44th Parl. 1st Sess.
November 16, 2022 02:00PM
Mr. Speaker, it is always a pleasure and a privilege to rise on behalf of the residents of Vaughan—Woodbridge and the city of Vaughan, who in my view are the most entrepreneurial and generous in the country. I may be biased, but I think it is true.
I rise today to speak to the government’s fall economic statement and Bill C-32, the fall economic statement implementation act, 2022, at a critical juncture for Canada and, frankly, the world. Broadly speaking, I wish to highlight three themes in the fall economic statement.
The first theme is that the fall economic statement is a fiscally responsible and balanced document that would ensure that Canada’s strong financial position and fiscal framework anchors are maintained. In economist speak, it means our AAA credit rating is left intact, as noted by Moody’s, which recently affirmed our AAA rating, reflecting high economic strength, a very strong institutional and governance framework and, in addition, fiscal policy effectiveness. That is check mark number one.
The second theme is that we, as a country and as a government, undertake the necessary investments in our people to help make life more affordable and to assist the Canadians most impacted by inflation, with measures such as doubling the GST rebate, increasing old age security by 10% for three million seniors, which we did in the summertime, and enhancing the Canada workers benefit for low-income workers, which will provide an additional $4 billion in payments over the next six years for people who qualified for the benefit in the previous year, through advance payments.
The Canada workers benefit is something that we have adjusted, strengthened and improved three times now. It helps millions of Canadians and Canadian families from coast to coast to coast; it is lifting people out of poverty, and it is a really effective tool to help Canadians impacted by inflation. I was very glad to see it in the fall economic statement as an enhanced measure. We are providing $500 lump-sum payments to approximately 1.8 million Canadians. The GST rebate, as I mentioned, will assist over 11 million Canadian households. The first step in the Canada dental benefit is $1,300 for individuals who do not have private insurance coverage for their kids. All Canadian kids should be able to go to the dentist.
The third theme in the fall economic statement, in my view, is a focus on wealth creation by responding to the environment we, as a nation, find ourselves in. Let me explain. In today’s world, relationships between countries are being and are now reshaped; economies are being repositioned due to the realignment in the global economy; there are associated competitive challenges and even threats and security challenges, and the world’s quest for security and affordability of energy and food have never been more prominent.
The war in Ukraine, the ongoing ascendancy of China economically and militarily in many parts of the world, the climate change crisis and a renewed and reawakened United States post the Trump presidency require an unequivocal, firm policy response from our government, and the fall economic statement lays a path for that response.
Specifically, we need to respond to the competitive challenges laid out by the Biden administration. The measures quite deftly passed by the Biden administration, I believe, put the economic leadership of the United States front and centre and, frankly, change the world economic game. The Biden administration’s passing of the infrastructure bill and the Inflation Reduction Act, by some estimates, will put investment at nearly $2 trillion in clean technology and clean energy measures over the next 10 years. The CHIPS and Science Act, which is reshaping science and technology in the United States, specifically on the chip manufacturing front, and a majority of the fiscal policy in the prior administration, which was left intact, required a response by our government.
The decision we make as legislators today will put in place a direction for our economy and for our country’s future and will have a profound impact on the living standards of Canadian citizens for years to come. Today, more than ever, responsible and focused leadership is demanded. That is what our government is committed to doing, and that is what is contained in the fall economic statement.
The fall economic statement responded with measures to ensure Canadian businesses and workers have the tools to not only compete but also succeed in the global economy and, yes, to benefit from the ongoing transition to a net-zero economy, which is happening at an accelerating pace not only here in Canada but throughout the world.
One of these measures that I would like to touch upon in the remainder of my time is an investment tax credit for clean technologies: a refundable tax credit equal to 30% of the capital cost investments in electricity generation systems, stationary electricity storage systems, low-carbon heat equipment, and industrial zero-emission vehicles and related equipment.
Another is an investment tax credit for clean hydrogen production, as we know that Canada can be the premium supplier of energy in a net-zero world, and clean hydrogen is a part of the solution.
A third is accelerating the transition to a low-carbon economy with the launch of the Canada growth fund. We know there are literally hundreds of billions of dollars of private capital that will be put to use in the transition to a net-zero economy, not only today but going into the future. These private investment dollars will create the good jobs and the prosperity for Canadian workers here in Canada that a net-zero economy will bring.
Canada is an open economy. We succeed when we trade, when we attract investment, when we compete and yes, when we win. That is most certainly what we are doing these days. The aim is simple. We need to ensure an environment that harnesses private sector capital, works well with the public sector, creates good middle class jobs and assists those wanting to join the middle class. We want to ensure that economic growth, which we have seen a lot of, is inclusive economic growth, so that all Canadians benefit from strong economic growth in our country. We are uniquely positioned in the world.
The Canada growth fund would utilize public funding to attract private capital and create jobs with a mandate to reduce emissions and achieve Canada's climate targets; accelerate the deployment of key technologies, such as low-carbon hydrogen and carbon capture and utilization; scale up companies that would create jobs and drive productivity in the clean economy; and, most importantly, capitalize on Canada's abundance of natural resources and strengthen its supply chains.
The growth fund will be launched by the end of 2022 and begin immediately to make the critical investments needed to meet Canada’s climate and economic goals.
Another pillar of growing Canada’s economy is investing in Canada’s advanced manufacturing competitiveness, with consultations currently taking place and measures to be laid out in budget 2023.
I also wish to speak to Canada as a place in the world for electric vehicles. I am the chair of the Liberal auto caucus. I meet regularly with the Global Automakers of Canada, or the GAC, and the Canadian Vehicle Manufacturers' Association. I meet with the parts suppliers and all stakeholders, including the Mining Association of Canada, and infrastructure participants that include charging stations and the key technologies that will transition what I would call the auto caucus and what in the future will be the electric vehicle caucus.
That is where the world is going. That is where Canada is going. We are uniquely positioned, with our human capital, our people, our know-how, our entrepreneurial spirit and the natural resources the country is blessed to have.
With that, it was great to see yesterday, in the business meetings that were a prelude to the G20, that in Bloomberg's annual ranking of the battery supply chain, the crucial components going into electric vehicles, Canada had moved up the rankings to number two, in front of the United States, in front of Finland and slightly behind China.
Our government is making progress. We have collaborated with industry. We have collaborated with stakeholders. We are uniquely positioned. We are using our comparative advantage, and I love the words “comparative advantage” as an economist, to make sure Canadian workers and Canadian industry are positioned for electric vehicles and the production thereof. Quoting Bloomberg:
“Canada’s recent investment in its upstream clean energy supply and increasing demand in the US-Mexico-Canada Agreement (USMCA) region increase the country’s competitiveness,” wrote BNEF in a release accompanying the new report.
Published at the BNEF Summit Bali, the ranking sees Canada rise to the second spot this year, which reflects its large raw material resources and mining activity, as well as its good positioning in environmental, social and governance factors (ESG) and infrastructure, innovation, and industry.
Those are all words I love to repeat.
We have work to do. Another thing I wish to touch upon is our government's work with organized labour through UTIP, the union training and innovation program. Not to be slightly partisan, but we know the members on the opposite side love to attack Canadian workers and love to attack Canadian unions.
We repealed the anti-union legislation in 2015, and we will continue to stand up for union workers across this country, including those receiving their training in my riding at the Carpenters and Allied Workers Local 27 or LiUNA Local 183 Headquarters in my riding, which is moving its training facility. We will be there. We are investing in the union training and innovation program, and we will continue to do so. We are targeting 20,000 more apprenticeships. The UTIP program is transformational. I have been at the training facilities, where youth are receiving their training to build the communities we all live in.
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Mr. Speaker, I would like to begin by thanking my colleague for his speech. It is always nice to hear speeches with a focus on the economy.
As an economist myself, I would like to ask him the following question. Is it not true that a healthy competition regime is the cornerstone of a healthy economy? If that is the case, why is it that the 2022 budget talked about reforming the Competition Bureau, yet there was absolutely nothing about it in the economic statement that just came out? The commissioner of competition has been saying for months, as did the previous commissioner, that there are serious problems in the competition regime. These problems are not only affecting current prices, because of inflation, but also the productivity of our businesses.
Is it not time we reformed the Competition Bureau to improve the quality of life of Canadians and Quebeckers?
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Mr. Speaker, I thank my colleague from Terrebonne for her question.
I will say this. I completely agree with requiring more competition in our economy. Corporate concentration and crony capitalism are two things I detest. I dislike them very much.
In the summertime, changes to the Competition Act were made via the Competition Bureau. I will go back and check my notes to see if I am incorrect on that. I look forward to having a further discussion with the hon. member from la belle province on this exact issue.
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Mr. Speaker, I want to congratulate my hon. colleague on his speech. I agree with him. He is very eloquent.
I would like to hear his thoughts on the fact that the economic statement is yet another example of centralization. I think he mentioned the importance of small and medium-sized businesses for the economy and the entrepreneurial base. The Bloc Québécois also talks about this a lot. Quebec is home to many of these businesses. I think that centralizing all resources in Ottawa is detrimental to both the public and private sectors, and especially to our SMEs across Canada and in Quebec.
The federal government's tendency to centralize is problematic, and I would like my colleague to comment on that.
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Mr. Speaker, it is an honour to rise in the House today to join the debate on the fall economic statement, otherwise known as the FES. This year, the FES comes at a very difficult time, as the world is suffering from inflation caused in large part by Putin's illegal invasion of Ukraine, which has reduced the supply of oil and gas in the market and boosted the prices of energy and all the other goods and services that we buy. Similarly, the reduction in grain from Ukraine in the market and the many droughts and climate disasters have inflated the price of food.
To cope with inflation, we have seen the Bank of Canada and central banks right around the world raise inflation rates to cool an overheated economy. The result is that even Canadians I know who have secure, well-paying jobs are worried about balancing the rise in the cost of everything they buy with paying the mortgage, especially those who have a variable rate mortgage.
It is even more crushing for those who do not have this security. That is why we passed legislation to double the GST credit for six months, which will provide $467 for families; to provide an extra $500 in rent support for low-income renters; and to launch a dental care program for low-income families, starting with children under 12.
This, of course, builds on programs that we have brought in since 2015, like the boost to OAS and GIS for seniors, the Canada child benefit, and $10-a-day child care, all of which have lifted over three million Canadians out of poverty and brought Canada to its lowest-ever poverty rate. We believe our approach shows compassion for those who really need the support while being cautious not to make inflation worse with further spending.
With this in mind, enter the FES. The FES is meant to provide an update on the state of the finances of the government and to introduce limited new measures while signalling where the government intends to go with the next year's budget.
That is exactly what the FES does this year, providing important supports for young Canadians, low-income workers and small businesses, while showing how Canada is going to compete in the global race for investment and jobs in the low-carbon economy.
The next year will be really challenging worldwide, but there is no country in the world that is better positioned to thrive going forward than Canada. The measures in the FES will move us closer to that reality.
We know our country and our economy cannot thrive if we leave students stuck with crippling and ever-increasing debt. Over the last seven years, we have doubled the Canada student grants to help students pay for post-secondary education and made it so that students do not have to start repaying their student loans until they are making at least $40,000 a year.
During the pandemic we also suspended interest on student loans, and now, through the fall economic statement, we are permanently eliminating the federal interest on student loans.
In budget 2021, we increased the Canada workers benefit to provide up to $2,500 more in the pockets of families who need it most. Given that the high cost of living today puts a real strain on people's day-to-day lives, we are moving payments to be quarterly, based on last year's income, so they have the support now, when they really need it.
Throughout the pandemic, the government of Canada was there to support small businesses with wage and rent support and access to liquidity. This meant that businesses survived the pandemic and provided the foundation for a recovery whereby Canada has recovered 117% of the jobs that were there prepandemic.
Canadians are increasingly moving away from using cash to pay for goods and services in favour of credit cards. This is something that very much happened over the course of the pandemic, but in doing so they are subject to credit card swipe fees, which are impacting businesses, particularly small businesses.
Small businesses do not want to pass this cost along to customers, especially at this time. To help these businesses and lower the cost of goods for all Canadians, we are proposing legislation to ensure that credit card companies reduce swipe fees.
We know that the elevated cost of housing is impacting all Canadians. As I mentioned, we are providing a $500 top-up to the Canada housing benefit. To tackle speculation in the market, beginning next year, we are also going to be bringing in a two-year ban on foreign buying of real estate, including a 1% tax on non-resident-owned, unused housing. As of May, we are also taxing property assignments.
In the FES, we are going to be helping first-time homebuyers get into the market with a tax-free home savings account of up to $40,000, the details of which will be forthcoming, as well as the first-time homebuyers tax credit.
At the same time, we are providing a new tax credit for owners who build a secondary suite for senior family members or those living with a disability, as well as bringing in a new tax on property-flipping.
The aforementioned measures will help all Canadians right now, but we know the world is not static. While the war in Ukraine has caused inflation and a short-term hike in the demand for fossil fuels, it has also accelerated the transition to cleaner energy as nations seek to end their dependence on fossil fuels and achieve energy security, as well as tackling climate change.
Nowhere is this inevitability of the transition away from fossil fuels more obvious than in what is happening south of the border with the Inflation Reduction Act. This act is aptly named because, contrary to what the leader of the official opposition believes, we do not opt out of inflation by investing in crypto, which of course has crashed by 61% this year. We opt out of inflation by reducing reliance on the roller coaster of fossil fuel prices.
The IRA offers enormous financial supports for firms that locate their production in the United States and creates generous tax credits to industries like renewable energy development and hydrogen production, and incentives for North American-made electric vehicles to power the transition. While, on a per capita basis, the U.S. investment of almost $370 billion pales in comparison to the $100 billion investment that we have made in Canada, Canada needs to respond to secure its competitive advantage and to secure investment and jobs, or risk being left behind.
On the fight against climate change alone and to build a net-zero economy by 2050, Canada will need to invest between $125 billion and $140 billion every year over that period. Total annual investment in the climate transition to date is about $15 billion to $25 billion, so no government can close this gap alone.
We need to mobilize private capital to invest in Canada's green transition and the clean economy, and while companies and investors are aware of opportunities to commercialize and deploy emissions reduction technologies, they are often restrained due to investment risks that are frequently associated with these investment opportunities.
That is why, through the fall economic statement, or FES, we are launching the Canada growth fund. This is a $15-billion facility that will help attract billions of dollars in new private capital to create good-paying jobs and support Canada's economic transformation towards a low-carbon future. The fund will aim to leverage private capital at a rate of at least three to one and respond to measures that international competitors are bringing in.
To supplement the Canada growth fund, the FES also proposes a refundable tax credit equal to 30% of the capital cost of investments in renewable energy, electricity storage, heat pumps, zero-emission vehicles, refuelling equipment and more. This will greatly assist with the electrification of our economy, which we will need to do to reduce our emissions.
However, there are parts of our economy that cannot be practically electrified, and that is where solutions like hydrogen become key, such as in freight transportation, air travel and shipping. To support the growth of this sector, the FES also announced that we will be introducing an investment tax credit for clean hydrogen, to ensure this critical clean energy source is developed here in Canada.
What is notable about all these measures is that we have geared the full extent of the tax credit only to those companies that follow proper labour practices and create well-paying jobs, which is key. However, to ensure that workers are ready for these jobs, the FES will also proceed with a $250-million investment to create a sustainable jobs training centre to help 1,500 workers upgrade or gain new skills for jobs in the low-carbon economy, and a union training and innovation program to support 20,000 union-based apprenticeship training opportunities in the skilled trades.
I see that my time is running out, which means I will not be able to discuss things like the additional $1.6 billion that will go towards delivering on our immigration levels plan, or the new tax that we are going to be bringing in on share buybacks to ensure that corporations, many of which are making record profits this year, invest in Canada rather than simply buying back their shares.
The FES shows that we are not only taking a responsible fiscal path but also being compassionate to those who are most impacted by inflation, through supports for students, low-income workers and small businesses. Importantly, it will also allow Canada to be competitive in the race for investment in the green economy, which will provide long-term prosperity and jobs for our country.
While we are navigating turbulent times at the moment, there is no country that is better positioned to thrive over time, and that is why I encourage all members of the House to support this legislation.
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Mr. Speaker, I am here to talk about the fall economic statement, which was presented last week.
For the past seven long years, the Liberals, with the shameful complicity of the NDP, have succeeded in breaking the spirit and morale of Canadians by making them poorer than they have ever been in the history of our country. When asked if I would like to share my thoughts on the fall economic statement, I did not think twice.
As members of Parliament, we are well positioned to see what is actually happening on the ground, and I wonder why the members opposite do not see how people are suffering, as we do on our side. When the Minister of Finance says that cancelling a Disney+ subscription is a good option to reduce the debt burden and make ends meet at the end of the month, it is clear that the Liberals are totally out of touch with reality.
I will give some examples. When the Liberals came to power in 2015, a litre of gas cost $1. Now, on average, it costs $1.67. This does not even take into account the increases that are expected in the new year, when this Prime Minister raises the carbon tax for a third time.
In 2015, the average price of a house in Canada was close to $300,000. Today, the average price of a house is over $746,000. This is 40% more expensive than in the United States. The Prime Minister has said he does not think about monetary policy all that much, and I have a feeling the Minister of Finance does not either. The economic update released by the Liberal-NDP coalition does not address the cost of living crisis created by government spending, which is out of control. The Prime Minister's inflationary deficits have driven up the price of groceries, gas and home heating. Canadians have never paid more in taxes than under this Prime Minister.
To reduce the cost of living in Canada, the Conservatives had two clear requirements. It was not complicated. First, we implored the government to not create any new taxes. We asked it to cancel all planned tax hikes and to not triple the carbon tax. Second, we warned the Liberals that they had to stop all new spending or ensure that any new spending was matched dollar for dollar in savings. In other words, to spend a dollar, they would have to save a dollar. What was so complicated about the Conservative Party's requests for this economic update? Nothing, it was just common sense.
I cannot show the document that I have with me, but we saw in this economic update that none of the Conservative Party's demands were met. For that reason, we cannot support this inflationary update.
The Liberals claim that they had no other choice than to double the debt. They have accumulated more debt than all previous prime ministers combined. Let us recall the 2015 election campaign. The Prime Minister, who was then the leader of the Liberal Party, said that the Liberals would have a small deficit of $10 billion the first year in office and another the second year. After that, they would balance the budget. They promised to make massive investments in the country's infrastructure.
It was a good marketing strategy. They promised to run up a deficit to invest money, and people thought that it might not be such a crazy idea. We all saw what happened. After their first four years in office, they had accumulated $100 billion in additional debt and no major infrastructure project had gotten off the ground in Canada. We fell for it from the beginning.
Then, the Prime Minister tried to make us believe that all of the spending in the past two years was related to the pandemic. However, today, we know that 40% of the new measures were not. We are talking about $205 billion. The Parliamentary Budget Officer did a study that showed that $300 billion of the $500 billion was used to implement pandemic-related measures. There again, we could look into all of that spending because there was no reason for some of it. Regardless, we know that, according to the Parliamentary Budget Officer's assessment, $205 billion in spending had nothing to do with the pandemic. What is worse, we do not know what that money was used for. Half a trillion dollars was spent in two years on top of the government's usual spending.
How did we get into this mess? The inflation rate is so insanely high that interest rates had to be pushed up to control it. Meanwhile, ordinary people are being bled dry.
Additional costs are related to things such as houses and mortgages. People with variable mortgages get hit first. Every time the interest rate rises, their mortgage interest rate goes up. The principal does not change, but the interest rate jumps.
People who have to renew their mortgage these days will have to pay an average of $7,000 more in interest per year for an average family. That is a chunk of change.
Our friends across the way used to love talking about how they were working for the middle class and the people who wanted to be part of it. What we have seen in recent years is the opposite of that. They have made the middle class poorer, not richer, and people are ending up in financial trouble.
The Bank of Canada announced that it had no choice but to raise the interest rate in an attempt to fight inflation driven by inflationary measures. That will make things even worse for people.
There was nothing in the fall economic update suggesting the government plans to do anything to keep all that under control. The only thing on the agenda is taxes, taxes and more taxes. We have been talking about the carbon tax for two months now.
Yesterday, I was pleased to see a report by the Canadian Federation of Independent Business, which polled businesses across the country. One of the main conclusions is that the businesses confirm that the carbon tax is a major problem for transportation. All the costs associated with that are causing prices to go up and the consumer is left paying the bill. The CFIB is asking on behalf of its members to not increase the carbon tax. The Conservative Party is not making this up. Businesses across the country are saying that this absurd and that it needs to stop.
I am not even talking about food banks. Last month, there were 1.5 million visits to the country's food banks in just one month. That is a record number of food bank visits in the history of Canada.
I have endless examples, but the main thing I want people to remember from my remarks today is that ultimately, this economic update, which is about 100 pages long, simply repeats measures that were voted on last fall. There is nothing really new here. The Conservative Party's simple demands, which we know were backed by the Canadian Federation of Independent Business, were not considered. Furthermore, the Parliamentary Budget Officer's assessments confirm what we are saying.
We are not making things up just so we can make speeches and blather on. We are stating economic realities that are easy to understand. Canadians who have to pay the bills at the end of the month understand this full well. They look to their government, which does not seem to get it. People are looking to their MPs and asking them what is going on and what they can do to help the economy make a smart recovery. That is our job.
The Conservatives are in opposition for now, but not for very long. We do not know how much longer we will be in opposition, but as long as we are, we will make sure Canadians know we are asking the right questions and making the right recommendations to the government to build a good, strong economy so that people can get up in the morning feeling happy to go to work and knowing they have enough money to treat themselves once in a while, not wondering if they will have enough money to pay the bills at the end of the month even though they have a job.
There was nothing new in the fall economic update. Nothing has changed, and that is very disappointing.
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Madam Speaker, I am pleased to rise in the House on behalf of the residents of Brampton South in favour of the fall economic statement, as tabled by the Deputy Prime Minister and Minister of Finance.
The past two years have been challenging for residents in Brampton and for all Canadians. We worked together and Canadians rolled up their sleeves to fight the COVID-19 pandemic, and now the government is focused on supporting Canadians who need it while ensuring inclusive economic growth.
As the Deputy Prime Minister said, this is about building an economy that works for everyone from coast to coast to coast. It is a plan that will set Canada up for success and it is a plan that is balanced, targeted and responsible.
Already, as a country, we have the lowest deficit and the lowest debt-to-GDP ratio in the G7, as well as an AAA credit rating. Our economic engine in Canada is strong, but there are challenges on the horizon due to global inflation. This is why we need to take targeted steps. When I talk with parents, families, seniors and youth in my riding, I hear they are grateful that this government is taking targeted action to make sure Canadians in all our communities are supported.
The programs announced in this fall economic statement add to the series of recent announcements over the past months. These supports have already been reaching Canadians, and I want to begin with some perspective that leads us to where we are today. Recently, I was speaking with a single senior who lives in downtown Brampton. She told me about how impactful the increase to the old age security pension has been, as it is giving her greater peace of mind. I met her at an art class supported by the federal government. She also told me that she is looking forward to the eventual rollout of the dental care program, which will cover Canadians who need it.
On that point, I have served proudly on the health committee since 2015. Over the years, we have heard about the importance of dental care. We know many families do not have the means to send their kids to a dentist. In committee, we heard about how 2.2 million school days are missed by children every year because of emergency dental care. This is a smart investment from the federal government that will save thousands of dollars through prevention per patient and will help make sure our kids do not need to endure emergency surgeries.
The actions in the fall economic statement are informed by things we are already seeing on the ground. I also hear about the need for more affordable housing supply, and I am glad this government is recognizing this. Housing density in Brampton is high, with more than 26% of households having five or more people under one roof. In other words, according to the 2021 census, we have hundreds of multi-generational homes in our community. We need to respect and support the choice of families to live together.
The fall economic statement introduces a multi-generational home renovation tax credit. It would provide up to $7,500 in support for constructing a secondary unit for a family member who is a senior or an adult with a disability, starting in January 2023. I know $7,500 will make a big difference for families in Brampton who want to have a grandparent or family member live with them.
This government is also advancing the age well at home initiative, which will help seniors stay in their homes for as long as possible, providing practical assistance for everyday tasks.
Brampton is growing, and we have great economic opportunities, but we need more affordable housing options and an increased supply. I was very grateful to see the launch of the third round of the rapid housing initiative, which will be allocated in Peel. This is in addition to the largest investment ever made for housing in the region of Peel, in 2020, of more than $276 million. It means more affordable units in a region that is experiencing a high demand for new housing. In addition to large systemic investments to our regions and cities, we are also giving tools to Canadian families.
The fall economic statement would also implement the new tax-free first home savings account, which would allow Canadians under 40 to not only save up $40,000 toward their first home, but also withdraw it tax-free. For those most impacted and with income under $35,000, a one-time top-up to the Canada housing benefit program will roll out soon.
This government has made it a priority to make life more affordable by also reducing long-term inflationary pressures. I want to highlight the impact that our policies have been on young families. We see across the country how impactful our investments in child care have been. In some provinces, parents have already seen a decrease of 25% in their fees, and by the end of the year, they will see another 25% decrease, fulfilling our commitment to cut child care fees in half as we work toward $10-per-day child care by 2025. It is saving parents money and also giving them the chance to step into the workforce.
Building on that success, the fall economic statement introduces new measures for recent Canadian graduates. I recently spoke with a university graduate from my youth council who was born and raised in Brampton and who has accessed federal loans. This has already been a beneficial program, but we know Canadian students need additional support. That is why this government is making it easier for students to start their careers without the burden of federal student loan interest.
The fall economic statement includes a commitment to permanently eliminate the federal interest on Canada student loans and Canada apprentice loans. This will benefit over one million student loan borrowers and save an average borrower more than $3,000 over the lifetime of their loan. This will make a real difference to support young Canadians and is a great step in addition to increasing the loan repayment threshold from $25,000 to $40,000. I often say that young people are our leaders of today, and we need to make sure they are set up on the path to excel in their bright futures.
Immigration is also a key way to create a strong foundation for economic growth. I was pleased to see new investments for Immigration, Refugees and Citizenship Canada that will address backlogs and speed up the processing of applications. These applicants will help fill labour shortages in crucial areas such as health care, manufacturing and the trades. This comes with a much-needed $1.6 billion over six years and $315 million in new, ongoing funding, as well as $50 million to make sure that the department has the resources it needs to facilitate efficient processing.
This government recognizes the importance of attracting newcomers to rural and northern communities to address specific labour shortages in some provinces while providing additional much-needed support to communities with diverse populations such as Brampton. Families in Brampton waiting for their relatives applications to be processed will be pleased with our significant investments to reduce wait times and improve file processing.
Another important measure will be the creation of a new quarterly Canada workers benefit with automatic advance payments. This will be in the form of a refundable tax credit that tops up the earnings of low- and modest-income workers. It will put up to $2,400 in the pockets of low-income families. This will reward and encourage workers for doing essential jobs.
As we know, the backbone of a strong economy is made up of our small and medium-sized businesses. I received an email from a local grocery store earlier this summer that told me that the majority of the payments it processes are digital, with debit or credit cards, and it wants to continue to offer excellent services to its customers. It is a relief for it to hear the fall economic statement will advance efforts to lower credit card transaction fees for small and medium-sized businesses. This is something we have to do for small business owners. They were hit hard by COVID-19.
Finally, this past summer, when the Deputy Prime Minister visited Brampton to meet with workers in the trucking industry, we heard the concerns of some employees about their employment status. Last week the Minister of Labour was in the GTA to update industry members and highlight investments in the fall economic statement that will make sure employees can access their rights and what they are entitled to.
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Madam Speaker, it is always a pleasure to stand up and provide comment on the issue of agriculture, but there are really two issues that I would like to address in this legislation. One is the issue of trade and the other is the issue of supply management, which is more directly related to the legislation itself.
First of all, we need to recognize that Canada is a trading nation. We depend very much on trading. We have the world's best products from coast to coast to coast. We need to be able to export our widgets, our commodities and our resources. It generates a phenomenal amount of wealth for our country. It is one of the reasons that Canada is, I would ultimately argue, the best country in the world in which to live.
We can do that because over the years we have set a path that allows us to have what we have today: good, solid trade relations with countries around the world. We need not only to maintain those connections but we also should be looking at ways to expand them.
In the last six or seven years, we have signed off on more trade agreements with countries than any other government in the history of Canada. We understand the way in which we can have an economy that works for all Canadians is to secure, as much as possible, our trade links. Whether it is with the United States and Mexico or many countries in Asia or in Europe, having those agreements signed off is in Canada's best interest. We need that trade. As I say, we are a trading nation.
Recognizing agriculture and its significance is something that is not lost on us. We have recognized that for generations. In fact, it was a Liberal government that brought in supply management.
It has been Liberals that have consistently stood up and talked about the advantages of supply management. Not only are there advantages for the province of Quebec and my home province of Manitoba, but every region of the country benefits. Our agricultural community in certain sectors has come together and provided the best quality milk products, for example, through dairy supply management.
Just the other day I was entertaining some members from the umbrella organization, Chicken Farmers of Canada. We were talking about the production of chickens in the province of Manitoba in particular.
I have had the opportunity to visit a hatchery. A hatchery can tell us within a couple of hours how 10,000 eggs are going to hatch and how those hatchlings will go from that particular plant to a chicken farm, where they will be placed into a barn. They might sit there for 28 days, which I think is what KFC is, to some 40 days.
I love chicken. I would argue that if people want good chicken, they should come to Canada. That is where the best chicken in the world is.
I have seen the process first-hand, from the hatchery to where the chickens grow, to where they are actually processed. In the province of Manitoba, thousands of chickens are being processed in a day.
An hon. member: Bawk, bawk, bawk.
Mr. Kevin Lamoureux: There are some chickens across the way, I would suggest.
That is a very important industry, as other supply-managed areas are. It provides assurances in terms of quality. That is why I can say with confidence the type of quality product that Canada has that we are able to supply to Canadians in our grocery stores and even, in some situations, in a more direct fashion. I have also had the opportunity to visit dairy farms.
There is a high level of interest in how we as parliamentarians can ensure that quality products remain available for our consumers. We are very much concerned about food security and the role that supply management plays in food security, but we also recognize the true value of those trade agreements. In listening to the Bloc members, one might question whether and to what degree they even support trade agreements. It is almost as if they believe that a trade agreement is as simple as saying, “Here is what we want; sign here,” to another country.
Just last week I was in the Philippines and I met with one of our trade commissioners. I would love to see a bilateral trade agreement between Canada and the Philippines. Agriculture is important. I know that. President Marcos has actually taken on the portfolio of agriculture, much as I know agriculture is so critically important to our Minister of Agriculture and to our Prime Minister. In any sort of negotiations that have taken place, we always and consistently have been there to protect the interest of supply management, without exception and in every agreement. As I said, no government has signed more agreements on trade with individual countries, and that would include the 28 plus in our European Union agreement, as this government has, and supply management is always taken into consideration.
I guess I am a bit more optimistic than are members from the Bloc. However, I am optimistic knowing full well that it is in our farming communities' best interest that we continue to look at trade opportunities. I will cite the pork industry. In Neepawa, Manitoba, there is a plant that employs hundreds of people through HyLife. I would not be surprised if it was even close to 1,000 or maybe even a bit more than 1,000. Members can talk to the community of Neepawa, a town that is thriving today because, in good part, of the pork industry. There is no supply management there, but the pork that the company is exporting is going overseas, to Asia. That production has increased over the last number of years, and we are receiving the benefits in tangible jobs, whether on the farm or in the processing plants. Those jobs are contributing to the buying of real estate and vehicles, providing all sorts of supports to our communities, and the product is actually sold in Asia.
That is why I say, as an example, that trade is absolutely critical to Canada, as is supply management. What the Bloc members have failed to demonstrate is how this government has missed on the issue of protecting Canada's supply management, because the numbers have actually gone up overall. That is the case.
I would like to think that as a government we should continue to look at ways in which we can secure markets, because that is one of the ways we can support Canada's middle class and make sure we have an economy that works for all Canadians and allows us to be able to provide the type of social programming that Canadians want to see in all regions of our country.
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- Nov/16/22 7:09:23 p.m.
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Madam Speaker, let me outline some of the measures that we are taking to address supports for restaurants and the tourism industry and in terms of addressing the inflation that is affecting all Canadians, including people outside Canada. It is, indeed, a global phenomenon.
We know that Canadians and Canadian businesses, along with those in countries around the world, are dealing with inflationary pressures and increasing interest rates. Things like high oil prices and global supply chain disruptions are leading to a scarcity of goods and to rising prices. Those are a serious concern for the member who raised this question, and they are a serious concern for the government.
We also understand the important role that restaurants play in communities from coast to coast to coast. In fact, we were there to support them through the pandemic and provided direct support to the hospitality and tourism industry. During the past two and a half years, our government introduced financial support for employees' wages, subsidies for rent, and loans to provide liquidity relief to ensure businesses' survival through the recovery period.
We took those actions because small businesses are indeed the heart of Canadian communities and the engine of Canada's economy. This was highlighted by the member for Spadina—Fort York. Small businesses contribute 55% of Canada's GDP and employ 10.8 million Canadians across the country. That is an astounding number, and that is why they deserve our support.
What budget 2022 outlined was a range of incentives to help small businesses remain strong through the economic uncertainty that was highlighted by the member who raised this question. We have cut the small business tax rate from 11% to 9%, which is essential to support businesses coming out of the pandemic. We are working to deliver lower credit card fees to reduce this burden on small businesses. We have stated quite clearly in the fall economic statement that if a negotiated solution is not reached, we will table legislation to regulate that sector and regulate those fees. We have also enhanced the small business financing program by increasing annual financing to small businesses by an estimated annual $560 million, helping businesses and their owners access liquidity for start-up costs and intangible assets.
Tourism is very vibrant in the riding of Spadina—Fort York. I know this quite well as the member for the riding just adjacent to Spadina—Fort York. We know that virtually all tourism businesses are small businesses themselves, and those tourism businesses employ two million people across this country. Hospitality and tourism is an inclusive industry that provides jobs and opportunities to newcomers, women, youth and indigenous people. These are specific groups that have experienced some of the worst impacts of the global pandemic.
We have been supporting these businesses in their efforts to strive for even greater inclusivity, with things like the women entrepreneurship program, the Black entrepreneurship program, and targeted supports for indigenous businesses. Returning to budget 2022, we outlined a proposal for $20 million over two years to support a new indigenous tourism fund to help indigenous tourism recover from the pandemic and position itself for long-term sustainable growth.
We also announced a commitment to develop a new federal tourism growth strategy focused on recovery and civility and growth in the long term. To further spur the recovery, jobs and growth of small businesses, we have launched the Canada digital adoption program. CDAP is a $4-billion program that will help restaurants grow their online presence and boost online ordering. These are targeted supports to help the small businesses that the member for Spadina—Fort York is outlining.
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