44th Parl. 1st Sess.
October 4, 2022 10:00AM
Mr. Speaker, we have to acknowledge that the Bank of Canada got it wrong. It said that inflation was transitory and it was not. It said that inflation would not increase and it did. Our leader, who puts people first and thinks about monetary policy, got it right. That should be on the record. He was scoffed at. He was laughed at by the Bloc and other members of the elite saying that there would be no inflation. Well, guess what. We have food inflation at 10% and that should not be acceptable to Canadians or anyone.
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Mr. Speaker, I am pleased to hear that my friend from Northumberland—Peterborough South supports the relief measure in this bill. He noted that it is months late, and we would agree with him on that. I would ask where he was when we were calling for it back in May.
This is targeted relief for the people most affected by inflation. There is another measure in another bill that is also targeted relief for the people across our country most affected by inflation. The revenue for each of these measures comes from the same fund. These are very similar measures, yet the Conservative Party is voting for one and not the other.
I wonder if he could explain to me why he is not voting to support the increase in the Canada housing benefit?
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Mr. Speaker, the government's tax-and-spend policies will create nothing but more inflation. As we are seeing, the initial exuberance of government spending will quickly be eroded by the corrosive impacts of inflation. If we want to make people poor, then let us spend more money and print more money.
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Mr. Speaker, I am pleased to rise in the House to take part in the debate today. I will be sharing my time with the hon. member for Kingston and the Islands, and I look forward to his comments.
The cost of living relief act is what we are talking about and how we help with affordability for Canadians who are facing the inflation we are now seeing as a result of global inflation as well as what has happened as a result of COVID-19.
When we went into COVID-19, one of the things that, early on, our government was focused on was setting Canada up for success on the other side of COVID, to make sure that Canadians would be able to return to their jobs through things like the wage subsidy program and keeping a relationship between the employer and the employee so that when jobs came back the employee would still be on their files. The CERB was to make sure that people who were really facing a tough time, those whose incomes had dropped and independent business owners, in particular, could get through what we were facing collectively as a society around the world with the global pandemic.
This bill is looking at what we do, going forward, now that we have protected our economy and have economic growth but have many people who are not participating in the success that other Canadians are taking part in. The once-in-a-generation COVID-19 pandemic has impacted other countries such as China, with its zero COVID policies. On top of that, there is the illegal invasion by Russia in Ukraine.
Here at home we have had housing prices skyrocketing so that we have had to work with the Bank of Canada, which focuses on monetary policy while we are focused on fiscal policy. The monetary policy that the Bank of Canada, which is an independent organization, has put in place is to increase interest rates, which almost immediately brought down the house price acceleration that we saw last year and even into early this year.
The inflation that we are seeing overall has come from the supply side. People are having trouble hiring and they are having trouble getting components out of their supply chains. Around the world, it is something that everybody is facing. In Canada, we have been able to temper that through good policy, with the government looking at inflation that peaked in June at 8.1% and has come down to 7%. Other countries are still on the increase. The United States at 8.3%, the United Kingdom at 9.9%, and Germany at 7.9% are all at higher inflation rates than Canada faces.
However, it does nothing for Canadians to say, “Yes, but the other guys are worse than we are.” This is why we are introducing the affordability plan. It is a targeted suite of programs of $12.1 billion that are being introduced this year, including doubling the GST credit for the next six months.
As monetary policy hopefully brings inflation back down toward the 2% target that the Bank of Canada has, we have to have something that bridges us through the hump that we are going through right now. This measure is Bill C-30, which would make life more affordable for Canadians. As an illustration, some of the measures that the plan is working on to fight inflation are to help with access to dental care and with the rental costs people are facing. There are parts of the bill that will be coming back to the House, hopefully in the next few days, and passing quickly so that Canadians will have access to other supports. As has been mentioned in the debate today, all of these things are there to help people who are vulnerable and who are being impacted by the inflation we are all going through.
For more than three decades, the Bank of Canada has had the mandate to tackle inflation here in Canada, and our government reaffirmed this central mandate last December. As the Bank of Canada is working on inflation and bringing it down, we have to work on the impacts on Canadians who are facing higher interest rates, the higher food costs that have been mentioned in the debate this morning and the other higher living costs that we have.
As we get down toward the 2%, and it is really the bank's job to help us get there, we have to look at the supply route constraints that are also impacting businesses and the labour shortages. How do we help businesses find the workers they need with the right skills? How do we help the people who are looking for jobs get those skills, so that they align with the needs of the businesses? The better we do this and the faster we do this, the better Canada will be positioned to continue the growth curve we are on.
The last recession I remember was the 2008 major recession. We just coasted on the other side of it, and we did not have economic growth. The result of that was that we fell behind. We are now in a position to continue our leadership position in growth in the world and provide clean technology jobs and the jobs of tomorrow around climate change solutions, nanotechnologies and emerging technologies, but in order to do that we need labour.
To rebuild communities that have been ravaged by the impacts of climate change, like the communities in Atlantic Canada and eastern Quebec, we need skilled trade workers, so we have to work as a government to help position people for success to get into those projects. In Guelph we have had six projects recently announced, with $45 million to create 263 housing units. Those housing units are being built, but it is a strain on the local labour. In fact, we have one crew that is in Guelph from Prince Edward Island doing steel work, and they are doing it quickly because they want to go home. There is a local benefit to our getting some labour force in Guelph to help us build the housing as well as help the communities in Atlantic Canada that need the help they need on the economic front.
The plan we have is rooted in fiscal restraint. We are looking at how we can provide supports without fuelling inflation. The suite of measures we are putting forward through the affordability plan, like the GST credit for the next six months, are going to support Canadians with the cost of living without adding fuel to the fire of inflation.
We look at what other programs we are supporting in addition to the doubling of the GST credit. It is going to provide $2.5 billion in additional targeted support for this year, and that is going to help 11 million individuals and families who already receive their tax credits through their tax filings. The relationship we have with Canadians through the Canada Revenue Agency helps us to deliver these programs.
We will also be delivering the Canada workers benefit to put up to another $2,400 into families' bank accounts this year. A 10% increase in old age security to help seniors over 75, which began in July, is providing up to $766 more for three million seniors this year. We will deliver a $500 payment this year to 1.8 million Canadian renters who are struggling with the cost of housing through a one-time top-up on the housing benefit. We are cutting child care fees by an average of 50% this year. Dental care for Canadians, hopefully getting passed through the House of Commons, for people earning less than $90,000 would provide hundreds of dollars to Canadian families this year. The indexation of inflation of benefits, including the Canada child benefit, the GST credit, Canada pension plan, old age security, the guaranteed income supplement and the federal minimum wage will carry us through normal economic times, when inflation is back down to the 2% level we are shooting for.
We are trying to manage the fiscal situation in an inflationary time by providing benefits to the people who really need them when they need them, and they need them now.
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Mr. Speaker, the member for Guelph raised the Bank of Canada multiple times, as he also raised the ideas of helping struggling Canadians and the need to fight inflation. On March 11 of this year, Tiff Macklem, the Governor of the Bank of Canada, wrote to the finance committee, and I am just going to take an excerpt from that:
According to the Bank's calculations, if the charge were to be removed from the three main fuel components of the consumer price index (gasoline, natural gas and fuel oil) it would reduce the inflation rate by 0.4 percentage points. In other words, if that policy had come into effect at the start of the year, January's inflation rate would have been 4.7% instead of 5.1%.
That is the governor saying that the carbon tax is inflationary. The member for Guelph said it is important to support struggling Canadians. Would he say exactly why he supports the government in tripling the carbon tax on gas, groceries and heat? Does he not believe this is a time to take a pause and give Canadians a break?
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Mr. Speaker, I would like to thank my colleague for his speech. Inflation did not fall out of the sky like a hot summer rain. It is the result of several factors, including external factors. One of these factors is very important: the supply chain.
It is important to understand that the war in Ukraine and the global pandemic disrupted the supply chain. Many of our companies rely on the availability of products or consumer goods.
The Bank of Canada observed that, during the summer, approximately 50% of companies found themselves facing a bottleneck. That means that their supply chain is blocked. They are awaiting parts to be able to resume production.
There is a way of fixing this and ensuring fewer inflationary shocks. It is by making sure that our supply chain is more flexible, agile and resilient.
Does my colleague agree that the government should be doing more to make sure that we are less dependent on the products we need to import from foreign countries?
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Mr. Speaker, I am pleased to rise today to speak to Bill C-30, a very important piece of legislation that attempts to relieve some of the pressure being put on individuals right now in our country, in particular those who are struggling the most. The individuals who will receive this GST credit will, no doubt, be people who immediately use this money for very important needs that they have. It is money that will go directly back into our economy. Despite some of the things we have heard about contributing to inflation, the economists have pretty much resoundingly asserted that such a measure is not going to lead to inflation or, at least, is so marginal that it will be unnoticeable.
I want to focus my comments today on addressing some of what I have heard said in the House. In particular, I want to talk a bit about what I heard the member for Northumberland—Peterborough South talk about a few minutes ago and then go to some comments that I heard from the member for Simcoe North even earlier.
First of all, I think it is very interesting that all of the conversations or all of the discussion that has been happening today regarding Bill C-30, from the Conservatives anyhow, spent very little time actually talking about the bill. Instead, they want to use the slogans they have recently come up with, such as “triple, triple, triple”. I am still trying to wrap my head around why that is supposed to be so funny. I do not understand how that works, but perhaps that line was given to everybody by the leader's office and it is their responsibility to deliver it repeatedly in this place.
The member for Northumberland—Peterborough South was not talking about the bill. He went on a long tangent from the discussion about why it is so important that the government not spend money right now, because it is leading to inflation. He was basically saying that when the government spends more, it leads to more inflation, and so on and so forth.
Just putting aside for a second his argument on that, I would remind him that my understanding, at least, is that Conservatives are voting in favour of this bill. They are voting in favour of this spending. For the member for Northumberland—Peterborough South to stand there for 10 minutes and talk about government spending leading to inflation and how the government should not be spending while on the topic of a bill about spending that he supports is extremely rich and, I think, underscores the hypocrisy that we hear over and over from Conservatives in this House. It is just on constant repeat, the way that they come out and say one thing but do another. I do not know if this is due to the new leadership of the crypto king from Carleton or what it is exactly, but it is certainly—
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Mr. Speaker, I want to thank the member for Kingston and the Islands for his timely comments about the need for this legislation and how it is going to help hard-working Canadians who are suffering as a result of inflation.
I have also heard from a lot of people who took the advice of the Leader of the Opposition on cryptocurrency because somehow they thought it was a legitimate way of investing their money. They have, unfortunately, lost a lot of money.
Can the member for Kingston and the Islands tell us why that advice was so dangerous and how it has impacted the lives of so many Canadians?
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- Oct/4/22 2:22:56 p.m.
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Mr. Speaker, let me start with some good news today. We have a solution that everyone in the House agrees on: the inflation relief payments. Yesterday, the Standing Committee on Finance voted unanimously for this measure. I hope that the House will have a chance this week to vote for these payments that Canadians so urgently need.
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- Oct/4/22 2:33:02 p.m.
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Mr. Speaker, unlike the Prime Minister, the Leader of the Opposition puts Canadians first.
Since his resounding victory, the Conservative leader has been the voice of millions of Canadians, calling on the government to end the unjust inflation. Day after day, he asks the costly coalition to show some compassion for workers, fathers and mothers and cancel the planned tax increase, which will make life more expensive for everyone.
The opposition leader is reaching out. Will the Prime Minister listen to him and scrap his plan to raise taxes?
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- Oct/4/22 2:35:19 p.m.
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Mr. Speaker, 51% of Canadians are struggling to afford food. That is over half the country. Seven years of the Liberal government and that is its record, yet the Liberals have the audacity to sit there and roll their eyes at us as we ask questions about their lack of action on inflation. Now they are going to raise taxes on Canadians by tripling the carbon tax on groceries, tripling it on home heating and tripling it on gas. It is triple, triple, triple.
Canadians cannot afford the Liberal government any longer. Will the Liberals show some compassion and cancel their plans to triple the carbon tax?
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- Oct/4/22 2:46:50 p.m.
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Mr. Speaker, only Liberals would believe those lines. The Canadian families I am hearing from are just hanging on by a thread. Four out of five Canadians have changed their diets because of this Liberal government. Canadians cannot afford any more little tax grabs on Canadian paycheques.
When will the minister stop printing money, stop with the wasteful government spending that is fuelling inflation and stop the tripling of taxes on Canadians?
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- Oct/4/22 2:47:37 p.m.
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Mr. Speaker, Germany, U.K., France, Sweden, Netherlands, Belgium, Spain, Ireland, Japan, New Zealand, Australia and more have all cut fuel taxes or duties to help households deal with rising inflation. Instead of lowering taxes like our peers, the government wants to make energy more expensive.
The Liberal government must know something the rest of the world does not. What it will not admit is that the carbon tax is inflationary because it gets passed through to everything. Will the government cancel its plans to hike taxes and finally give Canadians a break?
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- Oct/4/22 2:55:35 p.m.
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Mr. Speaker, with grocery inflation at 40-year highs, half of Canadian households are struggling just to be able to feed themselves. Food bank shelves are nearly bare. Canadians are beyond just struggling. Most of them, many of them, are hanging on by a thread. Canadians are tough, but they have a government that continues to punish them while they are just trying to get by.
Will the Liberals cancel their plans to triple the taxes on gas, home heating and groceries?
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Mr. Speaker, I used to serve as a volunteer firefighter in my community. However, one does not need to be a firefighter to know that one cannot put out a fire by pouring more gas on it. That is exactly what the Liberals have done.
They have created the worst cost of living crisis by overspending the hard-earned tax dollars of Canadians, causing a rapid increase in inflation. With inflation at a staggering 7% and economists warning about an impending economic recession, the Liberals continue to spend.
Many contend that the definition of insanity is doing the same thing over and over again and expecting different results. Here we are, with a government that overspends Canadians' hard-earned tax dollars, causing inflation. It then continues to spend while claiming that it is helping.
It has lost the plot. As we have learned recently, the Prime Minister enjoys plunging from great heights. I just wish he did not enjoy doing the same thing to the Canadian economy. The Prime Minister's determination to plunge the Canadian economy to record lows is mirrored by the enthusiasm that he showed when he recently went bungee jumping in Chelsea.
Now, the Prime Minister's recent bungee jumping trip was not brave or funny or relatable. It was actually just a metaphor for what he is doing to the Canadian economy, which is making it do a nosedive.
While the Prime Minister laughs and plays around, 23% of Canadians have reported eating less than they should have because of rising inflation at the grocery store, and 53% of Canadian households are within $200 or less of financial insolvency. Despite working hard, many Canadians have nothing to show for it. Many more are forced to walk a financial tightrope.
Continued spending will only worsen the existing crisis and squeeze even more Canadian families into financial ruin. Simultaneously, spending is racking up our national debt, which has more than doubled to almost $1.2 trillion under this Liberal government, with their spending accounting for more spending than all previous governments in Canadian history. They have actually put more onto the national debt than all other governments in this country's history combined.
That amounts to $32,000 of debt for each and every Canadian. Every hour, that debt increases by over $6 million. Every day, it increases by $144 million. Every month, we pay 2 billion dollars' worth of interest on that debt.
What exactly is the government's plan to pay down the debt they have created? Someone needs to be the adult in the room here and say that enough is enough. Perpetual spending with no end in sight is a reckless economic policy with dire consequences for this and for many future generations.
Now, with this so-called cost of living bill, finally the Liberals are at least admitting that their approach has not worked and that Canadians are suffering as a result.
Conservatives know that the government continues to collect increased GST revenue because of inflation and high gas prices. When the Parliamentary Budget Office releases its upcoming report, we will see just how much they have collected while Canadians were being forced to choose between food and fuel.
At a time when so many Canadians are struggling with high prices, the Liberal government should not be profiteering off of the crisis, especially because gas is so critical to our increasingly vulnerable supply chains, our farmers and our job-creating industries. That is why, in March, Conservatives put forward a motion to suspend the government's collection of GST on fuel. I was disheartened that not a single Liberal or NDP member voted in favour of this much-needed relief.
At least they are coming around a little now. However, the proposal in this bill is too little, too late for the Canadians who need it the most, and it is certainly a poor substitute for Conservative tax relief proposals.
First of all, what is included in this bill is only a temporary measure that lasts for only six months. I am certainly not naive enough to believe that the Liberal government is going to be able to clean up the inflation crisis that it has created and have things back to normal in that six months.
This bill also only applies to individuals who make over $49,200 and families with children that have a household income of under $58,500. Believe me, there are individuals making over $49,200 who are certainly struggling. There are even more families with children making over $58,000 that are also struggling.
More than 70% of families with children would not be eligible for this support. Even for those that are, this measure certainly falls short. For a qualifying family of four, this measure would only work out to about $77 a month. That is not even $20 per family member. It is certainly not enough to displace the cost of inflation.
In the past few weeks, Conservatives have come together and have continued to put forward realistic, responsible proposals that would help to fix the cost of living crisis. Conservatives know that one of the biggest financial burdens facing Canadians right now is the unpredictable and ever-increasing price of gas, due in part to the existing Liberal carbon tax. For many Canadians, especially rural Canadians and business owners, owning and operating a gas-powered vehicle is not a choice. It is an absolute necessity. However, the out-of-touch government continues to impose a punitive tax on them, intending to make them suffer financially. That is what it is intended to do, make them suffer financially for what Liberals consider an immoral choice, to drive a truck or a car.
When the Conservatives learned that the government was planning to go ahead with its plan to triple the carbon tax on Canadians in the middle of this affordability crisis, we fought back. Last week, in the House of Commons, we put forward a motion calling on the Liberals to have some compassion for Canadians who were struggling and cancel their plan to triple the carbon tax. Sadly, not a single member of the Liberal caucus joined us on that motion.
Similarly, Conservatives put forward a motion asking the Liberal government to commit to no new taxes on gas, groceries, home heating and paycheques. Given that our country is in an economic crisis and people are already struggling as it is, we think that would be a pretty easy motion to support. I do not think it was a very big ask at all. We were only asking the government not to increase taxes on the necessities that Canadians need to keep alive, to keep warm and to keep fed. However, the Liberals voted against our motion.
What message are the Liberals sending to Canadians? Are they planning even more tax hikes? Do they really believe that now, of all times, is a good time to raise taxes on Canadians even further?
Our party has made it clear that a Conservative government would fight inflation, fix the cost of living crisis and pay down the national debt by adhering to a responsible pay-as-you-go system. Under this system, our government would find a dollar in savings for taxpayers for every government dollar spent, returning Canada to fiscal responsibility. A Conservative government would reflect on the financial values that Canadians practice in their everyday lives by budgeting responsibly and by ensuring that we are spending wisely, finding savings wherever possible.
I do not think it is too much to ask that governments conduct themselves in the same way that we expect all Canadians to conduct themselves. Canadians, when there are tough times, sometimes have a need to put a little money on their credit card. Maybe the roof springs a leak right when they lose a job. They might have to take on a little debt just to cover that. However, once they are employed again, they are going to try to pay down that debt. That is always the first thing any Canadian would do, try to pay down the debt. Then they would undertake whatever other spending they might think is necessary for their household. They would try to pay down that debt and try to make the prudent choices.
I do not think it is too much to ask that governments do the same thing. That money comes from somewhere. It comes from Canadians. It is their hard-earned tax dollars. It is money that Canadians have worked hard to earn, to help make sure that they meet the needs of themselves and their families. Every dollar that the government takes from those Canadian families needs to be done with the mindset in government that it is only taking what is absolutely needed for the core services that government provides and to make sure that money is spent appropriately and wisely, because the government is taking away the opportunity for Canadian to make choices for themselves with their own money, so all we expect is for the government to do the same.
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Madam Speaker, I am glad to hear my hon. colleague say that all parties in the House will support this bill, but I was taken aback by his attempt to make it seem like this amount of money is inconsequential. It is easy for a member of Parliament, who makes a minimum of $185,000 a year, to stand in the House to say that $500 does not mean much to someone. My daughter is an adult with special needs. She has friends who live on $15,000 a year. For someone who is earning $15,000, $20,000 or $25,000 a year, that $500 is incredibly significant.
I wonder if the member could speak to that. Would he agree with me that giving temporary relief of $500 to help fight inflation to people who make under $40,000 or $50,000 a year can make a real difference in their lives?
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Madam Speaker, I would like to thank the member for Banff—Airdrie for keeping the focus on Canadians in his speech.
The Liberal member across the way was talking about Bill C-31, not Bill C-30. The Parliamentary Budget Officer will be doing an update next week on the cost of that, so I think it is important that we all wait and get that costing before we have a fair analysis of Bill C-31.
I want to reiterate the point that the member made that the government did not use the summer to do the hard work to find offsetting spending cuts so it could avoid the criticism of being more inflationary. I would like him to comment on how important it is that Canadians not only deserve support, but also have a government that does not fuel inflation and actually fights it.
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Madam Speaker, the member made a great point. There is no doubt that the spending the government has undertaken has led to more difficulties and more pain for Canadians with the inflation we have seen as a result of some of its actions. Canadians deserve a government that will consider what the effect would be on Canadians when it needs to spend money and try to find ways where it can find savings.
One of the policies the new leader of the Conservative Party, the Leader of the Opposition, has put forward is the idea that for every new dollar spent we find some savings, because we expect government to be run the same way we expect Canadians to run their households.
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Madam Speaker, I will be sharing my time with the member for Saanich—Gulf Islands.
I am pleased to contribute to the debate on this important legislation today. Making life more affordable for Canadians is a key priority for our government. The pandemic has been tough for everyone, and unfortunately one of the consequences has been inflation. This worldwide inflation problem has made affordability a real concern for many Canadians, including in my riding of Whitby, and especially for the most vulnerable.
We understand that there are those who are going through hard times, but this government has real solutions to the cost of living struggles of many Canadians. Overall, the government’s affordability plan is delivering targeted and fiscally responsible financial support to the Canadians who need it most, with particular emphasis on addressing the needs of low-income Canadians who are most 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 over 75, which will provide more than $800 in new support to full pensioners over the first year and increase benefits for more than three million seniors.
We are also cutting regulated child care fees in half by the end of this year. We have doubled the Canada student grant until July 2023 and are waiving interest on Canada student loans through to March 2023. The main support programs, including the Canada child benefit, the GST tax credit, the Canada pension plan, old age security and the guaranteed income supplement, are all indexed to inflation so those will be increasing as well.
Two weeks ago, the government tabled two important pieces of legislation in Parliament. The bills represent the latest suite of measures to support Canadians with the rising cost of living without adding to inflation. Bill C-31 would make it so that up to half a million children under 12 would be able to see a dentist, and low-income renters would receive a little extra breathing room with a $500 payment to help with the cost of rent.
The bill we are discussing today is Bill C-30, which would double the GST tax credit for six months. Doubling the GST credit would provide $2.5 billion in additional targeted support to the roughly 11 million individuals and families who already receive the tax credit. That includes about nine million single individuals, almost two million couples and more than half of all Canadian seniors. Just think about that. Over half of all Canadian seniors are going to be supported by this measure.
The GST tax credit is indexed to inflation on an annual basis. For the July 2022 to June 2023 benefit year, the value of the GST credit grew by 2.4%. However, because these increases are based on the inflation rate from the prior year, the sharp rise in inflation in 2022 is not yet reflected in the GST credit payments that Canadians are currently receiving. This is why the extra top-up is the right thing to do at this particular time, because Canadians are not going to get the benefit of an increased GST tax credit payment until the following year. It is a good thing that we are topping it up.
Single Canadians without children would receive up to an extra $234, and seniors would receive an extra $225 on average. I have another example of how it would work. A single mother with one child and $30,000 in net income will receive $386.50 for the July through December 2022 period, and another payment of the same amount for the January through June 2023 period under the current GST credit. With the temporary doubling of the GST credit amounts for six months, she would receive an additional $386.50. In total, she would be receiving about $1,160 this benefit year through the GST credit.
A couple with two children and $35,000 in net income would receive $467 for the July through December 2022 period and another $467 for the January through June 2023 period under the current GST credit. With the temporary doubling of the GST credit amounts for six months, this family would receive an additional $467. In total, it would receive $1,401 this benefit year through the GST credit.
The proposed extra GST credit amounts would be paid to all current recipients through the existing GST credit system as a one-time lump sum payment before the end of the year, pending, of course, the adoption of the legislation. This highlights the importance of getting this done as quickly as possible, as we all can agree Canadians are feeling the pressures of inflation and the cost of living increases.
Importantly, recipients would not need to apply for the additional payment, but should make sure to file their 2021 tax returns, if they have not done so already, to be able to receive the current credit and the additional payment. Bill C-30 and the other important measures I mentioned would deliver targeted support to the Canadians who need it most without adding unnecessary fuel to the fire and allow inflation to become entrenched. That is a major concern, and we do not want inflation to become entrenched. That is something that would in fact be counterproductive and make life more expensive for everyone for years to come.
However, we cannot compensate every single Canadian for rising costs driven by global events. To do so would make inflation worse. Bill C-30 is about balancing fiscal responsibility with compassion. This support is the right thing to do at the right time. Even as we deal with the very real challenges that the global economy is facing right now, it is important for us to take real comfort in the reality that Canada has a very strong economic foundation as we face these global challenges.
Canada has the lowest deficit this year in the G7. Canada has the lowest net debt-to-GDP ratio in the G7, and Canada’s AAA credit rating was reaffirmed this year by Moody's, S&P and DBRS. The International Monetary Fund and the Organisation for Economic Co-operation and Development predict that Canada’s recovery will be the second fastest in the G7 this year and next. That is a pretty good track record.
The government’s affordability plan has already been putting more money back in the pockets of Canadians who need it most. We will continue to provide timely support where it is needed most, all while maintaining fiscal discipline.
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- Oct/4/22 4:08:41 p.m.
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Madam Speaker, I hear that from the Liberals all the time. They like to put out all sorts of numbers, and they put them out so much that people who are watching can hear all these big numbers, like the $1,000 they are going to get back, when in reality it is a much smaller number. They inflate that number, just like they inflate inflation and just like they inflate the taxes that are on these people. Unfortunately, taxes are going up and prices are going up. Seniors, I suspect, in the member's riding, after taking retirement, are going to turn around and now say, especially those in my riding, that they are going to have to go back to work because they cannot afford the cost of living anymore because of increased costs.
It is one thing to help out, and it is nice to see that, but the bottom line is that ending the taxes will help these people much faster.
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