44th Parl. 1st Sess.
October 4, 2022 10:00AM
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, 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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- 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 2:54:09 p.m.
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Mr. Speaker, it is not news to my colleagues that the cost of living has now made things so difficult that more and more Canadians are living paycheque to paycheque. The Conservatives have made concrete suggestions to give them a bit of relief: Cancel the January 1 tax increase and above all cancel the carbon tax that the government wants to triple.
What is the government doing? It refuses to listen. Is it too much to ask this government and the Prime Minister of Canada to please listen and be compassionate?
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