44th Parl. 1st Sess.
October 5, 2022 02:00PM
Mr. Speaker, there is no doubt that, when we increase the size of the pie, everyone benefits. The reality is that when the pie shrinks, it is the most vulnerable who suffer. Like I said, 10% food inflation and 7% inflation in general are hurting people on fixed incomes the most, those folks who are wage earners and those who are trying to climb up the opportunity staircase. They are being brought down by the corrosive impacts of inflation. That is why we need to get this tax-and-spend NDP-Liberal government under financial control.
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Mr. Speaker, it is an honour to once again rise in the House of Commons. It is great to see many members of Parliament returning to be in person in the House of Commons once again. It is great to see. It is great for camaraderie in the House to be able to connect with other members, not only within our own party but also with the parties across the way.
Throughout the summer, I did hear from many people who are worried about the cost of living, which is what brings us to the bill we have here today. Many people are doing their very best to survive. I am sure that all members should be aware by now that this is not only a regional problem. It is not only affecting my riding. It is affecting people all across the country. As a result, Canadians are worried about what is happening right now with our economy and where it is headed.
It has been a really difficult year for a growing number of people. We have seen our inflation rate reach levels not seen in almost 40 years, which would be before I was even born.
Back in the early to mid-eighties, my parents had to deal with buying their farm with interest rates at around 18%. We are already hearing some rumblings of a recession, which should take us back to that time once again. I know that many people are not too excited about the prospect of interest rates of even 8%, let alone 18%.
For a lot of younger Canadians today and, in particular, a lot of young farmers and ranchers in my riding, it is already hard to imagine ever getting ahead, finding opportunity or even achieving a dream as simple as owning a home. Now they have to deal with everyday essentials that are basically unaffordable, never mind trying to think about the future for themselves or their families, if they can start a family in the first place.
In response to this situation, we have Bill C-31 in front of us today. Sadly, there is no sign that the Liberal government will acknowledge the full scale of the problem.
They also do not want to talk about where the problems are coming from or admit that reversing their failed policies is part of the solution. Since taking power over seven years ago, the Liberal government has been short-sighted with promoting and developing our industries. Strengthening our economy simply has not been a priority, and some of our strongest assets, such as the energy sector, have consistently been punished instead of supported.
This left us in a vulnerable position, where we were unprepared for whenever a new crisis would eventually come along. As a result, Canadians continue to suffer the consequences of these bad decisions. At first, the Liberals were simply ignoring the issue for a while, but they cannot say that we didn't warn them.
Once it was clear that our national economy was getting into trouble, the Liberals went right ahead with their same old approach. As much as they try to pretend otherwise, big spending is not going to make our troubles disappear. It actually adds fuel to the fire at a time when the flames are out of control. That is what Canadians are seeing and living right now with their cost of living.
Last year saw inflation rise quickly and stay high above the target of 2%. After the Liberals could not ignore it anymore, they decided to downplay it. They would say, “Do not worry. It is just temporary.”
That is basically what the Deputy Prime Minister and Minister of Finance said back in January when I asked about their projections at the time. She said:
Inflation is currently higher than what we were accustomed to over the last decade. This is true in Canada and in many other countries around the globe. This is a matter of concern to the Bank of Canada and the government. However, most market observers around the world view the factors keeping inflation elevated to be temporary. As a result, the Bank of Canada expects inflation to ease back and to reach its 2% target by late 2022.
That was their prediction, on the record, and they have not really reconsidered it since then. Even though that clearly did not turn out to be the case, we will not hear the Liberal government take any responsibility for what Canadians are going through today. To this day, they will never dare admit that they have contributed to it. Anything or anyone else is to blame except for themselves.
After the budget, I asked again if the government had any plans to control inflation, just in case they were wrong in saying that it might not actually be that big of a deal. Once again, there was not much of an answer. Besides mentioning the Bank of Canada hiking interest rates, they pointed to the type of proposal we find in Bill C-31, along with national child care.
Over the summer, while Canadians faced worsening challenges, the government finally realized that it might start to affect them, after seeing some signs that it is losing public support over its approach. It tried to generate some new excitement in the media about how it was putting together a plan to help with the cost of living but, so far, the Liberal plan appears to be changing nothing from what they were doing before. There is no readjustment in sight.
That means that it is attempting to help with affordability in limited ways without fighting inflation, which should be a non-starter. If we look at Bill C-31, we will find that the Liberals propose to handle inflation with new programs that require a lot more inflationary spending. By definition, that will not make things better overall.
It might be a political price for a coalition with the NDP, but paying it will end up costing Canadians, who will continue to struggle with affordability. That is because none of this amounts to a full-scale plan or a serious effort to fix the root cause of something that is impacting all Canadians.
If that continues unchecked, it is easy for the problem to stay with us and get worse. After spending billions of taxpayer dollars, it could help the effects of inflation persist and cancel any net benefits to affordable living. If that happens, what will the government tell Canadians then? Even with affordability, the Liberals are missing the mark. They are well aware that food and fuel are two of the biggest things driving inflation, and they want to make things worse in both of these areas.
When Canadians started to see the highest gas prices ever at the pumps, Conservatives voted for a temporary suspension of the carbon tax, but the Liberal government refused to do it. We are dealing with food prices rising at the fastest pace in 40 years. At a time like this, I have to remind the government that it is our farmers who grow and raise it in the first place. The same carbon tax is hitting them year after year, and the Liberals, the NDP and the Bloc are all comfortable with tripling it going forward.
Instead of changing direction, they are doubling down, even tripling down. The Liberals deny that it is doing any damage because the rebates are giving people more money back than they pay, at least that is the government's idea of affordability. Many Canadians know that is not happening for them, especially in small towns, particularly in rural Saskatchewan and especially for our farmers.
I have seen a bill from a farmer that shows the added cost of $1,100 in one month, just in carbon tax. It definitely does not match the annual rebate given for my province.
The Liberals are also bringing another attack on agriculture through an unrealistic target for fertilizer emissions. After being asked multiple times, they have not ruled out a restriction or a ban as seen in other countries. That type of policy would be disastrous for producing food, and it should be unthinkable when the world is already trying to avoid catastrophic shortages.
It should come as no surprise that the Liberals are not interested in prioritizing people's needs over their political projects. The real concern for achieving affordability has been noticeably lacking. How can Canadians believe the same government's claim that their new programs are supposed to be the answer? It all sounds more like an excuse. The government's past record speaks for itself.
Even with child care, as another recent example, the government's plan is designed for specific circumstances involving day care. What is it doing for any families who want to live on a single income and take care of their own children in their own home? The Liberals are the ones who removed income splitting, which helped these families afford whichever decisions were right for them. With the way it has been handling everything, the government's failed priorities have added extra pressure in the lives of these families and excluded different options for them.
Meanwhile, they are not addressing the larger problem behind the costs that all families have to deal with. That can only be done by actually fighting inflation and strengthening our economy as a whole. We are demanding something better for Canadians.
We cannot pretend the Liberals are offering any lasting solutions by simply repackaging their platform, a platform that has consistently been proven not to work.
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Mr. Speaker, for weeks we have been hearing the Conservatives talking about “triple, triple, triple” when it comes to the carbon tax.
In my province of British Columbia, the price of gas has gone up about a dollar a litre this year. The whole carbon tax, even if we got rid of the carbon tax, is just 10¢ or 11¢ of that. It is 1% of the greedflation we have seen from the oil and gas companies.
The increase that is going to happen this year is 2¢ a litre. Again, that is 1% of the price we are paying for fuel across much of the country. Today the price of gas was supposed to go up 10¢. If we got rid of the carbon tax, we would be back to where we were yesterday. This would not solve the problem of inflation for Canadians.
Could the member comment on that? All this talk about the carbon tax will do absolutely nothing for most Canadians. They need real help, and that is what the NDP is delivering tonight with Bill C-31.
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Mr. Speaker, this is a very simple question. The member spoke quite a bit about inflation being caused by government spending. Can he explain to the House why he is voting in favour of Bill C-30, which is for spending money to give people more in GST rebates?
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Mr. Speaker, I am happy that my hon. colleague from British Columbia talked about the rental aspect of this legislation. I was talking with a constituent of mine, and we were trying to understand how significant the one-time $500 payment is. This family purchased a new home but was budgeting at a lower interest rate. In the meantime, interest rates have gone up 2.5% to 3%, which made a difference of $700 in their monthly payments. That is an inflationary cost.
I wonder if the member could comment on the importance of managing inflation and getting it under control, and how beneficial that would be for working-class people and poorer families that need dental care.
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Mr. Speaker, I agree that inflation is hurting Canadians. There are all these aspects to inflation. We have heard a lot about the price of gas. We have heard a tremendous amount about the price of housing and the impossibility of owning a home for new homebuyers in Canada. With the skyrocketing cost of rent in my riding, it is almost impossible to find rental accommodation of any sort, let alone afford it.
I agree that the top-up we are talking about helps people who are really in need of that help. These are people who are spending more than 30% of their income on their accommodation, on their rent. If someone were to tell them that $500 is not enough, they would say that it would be a big help.
We need to tackle the housing situation. The NDP wants the government to build 500,000 units of affordable housing to catch up to where we should have been had the federal government not gotten out of the affordable housing game back in the nineties. Yes, there is a lot for us to do to tackle housing and inflation, but Bill C-31 is an essential and very impactful, beneficial bill that would help the millions of Canadians who are struggling with their costs today.
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Mr. Speaker, I am wondering if the member can weigh in with his thoughts on what is causing inflation. The Conservatives are railing on about inflation being caused by government spending. Ironically, this is government spending they voted in favour of, but I will park that for a second.
An hon. member: No, they didn't.
Mr. Mark Gerretsen: They did. It was 400 billion dollars' worth.
Can this member give us his insight into what he thinks is causing inflation? Does he agree with the Conservatives' principal argument that we should not be spending money on this very important piece of legislation because it is just going to add to inflation, despite the fact that economists resoundingly say it will not?
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Mr. Speaker, I will not go into the whole spiel on inflation; I do not have that much time here tonight. However, when we look at the extraordinary profits of oil and gas companies and the extraordinary profits of the big box grocery retailers, it is clear that they have taken advantage of this situation. Because of factors coming out of the pandemic and because of the war in Ukraine, prices have started to rise, and they have taken advantage of that and added their own excess profits on top of it. That is one of the biggest factors in inflation.
Perhaps some of the government spending did cause inflation. If we look around the world, Canada is in the middle of the pack when it comes to how bad inflation is. However, what economists have been saying about the measures we are talking about here tonight, such as dental care for people who need it, a housing top-up for low-income families struggling to pay their rents and the GST rebate that has been doubled, is that those kinds of targeted programs do not cause inflation. If the Conservatives are concerned about inflation rising because of this, the experts will say they are wrong.
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Mr. Speaker, it is a pleasure to rise again today on Bill C-31. From the outset, let me make it clear that I will be voting against this bill, because the NDP-Liberal government is driving up the cost of living. The more it spends, the more things will cost.
In reference to the commentary I just heard, Derek Holt, vice president and head of capital markets economics at Scotiabank, stated:
[I]t seems sensible to assume that this will add to pressures on measures of core inflation.... Any belief that it relieves inflationary pressures must have studied different economics textbooks.
That is in reference to the government spending we are talking about here tonight.
The senior economist at the Bank of Montreal said, “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.”
Therefore, I would disagree with the previous speakers that the bill before us today will not impact inflation. I believe it will, and that is one of the primary reasons I will be voting against this bill tonight.
On the dental plan, which is the first part of this bill, I looked at it in the context of British Columbia. On page 4 of the legislation, paragraph (d) states:
they make the application in respect of a person who has received or will receive dental care services the costs of which have not been and will not be fully paid or reimbursed under a program or plan established by the government of Canada or of a province;
We have heard a lot tonight about the top-up being $650, but I am wondering how far that will actually go for children under the age of 12 who could be eligible for the program with parents with an adjusted income of up to $90,000. In the province of B.C., people can qualify for dental insurance, for example, if they are on income assistance. They get $2,000 over two calendar years and an additional $1,000 for anaesthetics, so I really hope that when this bill is studied at committee, the provisions on page 4, under paragraph (d), are looked at very closely in the context of the impact this will have, if any, for the people of British Columbia.
On the second part of the bill, I will acknowledge that $500 does go a long way for many people. One of the concerns I have is about how it will help people who are homeless and did not file taxes last year. Will they be eligible for this money? I do not know. I was thinking, when preparing for this speech, of a man named Darryl, whom I met at the truth and reconciliation event the other day. It got me thinking that Darryl suffered at St. Mary's Indian Residential School, where we had the event. He is homeless. He does have a community. He is supported by the friendship centre, but he still lives on the streets. Darryl is not going to benefit from the support being talked about here tonight.
I would be remiss as well if I did not mention how it relates to affordability. The average price for a one-bedroom apartment in Vancouver right now is $2,600 per month. That means the $500 will not cover a quarter of what someone has to pay to live in the most populous city in the province of British Columbia. That makes me wonder if this will have the economic impact that the government and the New Democratic Party believe it will have. In fact, I do not think it will have much of an economic impact, although I acknowledge it will, for one month, help those making up to $35,000. However, it will not address the structural challenges impacting the Canadian economy, which allow for prices to rise on a month-to-month basis right now.
I think the Government of Canada could be focusing on some other measures that would actually help address inflation and the cost of living. I mentioned Darryl earlier, from the truth and reconciliation event. What about indigenous solutions? The Auditor General has written many reports about the poor service delivery from Indigenous Services Canada that indigenous people have to deal with on a regular basis.
The other day, I went golfing with my friend Joey from Sq'éwlets First Nation. He talked to me about there being an ever-revolving door of representatives from ISC that his band has to deal with. Why is the government not right now focusing on helping indigenous people build more homes and making it easier to build more homes with Indigenous Services Canada? That could have a really big impact on addressing the affordability challenge and the disproportionate number of indigenous people who lack sufficient housing. That would have a real impact in Mission—Matsqui—Fraser Canyon.
During the last election, the Government of Canada talked a lot about the housing accelerator fund. In fact, it was one of the Liberals' premier promises. They said that by 2024-25, the Government of Canada would build 100,000 new homes by addressing some of the challenges that municipalities face. In other words, that would be red tape.
Here in the House of Commons, the opposition members talk a lot about red tape because it impacts so many of the people we represent. David Eby, who is running for the leadership of the New Democratic Party in B.C., actually agrees with the official opposition and put forward a plan that would cut red tape across municipalities in British Columbia. Even the Government of Canada agrees that cutting red tape would address affordability. Therefore, why are we not talking about something that is going to decrease the biggest expense that people are facing? That is the cost of a home and building homes.
I asked the government the other night how many homes it has built so far under the accelerator fund? They could not say a single one. The government needs to build more homes and work with the provincial governments to cut red tape at the municipal level so we can give people what they want.
The third thing we could do to address inflation relates to agriculture. As members know, Mission—Matsqui—Fraser Canyon has some of the best agricultural soil found anywhere in the world. We grow blueberries. We grow wine. We produce more milk per capita than almost any other riding in the country. We have a thriving poultry sector. We grow a variety of vegetables as well. We are one of the key agricultural areas in all of Canada.
The other day, I was at the Agassiz Fall Fair, which is a celebration of Canadian and especially British Columbian agriculture. Farmer after farmer who spoke with me said that they were scared. Government wants to increase their input costs, which include insurance because that costs them money, but they said that if the government does what it plans to do they are effectively going to be out of business in some cases. Therefore, the government needs to provide business confidence to our agricultural producers to give Canadians what they want, which is locally grown, nutritious food that will reduce the costs that people are seeing at the grocery store right now.
We are so thankful for and so proud of the agricultural produce in the Fraser Valley and Fraser Canyon regions. The government needs to stand behind our farmers, get out of the way and say that it is not going to increase the fertilizer costs that would impact the rate of production we are seeing. Canada has a special role to play right now in addressing the global food crisis. Let us stand with our farmers. Let us help the world feed itself with nutritious Canadian food.
The fourth thing we need to look at is supply chains. It was just last year that British Columbia was effectively cut off from the rest of the country. With respect to Highway 3, Highway 1, the Duffey, the CP rail line and the CN rail line, we were cut off. The Port of Vancouver had a huge delay after that. What is the government doing to look at the structural transportation challenges that add additional costs to the movement of goods and people in this country? Every parliamentarian would stand behind faster transportation and the faster movement of goods. Let us work together and address that key problem.
The fifth thing that we need to address is the cost of government spending. It goes up and up and up, and people want some accountability. Under the current government the public service has grown by 24%, yet the service delivery has decreased substantially. All of our offices feel that, including immigration, CRA, CPP or whatever it is. Let us work together. Let us improve accountability and hold our public servants accountable to do the job that they are paid to do. Let us work together to see that happen.
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