44th Parl. 1st Sess.
October 4, 2022 10:00AM
Mr. Speaker, it is great to see my colleagues engaged on a really important topic, which is Bill C-30.
I will be splitting my time with my hon. colleague from Vaughan—Woodbridge.
We are talking about Bill C-30, legislation that would double the GST credit for the next six months. Fortunately, we have been able to move the legislation forward quickly, because Canadians need support, particularly those who are vulnerable. There have been a lot of conversations around affordability and the inflationary pressures being felt around the world and, indeed, right here in Canada.
I will give credit to His Majesty's loyal opposition for helping to work with the parties in advancing the legislation the government has put forward, because we are on third reading now. The hope is that we can approve it, I believe this week, and get it to the Senate and ultimately out to Canadians.
This is part of an affordability package that also includes Bill C-31, which would increase the Canadian housing benefit by up to $500 for those who are vulnerable. It would also introduce a dental care program for those children who are under 12 in a household with an income of less than $90,000 and do not already have private coverage.
I will call it as I see it. I commend the Conservatives for supporting this legislation, but I am a little disappointed that they are not supporting the legislation that is really important for those children who are vulnerable. I have not heard a whole lot of compelling rationale as to why they would not support this.
There is another issue about which I want to go on record. I have had conversations with my colleagues on this side of the House and have been querying the NDP over the last couple of days as it relates to the dental care piece. The NDP has been calling for this to be a fully federally administered program, and I want to be very clear about my position on that.
I support the idea of the Government of Canada investing in money to support those who do not have the ability to take care of their dental needs themselves, that there is a program in place for vulnerable Canadians, but I would like to see this administered similar to our child care program. We talked about child care for a long time. It was this government that stepped up and ensured there was a national child care program, by putting federal funds on the table and working with the provinces and territories.
I have a bit of concern on the NDP position that this should be completely fully administered federally. It is not that there is no federal funding, which is not the part I disagree with; it is about the delivery mechanism. I truly believe that the provinces and territories are in a better place. I want to ensure that my position as a parliamentarian is on the record. It is not that we disagree about the need for it, but I might disagree with the NDP about the delivery mechanism. The provinces are actually better suited to handle that.
This is all happening in the context of a government that is trying to walk the line between helping vulnerable Canadians who need support, but also not pouring fuel on the fire in an area where we do have inflationary pressures. The Bank of Canada is increasing its interest rates to try to bring down inflation, and it is responsible government to ensure that any type of spending measures coming forward are very targeted. I want to give credit to this government for doing that.
Our government has been there. This is a targeted measure that will apply to Canadian households under $50,000, so this is not a GST benefit that is going to those who are quite wealthy and well off. It tries to help those who are truly trying to get by. It is a targeted measure. My understanding of the cost estimate is that it will be about $2.5 billion, which is from the Minister of Finance. When we look at the global scale of the inflationary pressures, of the work of the Bank of Canada, it is a reasonable amount that I do not think will upset the apple cart vis-à-vis those conversations between monetary and fiscal policy.
I want to contrast that to what we are seeing in the United Kingdom. I have a great affinity with this being the mother Parliament, and we take a lot of British tradition in Canada from a Westminster perspective. However, we saw what happened in the United Kingdom, where its government introduced a level of government spending by virtue of tax credits, particularly those on some of the most wealthy, and that has had real consequences. It has driven interest rates even higher for the Bank of Canada. It has shaken financial markets in that country. The United Kingdom just announced yesterday that it actually walked back the tax cut that was proposed for those of the highest income earners.
It is not perhaps my job to opine on fiscal policy in the United Kingdom, but it is clear that the consequences of that government's choice has led to a real disruption of the work of monetary policy and has had a big impact on financial markets.
Compare that to how this government has responded in a reasonable and targeted way, working in lockstep with the Bank of Canada. It should be commended, and it shows reasonable fiscal management.
As a result, our Minister of Finance has been able to update the House that we are in a current surplus situation. We have had to rein in our spending. There was record spending during the pandemic to ensure we took care of Canadian households and businesses. However, it is also our job to ensure that we do not continue to drive inflationary pressures that have been felt around the world, that we take measures to help support those who are most vulnerable.
I would like to focus on some other measures that will be important for supporting affordability and economic growth and competitiveness in the days ahead. I think the next 18 to 24 months are going to be difficult for the Canadian economy and for Canadian households. That is in the form of regulatory modernization and approach. I take great pride in trying to be a member of Parliament that raises these issues. They are of great benefit and consequence to our country and for our government.
I want to go through a few of them for the benefit of my colleagues in the House and talk about elements this government can take on to drive and help benefit all Canadians.
One is the huge opportunity that we have in Atlantic Canada on offshore wind, particularly with regard to the conversation of hydrogen. Premier Tim Houston, the Premier of Nova Scotia, announced a desire to roll out offshore wind opportunities. I am looking at my colleague, the member for Bonavista—Burin—Trinity, Newfoundland and Labrador has the same desire, but we have to amend legislation on the offshore petroleum board act, which would actually allow these types of regulatory models to exist. This would give the investor confidence for those projects to move forward.
There is one example on which the government can move forward, and I know it will. In short order, we need to give that certainty, so we can drive investment on our renewable future.
I want to talk about Health Canada. As the chair of the agriculture committee, I often talk to farmers. I talk to other stakeholders who talk about Health Canada approvals.
I will give one example, which is 3-NOP, a feed additive to help support the reduction of methane from livestock. We call them cow burps. This is a product that can help us fight climate change. It has regulatory approval in Europe. It has regulatory approval in the United States. The company is now in the process of applying to Health Canada. It could be another 18 to 24 months by the time it actually works its way through Health Canada's system.
What if we took trusted jurisdictions around the world, let us say, the United States, Europe, New Zealand and Australia, which have similar values to what we have with respect to public safety and public protection, and changed the model. What if we allowed a company, which had a product, a service or some type of element that would have to go through Health Canada but it already had approvals in those jurisdictions in which we have trust, to start operating in Canada, go through the regulatory process and until such time that Health Canada found a rationale for why it should not operate in our country, it would have a presumptive approval to go ahead?
Those are some examples where we can move forward. I want to discuss this one further. These are the type of elements that we need to start thinking about. We have to be creative on how we can create wealth, how we can drive innovation and foreign direct investment on elements that do not cost money. It is going to be important.
Another example would be gene editing, and we have talked about this in the House, with regard to plant proteins. This is something for which the guidance documents were provided by Health Canada. That is driving important investment in the country, because it is giving the regulatory certainty.
Airports, whether it border modernization, or the Canada Grain Act, or seed modernization or even SMR technologies, the government and we, as parliamentarians can do a lot of work that is non-cost-measures that will help drive innovation.
I wish I had more time. Perhaps I will find another time in the days ahead to continue to elaborate on those points, but on regulatory reform modernization, we can continue to drive that bus and it will help drive Canada in the days ahead.
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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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Madam Speaker, my question is very simple. We have proposed several measures over the last couple of weeks to help with the affordability crisis and inflationary crisis that exist for Canadians, like lowering taxes.
I wonder if the member has a comment on that.
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Madam Speaker, I will be sharing my time with the hon. member for Hamilton Centre.
It is a true pleasure for me to speak to Bill C-30 on behalf of the residents of my riding of Davenport. For those who need a reminder, Bill C-30 is the legislation that, if passed, would double the goods and services tax credit amounts by 50% for the 2022-23 benefit year and would deliver targeted relief directly to Canadians who need it. It would make life affordable for many Canadians who need this additional support.
We are here for the third reading of this bill in the House of Commons after having considered this legislation at the finance committee yesterday. I am pleased to say that Bill C-30 was passed in record time at the finance committee by all parties. It was good see that there was unanimous approval and support for this bill, and I hope that the opposition parties will consider also supporting our other affordability measures, such as providing a targeted dental benefit and a one-time housing benefit top-up.
As members may know, our federal government has made it very clear that our first order of business for this parliamentary session is to make life more affordable for the Canadians who need it the most. We know that Canadians are feeling the rising cost of living through things like higher food prices and rent, so while inflation is a global challenge caused by the COVID-19 pandemic and Russia's illegal invasion of Ukraine, Bill C-30 would help families weather its impacts by putting more money back in the pockets of the middle class and those working hard to join it.
By doubling the GST credit for six months, this key piece of legislation would deliver $2.5 billion in additional targeted support to roughly 11 million individuals and families who already receive the tax credit, including about half of Canadian families with children and more than half of Canadian seniors. With Bill C-30, single Canadians without children would receive up to an extra $234, and couples with two children would receive an extra $467 this year. Seniors would receive an extra $225 on average.
Let us take a minute to delve more deeply into some examples of what it would mean for Canadians in real terms for the 2022-23 benefit year. I like giving clear examples because it allows people, not only those in my riding of Davenport, but also Canadians right across the country, to see themselves in some of these profiles.
Under the current GST credit, a single mother with one child and a net income of $30,000 would receive $386.50 for the July through December 2022 period and another $386.50 for the January through June 2023 period. However, with Bill C-30, she would receive an additional $386.50. Therefore, in total, she would be receiving about $1,160 this benefit year through the GST credit, and that would be super helpful for a single mother.
Another example is that under the status quo GST credit, a single senior with $20,000 in net income would be receiving $233.50 for the July through December 2022 period and another $233.50 for the January through June 2023 period. However, with Bill C-30, if it is passed, this senior would receive an additional $233.50. In total, he or she would be receiving about $701 this benefit year through the GST credit.
I will give one more example. Under the present system, a couple with two children and $35,000 in net income would be receiving $467 for the July through December 2022 period and another $467 for the January through June 2023 period. With the temporary doubling of the GST credit amount for six months, this family would receive an additional $467, so in total they would be receiving about $1,401 this benefit year through the GST credit.
What is more, with this change the money would be coming to them through a straightforward process. That is because the 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. Recipients would not need to apply for the additional payment. They only need to have filed their 2021 tax returns, if they have not already done so, to be able to receive both the current GST credit and the additional payment.
Moreover, Bill C-30 is just one out of two pieces of legislation that we have introduced already in this parliamentary session to make life more affordable for Canadians. The Minister of Health has also introduced Bill C-31, which would provide a Canada dental benefit starting this year. I was very privileged to speak on this bill in the House of Commons last week, because a national dental care benefit is so important to Davenport residents. I want to formally indicate the importance of this legislation passing in the House.
Just to remind everyone, Bill C-31, if passed, would allow families with children under 12 who do not have access to private dental insurance and who have an adjusted net income of less than $90,000 to access direct payments totalling up to $1,300 per child over the next two years, up to $650 per year, to cover dental expenses for the children under 12 years old.
Bill C-31 would also provide a one-time top-up to the Canada housing benefit. This would be available to applicants with an adjusted net income below $35,000 for families or below $20,000 for individuals who pay at least 30% of their income on rent. This means a one-time payment of $500 to 1.8 million Canadian renters who are struggling with the cost of housing.
The bills that we are discussing today, both Bill C-30, very specifically, and, as an aside, Bill C-31, will not solve everything. While they will not solve everything, as our Minister of Finance said yesterday at finance committee, they would provide real support for 11 million Canadian households, for people who really need the help.
It is important to remind the House that there are many other measures that would build on Bill C-30 and Bill C-31, which we have been speaking about today. These include measures like enhancing the Canada workers benefit. This would deliver $1.7 billion in new support to an estimated three million low-income workers this year, with a couple receiving up to $2,400 more and single workers receiving up to $1,200 more. Most recipients have already received this additional support through their 2021 tax refund.
Second, as a result of agreements reached with all 13 provinces and territories, we are also effectively cutting regulated child care fees in half, on average, for families in Canada by the end of this year. This Canada-wide plan means savings for families from $2,610 in Manitoba to $6,000 in British Columbia in 2022, and an average child care fee of just $10 a day for all regulated child care spaces across Canada by 2025-26.
We have also introduced a 10% increase to the old age security pension for seniors 75 years and older, which began in July 2022 and which would 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 providing support for students by doubling the Canada student grant amount until July 2023 and by waiving interest on Canada student loans through to March 2023.
Taken together, our federal government's affordability plan is delivering targeted and fiscally responsible financial support to Canadians who need it the most with particular emphasis on addressing the needs of low-income Canadians who are most exposed to inflation.
We will continue to strike a balance between delivering support, where and when it is needed the most, and maintaining the discipline that has given Canada the strongest fiscal position in the G7.
In conclusion, I know that Canadians are counting on parliamentarians to make the support of Bill C-30 a reality, and I would encourage my colleagues on all sides to support the immediate adoption of Bill C-30, the cost of living relief act, no. 1, so that we could continue to make life more affordable for Canadians who need it the most.
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Madam Speaker, I enjoy opportunities where I can find common ground with members of other parties. In particular, the Bloc brings some progressive policies to this House, including the statement we just heard about the need to decommodify the real estate market. We need to wrest control of the housing market from big banks, Bay Street and real estate income trusts, and do what the government did with the creation of CMHC, which is to be bold with a federal intervention and the creation of millions of decommodified houses.
On this talk about affordability and the Liberal government, I would say affordable for whom. It talks about affordability that is at 125% of market value, but what we know to be true is that affordability must be tied to people's ability to pay, not left up to the so-called free market of both the Liberals and the Conservatives.
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