44th Parl. 1st Sess.
October 4, 2022 10:00AM
Madam Speaker, I am sure my colleague from Winnipeg North will agree with the Bloc Québécois that fighting inflation and avoiding a recession calls for sustainable solutions and intelligent measures. One-size-fits-all is not the answer. We definitely have to steer clear of measures that, although popular, or even populist, are not real solutions.
Basically, we have to steer clear of measures designed primarily to win votes.
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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, 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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