44th Parl. 1st Sess.
October 4, 2022 10:00AM
Madam Speaker, the member brought up a really interesting point, which is that the Governor of the Bank of Canada made predictions regarding inflation and then something else was thrown in. It was a wrench. I do not think it is fair to assume that the governor should have known that a war in Ukraine was going to break out. However, the narrative that always comes from the Conservatives is that since the Governor of the Bank of Canada said one thing would happen but another thing happened, he is wrong and is therefore to blame.
Given that the governor could not have possibly known that a war in Ukraine would break out and what the sanctions would be, and hence the impact of it, would she agree that he is indeed not to blame for the fact that he may have gotten that wrong?
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Madam Speaker, obviously no one can blame the Governor of the Bank of Canada for assuming that it was situation normal. It is not situation normal. I remember when the previous governor of the Bank of Canada, Stephen Poloz, was testifying at the finance committee. When asked if he was worried about the inflationary impact of the government using quantitative easing, he said that inflation was a problem he would love to have. He was worried about deflation.
The best and brightest folks, who are really bright, did not think that inflation was going to be a problem, and that if it was, it would be temporary and short-lived. We saw the price on some things go way up and the price of other things fall. It is not conventional inflation and it never was.
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Madam Speaker, for some time now we have been talking a lot about household purchasing power. We know that part of the decline in purchasing power is due to the drastic increase in the cost of resources, mainly fossil fuels. We know that, in the future, there will be policies to fight climate change that will end up increasing the cost of certain highly polluting goods.
I am wondering if this is now a good time, given the inflation crisis, to think about long-term solutions for Canadian and Quebec households. I am thinking in particular of households in western Canada, who are becoming less vulnerable to price increases by making the transition. I am wondering if the current crisis could inspire us to be more constructive in the long term.
In that light, I am wondering what solutions the member for Saanich—Gulf Islands would suggest.
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Madam Speaker, I will be splitting my time with the hon. member for Pickering—Uxbridge.
I rise today in support of Bill C-30, the cost of living relief act, no. 1, which would double the goods and services tax, or GST, credit for six months. It is one of the new measures we are proposing to provide targeted support to Canadians who need it the most so we can help them adapt to the rising cost of living without, however, exacerbating inflation.
Our government is fully aware that Canadians are feeling the effects of inflation, especially when they fill up at the pumps or buy groceries, for example. Inflation is a worldwide phenomenon largely driven by the effects of the pandemic, amplified by the zero-COVID policy in China and Russia's illegal invasion of Ukraine.
Although inflation is not as high here as in several other countries and it has come down from its peak in June, we know that Canadians are worried. No single country alone can solve the problem of high global inflation. However, what we can do is help Canadians by taking tangible action to make life more affordable here at home. This brings me to Bill C‑30, which seeks to double the GST credit for six months.
Our proposal to double the GST credit for a six-month period would provide an additional $2.5 billion in targeted support for about nine million people living alone and nearly two million couples. In total, 11 million individuals and families who are already entitled to the tax credit would receive it, including roughly half of Canadian families with children and more than half of all seniors in Canada.
The GST credit is a tax-free benefit paid out every three months. It helps low- and modest-income individuals and families recoup the GST they pay. Canadians are automatically considered for this credit when they file their income tax returns and are eligible for it if their income is below a certain threshold. The measure we are proposing would benefit those who already qualify for the credit, and the help would be tangible.
In practical terms, single Canadians without children and single seniors, for example, would receive up to $234 more than they do now. Couples with two children, for example, would receive up to $467 more. A single parent with one child would receive up to $397 more than expected.
These additional amounts would be paid before the end of the year as one-time lump sum payments to current recipients through the system already in place. Recipients would not have to apply for the additional payments. All they have to do is file their 2021 tax return.
Bill C‑30 is part of the new suite of measures we are proposing to help Canadians. Another part is found in Bill C‑31, which I hope we will soon have the opportunity to debate.
This other bill proposes, for example, to create a Canadian dental benefit. This temporary measure would be offered as early as this year to children under 12 who are not covered by private dental insurance. Families could receive direct payments of up to $1,300 per child over the next two years, or $650 a year, to cover the cost of dental care. This benefit is the first step in the government's plan to offer dental care to families with an adjusted net income of less than $90,000 a year.
Bill C‑31 also proposes a one-time top-up to the Canada housing benefit. This would allow 1.8 million renters who are struggling to pay their rent to receive $500. It is another measure that I hope we will soon have the opportunity to approve.
Our government supports Canadians who are most vulnerable to an increase in the cost of living in a way that does not needlessly fan the flames of inflation. That is the danger in an inflationary crisis.
The incremental cost of new measures included in Bills C‑30 and C‑31 is $3.1 billion. That is only 0.1% of our gross domestic product. Therefore, we are proposing to strike a balance between fiscal and financial responsibility and compassion for those who truly need help.
In conclusion, what Bill C‑30 proposes is in addition to measures we have already announced as part of our plan to make life more affordable for Canadians.
First, the enhanced Canada worker benefit will provide three million Canadians with more support. For example, a couple could receive up to $2,400 more this year, while a single person could receive up to $1,200 more.
Second, agreements have been signed with the ten provinces and three territories. This will cut in half the cost of day care for Canadian families by the end of the year. This pan-Canadian initiative will result, for example, in savings ranging from $2,610 in Manitoba to $6,000 in British Columbia. For 2022, in the province of Quebec, which already has its own day care system, the government's plan will help create approximately 37,000 new day care spaces.
Third, we increased old age security for seniors aged 75 and over by 10%. This measure benefits more than three million Canadians and provides additional benefits of $766 for full pensioners in the first year.
Fourth, all major government benefits are indexed to inflation, including old age security, the guaranteed income supplement, the Canada pension plan, the Canada child benefit and the GST/HST credit. This means they are adjusted for increases in the cost of living.
Fifth and sixth, providing dental care to Canadians and making a one-time payment to renters who are struggling to pay for housing are two of the measures included in Bill C‑31, which we will be debating soon; I hope all members of the House will support it.
This is all in addition to other investments our government has made since 2015. I strongly believe in making life more affordable for Canadians, and especially in helping those who are most in need. That is exactly what Bill C‑30 does, and I urge all members to vote in favour.
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Mr. Speaker, I thank my hon. colleague for his question. The difference is that there have always been age limits in Canada in every segment of society. For example, one must be 16 to get a driver's licence.
This measure is for people 75 and up. The increase was set out clearly in our election platform.
What we would like to help people understand is that, statistically, the cost of care is much higher for people over 75 than for those under 75. Many more people live alone at 75, twice as many. At 80, there are three times more widows and widowers. That is the rationale behind the age limit.
However, the measures we are now considering in Bill C‑30 and Bill C‑31 target the hardest-hit Canadians and will help them deal with inflation rates.
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Mr. Speaker, I thank my colleague for her interesting question. I think countries are asking themselves very important questions about the climate crisis.
The official opposition keeps harping on about the carbon tax. Our goal here, in the midst of the global inflationary crisis, is to focus on helping those hardest hit.
With respect to the carbon tax, the provinces have the power to give it back to people, and we hope they will work together to do that. Nevertheless, Bill C‑30 and Bill C‑31 are a balanced approach to helping people in a way that does not exacerbate inflation. I hope all members will support this bill.
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Madam Speaker, I am really enjoying the discussion today.
The Bank of Canada has a target of 2% inflation that it is trying to bring us back to. As the member mentioned, in June inflation was growing, in July it peaked at 8.1%, and now it is coming back down to 7% because the Bank of Canada has introduced higher interest rates. The higher interest rates are impacting the more vulnerable people in Canada, so there is a combination there of trying to cool the housing market and trying to slow down the inflation caused by the out-of-control housing market. As the member says, the impact on seniors is something that we need to be addressing.
Could the member talk about how this is a targeted approach with a time limit so that, when inflation comes back toward 2%, we do not have something that is going to fuel inflation going forward?
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