is what Canadians want to see. They want to see that from the government, and they want to see that from the opposition parties. They want to see us raising our level of ambition and not backing off and going backward, as the Conservatives would have us do, into the Harper era of inaction.
Let us look at some of the actions that our government is taking. In April 2021, the Government of Canada responded to the latest science by submitting a strengthened national emissions target of 40% to 45% below 2005 levels by 2030, in addition to its goal of achieving net-zero emissions by 2050. In March of this year, the government released the 2030 emissions reduction plan, outlining how Canada will meet our 2030 target. The plan builds on a strong foundation, starting with Canada's first-ever national climate change plan in 2016 and then our strengthened plan, which was released in 2020. I could not be more proud of the work that this government did in consultation with provinces and territories right across the country in order to develop our climate action plan. The plan shows that we can build a cleaner economy while making people's daily lives better.
Carbon pricing is central to all of these plans because it is the most efficient and lowest-cost policy to reduce greenhouse gas emissions. I know members on the opposite side do not believe that carbon pricing is the way to go, but there are many case studies and examples across the world that show it is by far the most effective system for incentivizing the type of behaviour we need to see and the type of innovation we need to see in order to get to a sustainable economy.
We have heard from stakeholders across the country that consistency and predictability are key to unlocking investments in the low-carbon economy. We also know that businesses and industries are developing innovative technologies and approaches to reduce emissions, including carbon capture. There are many other technologies out there. There are many renewable energy projects and things that we can be investing in. They need clear incentives and supports to put those technologies into practice. That is what our government's plan intends to do and is actioning.
Carbon pricing creates those incentives without dictating any particular approach. It lets businesses decide how best to cut their emissions. Let us remember that, if they do not pollute, they do not pay a carbon price.
At the same time, Canadians, especially the most vulnerable Canadians, are facing affordability challenges. We get that. The federal approach to carbon pricing is designed to maintain the consistency demanded by industry and investors while prioritizing affordability for Canadians. We know it is not enough to create a cleaner economy. We have to make sure that Canadians can afford it as well.
It is true that carbon pricing of pollution is modestly increasing fuel costs, by about 2¢ per litre of gasoline this year. We know every bit counts, but carbon pricing has never been about raising revenues or raising prices on Canadians. In fact, under our plan, most households end up with more money in their pocket than they pay.
Wherever federal fuel charge proceeds are returned directly to households, eight out of 10 families get more back through the climate action incentive payments than they pay in direct carbon costs, meaning the system is helping with the cost of living for a majority of Canadian families.
Let us remember, just this July, Canadian families got the first quarterly payment, which was a double payment. In Ontario, they are getting $745 this year, and they got half of that. I noticed that come into my bank account. I am sure many other members of the House and their families noticed that direct quarterly payment from the climate action incentive.
Members on the opposite side cannot claim that those dollars, 90% of those funds, are not going back to Canadian families, because they got those payments in their bank accounts.
It is lower income households that benefit the most. High income households tend to spend a lot more on fuel and energy, so they will face a net cost. However, the lowest income Canadians come out the furthest ahead.
For example, the average cost impact of carbon pricing per household in Alberta is expected to be about $700 in 2022, but this is less than the average climate action incentive payment of about $1,040 per family.
In Ontario, the average household cost is estimated to be about $580, but households will receive back, on average, about $710 to $745. These estimates take into account the direct costs, like paying more for fuel, and also indirect costs, like paying a bit more for goods and services.
Families in rural and small communities are eligible to receive an extra 10%. Households can use these funds however they want. They can use them to absorb the extra 2¢ per litre of gasoline if they choose. Households that take action to reduce their energy use come out even further ahead.
Zero-emissions vehicles are an option, with federal purchase incentives helping reduce the cost. The federal government is also supporting home energy retrofits, through the Canada greener homes grant, to reduce energy used in the home, save money and cut pollution all at the same time.
The Government of Canada has also committed to return proceeds collected from the federal output-based pricing system, or OBPS, to the jurisdictions of origin. Provinces and territories that have voluntarily adopted the OBPS can opt for a direct transfer of proceeds collected. Proceeds collected in other backstop jurisdictions will be returned through the OBPS proceeds fund aimed at supporting clean industrial technologies and clean electricity projects.
Climate change is a serious challenge, but it is also an opportunity, a very big economic opportunity. Canadians want to take advantage of the significant economic opportunities in the low-carbon economy. Analysis by the global commission on the economy and climate estimates that transitioning to a low-carbon economy will deliver a direct economic gain of $26 trillion U.S. and generate 65 million new jobs globally.
Just as we are putting a price on carbon pollution, we are also making historic investments in clean technology, innovation and green infrastructure to drive growth and reduce pollution, including $9.1 billion in new investments to cut pollution and grow the economy as part of the 2030 emissions reduction plan.
The 2030 emissions reduction plan, Canada's next steps to clean air and a strong economy, reflects submissions from over 30,000 Canadians, provinces, territories, indigenous partners, industry, civil society and the independent net-zero advisory body. The plan represents a whole-of-society approach, with practical ways to achieve emissions reductions across all parts of the economy.
Canada is not alone, by any means, in fighting climate change and pricing carbon pollution. Around the world, markets are changing, industries are moving away from products and services that create carbon pollution and are turning to cleaner and more sustainable options. The cost of inaction on climate change is enormous, and it is far greater than the cost of addressing it today.
As emphasized in the most recent IPCC report, the cost of inaction is—
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- Sep/29/22 1:49:55 p.m.
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Madam Speaker, since Parliament resumed, we have been hearing from the Liberals about EI and the importance of it. We know that Canadians are reliant on EI for many reasons, such as caring for children, their parents or sickness. There are a multitude of reasons that it is important.
Unfortunately, just recently, on September 24, the Liberals let the system lapse into its broken prepandemic norms. I am wondering if the member could share why the Liberals have let the temporary pandemic rules lapse without presenting a plan to improve the EI system in place.
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- Sep/29/22 2:58:52 p.m.
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Mr. Speaker, although some temporary benefit programs offered during the pandemic are ending, regular benefits will continue to be available to workers, just like before the pandemic.
We look forward to launching our long-term plan. As I told my colleague, that will happen before the end of the year. It will be a very specific plan to improve employment insurance.
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