44th Parl. 1st Sess.
November 18, 2022 10:00AM
Madam Speaker, the reality is that the government needs to look at the impact of all of its policies on consumers, who are facing 10%-plus food inflation and 6% to 7% on a monthly basis on all other costs of living. The impact of that on our most vulnerable is what concerns the members on this side of the House.
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Madam Speaker, my hon. colleague talked about programs to assist university students getting into their careers. University students I speak to in my riding are very concerned about the evaporating dream of home ownership. I know the member will probably mention the first home savings account, which would allow them to save up to $40,000. I will point out that, at the rate of inflation, this is about one year's worth of inflation on housing.
What will the government do to tackle inflation, which is the real problem students are facing?
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Madam Speaker, I appreciate that housing is a critical feature. It is a critical feature in the province of British Columbia, as it is in my province of Ontario. What we are doing, as I mentioned, are things such as the first-time home buyers' tax credit and the tax-free first home savings account. We have already initiated a national housing strategy. We campaigned in the 2020 election on more housing starts, and we are working co-operatively with many provinces, including my own, to build more housing. I also point to the rapid housing initiative, which has been very targeted in building more housing faster.
In terms of inflation, I hope every member of the chamber appreciates the inflationary pressures Canada is facing are not unique to Canada alone. They are being faced by all of our G7 allies, indeed by all of our allies around the planet. In fact, comparatively, Canada's rate of inflation is lower than the United States and all of our G7 allies, which is an important feature for this debate.
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Madam Speaker, I thank the parliamentary secretary for his speech. He just went over the whole inflation problem.
The word “inflation” appears in the fall economic update 108 times. We know that in contrast to the previous budget, there are no new measures. It is just a rehash. It uses different rhetoric to justify the same measures.
The government is rightly concerned that a recession could hit this winter. As far as the recession is concerned, the Bloc Québécois is asking for employment insurance to be reformed as soon as possible so it is ready to go. The government was supposed to have it in place for last summer, but the system still has not been reformed. We would not want to have to create a CERB 2.0 to limit the damage and make up for a failing EI system.
Why was this reform not included in Bill C‑32?
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Madam Speaker, I thank the member for Joliette for his question and his interest in this very important issue.
Regarding inflation, I mentioned in my speech that all the programs, roughly six of them, are indexed to inflation. In other words, if inflation goes up, the government benefits will also go up.
As far as EI is concerned, that is a very specific issue. Members can see from the mandate letter that the Prime Minister wrote to the minister responsible for this file that we are here to resolve the situation in consultation with all the provinces. We will always be there for employers and workers.
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Madam Speaker, I am honoured by the opportunity to rise again today and speak to a government bill, Bill C-32, in regard to the fall economic statement. The member for Winnipeg North believes it is a good bill. Unfortunately, I cannot really say the same, and I am going to get into that here with my remarks.
Obviously, it is an important discussion we are having today, with the cost of living crisis that is facing Canadians across the country. We are feeling that in the Kenora riding in northern Ontario, and we know we are seeing it across the country, but unfortunately, the government's economic statement is really just more of the same policies we have seen over the last number of years from the government. It is more of the same policies that have driven up inflation in the first place and have really created and exacerbated this cost of living crisis people are facing.
In the lead-up to the economic statement, Conservatives called for the same things we have been calling for for quite some time. It will probably not surprise members to know what we were calling for; we were calling for no new spending and no new taxes. We know the government's spending has driven up inflation. The PBO has told us that and independent economists have told us that, and that is the real cause and the reason we are here today and Canadians are facing the concerns they are.
Conservatives believe that every new dollar of spending should be matched by a dollar of savings. It is a very simple principle, something that most people would use in their own households and with their own pocketbooks, that if we are going to spend more money on one thing, we should find savings elsewhere. Unfortunately, that is not what we saw from the government, and it has brought forward a plan that is really just going to add more fuel to the inflationary fire.
Of course, the second thing we have called for, as I mentioned earlier, is no new taxes, because Canadians are really feeling the squeeze right now. The cost of everything is going up, and the government's additional taxes and the increases in the taxes, including the tripling of the carbon tax, are not going to make that any better. Canadians are looking for relief, and Conservatives are here fighting for that relief and calling on the government to do the same.
We know half of Canadians are $200 away from insolvency right now, and that is a very stark and striking statistic that shows the real issues and challenges people are facing. I want to share some concerns constituents have brought and sent to me. One comes from a constituent of mine in Pickle Lake, which is the northernmost municipality in Ontario and is in my riding. This constituent says, “Costs are rising at an alarming rate, and living in a remote community makes it even more so. With gas prices and the cost of heating fuel continually on the rise, it makes it hard to make ends meet.” That is just one of the many concerns in letters and emails I know I have been getting and I think all of us in the House have been getting from our own respective communities, highlighting how difficulty it is for people to get by.
Inflation is impacting gas, groceries and home heating, perhaps the most. These are three essential things that Canadians need. In fact, when it comes to gas prices, far too often in northwestern Ontario we see some of the highest gas prices in the country. I want to share a quick excerpt from a Kenora Online news article from September of this year. The headline is “Kenora has the most expensive gas in Ontario, again”.
This is something we see over and over again, that the Kenora district has the highest gas prices in the province of Ontario. Of course, being in a remote northern area, the issues of the added cost of the carbon tax hit us so much more than they would in areas like Toronto, Ottawa and across southern Ontario. This specific article notes that Kenora had the “14th most expensive fuel in Canada, behind [only] 13 communities from British Columbia”. I think that highlights, at the time of writing, just how challenging the fuel prices are.
Gas is essential in the Kenora district. People need it, not only to go to work or get groceries, but often to travel multiple hours to medical appointments. It is really something that is perhaps taken for granted for those in southern Ontario and in the larger urban centres, who have public transit and many more options and services close to home. People need to use fuel to travel long distances in the remote north, and that is something that definitely makes everything more complicated for people in the Kenora riding and across northern Ontario.
I also want to share a couple more letters that I received from constituents about that. Wendy from Red Lake reached out to say that the prices of gas, food and electricity are all making it difficult for seniors to remain in our area as well. Tina from Dryden is a single mother of three. She says that she is forced to work two jobs to support her children, and more often than not it has become easier to eat takeout, which of course is super unhealthy, so she is very concerned about that.
This all goes back to the taxes and the inflationary spending policies of the government. It is not just gas. As I mentioned, it is groceries and home heating that are getting hit as well.
When it comes to groceries, we are seeing record food bank usage across the country. It is at an all-time high. There have been 1.5 million visits in one month to food banks in Canada. I have heard a lot about that as well from constituents.
Another individual, from Sioux Lookout, reached out to me saying that the cost of food has become so unaffordable, especially the healthy, nutritious food that is essential for her children. She is very concerned about how that is going to be impacting her. I have had a couple from Minaki reach out, saying they are both pensioners on a fixed income. They are facing a choice between eating properly or being able to stay warm this winter. That is the crisis they are facing in the Kenora riding.
I just want to share one more, from a constituent who wrote in saying that if we look at the prices in Ear Falls, a carton of milk right now costs $8.39, and a single head of lettuce is $7.99. It has become almost impossible for people to afford to put food on the table, specifically healthy food.
With the coming winter months, with the colder weather, we know home heating is something a lot of people are very concerned about. It is not a luxury in northern Ontario. It is essential. Richard from Kenora has written to me to share that his natural gas has jumped from 11¢ a cubic metre to 30¢ a cubic metre, nearly tripling in price as a result of the government's policies. He is very concerned about how he is going to be able to afford to heat his home.
What is the answer? Luckily, a constituent wrote to me to tell me what the answer is. Faith from Kenora simply says, “Eric, the carbon tax needs to go.” I could not agree more. She is obviously feeling the squeeze as well.
The concern I have, and I know all of us on this side of the House have this concern, is that when the government is faced with this crisis, its only answer is to spend more money and continue with the same inflationary policies that have really gotten us into this mess in the first place. There is no question that the Liberals like to judge their results based on how much money they can spend. If we ask a question about anything in the House, they say they have spent all this money and they are doing a great job.
On this side of the House, we are looking at the results. When we have record food bank usage across the country, when people are struggling to put food on the table and when those in remote northern communities are struggling to get by, it is clear that these policies are not working.
We are simply asking the government to rethink its approach, to stop its inflationary spending and to look at cutting taxes on struggling Canadians who are looking only for relief. That is why, as I mentioned earlier, I will not be supporting the fall economic statement. That is why I am concerned with the economic direction of the government. I look forward to any questions and comments from my colleagues on that.
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Madam Speaker, the Conservatives tend to focus on correlation rather than causation, so they will say there is a Liberal government in Ottawa and there is global inflation, including bad inflation in England, and therefore it is the Liberal government's fault. However, that is not how economics works. We have to look at causation.
I would like to understand a bit more the member's logic about food inflation. Is it demand-caused inflation? People can only consume so much food, and food demand goes up with population growth. It is not a function of how much the government spent on infrastructure last month. Therefore, is it demand driven or is it supply-cost driven? The price on carbon did not triple; it went up by 2.2¢ per litre last April. I am just wondering how that 2.2¢ per-litre increase can be contributing to so much food inflation, which is running above 10%.
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Madam Speaker, that is another out-of-touch comment from the Liberal government. The Liberals simply seem to believe that prices are skyrocketing and they are just victims of it and have absolutely no responsibility here. The Parliamentary Budget Officer has indicated that it is the government's inflationary spending that is the cause of inflation. Future Liberal leader Mark Carney has said so, as have other leading economists across the country. There are certainly other challenges that we are facing, but there is no denying that when the government spends more, it adds to inflation, and when it taxes more, it makes things more expensive for Canadians. Why will the Liberals not understand that?
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Madam Speaker, we have listened to our Conservative friends talk about inflation and January's tax increase, but we cannot take their “triple, triple, triple” chant any more. We would like them to find something new to say. However, they are right that costs will triple and that that will have consequences for people. That much is true.
Let us talk about climate change. The current carbon tax rate is pretty much ineffective. We are the laughingstock of COP27. Canada is ranked 58th out of 60 countries. It is the only G7 country where emissions have increased since 2015, the year the Liberals came to power. We have to take action on climate change.
At COP27, we heard that if we do nothing, the cost to African nations in particular will be atrocious. If we do not pay now, we will pay even more later.
What is the solution, according to my Conservative friends?
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Madam Speaker, I want to follow up on the question from the hon. member for Lac-Saint-Louis to the member for Kenora, because a really critical point is understanding that what we are experiencing now is not typical inflation. Real costs have really gone up.
I was recently talking to a farmer in Alberta who had real drought that meant that he could get a yield of only about half the barley he would normally get, but on balance the year was good because the war in Ukraine is so caught up in the cost of barley that the prices have soared, so half as much barley yielded more profit.
This is complicated stuff, and it is not about one thing only. It is a bit about demand-driven inflation, but it is a lot about supply-driven inflation, which means that the tools are not as easily described as government spending too much money. I wonder if the member has any thoughts on that.
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Madam Speaker, as I said in an earlier response to a Liberal member's question, there are many aspects that are impacting a lot of the challenges we are seeing here in the country, but there is no denying the fact that, as the PBO pointed out, as Mark Carney has pointed out and as many economists across the country have pointed out, when the government spends more it makes life more unaffordable for Canadians; it drives up inflation.
The member for Saanich—Gulf Islands says that this is very complicated, but it is not complicated for people in northern Ontario who are just struggling to put food on the table and to fill their gas tanks, and who are worried about heating their homes. They know the government's spending is driving it. They know they cannot afford any more tax hikes, and that is why they are looking for relief from the Liberals.
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- Nov/18/22 11:16:59 a.m.
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Madam Speaker, inflation is the most universal tax of all. It is a means for the Liberal government to raise taxes on everyone without having to raise a single tax rate. It is the most regressive tax, because those who can least afford to pay end up paying the most when the costs of essentials like gas, home heating and groceries go up.
Under the Liberal government, Canada has raised inflation to 40-year highs, and that is just inflation. They are also tripling the carbon tax on gas, home heating and groceries. The Liberals have refused to embrace the solution by cutting their reckless spending. That leaves the Bank of Canada to impose its draconian interest rate increases, which are making Canadians' mortgage payments unaffordable.
We have gone from the middle class and those working hard to join it to the middle class and those barely staying in it.
When millions of Canadians need to access the food bank, it shows there is something seriously wrong with the Liberal government's policies.
It is time for the Liberals to take responsibility for their failures, because it is not just inflation, it is Liberal ideology.
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- Nov/18/22 11:30:13 a.m.
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Madam Speaker, the Liberal government offers Canadians more debt, more taxes, more spending, more inflation and higher interest rates.
Its out-of-control spending added $100 billion in debt before COVID, plus $205 billion in non-COVID debt that triggered an inflation crisis, which leaves Canadians unable to afford basic necessities.
When will the Liberals end their inflationary spending and cancel their plan to triple the tax on gas, groceries and home heating?
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- Nov/18/22 11:31:30 a.m.
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Madam Speaker, that answer is cold comfort to the millions of Canadian families that are going to struggle to heat their homes this winter.
The Liberals said that inflation was transitory and that interest rates would never go up. Now interest rates and mortgage payments are through the roof, and millions of Canadians are going to struggle to make their payments. The Liberals are also going to raise the payroll tax. Canadians cannot pay higher mortgage payments and a higher carbon tax with a smaller paycheque.
When will the Liberals cancel these tax increases and the inflationary spending?
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- Nov/18/22 11:32:07 a.m.
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Madam Speaker, I think the Conservatives should be a little cautious about purporting to offer advice on handling inflation to Canadians. After all, it was their leader who advised Canadians to invest in crypto as a way of opting out of inflation. Had Canadians done that, they would have lost 65% of their savings or been totally wiped out. I hope the Conservatives will apologize to Canadians for that reckless advice.
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- Nov/18/22 11:32:45 a.m.
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Madam Speaker, this is from the woman who said that we would have deflation and interest rates would remain low for decades. The highest inflation in 40 years means Canadians cannot pay their bills, yet this costly coalition continues their out-of-control tax-and-spend agenda.
Will the Liberals have some compassion, end their inflationary spending and cut their plan to triple taxes on gas, home heating and groceries?
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- Nov/18/22 11:33:19 a.m.
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Madam Speaker, we learned this week that inflation in Canada had been stable or fallen for four months in a row. That is good news.
We also recognize that we need to take a fiscally responsible approach. I discussed that in a previous answer. We know Canadians need compassion too. That is why we are really glad to be able to send cheques for $500 to families who need it. We are glad to finally be able to say in Canada families are not going to have to choose between buying groceries and taking their kids to the dentist.
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- Nov/18/22 11:34:28 a.m.
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Madam Speaker, our government will take no lessons from the Conservatives when it comes to supporting the most vulnerable Canadians.
It is our government that introduced the CCB. That is a policy that is indexed to inflation. It has lifted two million Canadians, including 450,000 Canadian children, out of poverty. That is good, important policy all Canadians can be proud of. The GIS, also indexed to inflation, is helping 900,000 Canadian seniors.
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- Nov/18/22 11:35:07 a.m.
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Madam Speaker, people are skipping meals and going hungry because they can no longer make ends meet.
It sounds like I am talking about people somewhere else in the world but no, I am talking about Canadians, people in Canada, in a G7 country. Every month, 671,000 Quebeckers, a third of whom are children, use food banks. The reasons are obvious: inflation and rising food prices.
Will this government stop impoverishing Canadian families and promise them that it will not raise taxes?
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- Nov/18/22 11:52:41 a.m.
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Madam Speaker, Liberal inflation is having a disturbing impact on vulnerable pregnant women who are food insecure.
According to Fondation Olo, which provides food specifically to those pregnant women, they choose to go without themselves so they can feed their other children. Why is this happening? Because food has become unaffordable. Ultimately, they are being asked to choose between their unborn baby and the child at the table.
Will the government commit to helping these mothers and cancelling the tax hikes?
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