44th Parl. 1st Sess.
October 4, 2022 10:00AM
Madam Speaker, I was listening carefully to the hon. member across the way and his description of what businesses are facing. The businesses in Guelph, across Canada and around the world are facing similar challenges around the supply side. What we have right now is supply-side inflation. The ability to bring product in or to have labour produce product is something all businesses are struggling with right now, which is causing the inflation we are seeing.
The bill before us today is targeted to help young families support their young children with dental care. It is a very targeted measure that will not add inflationary costs. Could the member reflect on how this targeted program, with the GST and dental credits, is not going to stimulate inflation, which is being caused by the problems he described?
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Madam Speaker, I am pleased to rise today to speak to Bill C-30, the inflation bill, because I am deeply concerned about the financial state of my constituents in Coast of Bays—Central—Notre Dame.
We all know that this piece of legislation will get passed, but in this place it is our job as His Majesty's loyal opposition to debate legislation and perhaps effect positive change to it when it goes to committee. The government has passed some extremely hurtful legislation since first being elected in 2015, when it had a budgetary surplus and inflation was at just 1.13%.
The carbon tax was implemented as a result of hurtful Liberal legislation. It is set to triple since its inception, and it will keep on going. By 2030, nearly 50¢ per litre of carbon tax will be placed on fuel, and then with HST on top of that, Canadians will pay almost 60¢ more per litre for fuel than they paid when they voted for sunny days and sunny ways.
When goods arrive at the back door of a grocery store and the invoice is given to the owner, there is a line at the bottom that says “fuel surcharge”, but it is not a one-time charge on our goods. Fuel price increases are passed on at every point in the logistics chain, so by the time goods reach the last link in the chain, the Canadian consumer, all of these inflationary fuel surcharges are reflected in the price of these goods. Therefore, we identify the carbon tax as a major cause of inflation to every single parent, every senior and every struggling family in Canada. By 2030, can members imagine the effect the carbon tax would have on Canadian households?
What we see here today is just the tip of the iceberg. Yesterday, the government voted against our motion to stop increasing the carbon tax. Instead of that, once again, the government ATM machine is ready to add more inflationary fuel to the fire.
I hear from my constituents on a daily basis that times were tough before, but now, after seven years of the government and its insatiable desire to spend, it is more difficult than ever to make ends meet.
I heard from Julie, a single mother of two who is now unable to enrol her children in soccer because it will cost too much to drive them to games and practices. Under the Liberal government, according to statistics, transportation costs have risen 10.3%. I heard from Mary, a senior who is one of the 24% of Canadians cutting back on the amount of food they are buying because they cannot keep up with the rising cost of groceries.
I would like to ask the Prime Minister this: When was the last time he stepped into a grocery store to purchase a week's worth of groceries? I do not actually believe the Prime Minister has ever bought groceries, so let me help to open his eyes. Groceries, some of the basic necessities of life, are up by 10.8%, rising at the fastest pace in 40 years. Fish is up 10.4%. Butter is up 16.9%. Eggs are up by 10.9%. God help us if we break one. Margarine is up by 37.5%. Bread, rolls and buns are 7.6.% more expensive than last year. Dry and fresh pasta is up 32.4%. Fresh fruit is up 13.2%.
I heard from Kyle. Although he received a slight wage increase, he still cannot keep up. Why? It is because although on average wages have increased by 5.4%, inflation has increased by 7%. It does not take a doctorate in mathematics to know those numbers are not sustainable.
However, wait. Not all is lost. The Liberals have come up with a plan. They are going to help combat inflation caused by overspending by spending more. Do not misinterpret my criticism of their plan as a lack of desire to help those who need it most, but let us take a look at how we got into this situation to begin with: The government spending money it does not have. How did the government get the money it spent? It borrowed it, and the Prime Minister continues to borrow more and more at higher and higher interest rates, which only causes higher inflation and the cost of everything to go up.
Members do not have to take my word for it. Avery Shenfeld, chief economist at the Canadian Imperial Bank of Commerce, when asked about the Liberals' inflationary bill, stated in the Vancouver news:
While there are times where fiscal largesse is just what the economy needs, these aren’t such times. In a period of high inflation and excess demand, cutting taxes or handing out cheques can add fuel to the inflationary fire, and make the job of a central bank that’s raising rates to cool demand all that more troublesome.
In a recent news article published in Bloomberg, Mr. Robert Kavcic, senior economist with the Bank of Montreal, cautioned against new government support measures, stating, “We’re not going to deny that there are households seriously in need of help right now in this inflationary environment. But, from a policy perspective, we all know that sending out money as an inflation-support measure is inherently inflationary.”
While the Prime Minister flies around the world in his private air accommodations, espousing the virtues of a green economy and warming up his vocal cords with a little rhapsody at his hotel lobby debut, hard-working Canadians here at home are tightening their belts and making tough choices. The average family of four is now spending over $1,200 more each year to put food on the table. This is not to mention the rising costs of heat, gasoline and rent.
However, the Liberals' one-time support benefit is for $467. Who does this help? Individuals without children earning more than $49,200 or a family of four, a couple with two children, earning more than $58,500 would receive no benefits, and it certainly would not help Canadians who are not renting.
By printing more cash, the government's inflationary spending does nothing to help Canadians who are struggling to make ends meet. Because of the Prime Minister's uncontrolled spending with borrowed cash at higher interest rates, all Canadians will feel the pain of more inflation and higher prices, making it harder for workers, families and seniors to make ends meet. For years, the Conservatives have warned the Prime Minister about the consequences of his actions and how much they hurt Canadians from coast to coast to coast.
The GST rebate will provide welcome relief that the Conservatives support, but it will not address the real problem. Inflationary deficits and taxes are driving up costs at the fastest rate in nearly 40 years.
To avoid adding costs to government, this side of the House proposes that the government look for savings in other areas to pay for its proposals. I do not stand here simply to criticize; I can also offer suggestions. For example, I fully support eliminating, and completely not allowing back, the ArriveCAN app. That would give us a cost savings of $25 million a year. Here is one the NDP should be able to get onside with: Let us scrap the $35-billion Infrastructure Bank to cancel corporate welfare programs that only help large and powerful companies.
Families are struggling now more than ever and they need help. Bill from Grand Falls-Windsor is wondering how he will be able to heat his home this winter and keep food on his table.
Let us ensure we do this right. Borrowing money to give this much-needed one-time help, in the long run, will do more harm and we will be right back here again. It is time to stop the vicious circle the government has created. Borrowing money to give to people who are struggling due to the high cost of living will only increase the cost of everything and drive up inflation. The Canadian economy has been thrown off a cliff, but unlike the Prime Minister when he bungee jumps, it does not have a bungee cord to stop it from crashing.
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Madam Speaker, it is not up to political parties to decide what is causing inflation. In a recent paper from the University of Calgary, economists found that three-quarters of inflation in Canada since the second quarter of 2021 has been driven by supply-side challenges such as food crops and oil production disruptions, for example.
The GST credit top-up we are discussing from this bill would be received by low- and modest-income households, folks who would be using the additional benefit to purchase the same goods they would have otherwise already consumed. It is the same reason that investing in the Canada disability benefit would not be inflationary spending.
Is the member for Coast of Bays—Central—Notre Dame aware of, and has he seen, this research?
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Madam Speaker, behind all these numbers and causes, behind what we call inflation, the risk of recession and the economy, are human beings. I would propose taking a people-centred view or reading of what we experiencing as a result of this pressure, this crisis, this inflationary spike.
First, the bill proposes—and it is very technical—to amend the Income Tax Act with a temporary enhancement to the goods and services tax and the harmonized sales tax credit. The bill effectively creates a new refundable and therefore tax-free tax credit of $229.50 for a single person, $459 for a couple, and $114.75 per dependent child. People will then receive a cheque.
Obviously that is a good thing. I was saying earlier that we need meaningful solutions that are not strictly one-time measures. However, if they are, they need to be targeted in order to help the people who need them most, those who are struggling to make ends meet. To be eligible for the full amount, people have to have earned less than $39,826 in 2021. The cheque is reduced by 15¢ per dollar for people who earned more than that amount. In the end some 11 million people will have access to this measure.
The Bloc Québécois obviously supports this bill. A rare consensus has emerged in the House to get this small measure passed. It should come as no surprise that the Bloc Québécois agrees with Bill C-30, since we included this measure in the budget expectations we sent to the Minister of Finance back in March. Inflation demands a comprehensive approach to the economy. What we need to avoid above all else is proposing simplistic measures that may look very interesting on the surface and fire up our collective imagination but that, in reality, are not sustainable or strategic for the economy.
Since the pandemic, the Bloc Québécois has always been in favour of government intervention and support. However, while we did need to support the people who really needed it, the Bloc said very early on that the measures needed to be adjusted to avoid any negative effects.
That is the same message we are sending the government about inflation. We want the measures to be adjusted so they are properly targeted, well thought out and intelligent. However, the document that was tabled, which proposes $100 billion in spending, is all over the map. It does not have the comprehensive approach and meaningful measures we advised.
Statistics Canada has identified the factors behind the rapid increase in prices, such as food prices.
These include ongoing supply chain disruptions, Russia's invasion of Ukraine, extreme weather and higher input costs. This situation calls not for one-time measures, but for long-term measures that will have a meaningful effect on the economy and provide predictability for people grappling with these ups and downs. Those are the kinds of measures that the Bloc Québécois is proposing to fight inflation. It is not enough to say that gas taxes must be cut.
I am a consumer and, unfortunately, I still have a gas-powered vehicle. Naturally, I would be happy to stop paying tax on gas. As I am protected by parliamentary privilege, I will say that it seems like the price at the pump is fixed by some kind of cartel. There seems to be some collusion in that regard.
I have never known oil companies to not turn a profit and not take advantage of all that. I even have the sense that there is enough fossil fuel for the next 50 years, but that they want to make us pay more because they know all this will end soon, given all the transitions that must be made.
Bernard Landry was one of my mentors, and he told me that he would love to do this, but he was not sure the money would reach consumers.
The government is getting richer as it collects more taxes on the higher prices. It should take this surplus and redistribute it intelligently, implementing targeted measures for people in need. I am not an economist, but I have learned that the last thing we should do in an inflationary period is unilaterally lower taxes. Not everyone needs that anyway.
In addition, the government should use its surplus to rebuild the economy and insulate it from a future inflationary crisis or recession. It must invest in the parts of the economic system that will enable us to face the challenges of tomorrow. One of those challenges is the labour shortage. I will come back to that because what is really bothering me at this point is the fact that our seniors are the first to suffer from higher inflation. A society that cannot take care of its frailest, most vulnerable members is a society that is heading for disaster.
Seniors no longer have an income or a salary that could increase. Their income is capped. They have a small amount of savings that is dwindling, causing them stress. As my mother used to say, people do not die of good health. We must therefore take care of these people, and those who are still able must be allowed to rejoin the workforce because there is a labour shortage. These are skilled workers, and if any of them are willing to go back to work, we should let them. It is going to take meaningful measures to fix this issue, and that is what I meant when I was talking about meaningful solutions. The Bloc Québécois has many to propose.
I am now ready to take questions.
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Mr. Speaker, the hon. member speaks on economic policy. I think he would know that with inflation no one has a perfect handle, exactly. Its root causes are driven by a lot of different factors. Whether they are demographic, supply chain or government spending, there is a whole lot in it.
When the government tabled its budget in the spring, it would have been looking at the situation and wondering whether that inflationary period was going to continue. It is clear that it is still hanging on right now. Notwithstanding that the work of the Bank of Canada to help bring down demand and inflation, we felt it was necessary at this point to put support measures in place. We do not want to overplay our hand. We do not want to pour fuel on the fire. Notwithstanding that the member would have liked to see even more support at that time, we think it is important to hold back some of that support until such time that it is needed. The government feels that right now is an important time.
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Mr. Speaker, I will say this: We have had the backs of Canadians since day one, when we formed government in 2015. We demonstrated that through the COVID-19 pandemic and will continue to demonstrate it now that we have inflationary pressures hitting Canadian families. Whether it is through the Canada child benefit, the raising of old age security by 10% for seniors, or lowering the age for seniors from 67 to 65, we have introduced a number of measures. We have lifted hundreds of thousands of Canadians out of poverty. We will continue to do so with targeted measures and good policy that is good for our economy, good for people, reducing inequality and ensuring inclusive economic growth.
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Mr. Speaker, there is one thing the Conservative Party suggested to counter inflation: cryptocurrency. We learned in a recent Privy Council backgrounder that cryptocurrency offers no protection against inflationary shocks.
This summer, cryptocurrency lost half of its value compared with the beginning of last year. I would like my colleague to explain why it is that his leader, the hon. member for Carleton, claims that cryptocurrency protects against inflation. Specifically, I would like to know whether my colleague really believes that cryptocurrency is protected from surges in inflation.
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Mr. Speaker, I stand here in the House of Commons today in a very sheltered environment. Outside these walls there are many challenges. With the inflation rate now increasing to over 7%, we have seen in the last couple of months some of the highest inflation in the last 40 years.
The Conservatives, over the last seven years, have warned the Prime Minister about where the end of the road is and what the consequences are of his tax-and-spend agenda. However, our warnings have gone unheeded. This is perhaps not surprising from a Prime Minister who does not think about monetary policy.
Think about what that means, actually. The Prime Minister said this right before we headed into one of the biggest monetary disasters we have had in the last 50 years. He literally said that he does not think about monetary policy, which would later make single moms unable to feed their families and workers unable to put gas in their cars. It is unbelievable that he does not think about monetary policy. Perhaps he should think again.
As we talk about Bill C-30, it is important to put some context around the bill, and we need to start with the relationship between the economy and the government. Oftentimes, I find they unfortunately get confused in this House. We must first, as our bedrock, ensure that the goods and services produced in this economy, the wealth and prosperity of this nation, are primarily the responsibility of our businesses and workers.
It is through the delivery of those services and the production of goods that our country generates its value. When a company is able to produce more goods and deliver more services, or in other words increase our productivity, the prosperity of the nation increases. The secret of this, which is not often mentioned in this House, is that it is the most vulnerable who often benefit the most when the prosperity of the nation increases, and they suffer the most, as has happened in the last couple of years, when prosperity is under assault, this time by inflation.
A country can produce a modest, temporary and artificial increase in economic performance through monetary policy and the printing of money. When the government spends and spends on a spending spree funded by the printing of money, there is an initial exuberance that results as Canadians see money coming into their bank accounts. However, this exuberance is quickly replaced by disillusion as they realize the cost of everything has increased and benefits are now replaced by the stubborn and corrosive impact of inflation, which continues. Once it is out of the box, inflation runs and runs, eroding savings, eroding wages and eroding the pensions of seniors.
The true path to a more prosperous nation is not through the printing of money. It is through the creation of value. Specifically, we need to increase our productivity. When a nation can produce more goods and deliver more services more efficiently and effectively, it drives real value that increases the wages of workers and, dare I say it, increases the profits of businesses. It also creates jobs.
Unfortunately, the government appears bent on doing everything it can to reduce the productivity of businesses and workers, and we see the result of seven years of Liberal governments. Food inflation is at over 10%. It is 10.8%, to be precise. That is causing real-life struggles. Outside the comfort and shelter of these walls, there are people who will go to bed tonight hungry, and probably many more people than in the last decade or two decades. That is because of the impact of a Prime Minister who does not think about monetary policy.
Food inflation at 10.8% has caused a 20% increase in the last two years in the use of food banks. Think about that. Some 20% more Canadians are going to food banks now than did two years ago. In addition to that, 20% of Canadians have had to make changes in their diets. About 8% of Canadians out there are skipping meals. This challenge is not just for adults but for children. In fact, people who have children are now three times more likely to go to a food bank than those who do not. This is making life more difficult for all Canadians and the most vulnerable, and children are among them.
It is not that Bill C-30 is a wrong step. It is just unfortunately too little too late, as it were. I will be supporting this legislation because it is going in the right direction, but let us look at, first, the fact that it is months behind when any type of relief was needed. Second, let us look at the quantum or the amounts of that.
Keeping in mind the statistic that food inflation is up over 10%, it is increasing the amount that families spend on food by over $1,300 a year. This GST/HST temporary relief, according to the finance minister, who went before the committee, will create somewhere between $450 and $500 in benefits for the families that are eligible. However, as we have heard throughout this House, many are not. This is nowhere near the amount of relief needed. Ultimately, that relief will come from our workers and businesses, but they need to be empowered, not penalized.
Thomas Sowell once famously wrote that he never understood why it is greed to want to keep the money we have earned but not greed to want to take money that other people have earned. That is a lesson the government needs to hear loud and clear.
Some will say, and it was even in the news in the U.K., that tax relief is inflationary. I am here to say that when done correctly, it is not. In fact, it is the exact opposite of what happens when the government spends and is funded by debt or the printing of money. I will give four examples.
When John F. Kennedy cut taxes in 1963, the inflation rate the year before a massive tax cut in post-world war United States was 1.2%. In the year after his tax cuts, it was 1.28%. When Ronald Reagan introduced in the United States a massive tax cut in 1981, it came into effect in 1982. In 1981, the inflation rate was 6.13%, and the inflation rate in 1984 was 4.3%. That is a decrease of 2% after massive tax cuts. Once again the Reagan administration cut taxes in 1986. In the year before, the inflation rate was 3.9%, and in the year after, it was 3.65%. When Prime Minister Harper reduced the GST, the inflation rate in 2007 was 2.1% and the inflation rate in 2009 was 0.3%.
Inflation is not fuelled by tax relief. What is fuelled is our economy. We need to give more relief, and a great way to do it is to cancel the planned tax hikes that are coming into place. The government will triple the carbon tax by 2030, and starting this April, it will increase the taxation on nearly everything, which includes heating, gas and groceries. It is increasing the cost of everything. That, by definition, will increase inflation.
When we see Canadians working hard and trying to save what money they can, and when we have food inflation at 10%, is the government's response to reduce taxation? No, it is not. It is increasing the tax on paycheques starting April 1, and a sizable number of taxes will be increased. This is not the time for this. In my estimation, it is never the time to increase taxes given our current rates, but this is certainly not the time, as it will drive inflation and make our economy less productive.
When we look at what we need at the end of the day in order to solve this affordability crisis, we need to not drive artificial monetary policy through the printing of money, as we have seen what this can create. We do not need more government spending funded by the printing of money. We need our economy to increase its productivity. How we do that is by supporting our workers, empowering our businesses, supporting all Canadians, getting the government's hands out of their pockets and, instead, giving them a helping hand by reducing their burden in the future.
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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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- Oct/4/22 2:22:15 p.m.
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Mr. Speaker, the accounting firm MNP reported this week that almost half of all Canadians are about $200 away from not being able to pay their bills. That means insolvency for nearly half the population. This is the result of seven years of this government's inflationary policies.
What is the Liberals' solution today? It is to raise taxes, including by tripling the carbon tax on gas, home heating and groceries.
Will they cancel this plan to triple the tax?
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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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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, I want to quickly raise that students will actually be paying higher interest rates under the government. That is something that has recently been revealed. The member may want to consider his caucus talking about that.
The member talked about fiscal discipline. Conservatives are supporting this bill because it has targeted tax relief to help Canadians who are struggling right now. However, will the member recognize that right now the average family of four may receive $467, but they are going to be paying over $1,200 just in groceries alone? The Governor of the Bank of Canada has written to the finance committee saying that the carbon tax is an inflationary tax and that the government's plan to triple, triple, triple the carbon tax over the next few years is going to hit them the hardest, by paying more for groceries, gas and heat.
Does the member recognize that fiscal discipline means recognizing when people are at a breaking point?
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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, the Conservatives will always support lower taxes. That is why we are supporting Bill C-30. My concern is that with one hand, the government is giving a few hundred dollars back to Canadians, but with the other hand, it is actually taking that money away by increasing payroll taxes and the carbon tax and by continuing to spend in a way that financial experts are saying is fuelling the inflationary pressures we are seeing.
Would the member agree that this temporary band-aid is really not going to fix the problem?
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Madam Speaker, this Liberal government's inflationary policies have made Canadians so poor that the only outing they can afford each week is to go and pick up their mail at the mailbox. They go and pick up the bills that they cannot afford to pay because of the Liberal policies that have been in place since 2015. Canadians deserve better. Canadians deserve change. That is what they are going to get in the future.
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Madam Speaker, yes, before 2015, Canadians could think about saving because they paid less taxes and had the chance to have a future. At present, with all this inflationary government's taxes, Canadians are stretched to the limit and are tightening their belts to the last notch to survive. To give all Canadians hope, there must be real change, and that is what will happen in the future.
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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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